Why Start Succession Planning Now?

In Switzerland, more than 70,000 SMEs will face a succession decision over the next ten years. Many owners know this — but few prepare in time. The result: stressful handovers, unnecessarily low sale prices, and in the worst case, a lifetime of work that simply ends.

The good news: with early planning, you can control the process, optimise the value of your business, and offer a good outcome for your employees and customers.

This checklist gives you the 12 most important steps.

The 12 Steps to a Successful Succession

Step 1: Achieve Personal Clarity ✓

Before you do anything else: clarify your own goals.

  • What do you want to do after the sale?
  • How important is the sale price versus continuity of the business?
  • Do you want to remain involved during the handover — and for how long?
  • What is your personal financial minimum?

Timeframe: 1–3 months

Step 2: Determine Business Value ✓

Without a solid valuation, you are negotiating blind. Have your business professionally valued — or use Remy for a free AI-based initial estimate as a starting point.

Key metrics buyers care about: - Revenue over the past 3–5 years - Normalised EBIT - EBITDA margin - Customer list and concentration - Employee turnover

Timeframe: 1–2 months

Step 3: Prepare Your Financials ✓

Prepare your financial data so that an external buyer can understand and trust it:

  • Annual accounts for the past 3–5 years (audited if possible)
  • Current balance sheet and income statement
  • Normalisation schedule (private vehicles, owner salary, one-off items)
  • Liquidity and working capital development
  • Any pending or potential tax claims, resolved

Timeframe: 2–4 months

Step 4: Reduce Owner Dependency ✓

This is often the single most important value driver. Buyers ask: "If the owner leaves — what happens?"

Steps to take: - Document key processes (manuals, SOPs) - Delegate management responsibilities - Transfer client relationships to the team, not just to yourself - Build and make visible a deputy or successor within the business - Transfer important supplier contracts from you personally to the company

Timeframe: 6–18 months (the earlier, the better)

Pending risks reduce the purchase price or prevent closing:

  • Identify open legal disputes and resolve them where possible
  • Review customer, supplier, and employment contracts for termination clauses
  • Register intellectual property (trademarks, patents, domains) in the company's name
  • Lease agreements: do they contain a "change of control" clause?
  • Pension fund: are all obligations fully covered?

Timeframe: 3–6 months

Step 6: Plan for Tax ✓

The timing and structure of the sale has major tax consequences — get advice early:

  • Private capital gains from private assets are tax-free in Switzerland (unless classified as professional securities trading)
  • Holding structure may be beneficial — but must be established well in advance
  • AHV contributions on the purchase price apply for sole traders
  • Indirect partial liquidation: understand the pitfalls when repurchasing own shares

Timeframe: 6–12 months before the process, engage a tax adviser

Step 7: Evaluate Succession Options ✓

There are more options than simply "selling to a stranger":

Option Advantage Disadvantage
Family succession Continuity, simpler process Often emotional tensions, price may not be market rate
Management Buy-Out (MBO) Team takes over, knows the business High financing need
Strategic buyer Highest price, synergies Possible cultural change
Private Equity Professional, faster process Profit-oriented, shorter horizon
IPO Significant liquidity Only viable for businesses with CHF 50M+ revenue

Step 8: Evaluate M&A Advisers ✓

From an enterprise value of around CHF 2–3M, a professional M&A adviser pays for themselves. Selection criteria:

  • Industry experience and references
  • Swiss market knowledge
  • Network of relevant buyers
  • Fee structure: success fee (2–4% of EV) is market standard
  • Chemistry and trust — you will work closely together for 12–24 months

Step 9: Protect Confidentiality ✓

The most common mistake: too many people learn about the intended sale too early.

Rules: - NDA before sharing any information - Inform employees only when the deal is effectively certain (or earlier for strategic reasons) - Inform customers and suppliers at closing - No hints in personal circles — rumours spread fast

Step 10: Build the Data Room ✓

A well-structured virtual data room accelerates due diligence and signals professionalism:

  • Financial data (annual accounts, tax returns, payroll summary)
  • Legal documents (articles of association, partnership agreement, key contracts)
  • HR (org chart, employment contracts for key people, pension fund)
  • Operations (process documentation, IT systems, leases)
  • Commercial (anonymised customer list, competitive landscape)

Step 11: Develop the Handover Plan ✓

Buyers ask: "How do I ensure the business remains successful after the sale?"

A good handover plan includes: - Your availability during the transition period (typically 6–24 months) - Who knows and manages the key client relationships - Critical knowledge holders identified and dependencies reduced - Monthly handover milestones

Step 12: Let Go Emotionally ✓

This step is underestimated — and often the hardest. Your company is no longer your company. The buyer will do things differently.

Tips: - Talk with other entrepreneurs who have already sold - Set clear boundaries on your level of involvement after closing - Plan concretely what you want to do next — having a plan makes letting go easier

Succession Planning Timeline

Phase Timing Duration
Personal clarity & initial valuation T−36 months 2–3 months
Value enhancement & preparation T−30 months 12–18 months
Tax planning & legal resolution T−24 months 6–12 months
Engage M&A adviser T−18 months 1–2 months
M&A process (outreach to binding offer) T−12 months 6–9 months
Due diligence & negotiation T−6 months 3–4 months
Closing & notarisation T 1–2 months
Handover phase T+12 to T+24 12–24 months

Your First Step Today

Most owners begin succession planning too late — on average 3 years after the optimal moment. The best time to start was 3 years ago. The second best is today.

Start with a free Remy initial valuation: upload your financial data and receive a 16-page report with valuation, buyer profile, and a 90-day action plan in minutes.

Free. Confidential. No adviser will call you.