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Who Will Take Over the Business?: Succession Planning for the Canadian Business Family

E-Book

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Who Will Take Over the Business?: Succession Planning for the Canadian Business Family

Description

As the first wave of Canadian baby boomers retire over the next few years, succession planning will be vital for the long-term survival of many businesses. Canada is about to see a huge transfer of wealth from this generation to the next, yet many businesses struggle to ensure a smooth transition of business management and ownership. For family-owned companies, the ramifications may be even more sweeping. The personal issues they face, compounding other day-to-day business concerns, range from planning for income taxes to maintaining interpersonal relationships with family members.

A good succession plan will manage a range of issues, such as people and talent, family dynamics, corporate structure, estate planning, insurance and share transfer, to name just a few. Who Will Take Over the Business? is for any business owner who wants to retire, sell, or transfer ownership of their business. It is designed to guide business owners through a comprehensive and strategic approach to the business succession process to ensure that the transition is carried out as smoothly as possible. Who Will Take Over the Business? is a must-have resource for every Canadian business owner.

Preface xv

PART I: VICTOR BANKS' DILEMMA

Chapter 1: Victor's Situation 3

Chapter 2: Discussion Time 11

PART II: SOLVING VICTOR'S DILEMMA: TAKING CARE OF THE BUSINESS

Chapter 3: Laying the Groundwork 19

Atlas Plastics: Hold or Sell? 19

Where Are We, and Where Do We Go from Here? 22

What's the Financial Picture? 25

Who'll Run Atlas if the Family Keeps It? 27

Chapter 4: How Do I Sell a Company? 35

Preliminaries 35

Getting Down to Business 39

Th e Process 41

Private Equity or Strategic Buyer? 46

Chapter 5: Talking Taxes—Making a Good Deal Better 53

Understanding the Tax Implications 53

Th e Estate Freeze and the Trust 54

What Are Victor's Tax Options? 56

Just What Is Wrong with the

Old Trust? 62

Chapter 6: Let’s Make It Legal—Getting the Deal Done 69

Private Equity Partner: Pros and Cons 73

Tying Up Loose Ends 75

PART III: RESOLVING VICTOR’S DILEMMA: TAKING CARE OF OTHER BUSINESS

Chapter 7: My Family Is My Business; My Business Is My Family 83

Defi ning the Business 83

Discovery Meetings 88

Deciding to Move Ahead Together 91

Chapter 8: I Invested My Life in My Business—How Do I Invest the Proceeds? 99

Defi ning the Goals 99

Deciding What Matters 101

Where Do We Go from Here? 104

Combine and Conquer 107

Chapter 9: What Should My Estate Plan Look Like? 111

Taking Care of Rose 112

What To Do about Robert 115

Planning for Victor and Anne 118

Chapter 10: Ensuring the Outcome—Innovative Insurance Solutions 125

Getting Down to Business 127

Epilogue 135

Appendix A: People in Victor Banks' Story 139

Appendix B: Financial Data: Atlas and Personal Assets 143

Appendix C: Th e Banks’ Family Empire Before and After the Private Equity Deal 145

Appendix D: Asset Allocation of the Investment Portfolio 149

Appendix E: Th e Insurance Solution 151

About the Authors 153

Index 159