Critical analysis of investment management within company successions
Author | : Rima Hammoudeh |
Publisher | : GRIN Verlag |
Total Pages | : 35 |
Release | : 2016-12-16 |
ISBN-10 | : 9783668364325 |
ISBN-13 | : 366836432X |
Rating | : 4/5 (32X Downloads) |
Download or read book Critical analysis of investment management within company successions written by Rima Hammoudeh and published by GRIN Verlag. This book was released on 2016-12-16 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2015 in the subject Business economics - Controlling, grade: 1,7, University of Applied Sciences Essen, course: MBA, language: English, abstract: The funding landscape in Germany, including corporate funding, has changed significantly in recent years. The main reason for this change is the banking and financial market crisis through which profitability and risk considerations have become much more important in the business policies of financial institutions nowadays. At the same time, analysts are talking about the biggest change in leadership of the post-war period in medium-sized companies in Germany. 1 Many family businesses were founded after 1945, so that the founders have to start considering a potential successor regime, as they are getting older. This includes high financing needs (in the form of the purchase price, taxes and severance pay) that cannot be fully covered by the successors in most cases. With respect to the outstanding importance of these two main aspects, the aim of the present work is to show the opportunities and risks of investment management and especially funding by private equity in the context of corporate succession. The conclusion of this paper finally shows that there are various opportunities and risks in the context of investment management regarding corporate successions. Each form of financing has its advantages and disadvantages, which must be analyzed carefully and according to the company ́s needs and strategies before deciding which form of financing should be chosen.