Finding a company succession - what needs to be considered?

If you want to hand over your business to a successor, there are a few things to consider. The search for a company successor can be a challenge, not least because of demographic change and the lack of skilled workers in Germany. It is estimated that small and medium-sized businesses are currently the most affected. According to current studies, the search for a company successor will affect about half a million companies in the next 5 years.

You want to find a business successor. Good to know: There are advantages and disadvantages for the potential successor. They don't need a new business idea, but can benefit from the fact that the company is already established on the market. Nevertheless, the successor should meet certain professional requirements and have entrepreneurial know-how. On the other hand, the successor does not have to go through the usually labour-intensive and risky start-up phase.

The disadvantage of taking over a business is that the company has already been shaped by the previous owner. This entails the risk of losing customers and contacts. If the "old" concept is changed too quickly, there are risks. Employees who have been working for the company for a long time may react sensitively to innovations.

Not every entrepreneur finds it easy when the time comes to look for a suitable company successor. It often costs a lot of effort to think about retiring from the company. The thought that the continued existence of the company, which has been worked very hard for for a long time, may be at risk can also be stressful. The following company handover checklist can help you in your search for a company successor.

1. Prepare in good time! Even if it is difficult: Prepare for the transfer of your business in good time. 5 years is a realistic time frame.
2. Find out about the tax and legal components of the transfer of the business.
3. Draw up a roadmap in which the goals of both sides are coordinated.
4. Should the business succession take place gradually or immediately? Do you want to remain active in the company for a certain period of time?
5. If in doubt, consult business, tax and legal advisors. Often it is also advisable to consult an advisory board - for example, made up of employees.
6. Important financial questions that need to be clarified are the value of the company, the financial situation of the successor, but also the question of your retirement provision.
7. It is also important to look into the future: What will you do with the newly gained free time after the handover? Having a perspective for "afterwards" is always important.
8. Communicate the change. Change is normal and most people are understanding if you communicate with them openly and constructively.

The business successor has the option of receiving funding, both for internal family succession and for external purchases of a business. A total of more than 40 pots of funding are available when a business successor is sought, including from KfW. However, the regulations vary from federal state to federal state. In Baden Württemberg, for example, the promotion of business succession is extremely high. In any case, the company successor should take care of financing in good time.

The search for a suitable company successor may be difficult - for example, because there are no or only unsuitable heirs or because a suitable successor simply cannot be found, neither among the family members nor among the employees in the company.

In this case, you can turn to Germany-wide exchanges that specialise in business succession. In these exchanges or portals, both purchase offers and purchase requests can be posted, so that you can either advertise yourself or look for a suitable successor in the advertisements already posted. In addition to Germany-wide portals such as Nexxt change or the German Unternehmerbörse, there are also regional portals where you can find company succession offers. Nexxt change is the largest German succession exchange, which is operated by the Federal Ministry for Economic Affairs and Energy, as well as KfW, the chambers and the banks.

Another option are the European and international business succession exchanges, if it does not necessarily have to be a domestic successor.

Furthermore, the Handelsblatt, the Wirtschaftswoche and the Welt run a succession portal where you may be successful in your search for a business successor. .

The following checklist provides you with a guideline on how to hand over the company step by step.

1. Determine the value of the company
2. Are there any taxes? (family-internal transfer) Property law, inheritance law and tax law are relevant.
3. Who would be a suitable successor?
4. Can you continue to be active in the business for a while and, for example, act in the background in an advisory capacity?
5. Might the legal form of the business need to be adapted?
6. Draw up a roadmap or timetable of what needs to be done and when.

What is often underestimated is the fact that emotions can play a big role. An entrepreneur who has worked hard for years and built up the business with meticulousness and effort has to come to terms with the fact that his opinion and experience are no longer in demand. For you, this means in plain language that you should think in good time about how you want to shape your life after the handover of the business. Get ready for a new phase in your life that is about to begin.

• The handover is unprepared
• Legal and tax advice is lacking
• Expectations of the successor are too high
• The successor is not involved enough
• The successor makes hasty changes
• There is a lack of trust on both sides
• The search for the company successor is not pursued intensively enough
• In the case of a family-internal handover, the children complain about the senior's interference
• Employees were not informed about the handover in time

In any case, it is advisable to proceed systematically with the topic of business succession. Interesting brochures on the subject are available from the relevant chambers of industry and commerce, but also from banks and management consultants.

A company handover should be planned for the long term. It is not always possible to find a suitable successor, which is why you can also consider portals and exchanges. From finances to tax law to planning the new phase of your life, there is a lot to consider.