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 full-time job, and it's not always easy to keep up. difficult to take the time to think about the Vision of the company and administrator exit principal (often the founding entrepreneur). Nevertheless, planning the transition to a new leader makes it possible to facilitate succession planning 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 take a close look at the options available, so as to make the best possible choice before retirement.
For the sale or the transmission of your company (or even its closure ), take a look at the various options to determine the one that best suits your needs. Visit three exit strategies are the most common among small business owners:
1. Transfer of business to a successor
The company can be transferred to a family member or a frame of the company.
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 the management team or a employee group who pool their resources. This is a good choice if no successor profile seems to suit the current owner. This ensures the preservation of the corporate 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.
- Employees are empowered within the new management team, l'heritage the contractor and l'independence are preserved.
Disadvantages
- Prices and sales conditions are often affected by managers' limited access to capital.
- The owner who sells the business will probably offer financing. The buyer's loan can 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 of personnel who then remains 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 contributes 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 defined a desired retirement date, we recommend that you start 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 need to be turned around before they can reap the first benefits. This would be a waste of time, energy and money for the current owner to make a sale.
It is also advisable to always provide excellent, consistent communication with all the stakeholders in the new generation.
SADC can help you develop your business. Call on our team to guide you through the start-up or growth of your company.
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 from 10 municipalities of the Montcalm MRC as well as municipalities belonging to the L'Assomption RCM (municipalities of L'Assomption, L'Épiphanie and Saint-Sulpice). We also operate for municipalities in the Rivière du Nord RCMSainte-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. However, the municipalities of Repentigny and Charlemagne 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 integration company Job Access Buffet whose core mission is to provide a gateway to the job market in the catering sector.
While these players belong to a wide variety of economic sectors, the fact remains that our approach, which focuses on the local level and on serious, well-thought-out support tailored to their objectives, has contributed to these successes. success stories. Behind each of these entrepreneurs was a ambitious project, and we are proud to present their success..
SADC can help you develop your business. Call on our team to bring your entrepreneurial projects to fruition.
