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Plan your family business succession with confidence

Plan your family business succession with legal and tax guarantees. Family protocol, tax optimization, and business continuity.

The problem

70% of family businesses do not survive the generational transition. Without a structured succession plan, the handover becomes a source of family conflicts, tax inefficiency, and loss of key talent. Many founders postpone the decision until it is too late, exposing the business to inheritance disputes, avoidable tax burdens, and operational disruption that can destroy decades of work in just a few months.

Our solution

We design comprehensive succession plans covering corporate governance, tax-optimized wealth transfer, next-generation preparation, and contingency planning. Our approach combines family protocols, shareholder agreements, inheritance tax planning, and corporate restructuring to ensure an orderly transition that preserves business value and family harmony.

Process

How we do it

1

Current situation assessment

We analyze the corporate structure, family assets, each member's role, and possible transition scenarios to identify risks and opportunities.

2

Succession plan design

We draft the family protocol, define governance bodies, establish entry and exit criteria, and design the successor's development plan.

3

Tax-optimized wealth transfer

We plan the asset transfer leveraging inheritance tax reductions, regional tax benefits, and efficient corporate restructuring.

4

Implementation and ongoing support

We execute the succession plan with ongoing support, family mediation when needed, and periodic reviews to adapt to regulatory or family changes.

150+
Successions planned
30%
Tax savings on transfers
100%
Business continuity

Thanks to BM Consulting, the transition from my father to me was smooth and orderly. The family protocol has prevented conflicts that we could see coming, and the tax savings exceeded our expectations.

Carlos Mendoza Managing Director, Grupo Mendoza Textil

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The importance of planning ahead

Business succession is one of the most critical moments in a family company’s life. Yet most founders avoid addressing it until circumstances force their hand — whether due to age, illness, or internal conflicts that have already escalated.

Planning ahead not only allows for optimizing the tax burden of the transfer but also provides time to properly train the successor, reach consensus among family members, and adapt the corporate structure. Businesses that plan their succession at least five years in advance have a survival rate three times higher than those that do not.

Key elements of a succession plan

An effective succession plan goes far beyond drafting a will. It includes a family protocol as a governance framework, the definition of governance bodies that separate ownership and management, a training plan for the successor, shareholder agreements to handle deadlock situations, and a contingency plan for unforeseen events.

Each of these elements must be coordinated with the company’s legal and tax structure. Good intentions are not enough: agreements must be formalized in legally binding documents that protect both the business and each family member.

Tax implications

Transferring a family business has significant tax consequences. Inheritance and Gift Tax, with rates that can exceed 30%, is the most relevant levy, but not the only one. Potential capital gains under personal income tax, Corporate Tax implications, and regulatory differences between autonomous communities make specialist tax planning essential.

Legal tools exist to optimize this burden: the 95% reduction for family businesses, regional tax reliefs, lifetime gifts with proper planning, and pre-transfer corporate restructuring. Expert advisory can reduce the tax bill by 30% or more compared to an unplanned succession.

FAQ

Frequently asked questions

When should I start planning the succession?
Ideally, you should begin at least 5 to 10 years before the planned transition. A succession plan requires time to train the successor, optimize the tax structure, and reach family agreements. The earlier you start, the more tax planning options are available.
What taxes apply to business succession?
The main ones are Inheritance and Gift Tax, personal income tax on capital gains, and Corporate Tax if restructuring is involved. Tax reliefs vary significantly between Spanish autonomous communities, creating important optimization opportunities.
How can family conflicts during succession be avoided?
Through a family protocol that establishes clear rules on employment, compensation, decision-making, and dispute resolution. This document, supplemented by shareholder agreements and updated bylaws, creates an objective framework that prevents personal confrontations.
What is a family protocol?
It is an agreement that governs the relationships between the family and the business. It defines who can work in the company, how family members are compensated, how strategic decisions are made, how conflicts are resolved, and what happens if a member wants to sell their stake.
Is a succession plan legally required?
It is not legally mandatory, but it is highly advisable. Without planning, the succession is subject to general inheritance law, which is rarely optimal for business continuity. Moreover, the lack of planning exponentially increases the tax cost.
How much does succession planning cost?
The cost depends on the complexity of the family and corporate structure. A full process including family protocol, restructuring, and tax optimization may involve an investment of several thousand euros, but the tax savings and conflict prevention make it one of the best investments a family business can make.

Take the first step

Request a no-obligation consultation and discover what we can do for your business.

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