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1. SUCCESSION
PLANNING
The
Right
Steps,
At
The
Right
Time.
A
Text
By:
Tristan
Hebert
and
Charles
Canuel
Tousignant

2. 2
Table
of
Contents
Premise
.......................................................................................................................................
3
Executive
Summary
................................................................................................................
4
Family
Harmony
......................................................................................................................
5
Challenges
between
business
and
family
........................................................................
5
Why
should
we
plan
for
Business
succession?
..............................................................
7
What
have
done
the
biggest
companies?
.........................................................................
8
Succession
Plan
........................................................................................................................
9
Steps
Towards
the
Succession
.............................................................................................
9
•
Goals
and
objectives
..................................................................................................................
9
o
Develop
a
vision
for
the
business.
...................................................................................................
9
o
Determine
your
retirement
or
post
business
ownership
goals.
......................................
10
•
Decision
making
......................................................................................................................
11
o
If
appropriate,
involve
family
members
in
the
development
of
the
plan.
...................
11
o
Have
a
conflict
resolution
mechanism
........................................................................................
12
o
Select
a
successor
.................................................................................................................................
13
•
Training
......................................................................................................................................
15
o
Identify
the
core
skills
and
competencies
that
your
successor
will
need.
..................
15
o
Plan
for
training
of
the
new
owner(s).
.......................................................................................
16
•
Financial
planning
...................................................................................................................
17
o
Prepare
a
financial
plan
for
the
transition
of
your
business.
............................................
17
•
Contingency
planning
............................................................................................................
18
o
Have
a
contingency
plan.
..................................................................................................................
18
•
Corporate
structure
and
transfer
methods
....................................................................
19
•
Exit
strategy
...............................................................................................................................
20
•
Implementation
and
follow
up
...........................................................................................
20
o
Review
and
update
your
plan
regularly.
....................................................................................
20
Conclusion
...............................................................................................................................
21
References
..............................................................................................................................
22

3. 3
Premise
Both
of
us
we’re
both
living
in
an
entrepreneurship
environment
growing
up.
We
both
have
seen
the
challenge
and
the
passion
that
each
of
our
family
has
put
into
their
organization.
Our
idea
for
this
project
was
to
establish
a
succession
plan
for
family
that
could
be
use
by
businesses
in
order
to
make
sure
that
the
transfer
of
the
company
is
done
properly
and
in
order
to
maintain
the
business
values
and
assure
future
growth.
It
is
important
to
plan
such
an
important
change
within
the
organization
and
every
aspect
must
be
analysed.
This
is
an
important
subject
for
us
because,
as
mentioned
before,
both
of
us
are
use
to
the
“underground”
of
businesses.
We
are
both
currently
involved
in
family
businesses
and
both
of
us
want
to
either
own
a
business
in
the
future
or
get
the
control
over
the
family
business.
Moreover,
in
Canada,
1/3
of
all
business
owner
will
retired
over
the
next
few
years
according
to
PWC
survey
firm.
It
is
crucial
for
those
entrepreneurs
that
want
to
let
their
family
take
over
the
company
to
have
a
good
plan.
The
findings
of
this
survey
illustrate
that
companies
should
start
planning
their
succession
at
least
5
years
before
the
transition.
Also,
we
wanted
to
raise
awareness
to
entrepreneur
about
planning
in
advance
the
succession
in
order
to
establish
a
well-­‐defined
plan
to
guide
entrepreneurs
facing
the
challenge
of
family
business
succession.
In Canada, 1/3 of business owners will retire in the next few
years.
Source: Securing the Future: The Canadian Supplement to the 2014 PwC Global Family Business Survey.

