{"id":4685,"date":"2020-11-18T19:56:29","date_gmt":"2020-11-18T18:56:29","guid":{"rendered":"https:\/\/www.vrep.de\/dev?page_id=4685"},"modified":"2022-05-27T12:09:10","modified_gmt":"2022-05-27T10:09:10","slug":"company-succession","status":"publish","type":"page","link":"https:\/\/www.vrep.de\/en\/your-targets\/company-succession\/","title":{"rendered":"Company Succession"},"content":{"rendered":"\t\t
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Company Succession<\/h1>\n

How to ensure a smooth hand-over of your company<\/h2>\n

Succession planning for your own company is rarely unfettered by emotions. This makes it all the more important to know what your options are – and to consciously choose the option that will give you long-term happiness. We can give you guidance here, with the following advice.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Home<\/a><\/span><\/span><\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The benefits<\/h2>\n

of partnering with VR Equitypartner<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Long-term trust
\nand reliability<\/h4>\n

It is important to know that your company is still in good hands once it has been handed over. As part of the cooperative financial network, mutual respect and a long-term outlook are part of our DNA.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Your partner from day one<\/h4>\n

With 50 years\u2019 experience as an equity investor, we know that a hand-over needs to be carefully prepared. This is why we are available to give support and guidance right from the start of your deliberations but we can also help in the planning of unprepared company successions.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Gradual or
\ntemporary succession<\/h4>\n

There is no standard approach to company succession. We can give you the flexibility to first sell just a minority holding, to stay at the helm despite selling or to install a successor from within the family in a few years\u2019 time.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Succession Planning – the most important options<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A successor from within the family<\/h4>\n

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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. Very often, the next generation has other plans, is too young or does not have the necessary qualifications. At least in the last two instances, it is sometimes possible to find a solution. Ask a person you trust – preferably a friend or confidant with no aspirations to become the successor and who is not part of the family – to make their own assessment. Some weaknesses that you see as exclusion criteria can perhaps be overcome with professional coaching – or may seem less serious to an outsider. And if the successor is not quite ready, there are tried and tested interim solutions: a manager from outside the family but who knows the company well could continue to run the business and take the planned successor under their wing. It is also possible to structure equity and mezzanine financing in such a way that the departing senior family member can receive their pay out without delay and their successor can slowly take up the investment.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Management buyouts:<\/h4>\n

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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. In most cases, management acquires a minority stake while the majority holding is purchased by an equity investor (or financial investor or private-equity company) such as VR Equitypartner, which gives management a large degree of operational freedom. If the equity investor wants to exit after several years and the company has developed successfully during that time, the management is often able to increase its shareholding.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Management buy-In:<\/h4>\n

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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. A shareholding at preferential conditions provides the management with a strong incentive to work for the long-term success of the company. In other cases, only short-term management solutions are needed, for example for the implementation of an investment project. In such instances, equity investors like to rely on interim managers, who then withdraw – perhaps making way for a successor from within the family or the company.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Owner\u2019s buy out:<\/h4>\n

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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. The clear advantage for you: You can realize some of the sales proceeds immediately and diversify your assets and, at the same time, finance the purchase of company shares with the help of debt and\/or mezzanine financing, therefore using less equity capital. This enables you to keep benefiting from the positive development of your company while uncoupling the operational succession from the shareholder succession.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Strategic buyer:<\/h4>\n

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Another form of company succession: Selling to another company, usually a competitor or a company in the same sector. However, this form of succession is not always popular because the sale to a competitor can mean the loss of your company\u2019s identity. Very often it also heralds changes to the corporate culture, and the elimination of duplicate structures can lead to job losses.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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 <\/p>\n

<\/h4>\n

Die meisten Aufgaben und Herausforderungen liegen auf der Hand. Das umfasst unter anderem:<\/h4>\n