Succession and temporary succesion
Succession and temporary succession are vitally important for the continuity of your family business. The transfer of the business to the next generation is for most entrepreneurs a once-only event that requires extra attention. Recent research at the Erasmus University, in collaboration with BDO (in Dutch), showed that 70% of the family businesses do not survive a generational change.
Research also shows that many entrepreneurs are not or insufficiently prepared for emergency scenarios such as death, incapacity for work, retirement and divorces. These create substantial risks for the continuity of their business, in particular in companies that are strongly dependent upon their director and major shareholder.
Our many years of experience in business succession processes and our involvement in various research projects, ensures that we at BDO are able to prepare you for your business succession in good time. Our specialists have extensive knowledge of ancillary legal matters, such as the tax-efficient Business Succession Scheme. Other aspects also play a specific role in family businesses.
It is crucial that you always consider both business and family interests, which will safeguard not only the continuity in your business, but also the harmony in your family. Our solutions always meet both of these interests.
If you engage us for your (temporary) succession, we initially talk to all stakeholders about the succession to ownership, control and/or management. The final objective is a transparent succession process in the shape of a clear step-by-step plan. We can help you with matters such as:
- Financial planning: when and how can I stop running my business or transfer ownership?
- Valuation: what is an objective value and price for my business?
- Determine suitability of successors: carry out assessments to determine potential and future roles in management of family members and non-family members.
- Support with regard to the change of role of the transferring entrepreneur.
- Formulate owner strategy: who can become owner and when and under what conditions?
- Developing a governance or management structure for business and family.
- Formulate owner or business strategy.
- Draw up a temporary succession plan: what are the arrangements with regard to ownership, control and management if one of the emergency scenarios occur (death, incapacity for work, retirement and divorce)?
If you are looking for a professional party with whom you can exchange ideas about business succession or temporary succession within your family business, please contact one of our specialists.
For more insight into your situation you can also initially complete our Business Succession QuickScan or temporary succession scan.