{"id":5201,"date":"2023-11-08T16:22:11","date_gmt":"2023-11-08T16:22:11","guid":{"rendered":"https:\/\/planisource.com\/?p=5201"},"modified":"2024-08-02T19:36:43","modified_gmt":"2024-08-02T19:36:43","slug":"assurer-le-perennite-dans-un-transfert-dentreprise-familiale","status":"publish","type":"post","link":"https:\/\/planisource.com\/en\/how-to-ensure-the-sustainable-transfer-of-a-family-business\/","title":{"rendered":"How to ensure the sustainable transfer of a family business"},"content":{"rendered":"
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November 25, 2023<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to ensure the sustainable transfer of a family business<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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How to ensure the sustainable transfer of a family business<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Transferring your business requires a lot of preparation, and many owners do not have a succession plan. This is why ensuring sustainability requires a structured planning.<\/p>

Many leaders expect their family members to take over the reins of the company, particularly in the case of a transfer of the family business. On the other hand, will they have the capacity? A family transfer\u00a0is a complex operation<\/a>, a lack of succession strategy is often the main reason for this disconnect between expectations and reality.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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To ensure sustainability, choose the right time<\/h4>\nThe first thing the entrepreneur must do is leave the management of the company to others. Planisource and organizations such as the Quebec Business Transfer Centre (CETEQ)1 can help you move forward in your thought process. \n\nAfter the decision is made to leave the company direction, the question that must be addressed is: are my children able to take over? If the answer is no, there are three main options available to you: 1) Identify the courses that can polish the children's knowledge; 2) Find a person to take over as the President; 3) sell the business. \n\nIf children could take over, what are the steps to take?\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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How can we ensure sustainability for a smooth transfer?<\/h4>

Our experience with small businesses teaches us that the first step is to identify the owner's financial needs. Comprehensive retirement planning should therefore be carried out. When transferring between family members, it is essential to know the tax aspects and rules that govern them<\/p>

A business value analysis should be carried out by a professional, ideally a business valuation expert (CBV), in order to protect against questions related to the company's value that may come from the Canada Revenue Agency (CRA).<\/p>

When the entrepreneur's financial needs and the value of the business have been identified, the financing and structuring stages of the transaction follow one another.\nAt these stages, we add the services of specialists in financing, human resources as well as accountants and tax specialists.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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A business value analysis should be carried out by a professional, ideally a business valuation expert (CBV), in order to protect against questions related to the company's value that may come from the Canada Revenue Agency (CRA).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u2013 R\u00e9ginald Barbe<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Rethinking the organizational structure is sometimes important<\/h4>

This is where the new organisational structures are drawn up, that the buyers start to put their stamp on the organization.
This is also when the entrepreneur realizes the company will no longer be his or hers. The buyers intend to change the look of your \"baby\". We, the consultants, have to be very present, because it is a critical moment when the entrepreneur could back down or oppose the changes.<\/p>

It is very important that, when selling your business to a family member, the entrepreneur realizes that no matter how valuable the business is, most children don't have the financial capacity required to purchase it without the owner's assistance.
l\u2019entrepreneur r\u00e9alise que peu importe la valeur de l\u2019entreprise, la plupart des enfants n\u2019ont pas\u00a0les capacit\u00e9s financi\u00e8res requises pour en faire l\u2019achat sans le concours du propri\u00e9taire.<\/p>

Often, the endorsement of the owner will be required, or a balance of sale price will be in place and, finally, the lender may require the owner to be present in the company for a while.<\/p>

In conclusion, it is important to communicate, define roles and responsibilities, and plan ahead.<\/p>

Surrounding yourself with experts allows you to obtain information, advice and a more objective vision of the situation.\u00a0A well-executed succession plan will not only deal with legal and fiscal issues<\/a>, but also governance too and good communication between family members.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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