Business Succession with a German Cooperative
Unresolved succession issue in many companies in Germany
A shortage of young talent in many professions and a decreasing number of entrepreneurs willing to take over are causing many small and medium-sized businesses to feel uneasy about the question of who should take over the business in the next generation. In some cases, the next generation of family members - if there are any - do not feel equipped for this or have other interests. A takeover by individual employees would usually be an investment that is beyond their economic means, if taking on entrepreneurial responsibility is even an option for them.
Handing over your life's work as the last option?
For many business owners, the only option is either to hire external management staff or to sell their life's work completely. Transferring the business to a corporation with non-family managers and the participation of descendants as shareholders or beneficiaries of a family foundation is only an option if there are descendants. Selling the company to external investors, on the other hand, is conceivable at any time, but in addition to the question of an interested buyer, it often turns out that the company founders are extremely reluctant to hand over their life's work.
Involving employees in the success via a cooperative
An alternative to family participation or sale to third parties is to hand over the company to the employees. The so-called cooperative status is a hybrid form between entrepreneur and employee status.
As cooperative members, current and future employees can help decide the fate of the company and benefit from its success, while remaining in their familiar environment as employees. The registered cooperative (eingetragene Genossenschaft, eG) either operates the company directly or holds the shares in it.
Advantages of the company as a cooperative
Continuing a business as a cooperative in Germany offers a number of interesting advantages. These include
- Comprehensive opportunities for employee participation
- Equal co-determination rights for all thanks to a democratic company constitution
- Economic success serves to promote employees
- No upper limit on the number of cooperative members
- Limited liability of members
- Cooperative reimbursement as an instrument for tax optimization
- Most insolvency-proof legal form in Germany
Our experts for cooperatives will be happy to explain the advantages and disadvantages of your specific project.
WINHELLER advises on the formation of cooperatives
The various legal and tax structuring options pose a challenge which we are happy to help you overcome! Our consulting services for business cooperatives in Germany include
- Conceptualization of the project
- Examination of financial and tax implications
- Carrying out any necessary restructuring in advance
- Accompanying the auditing process in the cooperative auditing association
Your attorney for succession with a cooperative in Germany
Our team is at your disposal for your individual succession issues. Our contact persons for questions relating to company succession will answer your questions!
We look forward to hearing from you! The easiest way to reach us is by e-mail (info@winheller.com) or by telephone (+49 69 76 75 77 85 22).
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Or give us a call: +49 69 76 75 77 85 22
