Measures of precaution.
Even before the moment has come to transfer the business to the next generation - e.g. by way of "anticipated succession" - you should take care of the financial security of your children and your spouse in a worst case event and ensure that the company will be led on by the person who has the best skills for such a task. Therefore, the Articles of Association of the company should already contain respective provisions which need to be closely coordinated with the content of the last will. Only if all this is duly taken care of, will things be continued in accordance with your vision in a worst case scenario.
Even before the moment has come to transfer the business to the next generation - e.g. by way of "anticipated succession" - you should take care of the financial security of your children and your spouse in a worst case event and ensure that the company will be led on by the person who has the best skills for such a task. Therefore, the Articles of Association of the company should already contain respective provisions which need to be closely coordinated with the content of the last will. Only if all this is duly taken care of, will things be continued in accordance with your vision in a worst case scenario.
Advice in
Succession
Succession
Succession
Exit
There may be many reasons for thinking about an exit. Retiring from the operative business because of a certain age is not always the trigger. Often the company's succession is motivated by tax reasons and, for such purposes, is frequently combined with an usufructuary structure which is intended to safeguard the economic interests of the retreating shareholder. In many cases he continues to play an active role in the continuation of the business by the next generation, e.g. by taking a position on the company's advisory board.
There may be many reasons for thinking about an exit. Retiring from the operative business because of a certain age is not always the trigger. Often the company's succession is motivated by tax reasons and, for such purposes, is frequently combined with an usufructuary structure which is intended to safeguard the economic interests of the retreating shareholder. In many cases he continues to play an active role in the continuation of the business by the next generation, e.g. by taking a position on the company's advisory board.
Regardless of the question of age sometimes the time just seems ripe for an exit: a private equity or a strategic investor has become interested in your company and makes an extraordinary offer which could turn out to be unique.
However, also critical economic circumstances might be the reason for thinking about a sale of the business, e.g. in the form of a management Buy-out ("MBO").
Whatever your reason for taking an exit into consideration: in the event of a company's succession you should not leave anything to chance. Often life's work is at stake and securing your future financial independence is the highest goal. Therefore, you should not make any experiments but negotiate at eye level with the investor who intends to take over the company. Tailor-made structures for transferring the company to the next generation should be designed by an expert in order to make sure that the business is continued in accordance with your vision.
However, also critical economic circumstances might be the reason for thinking about a sale of the business, e.g. in the form of a management Buy-out ("MBO").
Whatever your reason for taking an exit into consideration: in the event of a company's succession you should not leave anything to chance. Often life's work is at stake and securing your future financial independence is the highest goal. Therefore, you should not make any experiments but negotiate at eye level with the investor who intends to take over the company. Tailor-made structures for transferring the company to the next generation should be designed by an expert in order to make sure that the business is continued in accordance with your vision.
Anticipated Succession … Last Will … Annuity for Life ... Share Deal … Opiton Agreement … Management Buy-out … Vendor Due Diligence … Letter of Intent ... Usufruct
Other topics relating to special situations: