Transferring or selling? Both require professional guidance

Deciding who will be your successor, then completing the handover process, requires forethought and a detailed plan. There can be many strategies to enable a successful and tax-efficient transition. You need an experienced financial partner to guide you through the process, backed by a team of expert advisors.

If you’re selling the business rather than transferring ownership, it’s a different plan, but one that is just as critical, with a proper valuation being the first step.

The right advice makes all the difference

Knowing what questions to ask and what strategies are available can help you make sure you have a succession plan that works. The complex web of tax rules around these types of transactions is a perfect example of an area where you’ll want to seek professional expertise.

Your BlueShore Business Advisor and tax specialist can help you determine ways to maximize the potential tax benefits. They can also show you how to take advantage of strategies you might otherwise overlook – for example, paying yourself a "retiring allowance" that can be rolled into your RRSP over and above your regular limit.

Together, you can make sure your succession plan covers all the essential areas, including:

  • How to structure the deal, its timing and tax treatment
  • The financial benefits for you, your spouse, and other family members
  • Insurance planning that takes into account additional funds necessary to keep the business running or provide for the family while it's up for sale
  • Changes to wills, insurance and perks such as company cars
  • Agreement on the extent of your ongoing involvement
  • Contingency plan for unexpected events such as the death of your chosen successor
  • Transitional roles for you and key employees
  • How and when to communicate ownership change to employees, customers, suppliers, banks and other third parties.
BlueShore Financial, Business Advisor, Robert Spicer

Robert Spicer

Business Advisor

Have a question? Ask an expert

Our team of experienced professionals are here to answer any questions you may have.