Doing Succession in Europe

Doing Succession in Europe Generational Transfers in Family Businesses in Comparative Perspective Edited by Isabel! Stamm, Peter Breitschmid, Martin Kohti Budrich UniPfess Schulthess 2011

VII Table of Contents Acknowledgements Table of Contents List of Authors Abbreviations List of Tables List of Figures V VII IX XV XVII XXI XXIII Part A 1 The Necessity of a Comparative Perspective on Succession 1) Introduction: Generational Succession in the Family Firm 3 Isabell Stamm /Nicole Schmiade /Martin KohW Peter Breitschmid 2) Family Firms in European Economic History 29 Andrea Colli PartB \. 59 Institutional Premises for Succession in Family Businesses 1) Family, Community and State: Some Implicit Contracts in European Family Life 67 Patrick Heady 2) Familialism in Germany, Italy and Switzerland: A Frame for Succession in Family Enterprises? 85 Sigrid Leitner 3) Knowledge and Resource Provision for Managing Family Succession: Evidences in Italian Clusters 101 Lorenzo Zanni / Costanza Nosi 4) The Restoration of a Family Capitalism in East Germany and Some Possible Consequences 129 Katharina Bluhm / Bernd Martens 5) Bequests: Motives, Model, Money 153 Marc Szydlik 6) Aktuelle Entwicklungslinien von Erbrecht und Erbschaftssteuer mit Blick auf die Nachfolge in Familienunternehmen vorab in der Schweiz, Deutschland undltalien 173 Peter Breitschmid

VITT Table of Contents PartC 213 Succession as Generational Negotiation 1) Ownership Perceptions in Family Businesses - Psychological Difficulties of the Retiring Owner-Manager 215 Fabian Bernhard / Peter Jaskiewicz 2) Succession as Transition in the Life Course 243 Isabell Stamm / Elisa Marchese PartD 267 Practicing Generational Transfers Across Europe 1) Eigentumstransfer an Familienunternehmen in der Schweiz - erbrechtliche Aspekte 271 Paul Eitel 2) Family Business Succession Planning in Germany- Strategies for Intergenerational Transfer in a Globalized World 299 Roland Krause 3) Transferring Business Ownership in Italian Family Enterprises 315 Andrea Fusaro 4) Wie konnen Familienunternehmer ihren Ruhestand finanzieren? 325 Ueli Kieser 5) Vorsorge fiir Familienunternehmer und Sicherung des Familienvermogens in Deutschland 347 Andreas Wiedemann /Bertram Layer PartE 361 Doing Succesion in Europe 1) Conclusion: Succession Regimes Across Europe? 363 Isabell Stamm / Martin Kohli /Peter Breitschmid, Index.' 383

IX Acknowledgements Table of Contents List of Authors Abbreviations V VII IX XV XVII List of Tables.,.- XXI List of Figures XXIII Part A 1 The Necessity of a Comparative Perspective on Succession 1) Introduction: Generational Succession in the Family Firm 3 Isabell Stamm /Nicole Schmiade /Martin Kohli/Peter Breitschmid 1. A multidisciplinary perspective 3 2. The development of the family business research > field 5 3. Definitions of family business 8 4. Family businesses in Europe 10 5. Succession as prominent research topic and urgent research question 12 6. What is succession? 14 7. The institutional embeddedness of succession 17 8. Purpose and structure of the book 18 9. References 20 2) Family Firms in European Economic History 29 Andrea Colli 1. Introduction 29 2. Large family firms in Europe between theory and history 31 3. Is there a European Family Firm? 34 4. Family firms and European culture 45 5. Concluding: Survival through adaptation 50 6. References 53 PartB 59 Institutional Premises for Succession in Family Businesses I. The Family and the Welfare State 1) Family, Community and State: Some Implicit Contracts in European Family Life 67 Patrick Heady

X Abstract 67 1. Introduction: a very old pattern indeed 67 2. Farming, kinship and succession 70 3. Strategy, culture and implicit contracts 71 4. Some fairly old patterns: macro-regional differences between European kinship cultures 73 5. The same patterns - expressed as implicit contracts 75 6. The changing balance between kinship and state: from agriculture to the knowledge economy 78 7. Implications for family enterprise 79 8. References 81 2) Familialism in Germany, Italy and Switzerland: A Frame for Succession in Family Enterprises? 85 Sigrid Leitner II. 1. Introduction: What is familialism? 85 2. Theoretical foundations of the concept 86 3. Instruments and types of familialism in Germany, Italy and Switzerland 88 4. Familialism and the succession in family enterprises: hypothesis 93 5. References 96 Forms of Capitalism 3) Knowledge and Resource Provision for Managing Family Succession: Evidences in Italian Clusters 101 Lorenzo Zanni / Costanza Nosi Abstract 101 1. Family firms and Industrial Districts in Italy 102 2. Research methodology 107 3. Family Business Cases 108 4. Concluding remarks, limitations, and suggestions for further research 119 5. References 123 4) The Restoration of a Family Capitalism in East Germany ' and Some Possible Consequences 129 Katharina Bluhm / Bernd Martens Abstract 129 1. Introduction 129 2. Eurostat data on SMEs in Europe 130 3. The Jena project on management change in SMEs 133 4. Social features of East German companies 134 5. Consequences 138 6. Conclusions 145 7. References 147

