Wuerzburg, June 2013 – ROLF POPP PRO Consult urgently recommend all small and mid-sized companies to concern oneself with the options and opportunities of an upcoming company succession in the nick of time. Especially in the event that the entrepreneur believes still to have enough of time for the making relevant decisions and arrangements.
In 2013 and 2014 approximately 22.000* German companies each are affected by the problematic nature of company succession. This means 3 percent of all owner-managed companies. From this 54 percent are striving for a family-internal and 17 percent for a firm-internal arrangement. 29 percent - what means almost one-third - are searching for an external solution.
The experience shows that the three groups are affected by partly massive underestimated problems and risks for the owner personally as well as for the future of the company. Therefore the professional support with the company brokerage respectively company sale is really advisable.
By practice, unfortunately many entrepreneurs still look very rarely for a professional company broker, what means that a lot of money and interesting opportunities get lost. Very often the result is the closing of the company by calling it an organized retreat. Even with the named group of family-internal company succession today many handing-over fail already with the second or third generation, even though they were so far regarded as safe. In addition is to see that more and more family-internal company successions don't fail directly, but after one to four years.
Rolf Popp - since 17 years consultant for company brokerage and owner of RPPC ROLF POPP PRO Consult - estimates the total number of actual unclear German company successions at more than 100.000. This estimation includes planned internal successions as well as external. In spite of an intensive search no solution could be generated, or the different conceptions couldn't match to each other. The end of the company comes in instalments.
In view of these circumstances the entrepreneur should be prepared to the company succession by an early acting as well as a thorough and competent consulting. Strategically is a time range of 3 - 5 years of advanced preparation and also a company valuation to get a realistic future estimation of the development.
Normally the entrepreneur doesn't see the tasks and difficulties of the company succession in advance, respectively he underestimates the demands.
Typical criteria for latent existing risks with the company succession can be as follows:
The first and most important step is done if the subject of company succession is seen in realistic and lasting way so that the necessary measures will be installed in time. This is to consider with family- and firm-internal successions as well as with the company sale to an external purchaser.
The use of professional support and advise offers:
Initiated punctually, intensively prepared and professionally worked out, the process of company succession is a systematic and organized course which will solve the problematic nature.
The well-known management consultancy RPPC ROLF POPP PRO Consult - Specialist for company brokerage (M&A) - recommend any entrepreneur to inform oneself already with start of reflections about the company succession. A crucial range of information, tools and instruments are available via the Internet, various online-platforms, organizations, federations, tax advisors etc. - Especially M&A consultancies are providing a lot of experienced know-how for market capable valuation, target-orientated strategy- and research-processing, useful qualification of successors as well as solution-relevant negotiation. This is really helpful for success with company succession and with company sale.
ROLF POPP PRO Consult GmbH
Phone. +49 931-88068-18
* Source: Based on data of the IfM – Institut für Mittelstandsforschung