A succession of a company involves a wide range of issues.
In addition to clarifying the taxation aspects of succession matters, inheritance issues and other legal aspects of the transfer, there are typically several practical issues that need to be addressed and be resolved. we cover the entire spectrum and follow the process through to completion.
It is our recommendation to make a generational change in advance. Our experience has proven that many families have enjoyed great success in securing succession in the family business at an early stage. Partly because clarity and security have been created around the conditions and the future of the company, and because several complications are avoided in the event of unexpected or early deaths. It is in many ways like drawing insurance, but timely initiation of this process can end up having significantly greater importance 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 amount of capital resources available or have to obtain external financing.
There are several possibilities for implementing generational changes via earn-out models, including the popular AB model, where the descendants initially receive B shares without the right to dividend, which later is converted to A shares with full rights.
Contact Flemming Keller Hendriksen at +45 70 90 90 60 for further information.