Effective succession planning for your business
Business Succession : Saklas Can Help
70% of all businesses do not make it beyond the founder and 90% do not make it to the third generation—mostly because they lack a well thought succession plan. Don’t let your company become a statistic.
Succession planning is an important part of any business. When you buy, sell, pass on, or dissolve a business, there are a number of regulations that you need to be aware of. We can help you navigate through your options and come up with a strategy that best fits your long-term goals.
Considerations for Buying or Selling a Business
In many ways, buying or selling a business is not unlike buying or selling real estate. However, there are specific regulatory considerations and complexities to consider such as:
- Legal issues. Selling your business can be tricky when it comes to legal issues. Although you can use the services of a good professional business broker (who will probably go through a 200-point legal checklist with you), you’ll likely need the services of a lawyer to finalize the sale.
- Accounting issues. Using the services of an accountant who specializes in small business before and during the sale of your business can significantly increase the value of your business. Your accountant can help you make sure your financial records are organized, and “investing in taxes”, two simple ways that can increase the sale price of your business.
- Land transfers. It’s important to note that if your business transaction includes the transfer of land (or lease), your business broker must be licensed by the Real Estate Council of BC (a “Trading Services” licence).
- Shares. If partial shares are being sold, the BC Securities Commission regulates these transactions under the Securities Act.
- Overseas buyers. If you are a non-Canadian and would like to invest in a Canadian business, the Investment Canada Act requires that you fulfill certain requirements. Special tax requirements also apply to foreign investors. More information on investing in Canada can be found at the Invest in Canada website.
Family Succession: Passing Your Business Down to the Next Generation
Whether you would like your family to continue on with your business is up to you. The legal structure of your business, however, will determine what happens to it upon your death.
Have you optimized the structure of your business to achieve seamless family succession and tax minimization?
When You Would Like to Call it Quits: Dissolving Your Business
As in family succession planning, how you dissolve your business depends on its structure. We can help you develop a plan to minimize taxes and headaches on the dissolution of your business.
Contact our team today – 604-531-2292.