4. 4
Executive
Summary
Passing
your
company
over
to
a
family
member
is
a
common
way
to
pass
your
legacy
on
to
your
children
and
also
onto
future
generations.
But
it’s
not
always
that
easy.
In
order
to
help
you
in
the
future,
you
will
find,
later
in
this
report
you
will
be
able
to
follow
a
step-­‐by-­‐step
plan
that
will
guide
you
into
a
successful
family
business
succession.
Actually,
you
will
understand
with
this
report
that
identifying
family
members
that
not
only
want
to
be
included
in
the
business,
but
also
are
a
good
fit
to
run
it
will
require
a
lot
of
time
and
consideration.
Also,
as
the
expert
for
your
business,
we
will
show
you
how
you
can
continue
to
share
your
skills,
knowledge,
plans
and
visions
for
the
company’s
future
with
your
family
members
on
an
ongoing
basis
in
order
to
create
a
smooth
and
successful
transition.
Determining
which
family
members
are
interested
in
the
business,
their
strengths
and
weaknesses
can
be
crucial
to
both
the
business
and
family
harmony.
This
is
why
following
a
plan
like
this
one
can
make
the
transition
efficient
and
minimize
the
risk
of
future
failure.
“Successful
family
firms
are
those
in
which
there
is
a
good
balance
between
professional
management,
responsible
business
ownership
and
a
healthy
family
dynamic.”
Source: Securing the Future: The Canadian Supplement to the 2014 PwC Global Family Business Survey

5. 5
Family
Harmony
There’s
a
very
fine
line
between
family
matters
and
business
matters
in
a
family
business
and
this
can
actually
be
a
source
of
tension
within
the
team
at
work
but
also
with
the
family
in
general.
Open
communication
is,
most
of
the
time,
the
best
way
to
make
sure
that
everyone’s
voice
and
ideas
are
heard
and
that
your
plans
for
the
business
are
taken
effectively.
To
that
end,
it
can
be
beneficial
for
you
but
mainly
for
the
business
to
have
an
objective
mediator
present
when
discussing
about
the
transition
of
your
business.
Doing
this
can
minimize
family
tension
and
disputes
so
that
you
don’t
fall
into
the
statistics.
Actually,
because
of
those
tensions
in
businesses,
only
16%
of
Canadian
businesses
owners
plan
to
pass
their
family
business
on
to
the
next
generation.
Challenges
between
business
and
family
First
of
all,
in
this
case,
the
most
important
factor
that
entrepreneur
have
to
take
in
consideration
is
the
tension
among
family
members.
In
order
to
satisfied
the
need
of
the
company,
an
entrepreneur
has
to
make
wise
decision
“Only 16% of Canadian owners plan to pass the family
business on to the next generation”
Source: CIBC/Leger Marketing Survey, July 2012.

6. 6
based
on
the
interest
of
the
company,
but
still
need
to
keep
the
family
members
on
board.
It
is
hard
to
satisfy
every
family
member’s
needs
within
an
organization,
but
it
is
possible
to
make
compromise
in
order
to
keep
the
peace
within
the
business.
Family
members
can
argue
on
many
aspects
and
there
is
a
lot
of
subject
that
need
to
be
discussed.
The
position
that
will
be
occupied
by
each
member
of
the
family
is
also
crucial
and
can
lead
to
dispute
among
the
family
and
among
the
employees.
For
example,
when
a
business
owner
hire
one
of
his
family
member,
it
could
be
perceive
as
a
threat
from
the
other
family
member
but
also
for
other
employees
within
the
organization,
which
can
feel
like
they
have
no
chance
to
grow
in
the
business
because
for
them
family
members
will
always
go
first.
All
those
situations
have
to
be
taken
into
consideration
and
needs
to
be
explained
carefully
to
all
employees
and
other
family
members.
Explaining
why
this
particular
person
will
have
this
“title”
will
help
keeping
employee
motivated.
Power
of
ownership
among
the
family
member
has
to
be
carefully
decided,
since
it’s
crucial
and
can
create
tension
within
the
family.
Moreover,
should
a
business
owner
prioritize
seniority
over
education?
It
has
to
be
taken
into
consideration
since
a
newcomer
in
the
company
that
has
a
degree
compare
to
the
rest
of
the
family
currently
employed
could
probably
ask
for
more
money
or
%
of
ownership.
For
others,
the
big
challenge
is
to
be
able
to
go
in
the
family
business
and
get
control
over
the
years.
The
next
generation
can
no
longer
assume
they’ll
run
29% of the new generation thinks that there is no chance
for them to manage the business in the future.
Source: Securing the Future: The Canadian Supplement to the 2014 PwC Global Family Business Survey.

