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ABN AMRO

Selling or transferring your business

unique situations, unique approaches

Lara Hadjistratis

Head of Wealth Solutions

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To transfer or not to transfer?

“The question is always what the right time is to sell a business. Between the time you decide to sell your business and the actual transfer, five years might easily pass. I recently spoke to the owner of an ad agency, a world that is evolving at a particularly fast pace. They were getting on in years and no longer wanted to put a fresh spin on their business. Another client was the owner of a business that was attracting attention from quite a few parties. When they had their business valued, they were very pleasantly surprised. In the end, we recommend that people set aside an amount in advance, so they can live comfortably and without having to worry about the future.”

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Selling a business: how?

“You have made your decision: you are going to sell your business. Next up are meetings with the accountant, a tax lawyer and your bank. That is when we put our experts across various disciplines to work. Someone from Wealth Solutions will also often join the discussion. In this way, we ensure that the future is also considered and that a smart approach is taken to matters such as real estate. Do you want to sell your real estate along with your business, or would you rather keep the property?”

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What happens after the sale?

“Entrepreneurs often work extremely hard and have a rhythm of working long hours, sometimes for months at a time. Then you suddenly sell your business… What comes next? The money is nice, but so was the work. A young client of ours recently sold their business. They are 40 years old and not considering retirement just yet. And why should he? Together with the client, we structured their assets in such a way that one part is safely set aside so they can live comfortably, leaving the other part to start a new business with.”

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Transferring the business to family?

“There are countless examples of family businesses that go back decades or even centuries. What entrepreneur doesn’t dream of their progeny continuing the business? There is, however, one important condition: the children need to be suited to entrepreneurship. Furthermore, a takeover within the family requires a very specific approach. Getting the highest proceeds are not the most important thing, nor is that feasible for the new generation. Under such circumstances, there are many possibilities to ensure a smooth transfer, such as gifting the family business at a 0% tax rate. We support our clients in preparing the deed of gift and check whether all the conditions have been met to be eligible for this favourable tax regime.”

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Reason versus emotion

“The choice to transfer or sell a business is often not a rational one. Emotion often plays a major role. After all, in a sense, you are selling your baby, which needs to end up in safe hands. As experts on this subject matter, we always strive for an optimum balance between the rational and the emotional aspects when transferring a business. We are thoroughly familiar with the entrepreneur and their family, allowing us to bring the right specialists together at the right time.”

Safeguard your assets, including for the next generation?

Our Wealth Planning Service provides you with a clear picture of your assets and specialised advice for optimum management. Our experts and Private Bankers are happy to help you reach your personal and professional goals.

ABN AMRO Private Banking

Assets require attention. A good Private Bank understands this and knows that every customer has unique needs and wishes. At ABN AMRO Private Banking you will therefore have your own team of specialists with specific knowledge and experience. Our specialised Private Bankers are happy to take the time to work with you to develop an asset strategy that matches your personal objectives.