Westerfelhaus Audit
April 11, 2024
April 11, 2024
January 10, 2024
Andreas Katz, Senior Associate Partner at Kreston Bansbach shares his view of the market and key insights on investing in Germany in 2024.
Germany is regarded as the European powerhouse of innovation and industrial strength. The first half of the decade has challenged that long-held accolade, with sluggish growth over the last 3 years caused by a struggling manufacturing industry. However, as we step into 2024, the dynamics of doing business in Germany are shifting, marked by new challenges and opportunities.
One of the key questions facing businesses today is whether to pivot away from China towards European suppliers to protect their value chain. Katz notes, “Our clients at Bansbach, mostly medium-sized groups…often contract with third-party suppliers within Europe to save on logistics costs. Subsidiaries of these medium-sized groups in Asian countries like China are often focused on sales activities and limited assembly work and not on production. While certain clients have pivoted away from certain countries like China within their supplier base now that political risks are more heavily weighted, this is not a major trend within our client base at Bansbach.”
This trend underscores a strategic shift towards localisation, leveraging the proximity and cost advantages within the European Union. However, Katz also clarifies, “While certain clients have pivoted away from countries like China…this is not a major trend within our client base at Bansbach.” This suggests that while some businesses are diversifying their supplier base, the shift isn’t widespread, emphasising a more nuanced approach to supply chain management.
A significant aspect of doing business across borders, Katz points out an increase in transfer pricing-related tax audit issues, stating, “We expect this trend to continue and that transfer pricing issues will often be the main focus in tax audits.” He warns of the financial risks associated with non-compliance, “In case the transfer pricing set-up of a group is not compliant with the applicable international and national standards and a group does not actively monitor its transfer pricing, findings in these tax audits can quickly amount to very significant amounts.”
Katz underscores the need for businesses to “actively monitor its transfer pricing.” His advice is clear – ensure compliance with international and national standards to mitigate the risk of significant financial repercussions.
The energy landscape has always been a cornerstone of industrial activity, and recent geopolitical events have brought this into sharp focus. Katz highlights the impact of the Russia-Ukraine war on energy prices, a challenge particularly for energy-intensive industries. He notes, “The loss of [cheap energy from Russian gas] is a major challenge that may very well be one of the defining issues for German industrial development for years to come.” This situation demands strategic foresight from businesses, particularly in planning for energy cost fluctuations and exploring sustainable alternatives.
For businesses looking to expand into Germany, Katz offers a word of caution and guidance. “Ensure that they are compliant with transfer pricing regulations and actively manage their transfer prices,” he advises, “Given that it is not always possible to resolve resulting double taxation with all countries this may lead to final double taxation and therefore is a significant financial risk.”
If you would like more information about doing business in Germany, please get in touch.
February 8, 2023
Sector: Finance
BANSBACH has acquired strong partners in the growth region of Lake Constance, with Dr. Altmann in Überlingen, the tax consultancy firm Böttinger in Frickingen-Altheim and Bodensee Treuhand GmbH Wirtschaftsprüfungsgesellschaft, effective 1 January 2023.
With a total of 35 colleagues, WP/StB Dr. Michael Altmann and WP/StB Wendelin J. Böttinger will manage their respective locations and, together with StB Olaf Gläser, will be responsible for the development of the Lake Constance region. Bodensee Treuhand will provide auditing services alongside BANSBACH GmbH. This merger enables BANSBACH to offer its comprehensive advisory services in the Lake Constance area, with continuity through regular contacts and personnel. Services include bookkeeping, preparation, and auditing of annual financial statements, accounting and audit-related consulting services, national and international tax and legal consulting, transaction services, and business consulting services for CFOs.
For more information on the ongoing BANSBACH growth and doing business in Germany, click here.
December 23, 2022
Sector: Finance
Congratulations to Kreston firm BANSBACH who round off a successful 2022 by significantly improving their ranking in JUVE‘s Top Tax Employers 2023, moving up eight places to 14th in the country.
This is largely a result of employee workplace innovations such as part-time partnerships and the option to work from home, but also a significant strategic expansion plan. This has seen BANSBACH adding a number of acquisitions and strategic partnerships with firms like O&R Oppenhoff & Rädler in Munich as well as adding an entire team from BDO in Freiburg.
