Finances within the family businesses
Professional support from BDO for your financial planning
Finances play a crucial part in any business. In family businesses there is another dimension involved: the business if often an important part of the family capital. Financial considerations are not always made on the basis of rational reasons, but also on the basis of emotions.
Emotional decision-making can be difficult if not everyone is on the same page. For example, someone who puts the business first, will always want to make investments. But for another person the personal financial situation may be more important. Neither is right or wrong. The key is that financial choices are made in a well-considered manner and that one's own objectives must be (and remain) clear.
Issues for family businesses
Owners of family businesses struggle with recurring issues such as:
- I don't want my children to have to pay the top price for the business, but I also want to be able to enjoy my financial independence. How do I arrange this?
- I doubt whether my children get funding for the takeover. Should I provide them with a loan?
- I want to hand over the business to my children in a few years. How can I prepare financially for this?
- If I gift shares in the business to one of my children, how do I compensate this for the other children?
- All children are shareholders of the business, but only one is on the management board. Who determines whether dividends should be paid?
In addition to knowledge of relevant laws and regulations, our specialists have extensive experience in the emotional aspects of family businesses. They know as no other that rational choices are not always the best ones: you cannot express a good or a bad feeling in Euros. We can help you in areas such as:
- Financing share takeover;
- Structuring and supporting the follow-up process;
- Retirement provisions for transferor(s);
- Dividend policy;
- Asset management;
- Estate Planning.
It is important to our advisers that they arrive at the best solution together with you. We not only listen to your wishes, but include the family and business interests as well.
If you would like to exchange ideas with us about your issues and would like to hear how other entrepreneurs deal with this, please contact one of our specialists for an introductory meeting without any obligation.