Succession planning

Unlocking a lifetime of wealth creation

You have spent years building your business. You have achieved your current level of success probably with a great deal of stress and personal sacrifice for you and your family. If you are like most business owners, 75 – 80% of your personal net worth is tied up in the value of your business, simply because over the years your best investment return was your business.

As you reach the age where you are starting to think about exiting your business, you are not alone. Here are a few important facts based on a CIBC World Markets survey:

  • Provincially, over 10,000 business owners want to exit their businesses in the next five to 10 years.
  • 310,000 business owners in Canada want to transition ownership over the next five years; a total of 550,000 in the next 10 years.

In many instances, business owners are not prepared for the inevitable transition of management and ownership that is quickly approaching. Often it’s only dealt with in emergency situations such as the death or illness of an owner or partner or when a new partnership is needed following a cash-flow crisis.

Close to 60% of business owners aged 55 to 64 have yet to start discussing exit plans with their family or business partners.

The greatest strength of almost every business is the human capital of the owner. However, at a certain stage in life of a business it can become its primary weakness. Time is required to monetize the value of your business into personal assets to ensure the funding for the next stage of your life whether it is transferred or sold to family or a third party.

Business Transition Plan

A business transition plan allows you to design the future transfer of management, ownership and control of your business to a chosen successor(s) – be it family, business partner or an outside third party. But to achieve your financial goals, transition planning must go beyond maximizing the value of your business and facilitating its sale or transfer.

A business transition plan will include your future plans, your family’s financial needs, philanthropic goals and reduction of taxes. It will also include the protection of your assets and estate in the event of death or disability.

The end result will be a wealth management plan to help manage the assets resulting from the transition of your business.

An Intelligent Process

We use a proprietary business model called Wealth Optimization. This model helps you focus on the issues, solutions and results that will best serve you.

The four-step process is:

  • Discovery – Identify values and goals = Clarity
  • Solutions – Develop possible solutions = Decisions
  • Implement – Deploy strategies = Results
  • Management – Manage desired results = Confidence

This entire process begins with identifying the initial focus of planning – the issues. By thinking clearly and viewing the issues as opportunities, you achieve clarity. Once clarity has been achieved you move to strategies, tactics and tools and we begin outlining possible solutions.

Next, together we implement the solutions and set the expected results in motion. Our final stage in the process is to manage the results and fine-tune the plan as required over time.

Throughout the process we will work with your current advisors or bring our team of experts to the table as required. You own the process, we are here to equip and assist you to shape your plan which aligns with your values and goals.

A good process helps you make important decisions in an orderly fashion.