PwC Canada | 5 factors to consider when transferring a business

Transferring a business requires thinking about many elements. Whether it’s succession search, due diligence, financial plan development or transition, surrounding yourself with the right partners at every step makes the process easier. Here are some factors not to be overlooked, as well as expert resources to support you.

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1. Build a succession or succession strategy

Finding and training a successor, establishing tax and insurance strategies, and calculating the financial needs of all parties can take years of preparation. It is also necessary to assess the value and commercial potential of the company and protect them. For these purposes, professionals with complementary skills, such as those at PwC, can act as prime contractors to help you get the big picture.

We help you compare your options for a smooth transition and establish the best case scenario for your business and family.

Yves Bonin, FCPA, FCA, Partner, Certification/Leader — PwC Privé in Quebec


2. Get adequate funding

A financing package often combines several funding sources: buyer’s personal contribution, seller’s balance, asset-backed loan, equity interest, etc. The capital structure is established according to the precise situation and needs of the company. . It is important to leave enough flexibility, in terms of access to cash, to allow the company to continue to grow during and after the handover.

In addition to providing different financing solutions, a financial institution or institutional investor can offer valuable advice at this stage.

National Bank encourages the deployment of a team in each of Quebec’s regions that is in tune with the needs and realities of their respective markets.

Stéphane Bourgeois, Senior Director, Business Transfers, National Bank of Canada

BDC supports small and medium-sized enterprises (SMEs) in all sectors and at all stages of their growth.

François-Xavier Lemay, Director of the Montreal Business Center, BDC

The Fonds de solidarité FTQ invests in the next generation to ensure the sustainability of our SMEs and keep our businesses local, owned by local entrepreneurs.

Dany Pelletier, Senior Vice President – ​​Private Equity and Impact Investments, Fonds de solidarité FTQ

3. Know your rights and obligations

From a legal point of view, the transfer of a business raises many questions. Are you selling it all or just part of it? What will be the form of the shareholders’ agreement? Should there be a non-compete clause? Support from a corporate law firm like Fasken helps identify potential obstacles before they arise.

Securing favorable business requires vision, strategic planning and experience.

Mand Kadiatou Sow, Partner, Fasken


4. Ensuring the sustainability of a family business

Family businesses represent 63.1%1 private companies in all sectors of the Canadian economy. And according to a survey conducted by Families in Business — HEC Montreal, 38% are still led by their founder or founder.two. This Montreal organization is a valuable resource in terms of tools, training and support for a large number of family businesses that are preparing to pass the torch to ensure the sustainability of their operations.

Intergenerational transition is an important element in the life of a family business and is at the heart of its nature.

Catherine S Beaucage, Director of Transfer and Outreach, Families in Business — HEC Montreal

5. Make the company shine

The transfer of a company marks a new chapter in the history of a company. This is a key moment that, thanks to the creation of relevant content, offers a powerful lever of visibility with customers and suppliers, as well as a source of motivation and pride in the teams, being an excellent recruitment tool. For example, Koze Studio supports companies in creating and deploying video content to communicate their identity and purpose, as well as creating and distributing video content to convey the messages to be conveyed internally rather than externally.

Through collaborative workshops, we help companies create positive impact content that allows them to inspire and retain their community and teams.

Vincent Chabot, producer and president, Koze

Emerging Medalists: submit your application!

Since 2006, this annual competition born from an initiative by PwC Canada highlights Quebec companies that have been successfully transferred to family succession, employees or investors. Please do not hesitate to submit your entry for the 2023 edition of this prestigious competition, which gives finalists exceptional visibility, allowing them to reach the Quebec business community and public.


1 https://www.conferenceboard.ca/e-Library/document.aspx?did=10310
two https://businessfamilies.hec.ca/family-album

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