Business Transfer: Ensuring the Continuation of Your Business

No business owner is immortal. Sooner or later, every managing director of a company will need to face strategic choices in one form or another, to ensure the sound handover of a company they have built and grown over the years.

Not only is planning for long-term continuation inevitable, its implementation is crucial. Among other things, transferring a business involves human, financial and, sometimes, family issues. Well-orchestrated planning will take into account each of these aspects to ensure the sustainability of the company when its founder is no longer there.

Only 3 in 10 business owners are able to pass on the torch, and this transfer can take up to eight years. ^[1]

Hence the importance of continuation planning on a long-term basis, as well as studying the options for successfully completing the transfer.

Aside from selling to one or more third parties, there are a number of scenarios in which a business owner or manager may wish to hand over their business. This series of articles is intended to summarise some of the key elements regarding transfers and business continuation.

To learn more, please refer to the articles of our tax law, wealth protection and corporate law professionals on the subject.

Our Articles:

• Achieving a Successful Business Succession: An Approach That Is As Technical As It Is Personal
• Business Succession: An Incentive Plan to Retain Your Employees
• Governance: At the Heart of Successful Business Succession Planning
• How Will Selling Your Company To Your Managers Influence the Transaction?

There are a number of concerns that must be taken into consideration, such as ensuring the company's continuation is planned in a structured manner, establishing boards of directors and family councils and attracting skilled personnel.

[1] Sources: Chamber of Commerce of Metropolitan Montréal and Centre de Transfert d'Entreprise du Québec (Centre for Company Transfer in Quebec)