Succession Planning and Exit Strategies

In 2005, the Canadian Imperial Bank of Commerce issued a report stating that 22% of the small business owners in Canada are planning to retire in the next five years and that a further 29% are planning to retire by 2020.

The report also stated that only 2 in 5 small business owners have a clear plan for exiting their business.

Sixty percent of business owners have yet to start discussing their Exit Plans with their family or business partner(s).

CIBC also identified that the reliance on the human capital of the owner in almost every aspect of his / her business is becoming one of the business' primary weaknesses.

Adequate succession planning requires time. It takes years, not just days or months.

If you plan to retire in the next few years, you should start to develop an Exit Strategy. Will you sell the business to a family member or to an outside party?

If you plan to sell it to a family member, how well have they been trained to take over and effectively manage the business? Research shows that less than one third of all family businesses survive the transition from first to second generation ownership.

If you plan to sell your business to an outside interest, have you done everything that you can to maximize the value of your business?

Most business owners do not take the time to think about Exit Plans and Succession Planning.

PerformancePoint Corporation can help you to prepare for your eventual exit.

We will work with you to develop and implement a plan to enhance the skill sets of family members, to reduce your involvement in the business and to increase the equity in your business in order to maximize its value.

Call us for a no cost, initial consultation.

Sustainable Business Growth

Most small business owners spend the majority of their time on the day-to-day issues in their business. As a result, they have no time to devote to developing and implementing plans for growing the business.

In a study by CIBC World Markets in 2004, it was reported that entrepreneurs who, on a regular basis, use the services of professional advisors realized revenues that were 76% higher than those companies that did not use advisors.

Would you like to grow your business? Would you like to increase both revenues and operating income?

Coaching is a process that helps a business owner to identify what he / she wants to accomplish, to solve problems, eliminate obstacles, set goals and to stay focused in order to move the business forward.

Utilizing a coach / advisor to help you to achieve your goals is a sound business decision.