How much does business succession really cost in Switzerland?

Why anticipate succession costs?

Budgeting business succession costs correctly is not just an accounting matter: it's a strategic element that directly influences the success of your sale project.

Firstly, these costs directly impact the net sale price you will actually receive. If you hope to sell your SME for CHF 1.5 million, but haven't anticipated CHF 100,000 to 150,000 in fees, your return on investment will be very different from your initial projections.

Secondly, the distribution of costs between seller and buyer is often the subject of delicate negotiations. Certain fees such as due diligence are traditionally borne by the buyer, but can become a point of friction if the amounts are high. It's better to understand these issues from the outset.

Thirdly, anticipating these expenses allows you to plan the optimal timing of your succession. If you need to mobilise CHF 50,000 even before finding a buyer, this may influence when you launch the process.

Finally, understanding the cost structure helps you identify optimisation opportunities. For example, using a digital platform like Leez rather than a traditional broker can significantly reduce SME sale fees whilst maintaining quality support.

To contextualise these costs within the overall process, consult our complete guide on selling a business in Switzerland.

Preparation and valuation costs

Even before putting your business on the market, several preparation costs are unavoidable. These initial investments determine the credibility of your file and the quality of buyers you will attract.

Business valuation

The professional valuation of your business constitutes the starting point of any successful succession. Without a credible valuation, you risk either overestimating your price (and frightening away serious buyers), or undervaluing your assets.

Valuation costs vary considerably depending on the size and complexity of your structure:

• Micro-enterprises and small SMEs (turnover < CHF 1M): CHF 2,000 - 4,000

• Medium-sized SMEs (turnover CHF 1-10M): CHF 4,000 - 7,000

• Complex or multi-site SMEs (turnover > CHF 10M): CHF 7,000 - 10,000+

These rates generally cover an in-depth financial analysis, the application of several valuation methods (practitioners' method, DCF, sector multiples), and the production of a detailed report.

Good news: Leez offers a free valuation via its digital platform, based on proven algorithms and updated market data. This initial estimate gives you a reliable order of magnitude without commitment. For more complex cases requiring in-depth expertise, our network of partner fiduciary firms intervenes at negotiated rates.

To explore the different methods in depth and understand how to maximise your business value, consult our detailed article on business valuation in Switzerland.

Preparatory audit and accounts preparation

Beyond valuation, preparing your succession file often requires the intervention of your fiduciary to organise your financial and accounting documents.

Fiduciary succession fees for this preparatory phase generally range between CHF 3,000 and 8,000, depending on the extent of work required:

• Restatement of accounts over 3-5 years to normalise results

• Identification and documentation of exceptional or personal expenses

• Preparation of forecast financial statements

• Compilation of the financial presentation file

• Harmonisation of accounting practices if necessary

This step is crucial: clear and auditable accounts reassure buyers and considerably accelerate the due diligence process. Conversely, incomplete or inconsistent financial documents constitute one of the most frequent errors that cause successions to fail.

To avoid this type of pitfall, discover the 7 most frequent mistakes when selling an SME and how to prevent them.

Intermediation and advisory fees

Support from specialised intermediaries often represents the largest cost item in a business succession. But it's also the one that offers the most scope for optimising your budget.

Brokers and succession platforms

Traditional business succession brokers generally apply a success commission calculated as a percentage of the final sale price. This structure has the advantage of only paying in case of a successful transaction, but can represent a substantial amount:

• Small transactions (< CHF 500K): 8-10% of sale price

• Medium transactions (CHF 500K - 2M): 5-8%

• Large transactions (> CHF 2M): 3-5%

Some brokers also apply upfront fees (CHF 5,000-15,000) to cover marketing costs, even if the transaction doesn't materialise. Others offer hybrid models combining reduced fees and commission.

Digital succession platforms like Leez are revolutionising this economic model. By digitalising a large part of the process (matching, data room, communication), they considerably reduce intermediary costs whilst maintaining a professional level of support.

On Leez, no commission is charged upon sale. You create your profile, publish your advert confidentially, and access a database of verified buyers for a single fee of CHF 490. Premium support and active intermediation services are offered at rates significantly lower than traditional brokers.

Discover how Leez optimises the succession process and reduces your costs whilst maximising your chances of success.

Mergers and acquisitions (M&A) advisory

For complex transactions involving multiple legal structures, international issues or significant amounts, calling upon a specialised M&A adviser may prove judicious.

M&A adviser fees generally fall within these ranges:

• Project fee: CHF 15,000 - 50,000+ depending on complexity

• Success commission: 2-5% of transaction value

• Hybrid model: reduced fee + performance commission

When should you call upon an M&A adviser? Typically for:

• Transactions exceeding CHF 5-10 million

• Structures with several subsidiaries or holdings

• Negotiations with investment funds or international strategic buyers

• Situations requiring a sophisticated exit strategy

For medium-sized SMEs, the Leez expert network offers an interesting alternative: succession specialists who intervene in a targeted manner on the most complex aspects.

