Sell, prepare to sell or prepare your succession
According to a study published by the Montreal Chamber of Commerce, 99.8% of enterprises in Quebec are SME’s, of which 90% are family businesses, providing 50% of the total employment population in the province. Surprisingly only 30% make it through the 1st generation and 10% through the second.
The study shows that due to the aging population, more business owners will retire than there will be entrepreneurs to replace them. According to the same source, only 17.5 % of Quebecers who wish to start a business prefer the option of recovery or buyout of an existing business.
Prepare your business for sale:
For entrepreneurs planning to sell their business in the short, medium or long term, or those for whom the market does not offer the best conditions to sell in the short or medium term.
This option allows owners and their companies to prepare for a future sale. By considering the evolution of the market, the company’s actual position and its future projections, this option provides a plan for the company’s activities and structure in order to reach the financial and structural goals, namely, to realize the desired value and the targeted sale price at maturity.
Prepare your succession:
For entrepreneurs and business owners looking to retire and who prefer to transfer their business to family members or key actors in the company, or prefer to profit from their business without being involved in the day-to-day administration and management, considering a succession plan is another way to plan for your retirement and for the future of your company. This option is desirable for both buyers and investors, since it displays the prospects of the company and its resilience. In some cases it may also enhance the value of the business. This method keeps employees, clients, and suppliers on good terms with the company and its owners.