A 2023 report released by the Canadian Federation of Independent Business (CFIB) reveals that 76 percent of Canadian business owners plan to exit their businesses within 10 years. “Over $2 trillion in business assets are at stake as a majority of small business owners plan to exit their business,” the report concludes. The report also notes that 84% of business owners find it very or somewhat difficult to determine the value of their business.
Despite this, only one in 10 business owners has a formal succession plan in place.
For business owners, ensuring a smooth transition of ownership is one of the most crucial decisions they will ever make. Engaging a CBV is an essential step in this succession planning journey*.
As financial experts, CBVs offer invaluable expertise by providing accurate and comprehensive business valuations and navigating business owners through the complex and emotional process of transferring their business assets. CBVs’ unique combination of financial, legal, and tax knowledge ensures that you are well-equipped to make informed decisions that will protect your business’s legacy and secure your future. By including CBVs on your succession planning team, business owners will be better prepared to navigate complex financial and interpersonal situations, minimize tax implications, and maximize their business’s value.
We are pleased to introduce our thought leadership series on succession planning. This series, consisting of three videos and a CBV Insights article, delves into the fundamental role that CBVs play as members of a succession planning team. In the three-part video series, Dr. Christine Sawchuk, CPA, CA, CBV, MEd, EdD, interviews CBV business valuation experts. Each video emphasizes how CBVs contribute value to the succession planning team from different perspectives: business owners, CPAs, and other key advisors.
Explore the essential role CBVs play in succession planning below, or find a CBV to address your succession planning needs.
*In fact, CFIB has the following posted in the “Tools & Resources” section of its website: “A Chartered Business Valuator (CBV) can help you determine the best formula for you. We recommend reaching out to a CBV at least 24 months before selling your business to ensure their findings can maximize your sale.”
BUSINESS OWNERS
CPAs