Succession/change of ownership

Are you going to sell or transfer your business sometime in the future? The answer is always YES – always keep this in mind when planning/changing your company structure.

A succession requires good timing and a thorough knowledge of the legislation, but typically also involves other advisers than the auditor.

In connection with the change of ownership, the company must be valued, and the buyer must have the finances. What is the company worth? It is usually in the common interest of all parties to value the company.

Is the succession to be implemented as a sale to a third party, a trusted employee or as a transfer to the next generation? What is the value of the company? Is it the entire company or only a part of it that is to be sold/transferred?

Baker Tilly knows the process of a succession and ownership change and can therefore help you to:

  • valuate the company as well as assess the company's readiness for sale to ensure the best possible value
  • assess future scenarios for your business
  • assess the tax consequences
  • discuss the management of the acquired party
  • assess the financing conditions
  • be your trusted advisor throughout the process
  • prepare your company for a change of ownership - see here

The obvious questions are when, how and whom?

There are many considerations to take in connection with both succession and ownership change. Necessary inspiration is therefore important to be able to make the decisions that best suit the change in question when planning your succession or ownership change.

Planning is the key word for a successful succession or ownership change. It can provide more appropriate financing and liquidity, a better price and result in the most satisfactory solution for the company, the employees, and the family.

In some cases, it takes a few years to complete a successful succession, which is why it is never too early to start planning.

The overall considerations of a succession or ownership change should always include the financial and tax aspects. These aspects often have a major impact on the success of the change.  

A transfer of a business is usually a continuous process, which consists of several steps:

  1. Analysis of the company, including customers, market, finances, and employees
  2. Clarification of the owner’s success criteria for succession or change of ownership
  3. Valuation of the company as well as tax and accounting options
  4. Financing the succession or change of ownership
  5. Choice of transaction
  6. Implementation of the plan

Throughout the process, it is often necessary to make small adjustments to the plan you have chosen, as the world continues to change and as there may be changes to your initial assumptions.

Want to hear more about succession or change of ownership?

Contact Baker Tilly for a non-committal meeting where we can discuss your considerations and company matters if you want to know more about the change of ownership of your company.

Contact us
Photo of Ida Helena Gert Jensen
Ida Helena Gert Jensen
Tax Partner
Photo of Gert Mortensen
Gert Mortensen
Managing Partner, Corporate Finance