Family-owned Enterprises

The choice made determines which restrictions apply with respect to management structures as well as the influence that family shareholders and possibly third parties can wield over the company. In some cases, certain legal forms also offer tangible tax benefits. Together with our client and their family we develop the best possible solution and guide them through the entire process – taking into account their specific objectives and circumstances.

We advise on all questions concerning internal company structures, corporate duties, relationships and division of responsibilities between the boards, specifically also in connection with succession planning at management and shareholder level.

We start by identifying the particular risks and provide support in setting up the necessary compliance
structures and implementing systems to monitor compliance in day-to-day practice. We are also able to provide extensive advice and support in investigating possible breaches of duty.

Gleiss Lutz advises entrepreneurs and family businesses extensively on developing and structuring succession plans. Key considerations include not only purely family-internal issues and the transfer of the business as such, but also which family members will take over the helm, whether the business and assets are to be transferred to charitable trusts or family foundations (including abroad), whether or not to bring in third parties at management level or as investors, or whether to contemplate selling the company. We develop a customized solution that meets their unique economic, legal and tax requirements. Not only does this cover all aspects of corporate, tax and inheritance law, but also encompasses other relevant areas such as employment, co-determination as well as capital markets.

Gleiss Lutz is one of Germany’s leading transactional practices, and regularly advises family-run businesses on domestic and foreign M&A deals and joint ventures. A successful transaction requires a tailored strategy based on client input as well as close collaboration with the company and its shareholders throughout the entire process. We are able to draw on experts from all relevant legal areas (such as competition/antitrust, tax, employment and labour law, IP or public law) where necessary. Our in-depth capital markets expertise also plays an important role.

However, major investments – such as in connection with acquisitions – often call for extensive financing, sometimes through alternative channels. Our banking and finance specialists are aware of this particular challenge and can prepare and help business owners implement a financing model that suits their specific needs.

Our banking and finance specialists are aware of this particular challenge and can prepare and help business owners implement a financing model that suits their specific needs.