VICTORIA – An individual goes into business for any number of reasons. To make a profit and a contented life for their family of course, but it could also be to satisfy a personal goal, or to make a positive impact in the community or even to effectively exercise their creativity in the marketplace.
Regardless of the reason for launching a venture, eventually the time and circumstance arise when even the most satisfied entrepreneur gives thoughts to retirement and to stepping away from the business they’ve devoted their lives to. But focused as they have been on starting and growing their firm, business owners may not have thought or planned on that next step – the succession or sale of their enterprise.
Finding the best way to pass an existing business onto the next generation is where the skills and experience of Portfolio Manager and Senior Wealth Advisor Paul Holmes comes into play. Holmes Portfolio Management delivers custom-tailored solutions for its clients through comprehensive financial planning, and a team of specialists.
“Everyone needs an exit strategy, our job is to help develop that plan and to make the transition from business ownership to retirement, or whatever next step the individual wants, as smooth and painless as possible,” Holmes stated.
A recent study, The Coming Wave of Business Transitions in Canada, September 2017 conducted by the Business Development Bank of Canada (BDC) indicates that nearly 60 per cent of all small and medium sized businesses in Canada are owned by persons over the age of 50, and that four out of 10 entrepreneurs are expected to move on from their business within the next five years. This expanding segment of the population is a primary client for Holmes Portfolio Management and its team of specialists.
“Some individuals want to sell their business to acquire the capital to provide a source of retirement income. Others want to develop a succession plan, passing the business and its assets onto their children, employees, or others. The point is every situation is different and every individual is unique, so a ‘one size fits all’ model can never apply in this case. Each business is as individual as the person who owns it. That is why we always work with our clients on an individual one-on-one basis,” he said.
One element of the BDC study indicated that a surprising number of business owners in Canada may not have made long term plans for the succession or sale of their existing business – a situation that could be detrimental to a family’s future if the unexpected happens.
“The future comes a lot quicker than we realize, so it’s important to make your plans well in advance. By acting early business owners have the time to enhance the value of their businesses, while selling without extensive planning could easily leave potential money on the table,” Holmes explained.
