For German companies a timely planning and design of the transfer of business to a successor is of great importance. Without a long-term concept the existence of a company is at risk.

Unfortunately, consulting practices have noted that a possible successor is indeed often discussed, however, rarely implemented.

The demands, not only in legal and tax, but also in psychological respect, are set very high. Eventually, any consulting requires imagination for future developments and tact in taking care of the participants.

We advise every single client comprehensively in each individual case, take into account his/her interests and his/her life as an entrepreneur as well as the interests of his/her family and of the receiving generation.

Checklist for a company succession in Germany:

If there is a continuation of the company and a suitable successor is available, the following aspects must be clarified in legal terms:

  • transfer of the company during the lifetime or later with the death,

  • previous restructuring required?,

  • extent of the assets to be transferred, in particular quotas, partial operation and other assets, such the company,

  • treatment of shareholder loans,

  • liability situation of the transferor, debt exemption of corporate liabilities,

  • contracts for securing the care of the client (usufruct, recurring payments, benefits in the case of care),

  • restitution rights in the event of misperformances on the carrier side?

  • future management,

  • benefits to other persons (in particular spouses and descendants of the transferor),

  • risk of mandatory claims,

  • tax burden on the parties (gift tax, income tax, trade tax, real estate tax),

  • additional claims arising from guarantees/product liability, tax and social claims (operational risk),

  • any pension obligations of the company,

  • influence of "charge of control" clauses for succession,

  • transitional activity of the transferor,

  • co-operation and/or control rights of the transferor, and

  • precautionary measures in the event of sudden death, divorce or incapacity for action.

 

 

 

 

 

 

 

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