7. 7
the
business
one
day.
Actually,
PWC
survey
2014
as
shown
that
73%
of
those
likely
to
take
over
the
business
said
they’re
looking
forward
to
doing
it,
but
only
35%
thought
it
was
definite,
and
as
many
as
29%
thought
that
there’s
only
a
small
chance
that
this
will
happen
in
the
future.
At
the
same
time,
86%
of
the
next
generation
wants
to
do
something
significant
when
they
take
over,
and
80%
have
big
ideas
for
change
and
growth,
which
could
be
scary
for
the
actual
owner,
partners
and
employees.
Why
should
we
plan
for
Business
succession?
According
to
the
firm
Ash
Brokerage,
95%
of
all
business
succession
involves
an
insider
and
9
out
of
10
business
succession
fails.
The
firm
also
mentioned
that
in
80%
of
the
case,
the
owner
is
considered
as
being
the
hub
of
the
company
and
is
too
much
integrated.
Business
owner
often
own
two
“hats”
which
are
owner
and
CEO
at
the
same
time.
The
firm
states
that
when
business
successions
occur
the
owner
has
to
differentiate
himself
from
the
company.
It
is
very
important
for
business
owner
to
plan
their
succession
for
numerous
reasons.
One
of
these
reasons
is
that
it
protects
the
legacy
of
your
business
and
maintains
a
service
for
your
community.
It
also
provides
financial
security
for
the
business
owner’s
family.
In
order
to
do
so,
business
owner
have
to
plan
their
succession.
This
will
help
them
build
values
for
their
enterprise
and
be
able
to
retired
without
any
financial
problem.
By
planning
the
succession
of
the
family
business
you
ensure
that
you
will
be
able
to
deal
with
unexpected
events
that
can
occur
such
as
illness,
accident
or
even
death.

8. 8
What
have
done
the
biggest
companies?
When
thinking
about
family
business
succession,
we
looked
at
some
of
the
largest
companies
around
the
world
that
are
still
successful
even
if
they’ve
been
through
succession.
For
example
Wal-­‐Mart
has
gone
through
a
succession
in
the
past
years.
In
fact,
Rob
Walton
has
appointed
his
son-­‐in-­‐law
to
vice
chairman
of
the
family
business
in
order
to
make
him
gain
control
of
the
multinational.
Rob
Walton
did
mention
that
they
have
been
planning
for
stability
and
continuity
and
that
they
spend
considerable
time
planning
it.
It
shows
that
it
is
possible
to
be
successful
even
if
you
are
one
of
the
most
important
corporations
out
there.
Sometimes
family
member
aren’t
the
solution
in
order
to
keep
the
company
on
track.
In
2006,
for
example,
Bill
ford
from
the
Ford
Motor
Corp,
son
of
the
ford
dynasty,
step
down
from
CEO
and
let
Alan
Mullaly
become
CEO
in
order
to
shake
the
company.
This
shows
that
if
the
business
owner
feels
that
an
outsider
should
be
leading
the
company
it
is
possible
to
do
so.
The
last
example
is
from
the
Suzuki
Corp.
Their
current
CEO
is
now
84
years
old
and
has
been
working
for
the
company
for
the
past
three
decades
and
did
not
plan
for
any
business
succession
what
so
ever
at
the
moment.
This
situation
has
been
increasing
concern
for
investors
and
the
shareholders
of
the
company
leaving
them
with
some
hard
discussion
and
tension
among
investors,
shareholders
and
employees.
They
actually
really
need
to
start
planning,
if
not
the
big
carmaker
could
become
history.
This
situation
illustrate
that
even
the
biggest
company
can
struggle
with
business
succession
and
can
be
unprepared
and
need
to
resolve
the
situation
as
quick
as
possible.

