The weight of demography: in 10 years, more than 450.000 French companies, representing about 2.5 millions of jobs, should be controlled by other executives for exclusive demographic reason. According to the INSEE, 700.000 French C.E.O. are 50 years old and more which represent one third of the total senior executives in France?
TARGET INDIVIDUALS
- Sellers of companies: senior executives and / or partners
- Buyers of companies
TAKING ADVANTAGES OF THE SITUATION
- To ensure the legal security of the operation
- For the seller: tax and social optimization to increase the EBIT (Earnings Before Interest & Tax) and the business value in order to ease the operation
- For the seller: exoneration of capital gains (with the occasional exception)
- For the buyer: acquisition of an optimized firm from both, tax and social point of view
- Opportunity for the buyer and the seller to avoid taxation by putting in “MADELIN”’s contract, which may allocate an extra pension by capitalization
- Possibility for the seller to sell his company with the opportunity to invest the selling price, for instance in a life insurance contract which may enable the seller to have no inheritance taxes.
- Possibility for the buyer to finance his acquisition by using a bullet loan linked with a capitalization contract.
MECHANISMS
- From a legal standpoint
- There are built on a perfect knowledge of tax, social and business law
The importance of demography: in 10 years, more than 450,000 French companies, representing about 2.5 million jobs, will be controlled by external executives for exclusively demographic reasons. According to the INSEE, 700,000 French C.E.O.s over 50 years old represent one third of the total senior executives in France.
