The great business handover: planning for the future

As many business leaders prepare to step down, succession is a key challenge. At Baum Notaires, passing the torch starts with careful planning.

Is the “great business handover” already underway?

Nicolas Baum: We have yet to see a massive surge in business transfers, but the trend is beginning to take shape. Many business leaders are starting to think about succession. For an entrepreneur, passing on a business is a defining decision: it means deciding what will endure beyond their tenure, planning a smooth transition and giving the next generation the means to carry the business forward.

Cécile Guillois: This wave could also bring changes to the legal and tax framework. These should be anticipated, not feared. Tax rules should support a clear succession plan, not dictate it. The Dutreil pact (1)remains a valuable tool, although its terms may evolve.

Does taxation remain the main driver behind early succession planning?

NB: Taxation matters, as early planning can reduce the tax burden. But it should never be the sole consideration. The “why” is as important as the “how”: preserving independence, maintaining local roots, passing on a vision or starting a new chapter? We help business leaders define their priorities.

CG: Focusing too heavily on tax optimisation risks overlooking the needs of the business and family. The key is to plan ahead without rushing, protect the outgoing leader and give the successor room to grow.

When should a business begin preparing for succession?

CG: Ideally, five to ten years ahead. This allows time to identify successors, assess their commitment and plan the transition. Succession is about more than transferring shares: future leaders must understand the business, earn employees’ trust and learn to make decisions. Preparing them and developing a tailored strategy with the right advisers are essential.

NB: A successful handover also requires introducing the successor gradually to employees, customers and business partners. In a family business, the next generation must be recognised as the leader in their own right, rather than simply as “the son” or “the daughter” of the outgoing owner. That legitimacyis built through experience, results and a clear allocation of responsibilities. The legal transfer formalises and safeguards the handover, but it cannot, on its own, create a successor. When properly prepared, succession gives a business a new lease on life. When neglected, it can jeopardise both the business and family relationships. The challenge is not only to ensure the long-term survival of businesses, but also to keep France’s small and medium-sized enterprises (SMEs) and mid-sized companies (ETIs) under French ownership and rooted in France.

1. The Dutreil pact is a French tax mechanism that, subject to certain conditions, allows 75% of the value of shares or a business to be exempted when calculating transfer duties upon succession or transfer.

Baum Notaires

Based in Paris, Baum Notaires brings together 14 notaries and around 50 staff across nine practice areas. The firm advises French and international individuals, business leaders and institutional clients. Its multidisciplinary approach enables it to handle complex projects, combining technical expertise, strategic advice and legal creativity to deliver tailored solutions.