Succession planning - ensuring a smooth transition
A business is usually handed over only once in your lifetime. Experienced partners such as VR Equitypartner ensure your succession is managed professionally, strategically, and with long‑term success in mind.
Succession planning requires careful consideration.
Here you will find a structured overview of your strategic options.
Your Advantages in Partnering with VR Equitypartner
Succession Planning – the most important options
01
A successor from within the family
Finding a successor within the family, preferably a daughter or son, is still the ideal scenario for most German entrepreneurs. However, it only works out in a fraction of the cases.
02
Management Buy in
There is nobody from within your family or the company who can be your successor? This is not an uncommon scenario these days – but equity investors often have access to a comprehensive network of experienced executives with the relevant know-how.
03
Management Buy Out
Management buyouts – whereby an existing manager (or team of managers) not only takes over the running of the company but also becomes a shareholder – are almost as common as solutions involving successors from within the family. The manager needs neither to be sitting on a vast fortune nor to incur excessive debt in order to be able to pay you an appropriate purchase price.
04
Owner’s Buy Out
In this instance you sell your company to an equity investor – and remain a shareholder yourself by acquiring shares in the acquisition vehicle set up by the equity investor for the purpose of purchasing your company.
05
Strategic buyer:
Another form of company succession: Selling to another company, usually a competitor or a company in the same sector.