Planning and Carrying Out Business Succession and Business Sales

A business transfer should begin early with the desired outcome: Is ownership, management, or both to change, and should the business continue as an existing entity? Potential successors include family members, employees, co-shareholders, external executives, or buyers. Professional suitability, financing, decision-making ability, and the planned onboarding must fit the intended role. Business valuation requires verifiable financial data and a realistic assessment of earning capacity. Assets, debts, customer dependencies, contracts, investment needs, legal disputes, and reliance on particular individuals affect the value and negotiations. The purchase price and financing should be compatible with the expected cash flow after the transfer. For the legal structure, it is important to distinguish between transferring shares and selling individual assets. In the case of a company, a share sale can change ownership while the legal entity generally remains in existence. In an asset sale, assets, inventory, receivables, domains, intellectual property rights, contracts, and other legal rights must be identified and transferred individually. An Individual Entrepreneur does not have transferable company shares. A transfer therefore generally takes place through assets, contracts, and permits; by ceasing operations and registering a new business; or after first contributing the business to a company. For a Limited Liability Company, its articles, required approvals, the share transfer, and changes to shareholder and representative details in the business register may be decisive. Before completion, the register data, accounting records, tax position, contracts, permits, employment relationships, customer data, intellectual property rights, and pending disputes should be reviewed. Contracts or permits may require approvals, notices, or new applications. Due diligence provides the basis for the purchase price, warranties, liability provisions, and conditions of the transition. The handover plan sets out responsibilities, effective dates, and required evidence. Bank access rights, powers of attorney, system access, signing authority, and contacts with employees, customers, suppliers, and authorities must be updated at the agreed time. A handover record documents the documents, assets, access rights, and outstanding tasks transferred.