Of all small and medium-sized businesses in Switzerland, 88 percent are family owned. A large majority of them would prefer to hand over the business to their descendants. But the latter are increasingly less willing to take them on. According to Bisnode D&B, a service provider for business-to-business information, only 41 percent of all companies in Switzerland are taken over by the next generation. In 40 percent of cases, employees take over the company (management buyout), in 19 percent of cases an external solution is found.
Regardless of which solution comes into play, "succession planning is a very personal issue and therefore a trusted consultant is essential," says Werner Wüthrich, Managing Director of the
Vita Collective Foundation. "We advise entrepreneurs to start addressing the topic at the age of 50."
That is often easier said than done. This is something that Werner Wüthrich knows all too well. "At 50, most people are still in their prime and don't want to know anything about succession planning," he says. "I can understand that." On the other hand, it's not just a matter of who will head the company later on. The financial and tax consequences of a company transfer also need to be examined and the
occupational and private pension plans (second and third pillar) need to be addressed.
Finally, according to Wüthrich, a third component must not be forgotten: If a company ceases operations, knowledge and jobs, as well as tax revenue, are lost. "Good preparation – in every respect – will make it easier for business owners to hand over the company to their successors when they reach the age of 64 or 65, and feel good about doing so," emphasizes Wüthrich.
