In the first issue of VIER. SECHS. DREI. business magazine for the Bocholt – Borken region, our managing director and Rechtsanwalt (German Attorney-at-Law) Johannes Rudolph, LL.M., Fachanwalt (German Specialist Attorney) for tax law and Fachanwalt for commercial and corporate law, writes about the deadly sins of business succession. "The goal is to bring the company into harmony with the family, with everything that entails," says Rudolph. Accordingly, responsible corporate management (deadly sin 3) includes "handing over responsibilities to potential business successors at an early stage and gradually scaling back one's own patriarchal position. This can be achieved, for example, by expanding personal hobbies or taking on honorary positions. Transferring responsibilities to a potential successor early on also represents a form of appreciation that the successor will certainly welcome."
You can read the full article on the VIER.SECHS.DREI. website or directly here.
VIER.SECHS.DREI. – "The Seven Deadly Sins of Business Succession" (PDF: 1.5MB)
Frequently asked questions
Frequently asked questions
Why should entrepreneurs transfer responsibilities to their successors at an early stage?
Delegating responsibilities early is part of responsible business leadership and helps the successor grow into their role. It also shows appreciation for the successor and prevents the transition from becoming abrupt or conflict-ridden. The departing entrepreneur can gradually step back from a patriarchal position, thereby safeguarding the company's stability.
How can an entrepreneur gradually scale back their patriarchal role?
One way is to develop personal hobbies or take on honorary positions, thereby progressively reducing professional commitments. This creates room for the successor to make their own decisions and assume responsibility. A gradual withdrawal has a positive effect on the handover process.
What is the central goal of a successful business succession?
The goal is to align the business with the family while taking into account all personal, economic, and legal aspects. A successful succession addresses both entrepreneurial continuity and family relationships. This is the only way to avoid typical mistakes — the so-called deadly sins of succession.
What role does appreciation play in the succession process?
Appreciation is a decisive factor in building the successor's motivation and commitment to the company. Transferring responsibilities and decision-making authority signals trust in the successor. Without this appreciation, there is a heightened risk that the designated successor will withdraw or fail to manage the transition successfully.