9. 9
Succession
Plan
Following
everything
that
was
said
earlier
in
this
report,
we
feel
that
the
following
plan
would
be
the
perfect
plan
to
follow
in
order
to
guaranty
a
successful
and
smooth
succession.
Steps
Towards
the
Succession
• Goals
and
objectives
o Develop
a
vision
for
the
business.
A
good
vision
is
about
creating
a
short
statement
that
will
guide
you
over
a
certain
amount
of
time.
Every
business
vision
should
be
specific
enough
to
make
everyone
understand
what
your
business
will
do,
but
also
what
it
will
not
do.
It
should
drive
the
organization
in
order
to
achieve
a
common
goal,
and
be
a
source
of
motivation
to
everyone
in
and
outside
the
business
so
that
everyone
knows
what
the
business
is
trying
to
achieve
and
promote.
It
is
important
to
have
a
clear
vision
because
without
a
vision,
as
an
example,
a
business
is
like
a
car
without
some
tires;
it’s
going
nowhere.
A
large
quantity
of
small
businesses
here,
in
Canada,
don’t
have
a
clear
vision
and
so
they
tend
to
jump
from
task
to
task
without
a
clear
understanding
of
what
bonds
each
employees
actions
together
and/or
the
value
created
by
those
employees
actions.
Your
vision
should
provide
the
foundation
for
everything
that
you
do
in
the
business.

10. 10
A
good
vision
should:
1. Be
concise
and
give
purpose
to
your
business.
2. Must
be
capable
of
motivating
you
and
others
in
the
business.
3. Must
provide
the
foundation
for
your
business.
Should
help
employees
to
link
actions
to
strategic
goals.
Your
actions
must
be
driven
from
a
clear
understanding
of
value
they
will
create.
o Determine
your
retirement
or
post
business
ownership
goals.
This
is
a
critical
part
of
your
succession
success.
Knowing
what
you
want
and
what
you
will
need
in
the
future
from
owning
your
business
to
the
“after
business
ownership
life”
is
really
important.
This
will
be
your
main
point
of
anchor
around
what
will
happen
with
the
finance
of
the
business
but
manly
your
own
finance.
Creating
a
plan
for
post
business
ownership
will
help
you
keep
a
certain
standard
of
living
and
also
help
you
achieve
your
main
goals
and
dream
in
life.
Owning
a
business
is
a
wonderful
experience,
but
each
steps
and
moves
in
the
business
must
be
well
calculated
in
order
to
leave
you
with
something
to
work
with
at
the
end
of
the
venture.
From
the
amount
of
%
ownership
you
want
to
keep
after
retirement
or
the
price
you
want
to
sell
completely
your
business
at
“Vision is about creating a short statement that will guide
you over a period of time.”

11. 11
the
end
of
your
venture,
everything
must
be
accounted
for
in
order
to
leave
you
with
a
good
retirement
life
and
keep
your
living
standards
to
a
certain
level.
For
example,
if
you
want
to
do
like
most
of
the
baby
boomers
here,
in
Quebec,
and
go
5
to
6
months
every
year
in
Florida,
Texas
or
Mexico
to
leave
the
cold
behind,
a
action
plan
must
be
put
in
place
early
in
your
venture
in
order
to
leave
you
with
enough
liquidity
to
achieve
this
main
goal.
• Decision
making
o If
appropriate,
involve
family
members
in
the
development
of
the
plan.
Family
members
are
and
will
be
an
important
aspect
throughout
you
entire
venture.
From
a
close
perspective
to
a
far
one,
family
members
will
be
involved
in
the
business
in
a
certain
way.
They
will
probably
be
the
person
you
turn
up
to
in
harder
times
or
just
to
ask
for
simple
suggestion.
You
need
to
think
about
how
much
involvement
you
want
them
to
have
in
your
business
from
the
startup.
Involving
them
throughout
this
plan
will
help
everyone
in
case
of
a
tragic
event
in
the
business,
like
the
hospitalization
of
a
main
partner/the
main
owner
or
in
case
of
death
of
the
main
owner.
Those
are
really
important.
As
an
example,
a
couple
of
month
ago,
a
friend
of
the
family
had
a
big
accident.
He
needed
to
be
put
in
a
long
coma
because
of
the
severity
or
his
injuries.
The
only
problem
was
that
no
one
around
him
was
aware
of
what
was
happening
in
the
business…
He
was
the
type
of
owner
that
want
to
do
everything
by
him
self
so
no
one
at
the
business
also
was
really
aware
of
what
to
do
for
certain
transaction
or
problems
in
the
business
activities.
This
resulted
in

