The German economy is one of the top five largest economies across the globe. And german economy alone contributes to nearly 1/5th of the EU’s (European Union’s) Gross Domestic Product.
Besides, the country has nine other countries on its border. This makes it a potential destination for buying or selling a business. Additionally, the quality of the workforce is far exceeding global standards.
Factors to Consider When You Buy a Business in Germany
- Transfer of shares
- How does the transfer take place?
- Is it happening in front of a public notary in Germany?
- Easy handover: Will the selling company support the buying company in terms of,
- Name change
- Contacts for reaching out to the German Trade Register
- Restructuring the organization
- Establishing a new board of directors and the management team
- The urgency to run a business in Germany: Starting a business in Germany may take more time, money, and effort. Thus based on your (buyer) urgency, you can acquire a shelf or any other company in the country.
- Is the target business profitable?
- Does it have enough chances for being viable on a long-term basis?
Factors to Consider When You Sell a Business in Germany
- Price advantage: There is nothing more rewarding than selling a business in Germany. The main reason is the difficulty to kick-start a business in Germany from scratch. In Germany, the requirements from the bureaucratic end are way too complicated and laborious. Hence you can sell your company in Germany for a good deal!
- Medium of exchange:
- Are you selling your business in Germany via a buy-sell agent or self-networking?
- Are you including a legal advisor for the exchange of the business?
- Seller retention:
- Sometimes, in a few companies, the seller tries to be a part and parcel even after the sale or acquisition.
- Sometimes, in a few companies, the owners sell 100% of their shareholdings.
Example: Buying a Limited Liability Company (LLC) in Germany
An LLC company in Germany is legally called GmbH (Gesellschaft mit beschränkter Haftung). The speciality of GmbH is that expatriates have the liberty to take over complete shares (100%) in a German LLC company.
Here are some LLC-specific factors to consider when buying:
- Refer to the right tax law based on the GmbH company type
- Draft an NDA to obtain access to sensitive information of the LLC company in Germany
- Prepare a letter of intent that clearly states the purchase norms and clauses along with the price details
Looking to buy or sell a company in Germany?
With years of experience in buying and selling businesses, GBCorp can help you with all the support required to conclude the deal or acquisition.