This Master’s thesis will describe how a business owner can perform the optimal generational change in a company. This analysis will be based on the business owners, the acquirers and the company’s financial position. The relevance of this thesis is based on statements from the Center for Owner-Managed Businesses (Danish: Center for Ejerledede Virksomheder (CEV)) and the Danish Ministry of Taxation, which has estimated that up to 23,000 businesses will face a generational change in the coming years. The theoretical section consists of a review of the preliminary considerations in the context of a generational change, and a review of the current legislation in relation to generational changes. The review of the legislation contains a review of valuation in relation to a generation change between related parties, the company owner’s possibilities to transfer the company in a succession, and the relevant restructuring models share exchange, splitting and the A/B Model, which is partly a way of financing the generational change and other financial possibilities including gifts and debts to the previous owner and banks. The practical section will apply the reviewed theory to the fictional case company “Charmot ApS”, which is a retail company that sells women’s clothing. The company consists of five stores primarily located north of Copenhagen. The owner of the company, Charlotte, is 54 years old, and has begun to prepare the company as well as considering who should be generationally changed to. Based on the review of the theory and the execution of the generational change in the fictional company, it is concluded that it is not possible to define a single method which would lead to the optimal generational change. The optimal generational change depends on the position of the company and the financial needs of the owner and acquirer involved in the generational change.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|