As your commercial mortgage broker, we’ve helped you to build your business. It’s not likely that you’ve given a bunch of thought to how you will leave it behind one day. However, succession planning is an important part of making sure your business stays vibrant after you’ve decided to give it up.
Statistics show us that about 60% of the small and midsized business owners in Canada are 50 years or older. That’s a statistic from 2017.
Understanding what to do when the time comes is as important as getting the best mortgage rates when you’re starting out. There are a few options including passing your business down to a successor. This can be a family member or someone in management in the company.
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There are some advantages to using this system. For example, there’s not as much third-party involvement and you can stay influential if you choose.
One of the big hurdles can be choosing the right successor. This can be especially true if you’re picking from the ranks of your own family. It can cause a lot of conflict.
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There are other options including employee buyout. This is a scenario where the employees or management get together and put their resources together. They buy a portion or all of the company. It’s a great way for owners who don’t have a successor and a perfect method to preserve your company’s culture.
One of the big advantages is an employee buy out that rewards long-term workers for their loyalty. It can become complicated because the vendor take back becomes a big possibility.
As your commercial mortgage broker Toronto, we want you to have all the information necessary to make the right choices. We can handle getting you the best mortgage rates. You’ll need to look after succession planning with these tips.
