5 common questions about business transfers

03 August 2016 by National Bank
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Transferring a business to the next generation is often seen as a complex issue for entrepreneurs. Here's what you need to know to make it easier.

Business transfers are a very topical issue right now, according to LesAffaires.com blogger Kim Auclair . By 2020, she says, 38 000 Québec companies will be transferred. To find out more, she consulted a specialist, Gabriel Nadon of Fonds de solidarité FTQ. Their interview provided answers to five common questions about business transfers:

1) Where do I start?

There are several organizations and companies to provide you with guidance. To find out where to turn, begin by talking to your accountant. Then, reach out to family and friends.

2) How can I find useful resources?

To find helpful resources, consult specialized organizations, such as the Centres de transfert d’entreprises (CTE) and Réseau M. Also contact financial institutions like the Fonds de solidarité FTQ and the National Bank, who both offer tailored solutions for entrepreneurs in the process of transferring their business.

3) Why not just sell instead?

When choosing between closing or selling your business, there exists a middle ground. By transferring your business, you give yourself the opportunity to take your time and to play a role in the company once it’s transferred to the next owner. It all depends on your goals and vision for your future.

4) Do you have to transfer your business to family?

Transfers often involve family businesses. However, this doesn’t mean that the only transfer model is having your kids take over for you. Your business could be passed on to the combination of a child and someone else, or to key employees of your company. Give yourself plenty of time to choose wisely and to make the transfer gradually.

5) Should a small retailer consider transferring their business?

If your business is small, whether you're the only employee or you have a small team, you can always transfer your business. Don’t be scared off by the difficulty or complexity of the process – think about how a business transfer would allow you to see everything you’ve built continue on long after your retirement.

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