Crowe MacKay | Insights
By Ray Louks, April 5th, 2024
Succession planning in family businesses is not just about picking a successor; it’s about ensuring the seamless transition of leadership, preserving the family’s legacy, and sustaining the business’s success.
In the vast landscape of Canadian business, a unique entity thrives on values, heritage, and continuity—the family-owned enterprise (FOE). These businesses, often spanning generations, are the cornerstone of Canada’s economy, generating roughly 50% of the country’s gross domestic product (GDP).
Family-owned businesses also account for around two-thirds of all the private sector firms in the country and proudly employ just under 50% of the private sector workforce. This equates to 6.9 million people. Yet, beneath the surface of their success lies a challenge that is both critical and complex: family business succession planning.
As the baby boomer generation continues to retire, there will be a significant shift of approximately $1.9 trillion in business assets in the coming years.
This article is designed as a comprehensive guide to navigating the intricacies of family business succession planning.
The dynamics within family businesses are a world of their own. Sibling rivalries, generational differences, and the blurred lines between family members’ personal and professional lives create a unique ecosystem. These dynamics can fuel the business’s success or become stumbling blocks that hinder growth.
Ray Loucks, Crowe MacKay, Vancouver
