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Step 4: Tax Planning Strategies

The tax considerations are important factors in the successful implementation and
outcome of any exit strategy, especially as many business owners rely on their business as
their main source of retirement income.In this session we will discuss:

  • Tax consequences during transfer of business ownership
  • How does estate freezes and holding companies work to defer taxes
  • How lifetime capital gains exemption work

Tax planning strategies

Evaluating Financial Performance

Financing the

Succession Plan

Obtain Business Financing

Step 1: What is Business Succession Planning

Business Succession planning is about how to plan an ownership transition. In this session, we will discuss the three main exit options for business succession and key factors to consider for each:

  • Transfer the business to a family member
  • Sell to partners or your employees
  • Sell to a third party

Step 1: Choosing Business Structure

Your business is generating revenue and making a profit. The next step is to determine the right type of business structure - sole proprietorship, partnership or professional corporation. In this session, we will cover:

  • Key differences between a professional corporation and sole proprietor/partnership
  • Evaluate pros and cons of incorporating your business
  • Determine if your business is ready to be incorporated and if not, how to evaluate when to incorporate
  • Tax planning strategies with sole proprietorships, partnerships and corporations

Determining Value of

Your Business

What is business succession planning


Business Structure

Running a business is hard work. Most business owners find themselves too absorbed in the business to work on the longer term problems like planning for succession. However, the process of determining how you are going to transfer business ownership and transition out of a business management role, while maximizing your personal financial security is essential.

Step 3: Obtaining Business Financing

Looking for financing to expand and grow your existing business - financing can come from the government or private sectors - in the form of loans or grants. In this session, we will cover:

  • Loans available from the government and private sectors
  • Grants available to all businesses and specific to your industry and how to apply for them
  • What to do before applying for a loan - check credit score, increase credit score, etc.
  • How to negotiate for better loan terms and conditions
  • Bonus: Free help with writing grant application

Step 3: Financing the Succession Plan

Whether it involves a management buy-out, family succession or the sale of the business, a key part of the succession plan is the financing of the change of ownership. Financing often creates the main obstacle to succession planning. In this session we will discuss:

  • How you want to be paid - and the tax advantages and disadvantages of each
  • What information will the purchaser's lender require

Step 5: Managing Your Personal Wealth

Managing the sum of money from the sale of a business may be daunting. Financial planning is a key component of the succession planning. In this session we will cover:

  • Developing a financial plan for retirement and estate planning
  • How long will this money last and how to best invest in the market

How Does it Work? - The Process

What is Business Succession Planning

Step 2: Determining Value of Your Business

Undergoing a business valuation is an important step for your succession plan; it can be used for a number of purposes that can range from determining a selling price to supporting the “fair market value” for taxation purposes. In this session we will discuss:

  • Approaches to determining business value:  Cost or asset-based approach,
    Market Value approach, and Earnings-based approach
  • How to maximize and enhance the value of your business

Accounting Record Keeping and Tax Planning

Managing your personal wealth

Business Essentials

Step 2: Evaluating Business Financial Performance

Knowing how to evaluate the financial health of your business will help you make better  decisions - where to cut costs, how to manage inventory and how to increase profit. The 3 key measures are: profitability, cash flow, and liquidity. In this session we will cover:

  • How to measure profitability, cash flow and liquidity - understanding the balance sheet, income statement and cash flow statement
  • How to evaluate operational efficiency - where to cut costs and how to manage inventory
  • Identify opportunities and strategies to maximize profit and revenue
  • Free take-home resources: Tools to help you measure the financial health of your business

Financing the

Succession Plan

Determining value of the business

Startup 301

Business Succession

Planning Your Exit From The Business


Financing the succession plan

Managing Your

Personal Wealth