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While an actual exit from your business might take 6–9 months to complete, the pre-transition planning can take years. It’s important to start planning well in advance. We can help you take the steps today to plan for your future transition from “business owner” to “wealth owner.”
Managing business and family can have a multitude of financial, managerial and emotional complications, especially in times of change. From integrated tax strategies to protecting your assets, we help you put in place the action plan to pursue the outcomes you’re seeking for you and your family.
Sitting down with family to discuss your business transition’s impact on your wealth plan can be challenging. It requires skillful navigation to strike a balance between your business needs and the dynamics within your family. Moreover, conflicting visions among family members regarding the company's future can further escalate tensions.
Our team is adept at facilitating these conversations and to address the complexities effectively.
Having a clear purpose for your wealth is never more important than when considering how it will benefit the next generation. Effective tax planning, philanthropy, legacy planning, estate and wealth transfer – they all play a key role at this juncture. We can work with you to realize the wealth transfer strategy and structure that best fits your situation, drawing on the experience of key advisors.
Transition planning is the creation of a strategy for passing on leadership and/or the ownership of your business to an employee, a family member or an outside buyer. It helps to ensure the continuity of your business to run smoothly after you have relinquished some or all your responsibilities in the company.
Transitioning your business is a process, not a one-time event so it’s important to start planning early on. Start discussions with your children or other family members who may be impacted, ideally at least three or more years in advance of the actual transition. Doing so will help facilitate a smooth transfer of responsibility and maintain the operational continuity of the business.
During the initial planning phase of transition and succession planning, you should ask yourself:
The best way to start is to have an open and candid conversation. Whether your business is agricultural or farming, manufacturing or technology, the first thing you need to do is make sure that your family member(s) want to take over your business. If they do, you need to make sure they understand how your business works. A good idea is to have them work alongside you prior to taking over the business if they haven’t already. As well, they need to understand and be ready for any potential impact on their personal lives.
The key to answering this question is early planning. By doing so, you will have sufficient time to establish goals and objectives and execute appropriate strategies. This includes tax planning, estate planning, and personal retirement planning. Through this process, you can benefit in the following ways: optimize tax efficiencies; establish targeted retirement date; gain comfort around retirement income; and manage family dynamics.
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