Transferring your business to family

A family charter is a document describing agreements relating to the family and the business. Drafting a charter formalises certain matters, but the process itself is even more important. A charter emerges through family discussions and helps create a shared family vision.

This centres on both willingness and ability. A major pitfall is parents assuming their children want to take over the business. Even if that assumption is correct, there is still a risk of family bias. Does the intended successor have the capabilities needed to take the next step? What criteria must the successor meet, and are they ready?

If not all children take over the business, you will face various questions about how to treat them fairly. Should they receive an equal share of “other assets” compared with the child (or children) taking over? Should children own shares only if they hold a management position?

There is no right or wrong answer. What is important is involving all children in the succession process — including those who have no desire to work in the business. This strengthens family harmony and prevents anyone from feeling excluded.

This is an important topic that often receives too little attention in practice. Awareness is key. There are measures you can take even before the sale — for example, revising the legal structure of your business. We would be pleased to discuss this with you and your advisers.

A few quick wins:

• Give your holding company a different name from your business
• Do not register your holding at your home address
• Ensure you are not the sole shareholder of your holding

Tax considerations are an important aspect of business succession. Income tax and gift and inheritance tax include provisions to support a smooth business transfer. Whether these apply to your situation is not guaranteed. Your marital agreements also play a role. Your will is an important starting point — does it still align with your current wishes?

Considering a sale to external parties such as private equity or another strategic buyer? Our corporate finance advisers can help determine business value and sale price, prepare a sales memorandum, assess offers, make strategic decisions about which parties to exclude, and select the right buyer to negotiate with. Working together ensures every opportunity and all expertise are fully used.

During and after the sale, we will of course continue to support and guide you. Your financial situation will change following the sale. What does the sale proceeds mean for your future plans? Is there room to support your children, for example when buying a home? We always recommend thinking about this as early as possible during the sale process. In the end, you arrange life after the sale now.

Our Wealth Planners will work with you step by step to build a personal wealth plan. This plan provides insight and a full overview of your total wealth — both business and private — and forms the basis for well‑informed decisions.