BDC
Updated: July 28th, 2025
Succession planning: Who will take over the family business?
Talking about transferring the family business can be difficult. Whether it’s for the next generation or an outside seller, it’s important to prepare and put in place an organized plan to transfer ownership of the family business.
If you’re a business owner in Canada, you may not have thought about succession planning. You might not see yourself retiring, or your children might be in their 20s and you don’t see them taking over just yet. However, none of those are reasons to put off succession planning in the coming years.
Creating a succession plan is a great way to ensure you get the full value for your business and can pass it on in the way you had hoped. This is especially true if unexpected trouble arises, such as a health problem. If you need to suddenly sell, you’re not going to optimize your company’s value and will probably leave your family with a larger-than-expected tax bill. The business will also have a hard time continuing its normal operations.
