Every company will have to deal with business succession. By choosing the right structure, an unexpected offer for the company with a good price can be accepted. By starting on time, the chance of a successful business succession is increased. In addition, the sale of the company can then take place tax-free. If the managing director-major shareholder (managing director) wants to enjoy his old age after the business succession, financial planning will be necessary to achieve this.
A structure suitable for business succession consists of at least two BVs. A holding company and an operating company. As a result, the business can be carried on by the operating company and for example excess liquid assets can be placed in the holding company. Valuable assets (buildings, etc.) can also be owned by the holding in this structure. This structure also offers good opportunities for spreading risks.
Deadline to start business succession
In order to increase the chances of a successful business succession, it is recommended to start preparing the business succession in good time. Not only to optimize the structure, but also to get the managing director used to the idea that the company no longer belongs to him after the business succession. Saying goodbye to your baby takes time. In addition, the optimal moment for business succession can be chosen on the basis of the development of the company (investments, figures, etc.). A period of 10 years to start the business succession seems very long, but in practice it often appears to give the best result.
Tax-free sale of the business
If the structure consists of a holding company and an operating company, the holding company can sell the operating company to the business successor on the basis of the participation exemption without levying corporate income tax. If there is a private property or other valuable assets, they can also be sold without corporation tax by adjusting the structure in time.
Old day after sale
After the sale of the company, the director usually wants to enjoy his old age. To achieve this, financial planning is required that starts before the business succession. This is also an important reason to start thinking about business succession in good time and to take the necessary actions to make a good old age possible.