• the legal and fiscal consequences of how it is implemented
• the multiplicity of stakeholders who need to identify their roles
• the scope and the limitations of the contributions of each person taking part in the project
• coordinating the actions of stakeholders and verifying that they respect their obligations
To ensure the project is completed successfully and the client’s objectives are met, it is essential to do the following things before putting the project in motion:
• set up a team and define each person’s precise role and responsibilities
• define how the team will coordinate and manage its work, while taking into consideration the client’s economic objectives
• audit the assets and their structural holdings
• undertake a judicial and fiscal analysis of possible solutions to understand their consequences, feasibility and the inherent risks in each solution
• finalize negotiations
• contractualize the negotiated terms
• compile the dossier presenting the financing to be put in place
• finalize the transfer of the assets and the actions following signature
The transmission of wealth within the family circle is by nature a complex operation, not only because of the number of stakeholders involved and the financial challenges, but also because finding an integral solution necessitates judicial and fiscal expertise in both the domains of business and private law. In effect, it is critical to consider the legal and fiscal consequences of the envisaged transfer for the ensemble of the affected members of the family circle by examining the interferences between the different personal and professional assets to be transferred, but also those of the beneficiaries.
A preliminary study must describe, in detail, the judicial and fiscal framework of the solution that each of the parties have chosen to put into place after the auditing phase.
Based on the end goal, the challenges and the constraints of the operation, the office will:
• determine the different types of investment frameworks necessary to acquire the assets, or titles of holding companies of these assets, in order to select the structure that will optimise the return on investment
• define how the existing assets and holding structures will be managed to optimise the profitability of the transaction
• evaluate the inherent risks involved in this process and accordingly choose the most adapted and secure solutions
The choice of investment framework depends on:
• the client’s economic objective
• the taxation system where the investment is being made and the residence of the investor
Transferring the primary business to an descendent within the family circle given the presence of other possible heirs
In this type of situation, the head of the company should carefully define the economic objectives concerning the envisaged transfer of the company: to choose, or not choose, his or her successor from within his or her heirs, they also need to confirm that their actions respect the French laws requiring equality of inheritance and they must define the mode of governance for the company being transmitted to his or her successor.
If the head of the company considers that none of his or her heirs are able to succeed him or her, a sale of the business would be inevitable, either to a buyer, so to its employees.
However, if the head of the company considers that one, or several of his or her heirs are able to succeed him or her, he or she must decide if the management of the company should be reserved to the designated successor(s) or if, on the contrary, the management will be assured by the family circle.
Based on these objectives, the structure of the transmission of assets and mode of operation will vary.
Our office is capable of providing project management for our clients. We first define the organisational structure of the project, taking into account each stakeholder. Then we oversee the project, monitoring its progress until its successful completion.