If you join a successful company as part of a succession, you can usually rely on a customer base, a well-established workforce, turnover and ongoing business. The challenge is to initiate future developments in the here and now in order to not only maintain value, but also expand it.
The financial security of a company is best based on various pillars. The financing of the purchase price for a succession solution usually consists of a combination of debt capital from a bank and equity capital such as own funds, private equity, private investors, family offices and other sources.
But beware! Risks must be identified: There is a risk that customers may leave if there is a change in management, key internal figures may resign or the workforce may not go along. It can happen that no purchase decision is made or that investors pull out. Legacy issues must also be identified and eliminated.
Company successions require a sure instinct. On the one hand, they are often emotional - after all, it is a matter of handing over a life's work. On the other hand, they require entrepreneurial expertise. Sustainable decisions at all entrepreneurial levels are the key to the success of a company that continues to flourish beyond the change of ownership.
