Issue link: https://digital.canadianlawyermag.com/i/226536
succession planning Get your ducks in a row Planning well ahead is the key to selling your business and reaping enough rewards to retire comfortably. By Marg. Bruineman Y ou've worked hard developing your family business for many years and your plan is to sell it and live off the proceeds come retirement. And when that time comes, you want to make sure you're getting a fair deal with little risk, because those profits will make up a significant portion of your retirement income. "Typically, if you are minimizing risk, you're maximizing reward," says Graham King, a lawyer with Borden Ladner Gervais LLP's private company group in Toronto. The key, says King, is to make sure you're in the position that you want to sell, not that you have to sell. The other important aspect is to get all your ducks in a row. Some planning and foresight goes a long way in minimizing 18 the risks and maximizing the rewards at the end of the day. "Preparing to sell your business is actually what I think is the most important part," says King, a former investment banker. "You want to be selling at the right time for the right reason." He suggests getting your business ready three or four years in advance and he likens it to selling a house. Clean up everything so that when a prospective purchaser comes looking, they like what they see. Go to a valuator so you know what your business is worth and how much you can ask. And make sure all the paperwork is handy and updated. That includes financial statements for the last three years as well as all permits, licences, and leasing agreements. Also, make sure you have answers to the questions they're likely to ask. A buyer, for instance, will be interested in knowing why you're selling. You're going to need an accountant and a lawyer for the sale. Get your team in place in advance of the sale so they can help you set it all up and maximize profits. "The best advice I can say is get a really good accountant," says lawyer Howard Ungerman. But knowing the tax implications, he says, is an important part of the process. Another aspect to consider when selling a business is whether you are selling the assets or shares of your company. A purchaser who wants only portions of your business is likely