12. 12
losses
of
thousands
of
dollars
and
the
loyalty
of
certain
major
clients.
By
following
a
plan
and
letting
know
family
members
or
other
employees
in
the
business
what
to
do
for
each
aspect
of
the
business
this
could
have
ben
avoided
and
business
could
have
run
smoothly
even
without
him.
o Have
a
conflict
resolution
mechanism
Businesspeople
and
corporate
counsel
often
seem
not
to
pay
much
attention
to
their
choice
of
dispute
resolution
mechanism
in
case
of
conflicts
between
partners,
employees
or
even
family
members
involved
in
the
business.
Here
are
some
major
principles
explaining
what
a
good
resolution
plan
should
do:
1. Effective
conflict
management
systems
can
contribute
to
an
effective
high-­‐performance
workplace
by
improving
employees
involvement,
morale,
and
also
productivity.
2. Any
good
conflict
management
system
should
address
these
few
key
principles:
It
should
accept
that
conflict
would
occur
in
a
near
future;
stakeholders
must
know
that
there
is
a
clear
system
for
managing
conflict;
the
system
should
be
in
the
interests
of
all
stakeholders
and
should
be
fair
for
everyone
involved
in
the
business
and
most
importantly
it
should
be
easily
accessible
and
safe
to
use
by
all
employees.
“Conflict resolution mechanism – a pre-established plan
to resolve any conflicts between family members, partners
and/or employees.”

13. 13
3. There
is
no
ideal
model
suitable
to
every
situation
and
your
model
needs
to
be
adapted
to
your
specific
business
and
what
it
works
with.
4. At
the
moment,
most
of
the
businesses
do
not
communicate
information
about
their
conflict
resolution
process
to
employees
or
partners.
It
should
always
communicate
those
informations
to
others
in
the
business.
Training
for
conflict
resolution
should
not
be
minimal
and
should
be
an
important
part
of
the
training
for
everyone
in
the
business.
Dispute
resolution
skills
should
always
be
looked
as
a
core
competency.
5. Your
business
must
learn
to
administer
a
good
conflict
management
system
so
that
they
can
fit
this
system
into
a
larger
HR
strategy
and
be
apart
of
the
main
business
strategies.
o Select
a
successor
For
a
small
or
mid-­‐sized
business,
practically
as
soon
as
the
business
become
successful
enough
to
have
a
future,
the
business
owner/owners
needs
to
start
thinking
about
developing
a
plan
for
who
will
succeed
them.
In
a
major
public
organization
the
process
will
be
more
organize
and
will
seem
simpler
because
the
board
of
director
has
the
duty
to
create
a
strategic
succession
plan
for
the
future
for
the
benefit
of
employees,
family,
customers,
and
supplies.
However,
the
process
can
be
a
lot
more
difficult
for
small
and
medium
sizes
organizations
because,
in
this
case,
succession
deals
not
only
with
management
but
ownership
of
the
business,
and
ownership
is
usually
in
the
hands
of
one
person
or
partners,
in
our
case
family
members.
They
need
to
figure
out
what
they
really
want
for
the
business.
Do
they
want
a
quick
sale
and
don’t
want
to
be
involved
with
anything
regarding
the
business
in
the
future
or
if
the

14. 14
want
to
preserve
a
successful
business
for
future
family
generations.
When
owners
decide
that
preserving
a
successful
business
for
future
generations
would
be
the
best
legacy
they
could
leave
behind,
they
need
to
begin
the
process
of
choosing
a
successor.
For
some
business,
choosing
a
successor
is
a
no
brainer
and
research
has
no
need
to
be
maid.
However,
this
case
does
not
apply
for
most
of
the
business
in
this
reality.
Business
owner
should
look
at
family
members
that
shine
in
the
business
but
also
outside
members
that
has
worked
in
the
business
and
demonstrated
the
skills
and
personality
to
best
lead
the
business
into
the
future.
Even
if
it
seems
easy,
sometime,
for
some
business,
it
is
a
lot
harder
to
select
the
perfect
successor.
A
lot
of
those
difficulties
come
from
the
fact
that
small
or
medium
businesses
are
often
dealing
with
families
in
succession
planning
and
not
all
family
members
agree
on
the
same
point
when
money
is
concerned.
A
good
plan
should
include
criteria
for
a
successor
that
reflect
the
needs
of
the
business
in
the
future
and
not
the
personal
needs
of
members
involved
in
the
organization.
Leaders
should
always
avoid
the
temptation
to
“clone”
themselves.
It
is
critical
for
the
family
and
partners
to
realize
that
they
need
to
look
for
the
right
person
to
build
upon
main
owner
and
what
he
has
done
and
take
it
to
new
heights.

