A Simcoe County Business owner approached us recently with a desire to transfer their business between generations, and with uncertainty in terms of the paperwork. As the business was transferring from parents who wanted to retire and was complicated by multiple children’s involvement, there was a need for a solid business model that made sense and did not create ill-will within the family.
They needed a plan that protected the built up investment in the business and allowed the parents to retire, but it also needed to consider the needs of not just the successor but the successor’s siblings as well.
Their actual service needs also included measures to reduce their tax liability on transfer. We dealt with corporate control and changeover in day-to-day management of the business with them to create a clear plan moving forward. We then crafted a tax plan for transfer while acting as mediator between the parents and children.
Having a professional involved in these emotionally fraught situations can be the difference between business and family success moving forward, or falling apart. The deal we negotiated allowed the child to take over the business without crippling it with debt, but still provided handsomely for the parents’ retirement.