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Business succession

Would you like to prepare your succession?

The SADC du Suroît-Sud handles business succession plans. This is an issue that SMBs must plan because a successful transfer takes place over several years. This challenge is significant in regions where loss of businesses continues to be a serious threat.

What you need to know before starting?

Succession is a critical stage in the history of a business. Transfer preparations may need a 10 year period, if you wish to optimize the chances of its success.

There are two types of transfer which can have different timeline:

  • Administrative succession means an exchange of know-how and leadership skills between the seller of the business and the buyer;
  • Ownership succession deals with the financial, fiscal and legal between the seller and buyer.
     

Three main succession options:

  • Succession to a family member where the owner cedes the business to a family member;
  • An internal succession where the transfer is made to either management or employees. A combination of the two is also possible;
  • An external succession where the business is sold to an individual or a group of individuals not connected to the business.

 

The business succession main challenges are the successor choice and type of succession. Whichever form of succession the entrepreneur chooses for business transfer, two elements are most important: the fiscal impact and a adequate financing plan of the transfer. All scenarios should be examined before starting the process of transferring a business.

Financial assistance for succession

To encourage succession in the Beauharnois-Salaberry and Haut-Saint-Laurent MRCs, the SADC du Suroît-Sud fosters loans intended for transferring company shares or assets through its Investment Fund and Youth Strategy Fund.

The SADC assists promoters to develop their succession plan and ensures on-going follow-up after financing.

For further information:

Canada Business Network - Succession Planning
Ministère du Développement économique, l'innovation et l'exportation
Business succession portal