SPM Financial
May 13th, 2025
Passing the torch while preserving your family’s success— Succession planning is a critical process that safeguards the longevity of family-owned businesses.
Family-owned businesses are a cornerstone of the Canadian economy. They contribute 48.9% of Canada’s private sector GDP and employ 6.9 million people, accounting for 46.9% of private sector employment.
Despite their significant economic impact, many family enterprises face challenges developing a succession plan. Recent research from Family Enterprise Canada shows more than 60% of family enterprises are expected to change ownership within the next decade, with close to 40% undergoing transitions within seven years.
Family businesses are called just that because they incorporate two important elements: family and business. Succession planning is about more than financial transactions – it includes maintaining harmony, preserving the family legacy, and ensuring success for generations to come.
6 Tips to Help Make Your Succession Planning Process Go a Little Smoother:
- Start early
- Clarify roles and expectations
- Address family dynamics
- Evaluate the readiness of your successors
- Document the succession plan
- Implement financial strategies
