How to build a succession plan
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Building a succession plan
According to your feedback, almost 4-in-10 agri-business owners plan to exit their business in the next 10 years. That's a lot of businesses that will need to be transferred to the next generation of agricultural entrepreneurs. Besides making government aware of this huge train coming down the track, CFIB is part of the solution!
Planning for the succession of your agri-business can be very complicated. That is why we have developed this succession planning guide to assist business owners to successfully accomplish the transition process.
Although succession plans will be different for different farms and businesses, there are many steps that are common to any succession plan. The common steps outlined in this guide are:
- Exploring your options
- Keeping the business in the family
- Selecting and preparing a successor
- Planning a management buy-out
- Determining the value of the business
- Selling the business
- Financing the succession plan
- Understanding the tax and legal issues
- Managing wealth to secure your future
Also included are different possible scenarios for succession, and under what circumstances the business owner may want to consider them.
The overriding theme is to begin the process as soon as possible, if you have not already. If done properly, succession planning is not a one-time exercise, but should be an ongoing process that is regularly updated and amended as circumstances change.
Finally, never forget that CFIB is here to help you. Do not hesitate to contact your CFIB Business Counsellor at 1-888-234-2232 if you require further information. Good luck!