Find the article here: BANSBACH | juve-steuermarkt.de
October 31, 2022
August 11, 2022
Sector: Life Sciences & Healthcare
Congratulations to our German member firm, Kreston Bansbach, whose consulting arm Bansbach Econum, has been ranked among the top consulting firms in Germany in the Handelsblatt 2022 Best Consultants list.
They have been ranked for excellence in the Pharma and Healthcare industries, as well as for their expertise in the Family Business and Mid Market sectors, and for their work in Restructuring and Turnaround.
The peer group survey is run by Handelsblatt Research Institute and asks around 16,000 participants to rate their top consulting peers companies in 22 categories”.
Ranking 2022: These are the best management consultants (handelsblatt.com).
July 8, 2022
After a decline in 2020 due to the Covid-19 pandemic, the consulting market shows signs of recovery. The 20 largest management consultancies headquartered in Germany reported average revenue growth of 16.6 per cent in fiscal 2021. In 2020, total revenues declined on average by 6.8 per cent – after more than 10 consecutive years of growth. The leading international consulting groups grew on average by 13.1 per cent in fiscal 2021 (2020: 1.6%). Current challenges such as the Ukraine war, rising energy and manufacturing costs, and related inflation have had little impact on the revenue guidance of the leading business consultancies: the German top 20 plan to grow by 15.4 per cent in fiscal 2022, and the international consultants by 11.5 per cent.
International firms dominate the German consulting market. The 17 leading international providers on the Lünendonk List generated an estimated global revenue of 136.4 billion euros in 2021, of which Germany accounts for 10.5 billion euros (2020: €8.2 billion; +28%).
The list of Lünendonk® 2022 “Leading business consulting companies in Germany” is attached in German. Consulting companies are presented with their respective total turnover and number of employees.
Find out more here.
March 23, 2022
March 3, 2022
BANSBACH adds BDO firm to Freiburg team, GERMANY –
Kreston Global member firm, BANSBACH, has added another location in Freiburg, growing the audit offering. BANSBACH currently has over 400 employees across 9 offices across Germany.
The newest acquisition, which brings 11 audit and tax consultant professionals, including Alexander Friedemann is a certified public accountant and tax advisor with almost 30 years of
experience and Steffen Walter, who has over 20 years of experience at a “Big 4” company and BDO in auditing individual and consolidated financial statements.
This announcement comes on the heels of the merger with O&R Oppenhoff & Rädler AG in Munich. This was completed in the summer of 2021 and saw 45 employees added to the company as part of an ongoing growth strategy.
The new Freiburg office will support a growing need for tax declaration and structuring, consulting, auditing and corporate finance in the area.
Hanns-Georg Schell, Managing Partner of BANSBACH and head of the Freiburg office comments,
“We are pleased about the reinforcement in Freiburg and are convinced that the colleagues will be an excellent reinforcement for our entire company.”
September 29, 2021
LONDON – Kreston Global is delighted to welcome German audit and accountancy firm Delfs & Partner, headquartered in Hamburg, to its network.
Tracing its roots back to 1928, Delfs & Partner provides audit and assurance, tax consultancy, and valuation/advisory services to domestic and international organisations. The current firm was formed following a 2015 demerger from one of Hamburg’s largest audit and tax advisory companies, and since then has grown to six partners, 22 other fee-earners and four administrative staff. Delfs & Partner has a broad client portfolio with particular expertise in key sectors, including construction, real estate, investment funds and asset management.
This announcement follows the rebrand of the Kreston Global network in July 2021 and comes in the same year that Kreston Global celebrates its 50th anniversary.
Jochen Delfs, managing partner at Delfs & Partner, said:
“The decision to join the Kreston Global network was a natural progression for us. Our growth in recent years, and that of our clients, has meant that we are increasingly looking for overseas collaborators that share our values. The Kreston Global network provides a market-leading offering to small and medium enterprises all over the world and does so by fostering successful collaboration and exchange between member firms. We will be working side by side with our colleagues in the Kreston Global network to ensure that the network’s clients in over 120 countries have the best possible support.”
Liza Robbins, CEO of Kreston Global, said:
“Delfs & Partner has an excellent standing in the German market, and we recognised early in our discussions that they were a superb fit for the Kreston Global network. As businesses in Germany continue to recover from the pandemic and develop, the Kreston Global network will be there to support their overseas business needs, providing solutions at all stages of their growth cycle.”
September 21, 2021