15. 15
If
more
than
one
candidate
as
been
selected
as
potential
leaders,
a
sub-­‐committee
of
the
board
or
a
group
of
trusted
advisors
from
outside
the
business
can
be
asked
to
make
a
recommendation
on
who
would
be
the
best
candidate
for
the
future
success
of
the
organization.
This
can
actually
be
done
over
some
specified
period
of
time
to
allow
the
committee
to
observe
each
person
in
action
if
they
are
not
already
familiar
with
their
work
and
to
acquire
more
knowledge
about
the
business
and
it’s
main
goals.
What
is
really
important
to
remember
in
this
is
that
the
successor
must
be
selected
an
a
early
stage
of
the
business
to
make
sure
that
he
is
well
knowledgeable
about
the
business,
the
goals
of
the
business
and
to
have
a
good
communication
with
the
working
team,
customers
and
suppliers.
This
will
guaranty
a
smooth
transition
without
too
many
headaches.
• Training
o Identify
the
core
skills
and
competencies
that
your
successor
will
need.
The
core
skills
and
competencies
that
your
successor
will
have/need,
is
a
major
aspect
that
will
determine
the
future
if
the
business.
In
the
selection
process
of
the
successor
those
core
competencies
need
to
be
determined
in
order
to
select
the
right
Core competencies need to be determined in order to select
the right successor, and train him the best way possible.

16. 16
successor
and
to
train
him
the
best
way
possible
in
order
to
guaranty
a
future
to
the
company.
Knowing
that
in
Canada
a
lot
of
family
business
successions
are
unsuccessful,
with
the
statistics
stated
before
in
this
report,
this
part
of
your
succession
plan
should
always
be
analyzed
carefully
in
order
to
select
all
the
main
competencies/skills
that
the
successor
needs
to
have
in
order
to
eliminate
the
risk
of
business
failure
after
the
succession.
We
also
need
to
keep
in
mind
that
for
family
business,
most
successful
family
firms
are
those
in
which
there
is
a
good
balance
between
professional
management,
responsible
business
ownership
and
a
healthy
family
dynamic.
Those
characteristics
need
to
be
kept
in
mind
and
focused
on
as
main
competencies
that
the
successor
needs
to
acquire
in
order
to
keep
the
business
smooth
and
running.
o Plan
for
training
of
the
new
owner(s).
For
a
good
succession,
the
business
should
select
the
successor
early
to
leave
time
for
the
successor
to
acquire
all
the
skills
necessary
in
order
to
lead
the
business.
We
don’t
want
to
wait
to
the
last
minute
to
train
the
successor.
An
accident
can
happen
or
specific
health
condition
of
the
leader
can
make
the
transition
catastrophic
if
training
was
not
started
at
the
right
moment
or
even
worse,
if
the
successor
was
not
selected.
As
soon
as
the
business
start,
a
succession
plan
should
be
started
and
potential
successor
should
be
selected.
As
soon
as
the
successor
is
selected
the
training
should
start
to
make
the
transition
of
the
lead
smooth.
We
need
to
keep
in
mind
that
this
is
not
only
a
major
concern
for
the
family
and
the
employees
but
also
for
customers
and
suppliers.
Having
this
set
up
in
advance
can
increase
confidence
from
suppliers
and

17. 17
customers
regarding
your
business
and
putting
you
company
on
the
top
list
of
their
business
activities.
• Financial
planning
o Prepare
a
financial
plan
for
the
transition
of
your
business.
Money
is
always
an
important
aspect
of
your
venture,
for
you
and
for
your
family
members.
Without
a
defined
plan
you
are
essentially
leaving
your
personal
and
business
financial
future
to
chance.
Actually,
as
a
business
owner,
you
not
only
have
to
plan
for
the
future
transition
of
your
company
and
its
continued
success,
you
must
also
ensure
your
retirement
goals
are
met
to
guaranty
you
a
financially
peaceful
retirement.
The
best
option
here
in
order
to
maximize
your
exit
strategy
would
be
to
go
meet
with
a
business
advisor.
The
advisor
can
guide
you
through
a
process
designed
to
lay
the
groundwork
for
the
future
of
your
business,
keeping
in
mind
your
retirement
goals.
Even
if
you
already
have
an
exit
strategy
in
place,
it’s
critical
to
review
with
someone
your
plan
to
ensure
any
changes
in
your
business
or
your
personal
situation
are
addressed.
More than half of family businesses are expected to change
hands by 2019. Only 16% have a robust, documented
succession plan in place.
Source: Securing the Future: The Canadian Supplement to the 2014 PwC Global Family Business Survey.

