Module V· DACH Specifics in M&A AccountingAdvanced
Question

How does squeeze-out under AktG versus UmwG work, and what are the accounting consequences?

Answer

German squeeze-out mechanisms allow majority shareholders above legal thresholds to acquire remaining minorities through corporate-law procedures. Accounting depends on whether control already existed. If control already existed, buying out minorities is an equity transaction: reduce NCI, pay consideration, and book the difference in equity, not new goodwill or P&L gain.