Transferring a business is a complex process that can take several months, maybe years. Preparing a transfer plan will make it easier to sell or transfer your business when the time comes. Remember that a properly structured sale can produce some very interesting tax savings from a personal point of view. At the same time, a poorly structured transition can mean higher taxes. Consult an expert to determine the different options open to you.
Gaëlle Klein
Business developement advisor
DE – CLDG
“Transferring a business involves more than just handing over the keys to a business – it is something you have to prepare for. You will face doubts and questions that could jeopardize your negotiations. It is important that you inform and prepare the people around you, and surround yourself with a team of experts (coach, notary, financial planning advisor, tax expert, accountant, etc.).”
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Pratical information
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The buyer’s identity
Some people know the successor’s identity long before the transfer takes place because it is someone on the inside or a family member. In other cases, the process is far more complex and may require months of research. Discussing your intentions with the people around you and your networks may help you unearth that perfect match.
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What the business is worth
What a business is worth depends on different factors, and often on intangible assets such as contracts, the expertise of the employees and the business’ reputation. Growth projections, high asset value and innovative technology also play a part in boosting the value of a business.
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The details of the sale
You have to be clear on what will be sold (assets, shares, etc.). Be sure to check with an expert on the tax impact of your decision.
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The date of the transfer
You have to decide on a date for the business’ transfer, as well as your role from that point on. Are you going to retire, stay on for the transition, keep a job in the business, act as a consultant or mentor, serve on the board of directors, etc.?
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The roles of the managers during the transition
Your managers have to feel that they are involved in the decision about the future of the business. Also, think about informing your employees quickly, because a change of ownership can create some instability.
- « DE – CLDG is there to serve entrepreneurs who have a business idea. For additional information, call 819-595-8002. Our services are free and confidential.