18. 18
Knowing
that
more
than
half
of
family
businesses
are
expected
to
change
hands
by
2019
and
that
only
16%
of
them
have
a
robust,
documented
succession
plan
in
place
the
best
option
would
be
to
go
meet
as
soon
as
possible
a
financial
advisor
to
create
you
financial
plan
for
the
legacy
of
your
business
in
order
not
to
become
just
a
failing
statistic.
This
plan
should
be
reviewed
constantly
following
the
growth
of
the
business.
• Contingency
planning
o Have
a
contingency
plan.
What
if
your
main
successor
suddenly
past
away
in
a
car
accident?
Are
you
prepared?
Do
you
have
another
person
in
mind
or
trained
to
take
is
position
as
future
successor?
What
if
you,
the
main
owner/leader
of
your
business
suddenly
get
hospitalized
for
a
few
weeks
or
a
few
months?
What
if
you
past
away
suddenly?
The
plan
B
should
include
some
financial
resources,
and
should
also
be
discussed
with
the
business
adviser.
The
plan
should
provide
Making a contingency plan is all about developing a good
“Plan B”.

19. 19
resources
that
would
be
required
in
case
of
illness,
accidents
and
death.
• Corporate
structure
and
transfer
methods
You
need
to
determine
your
options
as
proprietor
of
the
business.
If
you’re
the
only
owner
of
the
company
do
you
want
it
to
continue
in
this
way
and
stay
with
one
owner
at
100%
or
would
you
like
to
implicate
more
partners
into
the
company
for
the
future
when
you
will
decide
to
leave.
Again,
the
business
adviser
will
help
you
select
the
best
option
regarding
the
type
of
business
you
are
operating.
Also,
you
need
to
decide
if
you
want
to
transfer
the
business
to
family
members
or
sell
the
business.
Whatever
you
decide,
you
should
always
meet
with
a
financial
adviser
to
determine
the
fair
market
value
of
your
business
in
order
to
have
the
big
picture
around
your
business.
This
will
help
you
planed
your
retirement
goals
an
determine
if
selling
the
business
will
be
sufficient
to
satisfy
those
goals.
Even
if
the
business
is
transfer
to
family,
it
should
always
be
sold
for
the
real
market
value.
Don’t
forget
this
is
your
retirement
savings
plan.
You’ve
worked
hard
for
this
and
selling
it
at
a
discount
price
because
it’s
going
to
the
family
will
not
help
you
satisfying
your
retirement
goals.
Contingency plan should provide resources required in
case of illness, accidents and death.

20. 20
• Exit
strategy
When
everything
has
ben
decide,
you
need
to
decide
when
you
will
leave
and
how.
Establishing
a
timeline
will
be
a
good
way
for
easing
your
way
out
of
the
business.
You
need
to
prepare
everything
that
was
stated
in
this
plan
before
leaving
the
company
in
order
to
create
a
smooth
transition
with
the
new
leader.
One
good
way
of
leaving
could
be
to
start
by
working
fewer
hours
each
week
and
leave
the
business
to
the
new
leader.
You
will
be
there
to
help
if
there
are
some
problems
and
this
will
help
for
a
good
transition.
Gradually,
you
will
be
able
to
leave
the
company,
letting
everyone
in
confidence
in
regards
of
what
will
be
the
future
of
the
organization.
By
doing
a
graduate
transition
like
this,
not
only
the
employees
and
the
new
leader
will
be
in
confidence
but
also
the
customers
and
suppliers,
the
most
important
aspect,
will
see
the
clear
future
for
the
business.
• Implementation
and
follow
up
o Review
and
update
your
plan
regularly.
It
is
very
important
to
review
and
update
your
succession
plan
regularly
as
your
company
will
grow
and
change
with
time.
You
should
take
the
time
to
re-­‐evaluate
your
plan
when
there
is
a
change
to:
• Business
partners
or
key
executives
• Your
business
plan
• Your
family
situation
• The
structure
of
your
company
• Your
retirement
plans

