1.3. What are business plans needed for?

Company takeover means the takeover of an existing company. This can take the form of a family succession or a company purchase. There are company exchanges worldwide for buying and selling companies. They are easy to find on the internet.

In business plans for company takeovers, the company successor does not start from scratch. The typical situation is: the company already exists, there are real products and services, a market, employees, a legal form, cost accounting and liquidity; there is a strategy of the previous owner. The takeover and the new start from the point of view of the successor begin on a very specific day and in a very specific situation of the company. The business plan must seek to grasp this initial situation of the company and develop the new strategy for the next few years based on it.    

The importance of business succession will continue to grow in the coming years for demographic reasons. More and more companies are being passed on to heirs or buyers for reasons of age. A not inconsiderable proportion of existing businesses will close because no successor can be found.

Company succession must be guaranteed to a large extent by legal regulations and agreements. In this context, business valuation plays a special role.