As the Canadian economy continues to stabilize, many company owners have begun seriously considering exiting their business. Succession planning has become critical for small-to-medium business owners in Canada, as having a clearly defined and prepared exit strategy will allow business owners to seamlessly transfer into the next phase of their lives. Whether it be retirement, or to pursue other business opportunities, it is clear that succession planning will continue to play an important role for small-to-medium-size business owners.
The stabilization of the Canadian economy also means that the there is a new crop of entrepreneurs looking to purchase an established business. Acquiring an existing business with steady revenue and cash flow allows for greater security than a new startup, while at the same time allows existing business owners to expand into new markets, or to diversify their product base.
Eventually every owner leaves their business, and when that time comes it is important to be prepared with a professionally developed exit plan. Developing this is a complicated process that requires determining a fair market value for the business, confidential marketing, writing up legal documents and contracts, and finding a suitable buyer.