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System Lift Terminates Partnerships with Member Companies

Overview of the Situation

The German-based rental firm cooperative, System Lift, has made a significant strategic decision to end its partnership with two of its member companies, Dornseiff Arbeitsbühnen and Ferdinand Scheurer. This decision comes as a direct result of both companies being part of the DID Group, which has recently come under the majority ownership of the private equity firm, Aurelius Investments. This shift in ownership structure raised concerns about the alignment with the cooperative’s values and objectives, ultimately prompting System Lift to reevaluate its partnerships.

The Reason Behind the Decision

According to Malte Bilau, the CEO of System Lift, parting ways with these two companies was not an easy decision, but it was deemed necessary to uphold the fundamental principles of being an association made up of owner-managed businesses. “This step was not easy for us, but it is necessary in order to preserve the fundamental values as an association of owner-managed companies and ensure the future strength and stability of our network,” Bilau remarked, highlighting the importance of maintaining a cohesive and aligned partnership network.

Impact on the Cooperative Community

Fellow board member Christopher Friedrich elaborated further, stating that the acquisition of Scheurer by DID in 2020 marked a significant departure from the traditional owner-managed structure that the System Lift community had upheld. Friedrich emphasized, “With the takeover of Dornseiff Arbeitsbühnen, which was completed last year, there is now a clear trend away from the purely owner-managed group of companies." This transition, he indicated, had driven the cooperative to take decisive action, even though it posed challenges given the long-standing relationships with the affected companies.

Assessing Risks

As System Lift navigates this difficult period, the cooperative faces inherent risks associated with managing relationships that are now influenced by private equity interests. Frank Scheidt, the Managing Director of DID, along with the management teams of both partner companies, was informed of this decision last week. System Lift articulated concerns regarding the commitment of private equity investors, whose primary objective often revolves around acquiring and consolidating companies for value appreciation. Bilau noted that these financial strategies could introduce significant instability and jeopardize the community’s long-term development. He remarked, “This approach harbours significant risks for the stability and long-term development of the community on several levels.”

Timeline and Community Support

In an effort to ensure a fair transition, the separation from Dornseiff Arbeitsbühnen and Ferdinand Scheurer will proceed over the span of almost a full year, concluding on December 31, 2025. The cooperative’s Supervisory Board is in full support of this decision, reinforcing the need for System Lift to focus on maintaining strong, owner-managed companies. Fabian Markmann, the Chairman of the Supervisory Board, expressed that the management board had made a tough but correct decision in the community’s interest by stating, “System Lift stands for strong owner-managed companies.”

The Role of AI legalese decoder

In navigating these complex contractual repositionings, effective communication and clarity are paramount. The AI legalese decoder can offer invaluable support by simplifying legal jargon and ensuring all parties involved understand the implications of the separation process. It can aid System Lift in drafting clear and concise communications, outlining the rationale behind the decisions taken, and ensuring compliance with relevant legal obligations during the transition period. By leveraging AI legalese decoder, System Lift can enhance transparency, mitigate misunderstandings, and foster a smoother transition for all parties involved, ultimately preserving the integrity of the cooperative’s community values and goals.

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