XI III. Inheritance and Inheritance Law 5) Bequests: Motives, Model, Money 153 Marc Szydlik 1. Introduction 153 2. Motives 154 3. Model 156 4. Money 159 5. Conclusions 166 6. References 168 6) Aktuelle Entwicklungslinien von Erbrecht und Erbschaftssteuer mit Blick auf die Nachfolge in Familienunternehmen vorab in der Schweiz, Deutschland und Italien 173 Peter Breitschmid 1. Unternehmensnachfolge in erbrechtskritischer Zeit 173 2. Risiken von Leben, Tod und (Erb-)Recht fur Unternehmerlnnen (und deren Erblnnen) 179 3. Allgemeine (unternehmens-)erbrechtliche Tendenzen 182 4. Schweizerische" Uberlegungen 187. 5. Querblick auf Deutschland 190 6. Querblick auf Italien 194 7. Weitere Trends - Uberblick und Zusammenfassung 200 8. References 20'6 9. Materialienverzeichnis 210 PartC 213 Succession as Generational Negotiation 1) Ownership Perceptions in Family Businesses - Psychological Difficulties of the Retiring Owner-Manager 215 Fabian Bernhard / Peter Jaskiewicz 1. Definitions and Relevance 217 2. From the Psychology of Ownership to Psychological Ownership 219 3. The Business as Object of Psychological Ownership 221 4. Consequences of Psychological Ownership 222 5. Difficulties to Transitioning Ownership 225 6. Routes to Founder-Managers' Psychological Ownership Ties 226 7. Intergenerational Comparison 230 8. Conclusion '. 231 9. Outlook 232 10. References 235

XII 2) Succession as Transition in the Life Course 243 Isabell Stamm / Elisa Marchese Abstract 243 1. Succession from a life course perspective 244 2. Methodological design 245 3. Pathways into the family business 247 4. Succession as biographical challenge 253 5. Why do family entrepreneurs decide for succession? 259 6. References 262 PartD 267 Practicing Generational Transfers Across Europe I. The Transfer of Ownership in Family Businesses 1) Eigentumstransfer an Familienunternehmen in der Schweiz - erbrechtliche Aspekte 271 Paul Eitel Abstract 271 1. Einfuhrung 271 2. Allgemeines; gesetzliches Erbrecht und Erbteilungsrecht 272 3. Gewillkiirte Unternehmensnachfolge I: Verfligungen von Todes wegen 280 4. Gewillkurte Unternehmensnachfolge II: Verfligungen unter Lebenden 288 5. References 296 2) Family Business Succession Planning in Germany- Strategies for Intergenerational Transfer in a Globalized World 299 Roland Krause 1. Introduction 299 3. German Inheritance Tax reform of 2009 307 4. Conclusion 310 5. References 311 3) Transferring Business Ownership in Italian Family Enterprises 315 Andrea Fusaro II. 1. Introduction 315 2. The Italian case 316 3. References 321 The Provision for Entrepreneurial Family Members and Family Solidarity 4) Wie konnen Familienunternehmer ihren Ruhestand finanzieren? 325 Ueli Kieser Abstract 325

XIII 1. Einordnung der Fragestellung 325 2. Aufbau des Beitrags 327 3. Alter als sozialversicherungsrechtliches Risiko 327 4. Leistungen der Alters- und Hinterlassenenversicherung (AHV) 328 5. Leistungen der beruflichen Vorsorge 334 6. Privatversicherungsrechtliche Leistungen 340 7. Leistungen der Saulen 3a und 3b 341 8. Steuerrechtliche Aspekte bei Altersleistungen 341 9. Sozialversicherungsrechtliche Aspekte beim Unternehmensverkauf... 342 "10. References 345 5) Vorsorge fur Familienunternehmer und Sicherung des Familienvermogens in Deutschland 347 Andreas Wiedemann /Bertram Layer Abstract 347 l.einleitung 347 2. Rahmendaten zur Vorsorgesituation bei Familienunternehmern in Deutschland 348 3. Grundsatzliche MOglichkeiten der Vorsorge fur Familienunternehmer 350 4. Erganzende Steuerliche Aspekte der Vorsorge im Familienunternehmen 355 5. Strategische Erfolgsfaktoren und Instrumente fur eine erfolgreiche Vorsorge fur Familienunternehmer 357 PartE 361 Doing Succesion in Europe 1) Conclusion: Succession Regimes Across Europe? 363 Isabell Stamm /Martin Kohli /Peter Breitschmid 1. Connecting steps 363 2. European family businesses and their institutional premises 365 3. Some hypotheses on European succession patterns 378 4. References 381 Index! 383