SADC offers you a guide on the subject of succession plan. The options proposed here are to be considered and adapted to your personal needs and requirements. retirement plans. Running a business is a multi-skilled profession. time and it is sometimes difficult to take the time to think about the company's Vision and the administrator exit principal (often the founding entrepreneur). Nevertheless, planning the transition to a new leader helps to ease the process succession and avoid loss of value. Among Quebec entrepreneurs, 60% are at least 50 years old. Succession is therefore a relevant topic.
Plan your outing to make the most of it
Like the sale of a house, the sale of a business (often the owner's most important asset) is fundamental, and it's advisable to make the most of it. That's why it's a good idea to study your options carefully, so you can make the best possible choice before you retire. For the sale or transmission of your company (or even its complete closure), examine the different options to define the one that best suits your wishes. The three strategies The most common exit strategies used by small business owners are :
1. Transfer of business to a successor
Visit transfer to a family member or company executive. The advantages of transferring the business to a successor
- There are few or no third parties involved in the estate.
- It is possible for the former owner to maintain his presence or influence within the company.
Disadvantages
- Choosing and training a successor is a complex task.
- Transferring your business to a family member can become a source of conflict.
It is advisable to define the ideal profile of the successor before undertaking the first stage of the transfer. Then follow up with a candidate identification and assessment session. Create a list of selection criteria that are fair and measurable.
2. Management buyout or employee buyout
All or part of the company will be acquired by theteam management or a group of company employees who pool their resources. This is a good choice if no successor profile seems to suit the current owner. It also ensures the preservation of the company's culture. The benefits of employee buyouts
- Visit due diligence is usually simpler. What is due diligence? Due diligence is an employer's occupational health and safety obligation, with three distinct components: a duty of foresight, a duty of efficiency and a duty of authority. An employer who exercises due diligence takes every precaution reasonable in the circumstances to prevent accidents and protect the health and safety of workers. To defend a lawsuit, the individual or organization must therefore demonstrate that he or she exercised due diligence in the circumstances surrounding the event.
- This makes it possible to reward managers/employees for their long involvement within the company.
- With employees empowered within the new management team, theheritage and theindependence are preserved.
Disadvantages
- Prices and sales conditions are often affected by managers' limited access to capital.
- The owner selling the business will probably offer financing. Loans to buyers may be included in the purchase price.
- Any attempt to buy a company is not always a success. It may not work and it may affect morale who then remain active within the company.
3. Sale of the company to a third party
Business owners wishing to sell face a number of options.
- Initial Public Offering (IPO) - An Initial Public Offering (IPO) refers to the process of offering shares in a private company to the public as part of a new share issue. An IPO enables a company to raise capital from public investors.
- Private equity investment - This is an activity in which an investor provides equity capital to an unlisted company, in exchange for a stake in its capital. This is achieved by purchasing either existing shares from existing shareholders, or newly-issued shares through a capital increase.
- Sale to another company - This involves the sale or issue of shares to a third, active company. This is an ideal solution for business owners who are ready to retire. The shareholder withdraws smoothly, at the highest price.
Important generic tips for succession planning
Once you have set a desired retirement date, we recommend that you get started your succession/exit planning at least two years before. When it comes to selling a business, it's vital to ensure that your company grows (or remains stable) in the years leading up to your retirement. Buyers are keen to invest in stable companies and take no risks. Investors and buyers are not interested in companies that have to be turned around before reaping the first benefits. This would be a waste of time, energy and money for the current owner to embark on a sale. It's also a good idea to always give priority to excellent, consistent communication with all the stakeholders in the new generation. SADC can help you develop your business. Let our team take care of you guide during your company's start-up or growth.
SADC Achigan-Montcalm: Who are we?
To help you manage your business efficiently and exploit its full potential, the SADC offers you :
- an array of management consulting
- solutions corporate financing
- and a support for collective projects.
How to find us As a regional player, we serve companies belonging to one of the following communities the 10 municipalities of the MRC de Montcalm, as well as those belonging to the MRC de L'Assomption (municipalities of L'Assomption, L'Épiphanie and Saint-Sulpice). We also operate for municipalities in the Rivière du Nord MRC, namely Sainte-Sophie and Saint-Hippolyte. In other words, we serve the municipalities of Saint-Hippolyte, Saint-Calixte, Sainte Sophie, Saint-Lin-Laurentides, Saint-Julienne, Saint-Esprit, Saint-Roch-Ouest, Saint-Roch-de-l'Achigan, Saint-Liguori, Saint-Alexis, Saint-Jacques, Sainte Marie-Salomé, L'Epiphanie, L'Assomption and Saint-Sulpice. The municipalities of Repentigny and Charlemagne, on the other hand, are not eligible for our financial assistance. Our offices are located at 104, rue St-Jacques in Saint-Jacques.
We believed in their project and they put their trust in us.
Since our creation in 1992, we have supported a large number of entrepreneurs in their business transfer, start-up or growth objectives. These include : Solnor EnvironnementSolnor Environnement is an expert consultant for contaminated land and geology. Solnor Environnement's core business is the management of projects with a geological component, the analysis and study of soil and water, their decontamination and the environmental analysis of sites. Lait de poule inc. the maternity and nursing specialist in l'Assomption, offering clothing and textiles for pregnant women and textiles to facilitate breastfeeding. Brasserie L'Apothicaire of St-Jacques de Montcalm, whose mission is to support an ecosystem of regional microbreweries, and to help and contribute to the emergence and development of local players offering products of excellence. The Buffet Accès emploi integration company whose essential mission is to provide a gateway to the job market in the food service sector. While these players belong to a wide variety of economic sectors, the fact remains that our local approach, combined with serious, well thought-out support tailored to their objectives, has contributed to their success. Behind each of these entrepreneurs was an ambitious project, and we're proud to present their success stories.
SADC can help you develop your business. Call on our team to bring your entrepreneurial projects to fruition.
