Mergers and Acquisitions
Family Ownership Transfer
Family business succession planning.
At Destined we understand the intricacies of intertwining family and business relationships. We guide families and leadership teams through the succession planning process, so your family tree will be supported and nourished for generations to come.
Selling your business to a family member.
Ideally, the intention to sell the family business will be worked into your exit plan. You can specify which stars need to align for business ownership to transition to another family member. If this intention is outlined ahead of time, and you follow the steps outlined in your exit roadmap, it will be a smooth transition from one generation to the next.
The first and most important step in your succession plan is selecting your successor.
Once a succession plan is communicated it is time to execute the plan.
Set your successor up for success by giving them time to train and learn.
How taxing is this succession journey?
Your successor will face his or her own tax implications, but you can explore three notable payments or reliefs you’ll likely meet.
Selling your business, as an asset, to your successor, may require a gains tax.
Market value – as assigned to the business as an asset – is the framework by which these taxes are calculated if applied to assets for which no valuation can made, or if your business is valued at below this market value.
Business Asset Disposal Relief
You may be able to apply for business disposal relief and thus pay fewer capital gains.
Inheritance Tax Benefits
Selling your business in full or part to relatives, or passing it on as a bequest, may entitle you to business property relief on the impending inheritance tax.
Accomplish a successful succession.
Transitioning your business to a family member is iconic and a testament to your achievements and family heritage. The journey is yours – Destined will travel with you and guide the way.
Contact Chris Andersen to discuss how Destined can help you transition ownership to a family member.