BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand
Taxes
Taxes Is successful business succession in SMEs a social challenge?
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The unity of management and ownership as well as thinking in terms of generations make the regulation of succession in family businesses a special challenge. Between 2020 and 2025, around 500,000 companies will face a generational change (BMWi 2020). The handover of a company is emotionally and culturally as well as economically and financially challenging. Inheritance tax law must be designed in a way that is SME-friendly in order to protect the defining characteristics of family businesses and the economic success associated with them.
Preferred succession solution Source: IfM Bonn (2018c)
18%
Handover to employees/ internal succession
53%
Within the family
29%
Sale to external parties/ external succession
15