The answer is always YES - and therefore you must always include this in your consideration when reviewing your corporate structure.
If a generation change is made as a sale to a third party, a trusted employee or as a transfer to the next generation, what is the price of the company? Is the whole company or only a part of it to be sold/transferred?
A generation change, therefore, requires good timing and a thorough knowledge of the law and typically involves other advisers than your accountant. In connection with the change of ownership, the company must be priced and the buyer has to have financed this price. What is the company really worth? It is normally in all parties’ common interest to put a value on the company.
- A valuation of the company
- Evaluating future scenarios for your company
- Evaluating the tax implications
- Discussing management issues with the acquiring party
- Evaluating financing conditions
If you want to know more about the ownership of your company, please feel free to contact Baker Tilly for a no-obligation meeting, where we can discuss your considerations and company situation.