A “sale” is normally associated with a financial transaction, while a “transfer” tends to be linked to the notions of continuity, transmission of skills, inheritance, and sustainability of a business.
- 94% of Quebec entrepreneurs view the lack of a succession plan in SMEs as a major obstacle to the economic growth of Quebec;
- More than 50% of SME owners have no formal succession plan;
- More than half of potential transferors have not found a successor;
- A shortage of some 38,000 transferees is predicted in Quebec by 2020, according to the Fondation de l’entrepreneurship;
- A majority of entrepreneurs are counting on selling their company to finance their retirement;
- In terms of taxation, it is more advantageous to sell to a third party than to a family member. Despite this, 47% of entrepreneurs would be prepared to pay more tax on the transaction in order to sell to a member of their family.
These statistics are enough to make even the most ambitious entrepreneur uneasy. It’s important to keep them in mind once you begin thinking about the future of your company or a potential acquisition.
Devoted to serving your interests
Sources: Fondation de l’entrepreneurship (2010), Canadian Federation of Independent Business (2012 and 2013), Government of Quebec (2010), CROP poll conducted in October 2013 among 301 Quebec business owners on behalf of Raymond Chabot Grant Thornton.