In most family businesses, it is really important for the business owner to keep the company in family ownership. Thus, as the owner ages, an inevitable generational transfer is ahead. There are significant issues involved in generational change, to which a professional expert is able to pay attention to and thus give advice on the implementation of the generational transfer.
In preparing for a generational transfer, it is important to organize the roles and responsibilities of successors. In family businesses where the owner has several children, a generational transfer may cause controversy. However, with the help of an expert, a mutually satisfactory solution is often reached by the end of the process. Sometimes this can even mean splitting the business between multiple successors.
There are financial and taxational issues associated with generational transfer that differ from other acquisitions. For example, gift certificates can be used for financing, and the tax relief of generational transfer on the purchase price should be taken into account. These issues should be discussed with an expert well in advance during the planning of a generational transfer.
It can take from months to years to complete the generational transfer process, depending on how it is implemented and how the negotiations progress. It is worthwhile to proceed patiently in the process and strive for a solution that is suitable for all parties, because it is not worth breaking family bonds due to a generational transfer.
Is a generational transfer a timely topic for your company? Contact us.
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