Business Beat: You Need a Plan for Your Business Exit
Last year the Canadian Federation of Independent Business reported that 47% of Canadian business owners are planning to exit their business within the next five years.
With a statistic like that, if you are a business owner, there is a one in two change that you are thinking of making an exit yourself.
Of those surveyed, 81% said that retirement is the reason they will leave their business. Perhaps that is your story as well. maybe your retirement will happen in that same five-year window, or maybe you have a little longer to plan. Either way, there will come a time that you will make an exit. And when you do, what is the plan for your business? Will you sell it? Dissolve it? Hand it over to a relative? Do you even know where to begin?
If you are unsure about what your exit strategy will be, don't fret about it. You are not alone. That same survey conducted by the Canadian Federation of Independent Business revealed that half of those surveyed have no formal exit strategy. One in three are not even sure where to start.
Chicago-based business advisor, Ted Thomas, says that successfully exiting your business will require a series of proactive decisions rather than responding to situations and circumstances.
Creating a successful plan and obtaining professional advice is a perfectly good idea. Seeking the counsel and expertise of a business valuator is an important first step. a business valuation is a very complex financial process.
On Oct. 17, APEX Alberta will be hosting a free session to provide business owners and aspiring entrepreneurs with information on business valuations. This session will guide you through important elements like ownership, tax strategies, contingency planning, and structuring considerations.
This upcoming session will be presented by Drew Jackiw, a local Chartered Professional Accountant with JMH & Co., and it is designed for business owners, family businesses, entrepreneurs, and aspiring entrepreneurs who would like to learn about the business valuation process.
To register for this free event, please visit the APEX website page at apexalberta.ca/new-events or call 403-528-2824 to register.
Elizabeth Blair is the regional innovation network coordinator for APEX Alberta. APEX Alberta supports the growth of innovative and technologically-oriented businesses in Southeast Alberta. APEX Alberta is a collaborative initiative between three core service providers: Community Futures Entre-Corp, Medicine Hat College and Alberta Innovates.