Business Succession Planning And The Business Life-Cycle

Owner’s Financial Planning

Survival Stage

1. Risk Management
2. Premature death
3. Will
4. Estate equalization
5. Disability
6. Critical illness

Retirement planning

1. Registered plans
2. Asset allocation
3. Non-registered saving plans

Other Savings Goals

1. Children’s education
2. Home purchase
3. Tax minimization

Business Continuation Planning
Growth Stage
Key person protection
Buy-Sell agreement

1. Premature death
2. Retirement
3. Disability
4. Critical illness

Business Loan
Executive benefit-planning

Business Succession Planning
Growth Stage
Ownership transition

1. Sell
2. Liquidate
3. Retain in family
4. Successor training
5. Buy-sell agreement among successors

Management transition
Retirement income planning

Estate Planning
Maturity
Will planning

1. Estate equalization
2. Family law

Powers of attorney
Tax planning

1. Estate freeze
2. Share redemption
3. Liquidity

Retirement Income planning
Trust planning

1. Family trusts
2. Spousal trusts
3. “Self-settled” trusts

Philanthropy
Source: Business Succession Planning. A guide for Business Owners Sun Lift Financial, Canada.