Why wealth transfers fail:
“When we discuss succession planning with business leaders, we often have to act quickly and strategically,” notes Silke Mies. Julius Baer employees will discuss with them all possible options for the future of the company, from transfer to other family members to alternative solutions such as management buy-out (MBO) or sale.
Family situations are complex. It’s not just about laws, regulations and taxes; there are also emotions and expectations to manage.
Etape importante en direction du futur
“As neutral advisors, our role is to encourage entrepreneurs to set aside emotional ties to objectively identify the advantages and disadvantages of each option before making a decision” which will meet with the support of all members of the family, notes the wealth planner.
For her, it is imperative that everyone involved takes part in the process, including family members with potentially different needs, expectations and thoughts. This ensures that the path followed corresponds to the goals and values of the entrepreneur, while respecting the interests of the different protagonists.
“Only careful private financial planning answers the question of whether the chosen solution for business succession is viable,” insists Silke Mies. Entrepreneurs tend to focus entirely on the business. In many cases, this leads to resources not essential to the operation accumulating over time.” For example, this complicates succession within a family with the obligation to compensate children who do not take an active part in the running of the business.
With the help of a fiduciary, we often define a dividend strategy that will be integrated into private financial planning. Other optimizations, particularly in terms of occupational pensions, can be taken into account for overall planning. The result is a clear roadmap for the future, as well as transparency for everyone involved, without forgetting the certainty that the standard of living of the family, or generation, of the transferring entrepreneurs is guaranteed in the long term. .
“The aim is to develop a succession model approved by all members of the family, so that they adhere to it with satisfaction,” emphasizes Silke Mies. Legal aspects also play an important role. It is therefore necessary to resolve questions of matrimonial and inheritance law in order to ensure the future of the company and private wealth. Furthermore, care must be taken to maintain the company’s decision-making power intact even in the event of incapacity of judgment on the part of the entrepreneur or other key persons. For this, we rely on important legal instruments, such as the mandate for reasons of incapacity or the shareholders’ agreement. These measures protect the interests of the entrepreneur and his family.
According to carefully planned planning, Peter H.’s daughter, who has already been active in the company for several years and is a member of the operational management, will take over the company. Peter H. is now assured that his life’s work will remain in good hands and that family values will continue to be respected.
“At Julius Baer, we rely on the expertise of a team of wealth planners. These experts are active in different specific sectors of wealth planning and work closely together to offer comprehensive advice. They also work with our network of external specialists. This ensures that our customers benefit from complete and comprehensive support,” assures Silke Mies.
