Archives

BV Benefit #9 – Matrimonial Separation

According to Statistics Canada, over 40% of marriages will end in divorce before the 50th year of marriage. [1]   Where there is a family business or where one spouse has an ownership interest in a privately held company, there may be a need for an in a matrimonial separation.

 

The division of property is a major issue in a divorce.  According to the Ontario Ministry of the At...

Read More

BV Benefit #10 – Executor / Trustee Protection

Executors of an estate with business interests should obtain an as support for the values used in the estate administration tax ("EAT") filing, particularly in light of recent changes to EAT legislation and the potential for personal liability facing executors.

 

At the time of probating the will, EAT (previously known as "probate fees") of 0.5% must be paid on the first $50,000 ...

Read More

Business Plans Are Not Just For Start-Ups

 

This week I want to discuss something vital to businesses at every stage of their life cycle – Business Plans.

 

Most people recognize the importance of .  However, business plans are equally important for established businesses operating in high growth, mature or declining industries.  Studies show that business plans increase the odds of business growth and raising c...

Read More

Developing an Exit Plan – The Benefits

All privately held business owners will one day exit their business.  The exit will be voluntary (at a time of the business owner’s choosing) or it will be involuntary (due to burnout, illness, disability, marital problems or death).  An is needed to ensure a voluntary exit.  A contingency plan is needed to be prepared for an involuntary exit.  Either way - a plan is needed!

 

Read More

Exit Planning – The 6 Step Process

According to Gary Ford and Connie Bird, authors of "Life is Sales", three common attributes of successful people are initiative, persistence and assertiveness.  It is these qualities that drive entrepreneurs to build successful organizations and it is these qualities that empower business owners to prepare for a through an exit plan.

 

To develop an effective exit plan the foll...

Read More

Exit Planning Step 1 – Defining Goals

An begins with a concise statement of the business owner’s personal, financial and business goals.  These provide the framework against which all exit planning decisions are made.

 

Each business is unique and each business owner will have his/her own personal, financial and business goals.  These unique goals will drive the creation of the exit plan.  There are, however,...

Read More

Exit Planning Step 2 – Financial Needs

Once the personal, financial and business have been clearly identified, the next step involves determining the business owner’s financial needs upon exit.  In other words, what lump-sum amount is required upon exiting the business (including from the sale of the business) to enable the business owner to achieve the goals defined under Step 1?

 

A certified financial planner (C...

Read More

Exit Planning Step 3 – Business Valuation

The is now beginning to take shape.  The goals have been identified, including the anticipated timing of exit and the preference for either an internal transfer or an external sale to a third party.  The financial needs have been quantified, including how much is required from the sale of the business to achieve the financial goals.

 

Now...

Read More

The Value Enhancement Process – Part 1 of 2

is a process that takes time, which is why it is vital for business owners to begin this exercise at least 3 to 5 years prior to an exit or sale of the business.

 

The value enhancement process consists of the following five steps:

 

Read More

The Value Enhancement Process – Step 2 of 2

In order to the key value drivers must be identified.  Determining the key value drivers requires an assessment of each value driver’s relevance and impact in affecting value.

Relevance - refers to how important the value driver is to increasing the quantum and/or quality of t...

Read More