Many business owners want the company to pass to the next generation of the family. This can be achieved in several ways, including a phased business transfer. It can also be attractive for owners with or without a successor who would like to remain involved for a while.
A phased transfer means that ownership changes hands in several stages rather than all at once. This can benefit both the transferor and the acquirer.
Benefits for the transferor
- The transfer can proceed at the desired pace.
- Additional financial resources can enable major investment and further growth.
- The transferor has time to adjust to the new situation.
- Responsibilities can be handed over selectively, while the owner remains active in a chosen area.
- The buyer’s knowledge, experience and network strengthen the business.
- Further value creation can support a later final exit.
Benefits for the acquirer
- Time to gain knowledge and experience within the business.
- The ability to take on more responsibility gradually.
- A smoother transition for employees and customers.
- A spread financing burden because not all shares are acquired immediately.
Possible structures
In a gradual succession, the acquirer takes on more responsibility step by step while the transferor remains involved for several years. Another option is a gradual buy-in, in which the buyer acquires shares in stages and gains more control over time.
A phased transfer can be an excellent choice, but it requires clear agreements on pace, roles, value and terms. Legal and tax advice, together with a financial expert, is therefore highly recommended.