Business succession within the family

Internal succession refers to cases where family members of the entrepreneur are willing to continue the business. The transfer of the business is then effected by means of an anticipated inheritance. In such cases, the primary goal of the advisor is to see that the retiring owner is provided for and to avoid non-quantifiable financial risks for the successor. Both of these goals are coordinated from a tax perspective; however they also require a critical review of compensation that may need to be paid to heirs who are waiving an inheritance and/or handling forced share claims of family members who have been disinherited.

Reforms in the laws governing inheritance taxes force advisors to comply with a complex set of rules addressing company valuation for tax purposes and avoiding tax burdens. Numerous publications on this topic make us ideally prepared to address these issues (see Wollny Christoph, Unternehmensbewertung für die Erbschaftsteuer (Company valuation for inheritance tax purposes), NWB 2012).

Our services

  • Development of a favourable tax structure for the transfer
  • Preparation of financial plans taking into account forced share payments, settlement payments, etc.
  • Company valuation for inheritance tax purposes

Benefits to you

  • Avoidance of tax burdens
  • Transparency regarding the financial consequences of the transfer of the business for all of the parties
  • Experience and professional handling of tax-related valuation issues