1.3. What are business plans needed for?

In family succession, the owner hands over the business to a family member. There are usually various stages leading up to the final takeover.

1.       The start of a succession can begin in the management. By taking over the management, the economic path of the company is steered.

2.       The transfer of ownership can take place within the framework of leasing, inheritance or also donation. For this purpose, economic, legal and tax conditions must be observed.

If the business successor is a family member, the prior information about the business and the market is known to a large extent. The assessment of what the successor may face can be estimated. The success of a business succession is largely determined by how the parties involved succeed in transferring the management and ownership of the business to the new family member.

Of economic importance are the ownership structure and also inheritance claims of other family members. Compensation payments to heirs can increase the capital required to take over a business. If the compensation payments are taken from the business assets, the existence of the business may be at risk. Company succession should be clearly regulated by will, inheritance or transfer agreement.

Family succession presents a special psychological and economic situation. For parents, the son or daughter - at whatever age - remains a child. The family life situation creates specific behavioural patterns and economic dependencies as well as opportunities.