BUSINESS SUCCESSION

Business succession involves a wide range of issues.

In addition to clarifying the tax aspects, inheritance law issues and other legal elements of the transfer, there are typically a number of practical issues that need to be addressed and resolved. As advisors on generational change, we cover the entire spectrum and see the process through to completion.

It is our clear recommendation to implement generational change well in advance. Experience shows that many families have benefited greatly from securing succession in the family business at an early stage. This is partly because it creates clarity and security regarding the circumstances and the future of the business, and partly because it avoids a number of complications in the event of unexpected or premature deaths. In many ways, it is like taking out insurance, but initiating this process in good time can end up being significantly more important than most insurance policies.

When a generational change is initiated early, it will also be easier to implement without the descendants having to have a large capital reserve at their disposal or having to obtain external financing.

There are a number of options for implementing generational change via ‘earn-out’ models, including the popular AB model, where the descendants initially receive B shares without dividend rights, which are later converted into A shares with full rights.

Please contact Flemming Keller Hendriksen at+45 70 90 90 60 for further information.