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Company Succession

A company succession is a management matter ...and a necessary investment in the future for your company.

The medium-sized sector (family-owned companies) in Germany will need more than 150,000 successors over the next 3-7 years.
External successors will be sought for over 60% of these companies as there is no solution within families (only 50% potential).

Arranging assets issues and company successions is a distinctive need of active proprietors who are also keeping their eyes on their companies, "continuity", "companions" as well as monetary and retirement-related aspects …
So the timely planning for "exiting the company" is a management issue.

A clearly-planned company succession improves a company's creditworthiness, profits and the chances of being able to sell it.
Loan financing in family-owned medium-sized companies are closely linked to the managing partner personally. Without him or a veritable successor, creditworthiness is potentially an entirely different question.

Even in the case of succession by another family member, there are many issues to be considered.

Taking inheritance and gift tax into consideration, a company can potentially lose a lot of capital.
The current revision of taxing company successions requires the greatest attention as cash outflows can cause a company's rating to worsen.
For partner families (several children/heirs), an imminent company succession means a high level of potential emotional conflict.

A clear company succession plan covering both a family strategy and the company strategy is therefore one of the elementary tasks of good company management.

Reliable, competent support and protection of the company owner at the time of the handover or sale of the company during the entire "M&A process" is our job. CFE will help you identify and implement difficult decisions of this nature. We ensure maintenance of discrete professional standards to be observed during every company sale in our mandate.

As your communication partner, mediator in family-related negotiations or with external prospective buyers and partners with banks and public authorities, we can assist you in every way possible. This includes cooperating closely with your tax advisors/auditors.

We can determine a maximum sales/purchase price and prepare a robust valuation of your company.

Using the succession plan, the future prospects of a company become visible.

Balance sheets express a company's past successes. Taking into account the new entrepreneurial personality, the forecast is the determining factor of the valuation of your company, its continued existence, sales revenue and follow-on financing.

We work independently and exclusively for one party only

In doing so, we are guided solely by the interests of our clients.
We place the highest importance on reliability, integrity and discretion.
If desired by a medium-sized company, we usually proceed as follows:

  • we analyse the business plan or prepare a financial and business plan;
  • we review the individual goals of our clients;
  • we discuss a realistic company valuation;
  • we structure the planned transaction on an individual basis;
  • we develop a conclusive sales memorandum;
  • we prepare an overview and an analysis of potential buyers and strategic investors;
  • we coordinate, prepare and moderate the meetings;
  • we assist the transaction up to the successful conclusion of the agreement.


Parallel to your current daily business, we assist clients exclusively and are a discrete motor and moderator for your ideas and planning.

Services:

  • analysing all options for safeguarding your company;
  • presenting the usual M&A practice in the sale of a company;
  • company valuations, purchase prices pension models etc.;
  • acquiring and presenting potential purchasers of your company;
  • advice throughout all transactions and negotiations;
  • rolling forecasts, bench-marks etc.;
  • optimising company financing;
  • strategic alliances;
  • cooperating with tax advisors/auditors.