21. 21
• Tax
laws
• Your
health
• Business
debt
• Market
Conditions
Conclusion
In
conclusion,
as
we
said
earlier,
passing
your
company
over
to
a
family
member
is
a
common
way
to
pass
your
legacy
on
to
your
children
and
also
onto
future
generations.
But
it’s
not
always
that
easy.
The
succession
of
your
business
can
be
really
stressful
and
painful
if
you
are
unprepared.
Following
the
plan
in
this
report
will
assure
you
not
only
a
smooth
transfer
of
the
business,
but
also
will
guaranty
you
a
retirement
where
you
will
be
able
to
follow
your
goals
for
the
future.

22. 22
References
Bradt, G. (2013, April 12). Three Different Approaches To CEO Succession
At Walmart, Kroger And Microsoft... Which Is Best? Forbes.
Contingency Planning: Developing a Good 'Plan B' (n.d.). Retrieved April 3,
2015, from http://www.mindtools.com/pages/article/newLDR_51.htm
Delta, B. (2013, December 9). Is blood really thicker than water? The issue
of family business succession. Retrieved April 6, 2015, from
http://www.bendelta.com/news/organisation/is-blood-really-thicker-than-
water-the-issue-of-family-business-succession/
Ford sets succession plan, Mulally staying through 2014. (2012, November
1). The Globe and Mail. Retrieved February 5, 2015, from
http://www.theglobeandmail.com/report-on-business/international-
business/us-business/ford-sets-succession-plan-mulally-staying-through-
2014/article4810055/
HOSSEIN ABADI, S. (2011, January 1). The role of dispute resolution
mechanisms in redressing power imbalances - a comparison between
negotiation, litigation and arbitration. Retrieved March 15, 2015, from
http://effectius.com/yahoo_site_admin/assets/docs/Effectius_Theroleofdisputeres
olutionmechanismsinredressingpowerimbalancesacomparisonbetweennegotiationl
itigationandarbitration_ShokouhHosseinAbadi_Newsletter13.150124940.pdf

23. 23
International Law Office - Legal Newsletters, Law Firm Directory and Legal
News. (n.d.). Retrieved March 21st, 2015, from
http://www.internationallawoffice.com/Account/Login.aspx?ReturnUrl=http
://www.internationallawoffice.com/newsletters/detail.aspx?g=ef374e07-
c22c-4106-a05a-3d13eb2dd54c
Key findings. (2014, January 1). Retrieved April 7, 2015, from
http://www.pwc.com/gx/en/pwc-family-business-survey/next-gen/key-
findings.jhtml
MAKING A DIFFERENCE. (n.d.). Retrieved February 4, 2015, from
http://www.ashbrokerage.com
O'Connor, C. (2014, June 6). Walmart Plans Family Succession As Low-
Wage Worker Plea Voted Down At Meeting. Forbes.
Survey of family business succession strategies. (2014, January 1).
Retrieved February 5th, 2015, from http://www.pwc.com/gx/en/pwc-family-
business-survey/next-gen/index.jhtml
Suzuki's 84-year-old CEO causes concern over lack of succession plan.
(2014, June 28). Retrieved February 5, 2015, from
http://www.autonews.com/article/20140628/OEM02/306289995/suzukis-84-
year-old-ceo-causes-concern-over-lack-of-succession-plan

24. 24
Walters, J. (2012, November 10). Why a clear vision is so important to
running a successful business. Retrieved April 5, 2015, from
https://www.121businessconsulting.com/why-a-clear-vision-is-so-important-
to-running-a-successful-business/
Walmart reveals family succession plans at shareholders meeting. (2014,
June 9). Retrieved February 5, 2015, from
http://www.campdenfb.com/article/walmart-reveals-family-succession-
plans-shareholders-meeting
Wasserman, E. (2010, February 1). How to Choose a Successor. Retrieved
April 8, 2015, from http://www.inc.com/guides/choose-your-successor.html