When is the right time to start the succession process?
In companies, the succession process cannot take place overnight – not even in small companies. Experience shows that it takes between five and ten years to make the necessary changes to structures, put in place a successor and implement the relevant tax optimisation measures.
In terms of personnel, owners have to plan in sufficient time for the company to be passed on to the next generation. It may be the case, for example, that the designated successor is not suitable or they drop out during the handover process. If this happens, there must be enough time to find an alternative solution before it is too late.
Most company owners tend to be aged between 55 and 65 when they pass on their company. The ideal age to begin the succession planning process is therefore approximately 50.
If owners begin this process too late, they often end up selling their company at less than fair value and paying too much tax when handing over the company.