Succession planning in the hotel industry!
The regulation of company succession in the hotel industry is facing greater challenges than ever.
Especially since the next generation is often critical of a takeover due to the experiences of their parents. The development of their "life's works" was often associated with great commitment and risk, as well as sacrifices in family life.
As an expert on succession issues, AMG has also found that there is simply a lack of contact persons for the hotel industry.
In the undoubtedly real estate-heavy industry, the real estate agent would be ideal. However, due to his lack of experience in corporate succession, he is completely overwhelmed with the topic. Tax and legal consequences must be clarified in advance. Tax advisors can only be assigned an accompanying role here due to their mostly lacking expertise in M&A topics. Many, like law firms, like to wrongly write themselves on their flag.
In any case, a critical eye must be cast on so-called pure “corporate brokers”, especially since they look after the topic in a similar way to real estate agents. In any case, the approach should be checked with regard to business, tax and legal expertise, but also to ensure discretion.
Only the big auditing firms remain as experts in the M&A area.
It should be noted here that they charge high consulting fees for their services and usually act as consultants for companies with a group structure. Sometimes the focus is more on affiliated financial investors than on the overall market situation.
Especially in regions like Tyrol and Salzburg, there is a high density in this branch, which faces the future challenges with some open questions.
However, there is almost no provider who can professionally combine all of the aforementioned topics under one roof.
The AMG team has been conducting business succession transactions for decades, regardless of the sector, mainly for medium-sized companies. We are also happy to work together with the company's advisors (tax consultants, lawyers) who are already providing support. AMG also has expertise in the real estate sector and has also been investing and providing support in this area for many years.
It also appears essential that a manageable, internationally selected group of investors with a strong focus in the hotel industry work with AMG on a contractual basis. There will therefore be no publication of sales intentions in the usual procedure. The procedure is also considerably shortened, especially since a mutual interest in a possible start of negotiations is clarified within a few weeks.
Many components that are not taken into account in the run-up to a transaction are difficult or impossible to correct afterwards and can possibly lead to significant economic losses.
-AMG-CB in June 2020-