CIBC Private Wealth
May 1st, 2024
Succession planning is an essential component of protecting the continuity of your business. If done right, it can also support the success and harmony of your family’s long-term well-being.
Many people avoid succession planning or simply don’t think about it until it’s time to retire. Other people are forced to think about it when they encounter a situation in life, such as illness, that requires them to step away unexpectedly.
Early planning can act as a risk mitigation strategy and help reduce the stress that comes with transitioning a business by providing you and your family with peace of mind.
CIBC’s Director of Wealth Strategies, Susan Wood explains, “Business transition planning provides answers to critical questions about how your business will transition when the current management and owners are no longer there.”
Here are 9 tips to help you prepare to pass down your business…
When creating your succession plan, don’t forget about broader estate planning. Make sure you have a legally binding will and a power of attorney for property. If you have children who won’t be involved as owners in the business, think about any other assets you may want to gift to them as a form of equalization, if that is important to you. Revisit all these documents regularly and confirm whether they accurately reflect your current wishes regarding transition of ownership of your business and other assets.
