Transition Planning

Only a small number of shareholders/CEO's actually develop 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

A carefully structured transition plan can help you :

  • Maximize the value of the business upon sale
  • Develop retirement income strategies to suit your lifestyle
  • Reduce the risk of loss to your retirement and/or estate capital
  • Take advantage of tax-planning opportunities by coordinating your business and estate planning
  • Create a smooth, secure transition that ensures the ongoing success and continued good reputation of your business under new leadership

Of interest

Business Succession: It's Never Too Early to Start Planning (PDF, 165 KB)
How to Realize the Value of a Private Business (PDF, 245 KB)