Plan company succession early: That's why every year counts
Planning company succession early means not only securing your own retirement, but also the continued existence of the company. Across Switzerland, around 168,000 SMEs will change ownership by 2030. KKT Zurich GmbH shows which schedule works and what Zurich entrepreneurs should pay attention to now.
Why early planning is worthwhile
The succession rate among Swiss SMEs is currently 32 percent, which is higher than in previous years Study by UBS and the University of St. Gallen shows. Nevertheless, around 12,000 SME successions fail every year, often because planning begins too late.
Anyone who plans company succession early also benefits from significantly better prospects of success: According to the, companies that have been taken over exist Federal Office of Economics After five years, 95 percent continue to do so; for new start-ups it is only 50 percent. A clean handover demonstrably contains more substance than a new start.
The ideal timeline: 5 to 10 years in advance
KKT Zurich GmbH recommends one Succession tackle it five to ten years in advance. This preliminary phase creates space for the company valuation, the choice of the appropriate successor model, the tax and legal structure, and an orderly handover phase in which the successor gradually assumes responsibility.
Those who plan company succession early can also react to market changes instead of accepting the first buyer under time pressure.
These successor models are available to choose from
According to figures from the Federal Office of Economic Affairs, Swiss SME successors are distributed as follows:
- intra-family succession: 42 percent
- Handover to other relatives: 11 percent
- Sale to employees or managers (management buyout): 23 percent
- Sale to external third parties: the remaining part
Which model is right depends on the family situation, the size of the company and the goals of the owner. KKT Zurich GmbH supports the selection and the concrete implementation.
Tax aspects in the canton of Zurich
Spouses, registered partners and direct descendants are included Canton of Zurich exempt from inheritance and gift tax. For other heirs, the rates are between 2 and 36 percent, depending on the degree of relationship. Additional cantonal relief may apply to company transfers, the exact requirements of which vary from case to case. KKT Zurich GmbH is examining this together with Estate planning.
Company valuation as a starting point
At the beginning of every succession planning there is a realistic one Company valuation. It forms the basis for negotiations with family members, management or external buyers and at the same time shows where the company's value can be increased before the handover.
Frequently asked questions about business succession
When should I plan company succession early?
Ideally 5 to 10 years before the planned handover. This leaves enough time for evaluation, model selection and tax planning.
What happens if I don't plan a successor?
Without planning, Swiss SME successions fail significantly more often. There are around 12,000 cases every year, often involving liquidation or sales below value.
Will my children pay inheritance tax if they take over the company?
In the canton of Zurich, direct descendants are exempt from inheritance and gift taxes.
What if there is no one in the family to take over?
Then management buyout solutions or a sale to external third parties come into question. KKT Zurich GmbH accompanies both paths.
Plan company succession early with KKT Zurich
KKT Zurich GmbH accompanies you from the initial location determination to the completed handover.
Contact us at +41 44 566 79 79 or info@kkt-zuerich.ch, or Arrange an initial meeting about company succession straight away.