Succession planning

An orderly succession should not only concern older entrepreneurs. Young entrepreneurs can also follow different motivations to sell the company. If it is not settled who will continue to run the business, the company can quickly get economic difficulties. Therefore, it is worth asking this question at an early stage: How can I find a successor?

The regulation of one's own succession is a powerful biographical event for most entrepreneurs. Deciding to sell the business you have worked so hard to grow is rarely an easy decision. If no suitable successor can be found in the family, a sale of the company can secure not only the future of the company but also family assets.

Those who plan to sell the business to an external party are mainly concerned with the following questions:

  • How much is my company worth? How can I maximize the purchase price?
  • What do I need to do to secure the jobs of my employees and the company's location?
  • How can I maintain confidentiality so it does not hamper the operational business?
  • Who are suitable buyers and how do I properly address them?
  • Can I make sure that I can still work for a couple of years?

Approximately half of medium-sized companies have a succession within the next ten years. The importance and the need for external succession solutions are steadily increasing.

The continuation of the company can be designed in different ways. Here are some possible buyers for your company:

  • Sales to employees of the company (MBO)
  • Sales to an external manager (MBI)
  • Sell the company to another company
  • Sale to high net worth individuals
  • Sale to a private equity company
  • Sales by combination of MBO / MBI and financial investor