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Nahaufnahme des weißen Königs, der den schwarzen König besiegt. Hand und Finger und Schachbrett

Risks & Threats

Both buyers and sellers take equal risks when it comes to succession, which can disrupt the entire process or - in the worst case - cause it to fail.

Transferors and successors also face dangers when generations change within the family.

risk of the buyer

  • that he does not receive all the relevant information to assess the quality of the purchase objects.

  • that he does not have sufficient experience in using the operational systems to ensure compliance with legal and regulatory requirements.

  • that he does not have sufficient experience in valuing and structuring companies to make the acquisition successful.

risk of the seller

  • that he does not disclose all relevant information that is important for the buyer to make the decision to buy.

  • that he does not have a complete and current list of non-business assets and liabilities that are not part of the contract of sale.

  • that he does not have a thorough understanding of the operational system and the market to make the handover successful.

Dangers of succession in family businesses

  • conflicts between successor and predecessor: A successor can try to overcome older structures and processes, which can lead to conflicts between him and the predecessor.

  • inexperience: A successor may underestimate the business succession process and not adequately prepare for the new role, which can lead to mistakes.

  • disagreement in the family: In some family businesses, family members can argue over who should take the lead. This can lead to factionalism, competition, and even a severing of family ties.

  • unconventional ways of thinking: A successor may try to use unconventional methods to move the company forward. However, this can have detrimental business implications if not well thought out.

  • pressure of expectation: The successor can be under tremendous pressure to live up to family expectations, which can lead to stress and uncertainty.

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