This thesis is written as a part of the Cand.Merc.Aud Study at Aalborg University. The purpose of this thesis is to show and explain how a family-owned company can prepare for a change of generations. The change is from father to children. Every year, many company owners are faced with having to start a generational change or at least consider it. This is also the reason why this topic is always relevant. The thesis is based on the current legislation, which may have an impact on a generational change. The current legislation will be analyzed and will be compared to relevant judgments and rulings to support the topic. It is possible to use succession when a generational change is made within the family. When using succession, it is possible to do it without any tax now, but instead have deferred tax. When using this method, the buyer takes over the transferor’s tax position. The buyer therefore takes over the transferor’s acquisition price, ownership time, depreciation and so on. The main reason for using succession is to lighten the financial burden for the buyer, as the buyer does not have to finance as much as if the company had been bought as a third party. When considering a generational change, you must be aware that it can be a long process. When planning a generational change, it is important to have the correct company structure that is adapted to the future. If there is a need for a restructuring of the company structure, there are some restructuring models that can be used. The most used restructuring models for generational change are exchange of shares and demerger. Exchange of shares are often used in situations where the wish is to have a holding company structure. A demerger is often used to separate a company’s activities into one or two new companies. Another big part of a generational change is the financing, as this can be done in several ways. The different forms of financing will be analyzed in the following thesis and analyzed for the pros and cons of each of the different forms of financing.