Business succession within the family.
From generation to generation - with calm, overview and an eye for the whole.
The family business is often more than a business. It is a life’s work, a pride, a foundation for several generations. But what if it’s time to pass the baton? The succession within the family can then quickly become a complex playing field – with emotions, interests, tax regulations and legal choices all coming together.
At Guidon, we help you to not only make this business succession possible, but to arrange it properly. With peace, overview and attention for all involved.
What is involved in a family transfer?
-
1
Fiscal business succession regulation (BOR and DSR).
The business succession regulation (BOR) and pass-through regulation (DSR) can provide great tax benefits when the business is donated or inherited. But the conditions are strict – and change from time to time.
We help you get started on time and set up the structure so that you meet all the conditions. Consider:- Active business activities (no investment assets)
- Structure, taking into account real estate
- Timely planning (e.g., minimum 5-year ownership)
- And yes: we’ll also keep you informed of legislative changes. No worries.
-
2
Valuation of the company.
What is the company actually worth? A logical and sensitive question. The valuation is essential for the tax treatment, but also for the internal relations within the family. For example, if one child takes over the company and the other does not.
Our specialists make an independent valuation. It is factual, honest and well-founded. This allows you to discuss it – based on facts, not feelings. -
3
Legal structure.
Is the business in a sole proprietorship, partnership, limited liability company or holding structure? And is that structure still appropriate for a transfer?
We look at how to transfer control and ownership smartly and smoothly. This includes issues such as:- Share transfer or asset/liability transaction
- Voting rights vs. economic interest
- Voting agreements/family status
-
4
Authority & harmony within the family.
Business succession is not just about rules and numbers. Above all, it is about people. About trust, appreciation, expectations. And the desire to maintain good family ties, even after the transfer.
If desired, we supervise family meetings or draw up a family statute together in which agreements and expectations are laid down. So that everyone knows where they stand and disappointments are avoided. -
5
Financing the acquisition.
The successor(s) often do not have the full purchase price available. Then smart solutions are needed such as
- Staggered payment
- Subordinated loan from parents
- Contribution of external capital
- Combination with BOR/DSR
- We are happy to think with you about a feasible, fair and fiscally responsible transfer to the next generation.
Our approach.
We believe in a multidisciplinary approach. At Guidon, tax professionals (estate planners), accountants and corporate finance advisors work together as one team. That means: No loose ends, One point of contact, Eye for the entrepreneur and the person behind it. For the legal documentation, we work with your own advisor/notary or from our network.
Frequently Asked Questions.
Ideally, you start 5 to 10 years in advance. That sounds long, but it gives you room to set up the structure in the best possible way for tax purposes, get your successor ready, and bring the family along with you.
No. You can also transfer in stages: non-voting shares first, management or ownership later. This way, the direction remains with you for now, but your child can gain experience in the meantime.
This is common. The choice is yours (and the family’s) whether family members who do not work in the company can become shareholders. If not, it is even more important to determine the value of the business and to make arrangements for compensation or other forms of asset transfer. We will help you do just that.
Even then, the BOR can be used (under conditions). However, it is important that everything is well prepared and recorded. A will, for example, and an appropriate corporate structure.
Don’t panic, there are other ways to keep the company afloat. Consider, for example, the appointment of an outside CEO, a strategic merger with another company, or the sale of the company. Which form best suits you and your business? We are happy to talk more about that.
Ready for the next generation?
Whether you are just starting to think about succession or already have concrete plans: we are happy to help. Contact us for a free consultation - or an inspiring brainstorm with our succession consultants.