Transfer of ownership to the next generation, with a strengthened corporate structure for further growth ambitions
The transition of a family business is ideally built on a well-thought-out plan which not only ensures continuity for the company in terms of ownership and management but also creates an opportunity to redesign the structure of a group of companies.
Liquarto accompanied the transfer of a family-owned group of companies to the next generation, focusing on:
- an optimal (financing) structure to support future growth ambitions
- an equal treatment of all family members
- organizing to reap financial fruits of the successful entrepreneurship of the founder
The situation
A group of companies valued at 28 million euros, where the family shareholding differed per entity and where, overall, the founder-entrepreneur was the majority shareholder.
The objective of the transaction was to:
- establish a structure of one integrated group of companies with a holding company structure
- transfer the shares to the next generation, taking into account both active and non-active family members
- fully finance this family transition through bank financing
- foresee sufficient financial buffers to continue the company’s growth trajectory
Liquarto’s approach
Together with the advising law firm, Liquarto developed a financial step plan that enabled both the financing and the family objectives.
Before aiming for an optimal financing structure, Liquarto acted as a sparring partner to develop a long-term financial plan, with particular attention to future investment needs and potential fluctuations in working capital requirements.
It is always crucial to plan with sufficient prudence, allowing to absorb potential future setbacks.
1. The process
Based on the financing needs of both the shareholders and the group of companies, Liquarto led the financing process by:
- preparing an Investor Memorandum outlining the step plan, along with a 5-year financial and liquidity plan per company and at group level
- guiding conversations with a selection of 4 banks, jointly chosen with the client
- managing the entire process, answering bankers’ questions, and conducting negotiations
- performing a preliminary analysis of the proposals from the 4 banks, all of which positively responded to the various credit requests for a total amount of 18 million euros
- using this analysis as a basis for the family to select the strategic financial partner
- ensuring a smooth implementation by carefully reviewing contracts and supporting the execution of the financial steps (funds flow)
2. Financing of the acquisition and future working capital needs
- The step plan ensured maximum financing at the level of the companies where the cashflow is generated
- Partial financing of real estate allows for longer-term funding
- An additional 6-year revolving credit facility anticipates potential future increases in working capital needs
3. Structuring for future stability within the company and the family
Thanks to the implemented step plan, the family was able to:
- ensure a sound and equal treatment of all family members
- valorize the founder’s entrepreneurship via cash proceeds
- ensure sufficient financial buffers post-transaction to guarantee business continuity and expansion
The outcome
The implemented process resulted in a solution that met all objectives:
✔ The new structure strengthens the group’s capabilities
✔ A thoughtful succession plan provides peace of mind and continuity for the company
✔ The children were treated equally from a financial perspective
✔ The founder-entrepreneur received a cash payment and disposes of ample financial means to maintain his standard of living
The added value of Liquarto
This case illustrates how an integrated approach - financial, legal, and familial - enables complex transfers of businesses.
Liquarto combines:
- in-depth expertise in acquisition financing,
- experience in family wealth planning,
- and a strong negotiating position with financial institutions.
Are you considering a family transfer or would you like to explore financing options? We’d be happy to discuss this with you.
