Succession for Family-owned Companies

Kasper Kertesz & Casper Nerup Pedersen

Student thesis: Master thesis


This thesis is the final part of the Mater of Science in Economics and Auditing program at Copenhagen Business School. Many businesses in Denmark will in future years be faced with having to implement a generational change in the ownership of these businesses, because the current owner is close to retirement. Other circumstances may also apply to a generational change. Therefore, this thesis is based on the generational change in family owned businesses. Because of the above, the thesis will be based on the issues that the current business owner and the future business owners in family owned businesses will face if they a part of a generation change in a business. To solve the issues of how best to conduct a generation change in a family owned business, the thesis have outlined the following primary question: “How can a generational change be implemented most fiscally optimal for the parties involved, within the current tax rules in the Danish regulation?” The thesis will be based on the business Fiktiv A/S and its owner Hans Senior. Hans Senior wants to retire within a few years and would like to hand over the business to his son Hans Junior and his close associate Jens Jensen. To answer the primary question the thesis will first describe which legislation is relevant to a generational change. Secondly, the relevant valuation methods and models for a generational change will be described and explained. Thirdly, the relevant legislation, valuation methods, and models for a generational change will be used on two possible solutions, showing how a generational change in Fiktiv A/S could be implemented in light of the wishes of Hans Senior, Hans Junior, and Jens Jensen for the generational change in Fiktiv A/S, their financial situation, and the possible means to minimizing tax payments. Finally the thesis will draw a conclusion as to which of the two constructed solutions can be recommended for the implementation of the succession of Fiktiv A/S.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2016
Number of pages129