It's not surprising that Canadian small business owners spend most of their time focused on growing their businesses while often ignoring perhaps the most fundamental issue of all, that of transition planning.

While many books, articles and seminars on this topic use the more common term "succession planning," this report will use the broader term "transition planning" as, the owner is very much involved both in the actual transition and, in many cases, for years afterwards.

Transition planning, when done properly and in advance, can ensure that your business is transitioned to the new owners, whether they are family members, key employees or a third party, in the most tax efficient manner possible.

This report will attempt to highlight some of the key tax and estate planning opportunities in the context of a properly structured transition plan.

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CONCLUSION

The above information only provides a brief overview of some of the key elements involved with transition planning. For more information, here are three Canadian-based publications that were used in researching this report and that can be used to delve deeper into aspects of transition planning:

• David Malach and Stuart Bollefer, "The Business in Transition - Making the Succession Plan Work," LexisNexis, 2008
• Ian Hull, "Advising Families on Succession Planning: The High Price of Not Talking" LexisNexis, 2005
• Luanna McGowan, Corina Weigl and David Wilton, "Succession Planning Toolkit for Business Owners: Leveraging Your Life's Work" by Canadian Institute of Chartered Accountants, 2006

Jamie Golombek, CA, CPA, CFP, CLU, TEP is the Managing Director, Tax & Estate Planning with CIBC Private Wealth Management in Toronto.

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Disclaimer:
As with all planning strategies, you should seek the advice of a qualified tax advisor.

This report is published by CIBC with information that is believed to be accurate at the time of publishing. CIBC and its subsidiaries and affiliates are not liable for any errors or omissions. This report is intended to provide general information and should not be construed as specific legal, lending, or tax advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information in this report should consult with his or her financial advisor and tax specialist.