1. Boomers are Moving On
Current Status
In Canada the Boomers were born during the period from 1947 to 1966. The Boomers
have been very entrepreneurial and their time has come. It is their time to move on.
From 2006 to 2016 between 34% and 55% of privately-held companies will change
hands – mostly boomers. As a result there will be huge downward pressure on price for
these privately-held companies. While there will be buyers, with plenty of cash, there
will be plenty of options for them – it will be a buyers’ market.
The current market for selling such businesses has been distorted since the severe
downturn 4 years ago as there are now companies which would have sold years ago
but deferred while they got back on their feet.
Lack of Planning
Family-held businesses are in for some
surprises - sons and daughters who are
not interested in taking on the
responsibility of running the company.
Seventy-five percent do not have any
exit strategy in place. Too many have
done little or no estate planning –
recipes for disaster. Maximizing wealth
and minimizing taxes have been
forgotten.
If you want your business to successfully transition to a family member or a third party,
careful positioning and planning have become paramount, more important than ever
before. A good exit includes an integrated plan resolving personal, business, legal,
financial, tax and estate planning issues. These ingredients take time whether involving
family or third parties.
Strategic Planning
You and your business need to focus on improving profitability, building an effective
management team and many other factors to make your business more attractive and
maximize your after-tax selling proceeds.
Preparing the owner includes taking steps to address financial issues and emotional
issues. Lack of preparation of the psychological side of selling your business will lead
to future problems in too many cases.

2. Why Plan Now?
• By 2009 there will be a five-fold increase over the number of businesses selling
compared to those for sale in 2004.
• There may be more cash-rich potential buyers available in the first half of the
boomer bubble (a 10 year period) from 2005 to 2010.
• The economic cycle is good currently, creating a good selling atmosphere.
• It takes 1 to 2 years of focused activity to get your business ready to sell.
• We are currently experiencing the lowest income tax rates in the last 35 years.
There is a pay-off for those that get an early start. It is possible that you will get a
significant premium over the price of unprepared sellers. Good planning can also
reduce and/or defer the income taxes at the time of the sale. The most overlooked
benefit of good planning is the Peace of Mind of the owner/seller.
Take charge, after all the process of selling your business just may be the most
important decision that you make in your life time.
Getting Started
Get informed. See your professional advisor at MacKay LLP to develop a plan that may
also include a lawyer, insurance broker and financial planner.