Special aspects of negotiating with German medium-sized businesses for investors from Russia

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last updated on 22 February 2022 | Reading time: approx. 2 minutes

  


 

What special issues await russian companies when they take over or acquire a stake in an owner-managed company in germany?

Although Russian companies have already invested several billions of euros in total in Germany, they still face reservations. These reservations have intensified following the outbreak of the Ukraine crisis and the sanctions imposed in this regard. Here, it takes some persuasion effort to win medium-sized businesses as an investment partner. 

For investors from Russia, the legal regulation of business acquisitions, in particular, is more complex in Germany. Here, it is important to preferably engage a bilingual, German-Russian lawyer who is also experienced in addressing the impact of the contractual contents negotiated in Germany on the Russian parent company. 

Although, reservations under anti-trust law on national and European level should be taken seriously the state in Germany otherwise only has influence on contract negotiations in absolutely exceptional cases. According to the Federal Act on Foreign Trade, the Federal Government can only prevent takeovers if it sees that the “protection of public order” (and state security) is at risk.
  

What aspects should russian companies take into account when negotiating with german medium-sized businesses?

In order to reduce prejudices and to develop trust, when negotiating with German medium-sized businesses Russian companies should prepare themselves for the different type of mentality: Instead of spontaneous decisions, the focus here is on the thoroughness and detailed elaboration of the offer. This helps convey reliability and lays the groundwork for a successful takeover. Owners of family companies often put their heart and soul into the business so also the aspect of emotions should be taken into account during negotiations. Business acquisition often means that the work of one's life is being sold; thus, the owner conducts negotiations in the interest of “his” employees in order to achieve the best possible degree of permanence and certainty for them in the future.

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Alexey Sapozhnikov

Attorney at Law (Germany)

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+7 495 9335 120
+7 495 9335 121

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