Business Succession

This Article Just Might Save Your Business By Brett Machtig and Dave Denniston

There are well over 100 different tools, techniques, strategies, tactics and combinations thereof that enable successful business owners to manage their wealth in accord with their values and goals. Discovering the appropriate combination must begin with clarity about the wealth holders’ values, goals, and loved ones, as well as the causes they hold in highest esteem.

Generally: Many people have existing businesses and business succession is an important planning objective. For assets not held in an existing business entity, sometimes the formation of a corporation, partnership, or limited liability company can help accomplish estate-planning objectives, including asset management, asset preservation, and even estate reduction.

The workforce is graying and within the next 10 years 15% of the population is planning to retire according to StatsCan. For many successful business owners across this country they are somewhat wary of selling their companies because of the unknown. It is very difficult for an owner to see their personal identities separated from their business.

Canadians are aging. Canadian entrepreneurs are aging even faster. Over the next 15 years more than half of the country’s small and medium sized family business owners are expected to retire. According to studies by the Canadian Federation of Independent Business (CFIB), Canadian family business owners are generally not adequately prepared for the business succession matters they will have to address. The numbers reflect this.