Succession in family businesses
We support entrepreneurs in the important and often difficult process of succession in family businesses. A full succession involves the transfer of assets, power and expertise in business between generations so that the company and its value built by the senior generation could be secured and developed in the future.
As shown by numerous studies, succession is most effective when it is planned and its implementation is appropriately spread over time.
In order to ensure the smooth continuation of operations of a family business, it is important to handle the issue of stepping back from business by the senior-generation owner in a satisfactory manner, avoid family conflicts and secure both the company and the family, minors in particular, in case of such owner's sudden illness or death. For a family business, the occurrence of any – if even only temporary – obstacles preventing its owners from running it may simply jeopardize the continued existence of the company.
We provide our advice based on the analysis of the current situation of the owner's business and family. As a result, we are able to explain and discuss with individual family members all aspects essential for developing a unique, optimum plan for succession of the family business, conforming to the provisions of law and giving consideration to the succession tax implications for the senior-generation owner's family and the business itself. Since succession in family businesses is a multi-aspect process and quite often the family and the business may benefit also from assistance with regard to non-legal (e.g. management or financial) aspects, we cooperate also with companies specialising in such services.
We implement the agreed concepts that may involve the transformation of the legal form of business, division or merger, streamlining of the ownership structure, amendments to articles of association/deeds of partnership or solutions allowing the business to continue its operations in the case of sudden succession. We draft all the required documents, including sales contracts, deeds of gift, powers of attorney, agreements between shareholders and current or potential heirs, last wills of family members and agreements as to succession. A well-planned succession helps also in relations with banks and other business partners since it is a smart way to demonstrate the long-term prospects for undisturbed business continuity.
Sometimes, when a full succession in a family business is not the best option or, for some reasons, it is not even possible, the best solution for the senior-generation owner's family may be to bring in outside managers or to get the business ready for sale or winding up.
Our lawyers assist in the efficient completion of judicial and extrajudicial actions required to acquire the inheritance and to take control of the business, including in the proceedings for opening of succession, judicial certificate of inheritance acquisition and inheritance division. We provide the aforementioned assistance also when there is no succession plan and such assistance becomes even more crucial.