This is precisely where the actual mechanics of a transaction begin: the so-called equity bridge. It describes the path from the negotiated company valuation to the actual purchase price paid. Anyone who doesn't understand this mechanism risks unpleasant surprises at closing – and that's exactly why a closer look is worthwhile.

The sale of a family business is usually a once-in-a-lifetime event for the owner. Hidden reserves, often accumulated over many years or even generations, are realized in one fell swoop. This results in an extraordinary income tax burden, which – depending on the company's structure – can range from approximately 28% to as much as 47% of the capital gain.