Financing model within the company
In the planning of corporate sales, the greatest challenge facing the buyer or transferee is generally the question of how to finance the purchase price. This problem arises with sales both within the family and outside the family. Recourse to large-scale outside capital financing fails not only because of the banks’ new way of granting credit facilities, but also because of entrepreneurial interests, insofar as the purchaser must finance both the repayment of the loans and the interest solely from the resources of the company that has been bought.

Moreover, the purchaser is always made liable by the lender on the basis of personal collateral. These disadvantages can be avoided if the purchase price is financed via equity capital. Initially, capital that does not confer voting rights is brought in in the context of an unlisted capital market issue. Portions of the capital that has been brought in are handed over to the purchaser by way of a loan for the payment of the purchase price. After the company has been taken over the transferee shall put back into the company the capital set aside for distribution, in instalments and with interest.