Succession Planning

Our research shows that only a small number of shareholders/CEO's have developed formal succession plans or other value-realizing exit strategies, despite the fact that a poor management transition can have a negative effect on a business.

In addition to information you receive from your legal or other tax advisors, CIBC can help identify relevant issues to aid in your succession planning.

Succession planning may be right for your company if:

• significant net worth is tied to your business.
• you are planning on passing the business on to a family member.
• you are considering future plans regarding the ownership of your business (that is, sale to third party or management).
• you are considering reorganizing corporate assets or converting some of your investment in the company to your personal portfolio.
• you want to reduce the potential tax burden associated with selling your business.

Key benefits

• proper planning ensures reduced risk to your retirement and/or estate capital
• coordinating your business and estate planning may help you take advantage of tax-planning opportunities
• proper planning and financial protection will minimize the risk of business failure
• addressing succession and wealth management issues well in advance of an expected exit from the business will ensure your retirement income is protected, as well as create a smooth, secure transition and ensure the continued good reputation of the business
• developing retirement income strategies to suit your lifestyle

Of interest

Business Succession: It's Never Too Early to Start Planning (50 KB)
How to Realize the Value of a Private Business (70 KB)