Family Businesses: Success from Tradition

About the job

Hochfor mattig

more knowledge more impact more value

Hochfor mattig

more knowledge more impact more value

Succession planning is a highly topical issue for Swiss family businesses. The study "Successful Business Succession" published in February 2009 by Credit Suisse and the University of St. Gallen estimated that around 77,000 companies in Switzerland will face succession planning in the next five years. This corresponds to 26 percent of all companies and affects around 975,000 jobs.

However, many family businesses fail when it comes to succession planning. A 2005 study by ZKB, KMU-Next and the Zurich University of Applied Sciences in Business Administration in Winterthur shows that 10,000 to 15,000 jobs are lost annually due to poorly planned succession processes. This is despite the fact that family businesses possess the crucial factors for the success and tradition of owner-managed companies. They operate with a long-term perspective and have perseverance, their decision-making processes are short, and their hierarchies are flat. Furthermore, owners strongly identify with the company and value their employees.

This year’s "Hochfor mattig" workshop was entirely dedicated to succession planning. At Monséjour in Küssnacht, 70 people attended; at the Company Lodge in Seedorf, 55 people; at the Alfred Grünwald Hall in Brig, 48 people; and at the Hotel Seedamm Plaza in Pfäffikon SZ, 153 people accepted the invitation from the fiduciary and auditing company Mattig-Suter and Partner on the topic "Family Businesses: Success from Tradition. How owner-managed companies remain successful across generations."

Pension specialist Tony Z’graggen explained succession planning with regard to law and pensions. While insurance needs are paramount in younger years, the need for asset accumulation increases with age. Succession planning must take into account both matrimonial property and pension assets.

Tax expert Philipp Schmidig highlighted the key points of succession planning concerning taxes and corporate structures. When selling a business, it makes a difference whether the company is sold within the family or to third parties. While a sale to third parties aims to achieve the highest sale price, realise the proceeds quickly, and have the capital gain tax-free, different interests apply within the family. Often, sales within the family are below market value to secure funds for the company. Additionally, an inheritance law equalisation with other heirs and tax neutrality are sought.

Finally, Claudia Mattig addressed valuation issues that arise in connection with succession. Various interest groups are involved in determining the purchase price: transferors, transferees, and investors. While transferors are guided by emotional values, transferees and investors focus on financial values. Depending on the purchase interest, the achievable purchase price varies.

After the presentations, the fiduciary and auditing company Mattig-Suter and Partner invited the participants to a reception.