Succession: takeover of a company

When you take over a company, you are inheriting its products and client base. But this means adapting your concept to match them.

  Advantages Disadvantages
Economic risk Risk is lower and easier to calculate than in the case of setting up a company Risks cannot be detected immediately
Products Already established on the market Products do not match your concept
Clients Existing client base Existing clients are very attached to the old company
Employees/Suppliers Already existing Supplies and employees do not match your concept
Organization Structures have proved themselves, procedures have been broken-in, which very much facilitates the initial phase Procedures are associated with one person: when they leave, nothing works any more
Level of reputation The company and products are well-known to and appreciated by customers, established in their memory and have already acquired a reputation The level of reputation is not as high as envisaged

Negative image
Capital requirements In the event of a takeover, the financial burden is less significant, unless new buildings or replacement or modernization investments are necessary The need for replacement or modernization investments is not detected immediately and can disrupt the financial plan in its initial phase

The company's customer database and “good image” come at a price
Predecessor Possibility of transfer of know-how and of knowledge by the predecessor The mark made by the predecessor may be the root of problems with acceptance (by employees)

Last modification 21.02.2020

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