A recent survey conducted by Ipsos on behalf of HSBC shows two-thirds of independent businesses don’t have a succession plan, The Globe and Mail reports. Proactive planning is key to a smooth transition, and a business owner’s heirs may not be the best candidates to buy them out.
“If the kids take over, they may have to take on debt,” explained Tony Maiorino, VP, director, and head of family office services at RBC Wealth Management. “Business owners who sell to their kids [may] receive a slightly smaller part of the proceeds than selling to a third party.”
