Networking with Smart Money Insights

Under the banner of "Smart Money Insights for Entrepreneurs", BDO AG joined forces with Deutsche Beteiligungs AG (DBAG) and UNITY AG to host the PEak Time@BDO Networking Event at the Alte Kanzlei on Schillerplatz in Stuttgart. Guests from the worlds of entrepreneurship, finance and consulting came together for an evening that combined substantive expertise with meaningful personal exchange.

Inheritance Tax in the Spotlight
The evening opened with a pointed keynote address by Dr Christian Reiter, Partner and Regional Managing Partner at BDO. Entitled "Quo Vadis, Inheritance Tax?", Reiter traced the legal and political trajectory of the taxation of business assets, from the landmark ruling of the Federal Constitutional Court in 2014 and the subsequent reform of 2016 through to the status quo.

His core message was unambiguous: Germany finds itself at a critical crossroads in 2026. The Federal Constitutional Court is currently examining whether the existing relief provisions for business assets remain compatible with the Basic Law, with a ruling expected in the second half of the year. At the same time, diametrically opposed political demands are colliding in Berlin, ranging from the complete abolition of inheritance and gift tax on the one hand, to the introduction of a flat tax of up to 25 per cent with no special exemptions for business assets on the other.

Reiter's practical guidance was clear: business owners who are planning a succession within the next few years should act under the current legal framework without delay. Whether through accelerated gifts subject to a usufruct reservation, through structured buy-out arrangements with a reinvestment, or by exploring foundation structures abroad. "Those who act in 2026, rather than merely react, are safeguarding not just their wealth, but above all the long-term viability of their business," said Reiter.

A Real-World Example Worth Emulating
The centrepiece of the evening was a moderated panel discussion between Andreas Krämer, Managing Director at Deutsche Beteiligungs AG, and Tomas Pfänder, founder and Chairman of the Supervisory Board of UNITY AG. The conversation was facilitated by Dr Jan Faßhauer, Partner and Head of the Private Equity segment at BDO.

At the heart of the discussion was the 2024 investment by ECF IV, the fund advised by DBAG, in UNITY, a leading consultancy specialising in digitally enabled transformation, innovation and process efficiency.

Tomas Pfänder described how the idea of welcoming a financial investor for the first time in the company's 28-year history had gradually taken shape internally and required persuasion at every level of the organisation. The fundamental decision was taken in the summer of 2022, with the associated process commencing a year later. From the launch of the actual transaction execution through to completion took just six months. Andreas Krämer emphasised that, particularly when investing in professional services firms, it is essential to lay the groundwork for the shared value creation phase at an early stage, alongside the classical dimensions of due diligence, not least to address the challenge of so-called "walking assets", i.e. the risk of knowledge walking out of the door.

Cultural Fit as the Deciding Factor
A recurring theme throughout the discussion was the question of what sustains such a partnership beyond the numbers. Both Pfänder and Krämer were in firm agreement that a shared set of values, a common perspective on the levers of value creation, and the cultural fit ultimately matter more than any individual contractual clause. For UNITY AG, DBAG's established expertise in the IT and software sector was a strategically important consideration.

Krämer also pointed to the broader shift in the German-speaking M&A market: whilst Germany still lags behind comparable European economies such as France in terms of the number of PE-backed companies, the capital is there both for classical succession solutions and for growth financing. The opening of the German Mittelstand to private capital, he argued, is not a counsel of desperation, but rather a sign of maturity, strategic foresight, and a genuine opportunity for the domestic economy to pursue growth in challenging times.

The evening made one thing abundantly clear: private equity is no longer unfamiliar territory for Germany's Mittelstand, and the image of the detached "financial investor" has given way to that of an actively engaged growth partner. Against the backdrop of a potential inheritance tax reform and a capital market in transition, constellations such as that between DBAG and UNITY are fast becoming the model to follow. Following the panel discussion and a lively Q&A session, the subsequent networking reception provided ample opportunity for personal conversation, which is precisely what the PEak Time@BDO format is all about.