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Case study

Succession planning for a medium-sized manufacturing company (approx. 40 million turnover) within the family by means of a mixed donation

Task

A medium-sized entrepreneur is the sole shareholder of a medium-sized production company (approx. 40 million sales). The entrepreneur would like to step down from the operational management, but instead join a new advisory board to be established. Furthermore, the shares in the company are to be transferred to the next generation, which at the same time will completely take over the operational management of the company. Furthermore, it is the task to secure the retirement pension of the transferring entrepreneur. The entire process is, of course, to be optimized from a tax point of view.

Solution

The shares in the company were transferred to the next generation by way of a mixed gift (i.e. payment of a purchase price below the determined value of the company). The value of the company was determined. The partial purchase price to be paid was determined taking into account the retirement pension of the transferring entrepreneur. The transaction was optimized from an income tax and gift tax perspective. The articles of association were completely redrafted for the changed shareholder structure with the involvement of an advisory board. The composition of the advisory board was jointly determined. The company was thus positioned for the future.

Service areas
AuditingLegal consultingTax consultingManagement Consulting
Flowchart
  1. Preparation of a schedule
  2. Preparation of a business valuation to determine a purchase price and gift value
  3. Determination of the provision for the transferring shareholder
  4. Extensive discussions with the family members involved
  5. Drafting of the transfer agreement
  6. Redrafting of the articles of association
  7. Establishment of an advisory board with the involvement of the transferring shareholder
  8. Tax support of the company and the shareholders during the entire transfer process
  9. Tax optimization of the transfer to the next generation

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