Company succession

The handover of an own company or company share is frequently one of the most important tasks in the life of a company owner. According to the estimates of the Bonn research institute for German medium-sized companies, in Germany every year up to 2018 roughly 27,000 owners of medium-sized companies will have to make succession arrangements. The design of the appropriate succession concept for family-owned companies is a very complex and multidisciplinary exercise. Each case of the company succession is an individual case with special circumstances.

 
In order to prevent a shortage of liquidity or splitting of the company brought about by a death, the company owner should take certain precautions. The will of the entrepreneur is the foundation for the succession concept. In addition, in the course of an anticipated inheritance the entrepreneur can use gifts to the next generation to withdraw from the company. In this process, however, the benefactor should not forget their own financial requirements in old age and reserve sufficient funds for medical care.

 
Our experts at Rödl & Partner will support you comprehensively with the design, fine-tuning and implementation of your succession concept:

Design and structuring

• Development of an appropriate company and asset structure for the succession 
• Separation of non-operating companies and operating companies
• Anticipated inheritance of company assets (gifts)
• Separation of capital and management (holding concepts, integration of outside management) 
• Integration of foundations in succession concepts (corporate foundations, double foundation, complementary foundation)

Inheritance tax/gift tax and company valuation

• Design of facts favourable for inheritance tax (preservation of business assets, administration assets test, payroll limits, holding periods) 
• Company valuation
• Inheritance tax controlling, inheritance tax simulation

Receipt and transfer of influence to the benefactor

• Accession process for successors to the family company (co-operation, participation, shareholding) 
• Establishment of control and co-determination rights for the senior generation (family pool) 
• Maintaining the company within the family

Last will and testament, powers of attorney and other contracts

• Design of last will and testament for shareholders and entrepreneurs
• Entrepreneur and management powers of attorney
• Family contracts, matrimonial property agreements (for married couples) 
• Donation contracts
• Administration and settlement of the estate

Care provisions

• Care provision for the senior generation and those giving up their inheritance, concepts for transfer of assets
• Usufruct arrangements
• Forced heirship arrangements
• Asset protection