Succession Planning

Succession planning is a next-of-kin policy that adequately manages an intended referral of assets in family businesses and other inheritances in the event of unforeseen circumstances. The importance of succession planning is especially pronounced in family businesses, which are vulnerable to unplanned losses in leadership or assets, thus being ill-prepared for the consequences.

Creating a suitable contingency plan guarantees your inheritance assets to be distributed and/or passed on to family members or next of kin who are found to be the most viable persons to receive said inheritance. Naturally, there are other factors, or metrics with which an investor can choose to measure how his/her assets or business can be passed on, and our financial team at deVere Switzerland incorporate these aspects to create a tailored package for every prospective investor.

Key issues for the creation of a suitable succession plan include:

1.    Generational transition - Only a third of all family businesses successfully make the transition to the second generation.

2.    Alignment of family interests - Alignment of interests between current owners and others becomes more pronounced as members retire and turn over the reins to the new generation, while at the same time looking to the company for their retirement income.

3.    Balancing of financial revenues – Establishing buyout agreements by focusing on the value of a business, which is based on an earnings capitalization model.

4.    Interfamily disputes – The interest of one family member may not be aligned with another member. These situations can become more complicated due to unforeseen circumstances such as death or divorce.

5.    Estate and inheritance problems – These include taxes and probate delays upon death of a family owner.
To find out more about how deVere Switzerland can help prepare a tailored financial plan, contact us today.

To find out more about how deVere Switzerland can help prepare a tailored financial plan, contact us today.