Enterprise & Entrepreneur

Enterprise & Entrepreneur

What challenges do you face as an entrepreneur?

Enterprise & Entrepreneur

  • We help you analyse the best investment strategy. 
  • With our E&E scan, you will get a clear insight into the performance of your portfolio.

As an entrepreneur, do you really know the return on your investments?

An entrepreneur who does not know the exact return on his or her investments: unfortunately, this is all too often the reality. So did Frank, who, after talking to ABN AMRO Private Banking, was given a much more transparent view of his investment portfolio. The accounting impact and the tax burden were mapped out precisely and adjustments could be made.

How can ABN AMRO Private Banking help you optimise your wealth?

 
"A few months ago I had a conversation with Frank, an entrepreneur who wanted to start an investment portfolio with his company," explains Marcel Kunnen, entrepreneurial expert at ABN AMRO Private Banking. "What started as a conversation about his investments, eventually led to so much more. We even had a plan for how he could leave his company to his children within a few years.

Wealth analysis

Frank's company is active in the food industry and he also has a second company that mainly comprises real estate. There is a holding company above the two companies. "He has been with his home bank for years, but the latter now has a negative interest rate. So the option of investing with his company came up, and for that he came to us." 

Marcel immediately started an analysis, including with the E&E scan (Enterprise and Entrepreneur Scan). "This is a scan in which we analyse the actual return on the company's investments over a given period, after simulated corporate taxation. In this way, we can provide a clear picture of the tax burden that certain investments can cause. But also questions such as: 'How much can be invested without losing the SME rate?', 'What is the client's risk profile?', 'What is the impact of the corporate tax on the expected return?' or 'Which instruments are we going to use to build up the investment portfolio?' are addressed", Marcel Kunnen explains. 

 Enterprise and entrepreneur

Surprise

It was this last element in particular that caused a surprise. "Of the nice return of 6.59 percent that Frank achieved with his private portfolio, only 3.79 percent would remain if he had kept the same portfolio within the company - in case of a sale today. This would have resulted in a tax burden of 42.4% on this portfolio due to a combination of, among other things, taxable capital gains and non-deductible capital losses, as became apparent through simulation with our E&E scan. This immediately makes things clear: when it comes to corporate tax, there are different rules than when it comes to taxation for private individuals. If you don't take that into account, you get the wrong idea."

Plan for the future

But the experts at ABN AMRO went a step further. "We also discussed with him the final purpose of the holding company. Will one of the children take over? Are those children interested in getting shares in the holding company and therefore in the operating company as well?", says Marcel. 

In order to further explore these questions, a Wealth Planning Solutions specialist also joined. "What turned out? Only one of the three children turned out to be interested in being active in the business. So we made a plan to gradually transfer the savings in the holding company to the private." 

Interested in what ABN AMRO Private Banking can do for you?

"At the end of it all, Frank went home with peace of mind. We built an investment portfolio that takes into account his risk profile as well as the possible effect of corporation tax and we keep the accounting burden low. Moreover, there is now a plan for succession and the transfer of assets to the next generation. The customer was satisfied. And so are we."

For whom is Private Banking?

At ABN AMRO Private Banking you will receive support from a specialised Private Banker for every stage of your life. In this way, you are assured of valuable advice and expert tailor-made services. Do you have disposable capital of € 500,000 and would you like to know more about what ABN AMRO Private Banking can do for you? Then make an obligation-free appointment.

Our approach

As an ABN AMRO Private Banking customer, you will have your own Private Banker with whom you can review your ideas. They will critically inquire about your rationale and keep you astute in your motives. Your Private Banker and commercial assistant oversee your overall situation. In addition, if you have specific wishes, your own team of specialists will be at your disposal.