Business Succession and Exit Planning for Owners

Succession planning

Structured planning that moves value out of the owner and into the business, on a timeline that keeps every exit route open.

Right forOwners in their fifties and sixties without a clear successor, families deciding between a management buyout, a sale to the next generation and a third party sale, and partners with different timelines.

Why owner dependence is priced as risk

Most of the discount a buyer applies to a private company is for dependence on the owner. Customer relationships, supplier terms, pricing decisions and institutional knowledge that sit with one person are priced as risk. The work of succession planning is to move those things into the business itself, on a timeline that allows the owner to step back without the company noticing.

Where the plan starts

We begin with a valuation and a plain assessment of what a buyer would find, then set out the changes that would move the value and the sequence in which to make them. Owners who start this work early have time to make those changes and see them reflected in the earnings a buyer will rely on.

Choosing the exit route

A third party sale, a management buyout and a family transition produce different prices, different timelines and different risks for the owner. Where a family transition or management buyout is the likely path, we model the financing and the tax consequences with your accountant so that the plan is realistic before anyone commits to it. Vendor financing is common in both, and how much of the price the owner carries matters as much as the price itself.

Working with your other advisors

Succession touches tax, estate, legal and wealth planning. We coordinate with the owner’s accountant, lawyer and wealth advisor so that the business plan and the personal plan arrive at the same answer.

What the engagement covers

Baseline valuation and readiness assessment
Value driver plan with a timeline
Comparison of exit routes: third party sale, management buyout, family transition
Coordination with the owner’s tax, legal and wealth advisors
Transition to a sale process when the time is right

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Common questions

Questions owners ask about succession planning

When should an owner start succession planning?

Two to five years before the intended exit. That is enough time to reduce owner dependence and have the improvement show up in the financial statements a buyer will review.

Is a sale to family or management worth less than a third party sale?

Often the price is lower and more of it is paid over time. The trade may still be the right one, and the plan should show the owner the difference in proceeds and risk before choosing.

Do I need a valuation to start?

Yes. Every succession plan starts from what the business is worth today and what a buyer would find, because every later decision is measured against it.

What if my partners have different timelines?

That is common. A shareholder agreement review and a valuation give partners a shared basis for a buyout or a staged exit.

Related services:

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BuySell Consortium, 18 King St. E, Suite 1400, Toronto, ON M5C 1C4. Your details are used only to respond to this request.

Business succession and exit planning