Succession in family businesses

Earlier than most business owners think. Waiting until retirement or declining energy levels is often too late. Succession requires preparation, and that takes time – not just to sort out legal and fiscal matters, but to involve the right people, develop talent and align expectations.

Starting early creates calm, clarity and space to make thoughtful decisions – both businesswise and personally. It also allows for a phased transition that protects business continuity. Succession is not a single moment, but a multi-stage process that benefits from buy-in at every level.

It starts with acknowledging their pace, questions and ambitions. Successors shouldn’t just be expected to take over – they should want to. Involve them, guide them and build trust. Let them participate in strategic decisions, gain experience across functions and make mistakes in a safe environment.

That could be within the family business or externally – for example, by working elsewhere or pursuing further education. Gradual transfer of responsibility is key, with you stepping back while they learn to lead. Open dialogue about future visions, doubts and desires helps avoid pressure – and lays the foundation for responsible ownership.

‘Fair’ doesn’t always mean ‘equal’. Children active in the business contribute differently from those who aren't – which may require tailored solutions in ownership, control and remuneration. For example, the child running the company might receive a salary or profit share, while siblings who aren't involved take a more passive shareholder role.

Clear agreements prevent friction. These can be formalised in a family charter, shareholder agreement or will. That structure provides clarity and helps avoid personal conflict arising from business arrangements.

BOR offers tax relief when transferring business assets, such as exemptions from inheritance or gift tax. But it comes with complex and evolving conditions. Careful planning is essential. This includes setting the right structure (e.g. using a holding company), meeting minimum ownership and continuation requirements, and ensuring proper business valuation to avoid disputes with the tax authority.

We advise business owners to regularly assess their position and prepare different succession scenarios. That way, you use the fiscal tools available, stay in control and avoid unwelcome surprises for your heirs.

Striking the right balance between involvement and independence is key. Letting go doesn’t mean stepping away entirely. Your experience is valuable, especially during transitions. Governance is your ally – consider forming an advisory board, drafting strong articles or phasing out your decision-making role over time. This keeps you connected without overshadowing new leadership.

Set clear agreements about roles, responsibilities and feedback moments. That creates a safe environment for successors to grow – and for you to step in if needed. Succession then becomes a joint effort, not a sudden break.