Typical challenges in succession
Emotional ties to the company make objective decisions difficult.
Conflicts between generations over corporate strategy and management style not only complicate family relationships.
Unclear legal regulations lead to uncertainty and disputes.
Legal basis of company succession
Forward-looking legal planning is essential for a smooth handover. Key elements include:
Wills and inheritance contracts: Clearly defined succession with no room for interpretation.
Provisions in the articles of association: Succession clauses, entry rights and severance payments.
Powers of attorney and business powers of attorney: Protection in case of emergency.
Without clear contractual provisions, there is a risk of inheritance disputes and the break-up of the company.
Best practices for successful succession
Early planning
Ideally, succession planning should begin 5 to 10 years before the desired handover date.
Involvement of all parties
Open discussions with family and management help to create acceptance.
External advice
Legal, tax and psychological expertise is essential.
Practical example: Successful succession through clear communication
A family-run manufacturing company structured its succession through open discussions, a binding inheritance agreement and targeted preparation of the successor for their new role. The result: the generational change went smoothly and the company remained successful.
A well-prepared company succession is key to preserving family traditions and ensuring the success of the business. Clear legal arrangements and sensitive handling of family emotions are essential.
The most important points in brief
- Business succession requires early planning and clear contractual arrangements.
- Emotions and family dynamics must be handled sensitively.
- External advice supports a smooth generational change.
