Succession Tsunami: Preparing for a decade of small business transitions in Canada

Introduction

Maximizing succession planning involves the safe and orderly transfer of assets and is critical for the wellbeing of the owner(s), the business itself, and Canada’s economy. This is particularly relevant with Canada's aging population and the ongoing retirement of baby boomers. Poorly managed ownership transitions may result in business owners making a premature sale (thus not receiving the full value of their business), bankruptcies, closures, a lack of services in the communities where the business is situated, job losses, reduced productivity, and a destabilized economy. This report is part of CFIB’s effort to provide information on business succession and help small and medium-sized businesses (SMEs) better plan their exit strategy. To learn about the perspectives of small-and-medium sized businesses on succession planning, CFIB conducted a national survey of business owners between June and August 2022 (See Appendix for copy of survey).