The German Mittelstand

Page 15

BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand

Taxes

Taxes Is successful business succession in SMEs a social challenge?

. . .

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


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