One of the M&A Club objectives is to raise awareness and open a conversation around the challenge of succession. Indeed, whether it is a family succession or another type of merge and acquisitions, the problems concerning the sustainability of Quebec SMEs are still too often ignored.
We know that the lack of planning during a business transfer leads in 70% of cases to failure. Numerous studies have shown that if the owners and the future owners receive the necessary support and tools when planning a business transfer, they will be able to take care of this situation.
What are the business owners’ needs to take control of succession planning?
● Improving understanding of the business transfer and succession process
- Present options for succession
- Prove that succession ensures the sustainability and growth of the company
- Demonstrate the need for business transfer planning
- Finance the transaction
● Be supported
- Finding the right successor that will be animated by the same passion
- Integrating and training the successor
- Using the right tools
- Aligning visions
- Responding to the challenges of intergenerational communication
- Staying neutral and objective
How to cover these needs?
There are more and more resources available to support planning and alleviate this situation:
- The creation of the CTEQ (Centre de Transfert d’Entreprise du Québec), in March 2015, which offers support services, training and a platform that allows owners and future owners to be referenced in a confidential manner.
"INDEX connects buyers and sellers who would not have met otherwise. The professionals then intervene to facilitate the procedures." Explains Vincent Lecorne, CEO of the CTEQ.
- A program to support the establishment of cooperatives, with a fund of $ 50 million (Canadian Cooperative Investment Fund)
- The creation of Joii.ca, the online business succession plan generator, which is aimed at owners, future owners, professionals and coaches. Joii offers 10/40 free themes and generates a structured preparatory plan to allow entrepreneurs to be Deal Ready now.
Today, it’s crucial to plan succession, as it can jeopardize the sustainability of many Quebec SMEs. Our responsibility lays in raising awareness, offering tools and, supporting business owners in the succession planning process.
Together, let’s promote the importance of putting in place a succession plan for the company and getting the business owners to prepare sooner!
Maxime Paulhus Gosselin,
Founder of Joii.ca