Category Succession Planning

Planning an Exit Strategy – Employee Considerations

Some areas of importance that should be considered when selling your business are those involving the key employees and “non-key” employees that work for you in your business.  Sometimes business owners only focus on the past financial profits when considering the sale of their business.  They should always remember that a purchaser will look beyond the numbers and want to review who works for the business.  Remember the purchaser will be inheriting most of the employees – good and bad….  Consider the following:

  • Are there any “problem employees” that a purchaser will not wish to hire?
  • Will some of the employees become redundant and need to be let go?
  • Are there key employees that a purchaser will be depending on after the sale takes place?

A private business owner needs to pre...

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Shareholders’ Agreements – Why Bother When Everyone Gets Along?

I came across this article on a lawyer’s website in BC that discusses shareholders’ agreements and the importance of having one – the link is  It is a good read that summarizes what such an agreement consists of and why it is important.

I wholeheartedly agree that the time to put one in place is when the business begins and everyone is getting along.  This is even true in situations where a private company is passing on ownership to the next generation and there are multiple shareholders of a company (where mom and dad used to be the only shareholders).  A shareholders’ agreement should be reviewed and/or revised at the time a succession or estate plan is being worked on...

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