Corporate succession is of key importance when structuring family assets in the best possible way. Succession agreements should be preceded at the very least by medium-term planning that includes comprehensive regulations for civil, company and tax law, that aim not only to guarantee a problem-free transfer of assets to the next generation or to a third party and maintain the existence of the company, it should also guarantee the jobs in the company.

The increasing importance of transferring companies has been known for a number of years. It is not only the number of annual transfers that has constantly increased of the past ten years from just under 4000 to recently over 5000, preparation for regulating succession has also increased substantially in that time.

Although most transfers are still within families the proportion of external transfers has increased in recent years. For internal family transfers, endowments dominate, followed by inheritance and cash sale; maintaining larger family-run companies can also be guaranteed through the use of a private foundation. External transfers are dominated by sales to third parties, although management buy-outs still occur in around a quarter of cases. A balanced financing concept remains important for the sustained success of a company.

External consultants make a key contribution to regulating corporate succession. These are mainly lawyers and tax advisers but the consultancy services of banks are also important.