As a business owner, you’ve likely invested your heart and soul into the venture. If your intention is to pass the business on to family members or the next generation, while you’re alive, or through an estate – are problems looming? We see it all the time, as part of an estate plan, parents have their kids inherit a business, never having asked their kids about their goals, wishes, or ambitions. This outcome highlights the importance of having discussions within the family about the goals and intentions of those involved.
A significant number of business owners indicate their successors are either not ready or not interested in taking on the family business. This leaves the concern of “ready or not” transfers with Canadian family businesses on the horizon – but it’s not just the viability of the business that’s at stake. Quite often, it’s the retirement plans of the owners, the extensive planning for tax implications, and even family dynamics that are in an uncertain state. A lot of kids have grown up around the family business, so parents might assume that their children share their passion and drive – but the next generation may have different goals.
The biggest wealth transfer in history is underway and parents and grandparents alike are grappling with the most efficient ways to see this wealth transfer occur. As a family enterprise advisor, business owners I work with, often seek help on maintaining harmony in the family as business transitions from one generation to the next. When the kids are not ready to take over, talking about ‘safeguarding’ or governance structures can help provide clarity on roles, rights, and responsibilities for all stakeholders. The development of next-gen business skills can be a unique journey for each family, from developing leadership and people skills through to encouraging entrepreneurial drive, to understanding logistics and financial acumen to name a few.
What is this episode about?
What skillset will future business owners need to ensure that the family business and business legacy will flourish across generations? When it comes to transferring the business from one generation to the next, it is our earnest passion to see families have these discussions and start them early. We’ll follow the stories of Ross Bonetti, Founder and President, Livingspace, Victor Yoshida CA, CPA, Managing Director, Concert CPA, John Clerides, Owner, Marquis Wine Cellars, and Dane Chauvel, Founder, CEO, and Fisherman, Organic Ocean Seafood Inc. It’s not easy to have these conversations, and there are multiple challenges to navigate along the way. On this episode, we share their experiences.
What are you hoping will come out of the show?
The need for leadership development has never been more urgent. Companies of all sorts realize that to survive in today’s uncertain, complex, and ambiguous environment, they need leadership skills and organizational capabilities different from those that helped them succeed in the past. We hope to inspire business owners to consult their team of professionals – lawyer, accountant, and financial planner – about their options. The choices business owners make can have far-reaching impact that go beyond the business, the founder, or their children. The great secret of business families that achieve tremendous success and hold onto it for generations – is that they inculcate the entrepreneurial spirit that led to their initial success. What additional planning might YOU consider in terms of successfully “safeguarding” your enterprise and transitioning to the next generation?
Jim Doyle, Doyle & Associates Private Wealth Management, Investors Group Financial Services Inc.
This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Jim Doyle is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant. Views of guest speakers may not be shared by IG Wealth.