Tax on business transfer: preserving the value created

The sale of a business is often the result of several years of value creation. However, the amount actually retained by the manager depends as much on the conditions of the sale as on the tax strategy adopted upstream.

Mode of holding securities, presence of a holding company, timing of the transaction, future reinvestment or property objectives: these parameters can significantly change the taxation of the sale.

Reason as net proceeds of disposal

A relevant tax strategy is not simply to calculate capital gains tax. It aims to determine how to organize the transaction so that the officer can dispose, reinvest or pass on the value created under the most favourable tax conditions permitted by law.

Depending on the situation, several architectures can be considered. Their interest must be assessed on the basis of the assignor's personal project and the future use of the proceeds of sale.

Prepare the assignment before it becomes irreversible

Some tax arbitrations lose their interest when they are considered too late. On the contrary, a sufficient amount of upstream reflection compares the different options and measures their impact on the manager's final assets.

The firm thus treats the sale as a overall tax strategy operation, with a concrete objective: to reduce as much as possible the tax cost of the transaction and to preserve the available value for the projects that follow.

Master Édouard Pruvost specializes in tax strategy advice for executives and entrepreneurs. Prior to a business sale, the firm analyses the various structuring options and optimization levers that could improve the net proceeds of the transaction. To prepare your sale and define a tax strategy tailored to your heritage and reinvestment objectives, contact the firm.