Legal and administrative fees

The legal security of the transaction generates unavoidable costs, but essential to protect the interests of both parties and avoid post-transaction disputes.

Lawyer's fees

The intervention of a lawyer specialising in corporate law is strongly recommended, even essential to secure the drafting and negotiation of the sale contract.

Lawyer's fees for a business succession vary according to several factors:

• Simple transactions (single structure, few assets): CHF 5,000 - 10,000

• Standard transactions (classic SME): CHF 10,000 - 15,000

• Complex transactions (multi-structures, sophisticated guarantees): CHF 15,000 - 20,000+

Lawyers generally charge by hourly rate (CHF 250-500/h depending on experience and region), or offer a package for the entire service.

Typical assignments include:

• Review and negotiation of the letter of intent (LOI)

• Drafting of the share or asset sale agreement

• Negotiation of liability guarantee clauses

• Structuring of earn-out or price supplement clauses

• Support during signing and closing

Don't underestimate this step: a poorly drafted contract can expose you to claims for years after the sale.

Notary fees

The intervention of a notary is mandatory in certain cases, particularly for the authentication of transfer deeds and for transfers involving real estate assets.

Notary fees in Switzerland generally range between CHF 1,000 and 5,000, with significant variations depending on:

• The canton (some apply specific scales)

• The legal form (AG, GmbH, sole proprietorship)

• The presence of real estate assets in the transaction

• The complexity of the deeds to be authenticated

For a share transfer of an AG or GmbH without real estate assets, fees are generally moderate (CHF 1,000-2,000). On the other hand, an asset transfer including real estate can generate higher notary fees (CHF 3,000-5,000 or more).

Some cantons partially exempt business successions from transfer duties, which can significantly reduce the final bill. Find out about your canton's legislation.

Due diligence and acquisition audit

Due diligence is generally carried out and financed by the buyer, but its cost indirectly impacts the negotiation and can become a point of discussion when setting the final price.

Due diligence costs vary considerably depending on the scope:

• Limited financial due diligence: CHF 5,000 - 10,000

• Complete financial due diligence: CHF 10,000 - 20,000

• Multi-disciplinary due diligence (financial, legal, tax, operational): CHF 20,000 - 30,000+

To facilitate this process and reduce costs for all parties, Leez offers a secure data room integrated into its platform. You centralise all your documents (accounts, contracts, HR, etc.) confidentially, and grant controlled access to qualified buyers.

This digitalisation accelerates the due diligence phase, reduces document exchanges, and decreases the time (therefore cost) required for auditors to carry out their verifications.

Tax implications

The tax implications of a business succession often constitute the most complex cost item to anticipate, as they depend on numerous parameters: seller's status, legal form, canton, transaction structure...

Capital gains tax

The tax treatment of capital gains realised upon sale varies fundamentally depending on whether you sell as an individual or legal entity.

For an individual:

• Capital gains on the sale of shares held in private assets are generally tax-exempt (non-taxable capital gains)

• Important exception: if you sell a sole proprietorship or partnership, the capital gain is taxable as income, but may benefit from liquidation tax relief

• This relief (reduced rate) generally applies if you are over 55 or permanently cease your activity due to disability

• The effective rate varies by canton, but generally ranges between 5% and 15% (instead of 20-40% at the normal rate)

For a legal entity:

• Capital gains are in principle taxable at the ordinary corporate tax rate (12-21% depending on canton)

• Possibility of applying the participation reduction if certain conditions are met (holding ≥ 10%, duration ≥ 1 year)

The tax issue can represent several hundred thousand francs on a significant transaction. It is imperative to plan your succession fiscally with an accountant or tax specialist, ideally 2-3 years before the sale to optimise the structure.

Transfer duties and cantonal taxes

Beyond capital gains tax, some cantons apply transfer duties or specific taxes on business or asset transfers.

The situation varies considerably from one canton to another:

• Cantons without transfer duties: Zurich, Zug, Schwyz, Lucerne... (majority of German-speaking cantons)

• Cantons with transfer duties: Geneva (3% on real estate), Vaud (up to 3.3%), Fribourg, Neuchâtel...

• Specific exemptions: several cantons totally or partially exempt family business successions

For a share transfer (asset deal), transfer duties are generally non-existent or very low. On the other hand, an asset transfer (share deal) including real estate can trigger significant duties in certain cantons.

This difference in tax treatment often influences the legal structuring of the transaction: favouring a share transfer rather than an asset transfer can generate substantial savings.

Again, support from a tax specialist in business succession is a worthwhile investment that can save you far more than its cost.

