Asset restructuring is not just an administrative formality, but a crucial strategic step that can determine the future of your business and family. What benefits does it bring and why the right decision can save tens of millions of crowns in a matter of minutes? Stiva Jokeš, CEO of BA4U, talks about his experience and key practices .
Mr. Jokes, what surprises you most when you talk to business owners about intergenerational transfer?
I often meet owners of medium and large companies when we talk about intergenerational transfer. They are surprised at how complex a topic it is. All I can think is, “What kind of advisor does he have?”
Can you tell us about the specific situation that led you to this conclusion?
At a recent meeting, a client replied to me when asked how he wanted to pass on shares to his two sons, “Well, I’ll sign over 50% to each of them and that’s it.” I go on to ask, “What do your lawyer and tax advisor say?” The client replied, “They had nothing to say.” I put his company’s balance sheet for 2023 in front of him and say, “Can I save you 100 million crowns in the future? And we’ve only been talking for 5 minutes so far.” And that’s how our collaboration began…
Why do you think asset restructuring is so important?
Asset restructuring is important for anyone who wants to protect their assets, manage them efficiently, save on taxes and prepare the conditions for increasing their value in the future.
What specific benefits can restructuring bring?
You save tax – for example, by setting up a holding company or SICAV (where you can reduce your tax burden from 21% to 5%). You separate assets from the business, protecting personal and family wealth from business risks. And you also protect assets from family conflicts, perhaps by setting up a trust or endowment.
You also mention facilitating the transfer of assets. Can you elaborate on that?
Restructuring makes the transition of assets to the next generation easier and clearer. Clear rules and a proper structure minimise the possibility of disputes and chaos. However, this is a complex topic that we will address in the next issue of our Newsletter.
What are the other benefits of restructuring for companies?
Holding structures make it easier to manage the company, provide easier access to financing, and enable long-term planning and motivation of key managers. In addition, SICAVs offer the most advantageous financing and lower tax burden, making them ideal for expansion and growth.
What would you recommend to owners who are thinking about restructuring?
Asset restructuring is not just a technical process – it is a key strategic step. The example of a client who saved CZK 100 million in five minutes shows how much difference the right decision can make. If you are interested in how restructuring can help your family and business, please do not hesitate to contact us. Time is your most valuable resource – don’t wait until it’s too late.