Hidden costs not to be overlooked

Beyond direct and visible fees, several hidden costs can significantly impact the budget and timeline of your succession. Anticipating them will spare you unpleasant surprises.

Time and opportunity cost

The business owner's time mobilised by the succession process represents an often underestimated, but very real cost.

A typical business succession spans 6 to 18 months and requires considerable personal investment:

• File preparation and document organisation: 40-80 hours

• Meetings with potential buyers: 20-40 hours

• Negotiations and due diligence: 40-60 hours

• Legal and administrative finalisation: 20-30 hours

In total, count on 120 to 210 hours of your time, equivalent to 3 to 5 weeks of full-time work. For a business owner whose time is worth CHF 200-300/h in terms of value creation, this represents an opportunity cost of CHF 24,000 to 63,000.

Moreover, this mobilisation can have an impact on current operations: drop in commercial prospecting, postponement of strategic decisions, stress affecting the team...

This is why it's essential to:

• Delegate certain tasks to your team or external advisers

• Use efficient tools that automate and structure the process (like the Leez platform)

• Plan the succession early enough to avoid being under pressure

Guarantees and escrow

Guarantee and escrow mechanisms protect the buyer against post-acquisition risks, but generate costs and immobilise liquidity for the seller.

Liability guarantee:

The seller generally guarantees the accuracy of information provided and the absence of hidden liabilities. Part of the sale price (10-30%) is often placed in escrow for 12-24 months. Escrow setup and management fees range between CHF 1,000 and 3,000.

Earn-out clause:

In some transactions, part of the price is conditional on achieving future objectives. This structure requires specific accounting monitoring and can generate annual control fees (CHF 1,000-2,000/year).

Warranty & Indemnity Insurance:

For significant transactions, insurance can cover guarantee risks. Premium generally between 1% and 2% of the insured amount, plus setup fees (CHF 5,000-15,000).

These mechanisms are often necessary to conclude the transaction, but must be integrated into your financial planning.

Summary table: budget to plan for

Here is a summary table recapping all cost items for the succession of a Swiss SME, with realistic ranges depending on transaction complexity.

* Capital gains tax depends heavily on your personal situation and transaction structure. Can be nil (share transfer in private assets) or represent 5-15% of capital gain (liquidation with tax relief).

How to optimise succession costs?

Now that you have a clear view of the different cost items, here are concrete strategies to optimise your budget without compromising the quality and security of your succession.

1. Prepare your business in advance

Rigorous preparation 12-24 months before putting it on the market considerably reduces last-minute costs. Gradually organise your documents, clarify your key contracts, formalise your processes. You will thus reduce preparatory audit fees and accelerate due diligence.

2. Use high-performance digital tools

The Leez platform digitalises and automates many stages of the process: free initial valuation, intelligent matching with qualified buyers, secure data room, communication management. This operational efficiency drastically reduces intermediary costs compared to a traditional broker.

3. Negotiate your advisers' fees

Don't hesitate to compare several service providers and negotiate rates, particularly for lawyers and fiduciaries. Ask for packages rather than hourly rates to better control your budget. The Leez expert network offers pre-negotiated rates for our users.

4. Choose the right experts at the right time

You don't necessarily need a CHF 50,000 M&A adviser for a CHF 1-2 million SME. Call upon experts in a targeted manner on the most complex aspects: a good lawyer for the contract, a tax specialist for optimisation, but use digital tools for the rest.

5. Anticipate tax planning

Tax optimisation must be done before the sale, not during. Consult a tax specialist 2-3 years beforehand to structure your assets and business ideally. The tax saving can far exceed the cost of advice.

6. Structure the transaction intelligently

The choice between share transfer and asset transfer, the presence or absence of real estate, the canton of residence... all these elements influence costs. Thoughtful structuring can save you tens of thousands of francs in transfer duties and notary fees.

Discover how the Leez expert network can support you in a targeted and efficient manner to optimise each stage of your succession.

Conclusion

Business succession in Switzerland generates significant costs that can represent 5 to 15% of the transaction value, i.e. CHF 50,000 to 150,000 for a CHF 1-2 million SME. These expenses are spread across several items: valuation, intermediation, legal fees, notary fees, tax advisory, and variable tax implications depending on your situation.

Far from being a simple charge, these costs represent an essential investment to secure your transaction, maximise the sale price, and avoid post-sale disputes. A poorly prepared or poorly supported succession can cost you far more in missed opportunities, unfavourable negotiations, or subsequent legal problems.

The key to success lies in three principles:

• Anticipate: budget correctly from the start and prepare your business 12-24 months in advance

• Optimise: use high-performance digital tools like Leez to reduce intermediation costs without sacrificing quality

• Surround yourself: call upon the right experts at the right time to secure critical aspects

With a structured approach and the right partners, you can significantly reduce your SME sale fees whilst maximising your chances of succeeding in your succession under the best conditions.