{"id":15483,"date":"2026-04-13T15:43:45","date_gmt":"2026-04-13T19:43:45","guid":{"rendered":"https:\/\/www.sadc-cae.ca\/?p=15483"},"modified":"2026-04-13T15:44:46","modified_gmt":"2026-04-13T19:44:46","slug":"the-challenges-of-business-transfer-solutions-and-inspiration","status":"publish","type":"post","link":"https:\/\/www.sadc-cae.ca\/en\/the-challenges-of-business-transfer-solutions-and-inspiration\/","title":{"rendered":"The Challenges of Business Transfer: Solutions and Inspiration"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"15483\" class=\"elementor elementor-15483 elementor-15460\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3128b1a9 e-flex e-con-boxed e-con e-parent\" data-id=\"3128b1a9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-726f31a2 elementor-widget elementor-widget-text-editor\" data-id=\"726f31a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Recently, following my participation in the Takeover Summit, meetings, workshops and discussions with members of the R\u00e9seau des SADC et CAE, we took a moment to take stock of business transfers in Quebec. A current subject, anchored in daily life, particularly in the regions. To illustrate the extent of the phenomenon, here are some figures.<\/p><p>Between 2015 and 2021, there were 52,000 changes in owner-managers. This is an average of 7,400 transfers per year. And it&#8217;s increasing by 4.8% per year.<sup>1<\/sup> With the ageing of the population and the lack of buyers, there is a real risk of local shops closing.<\/p><p>\u00a0<\/p><p><strong>Who are the entrepreneurs and buyers?<\/strong><\/p><p>64% of entrepreneurs are aged 45 and over2 and 37% are aged 55 and over1. And there is work to be done in terms of knowledge. Only 38.8% of salespeople have a succession plan. As for the market value of their business, only 44.4% know it. But is this the real value? Because less than 30% have established the value of their business with experts4. Among the sectors most affected by business transfers are transportation and warehousing, construction and manufacturing. Very masculine sectors. However, 27.9% of buyers are women.<sup>1<\/sup><\/p><p>\u00a0<\/p><p><strong>Tax changes that impact the sale of a business<\/strong><\/p><p>Recent tax changes, including the increase in the capital gains inclusion rate and the increase in the lifetime exemption to $1,250,000, have significantly changed business transfer planning. So, if I had a seller in front of me, I would ask him if he has established an exit strategy with tax experts.<\/p><p>\u00a0<\/p><p><strong>Estate freeze as a transfer strategy<\/strong><\/p><p>This strategy represents the idea that there are a lot of family businesses in Quebec, but that the next generation is not necessarily there to take up the torch. The estate freeze is flexible, it can be personalized and adapted to the family. This allows for a gradual and planned transmission. Another advantage is that it sets the value of the company&#8217;s assets at the time of the implementation of the estate freeze.<\/p><p>\u00a0<\/p><p><strong>Insurance to secure the transaction<\/strong><\/p><p>Insurance is a key element in protecting the transaction against the unexpected, such as injury, illness or even death. This is a good way to manage financial risks. Because, often, sellers have not necessarily identified the key people or created a strategy to preserve the value of the wealth before and during the transaction. A necessary and reassuring step for everyone.<\/p><p>\u00a0<\/p><p><strong>The employee group trust (OCE), an innovative transfer model<\/strong><\/p><p>When there is no buyer, why not bet on the employees themselves? OJT facilitates the transfer of a private business to collective ownership, while ensuring business continuity. It can be considered when the owner is willing to give up a majority stake and the employees buy into the project.<\/p><p>OJT generally applies to an eligible business and is part of a sustainable succession and employee engagement approach.<\/p><p>\u00a0<\/p><p><strong>Tips for successful business transfers<\/strong><\/p><p>In talking with my colleagues from the CFDCs and BDCs, I noted several interesting ideas to optimize the transfer and avoid making mistakes. First, the transfer is a process that must be respected. Ideally, this involves planning the sale between 5 and 10 years in advance. To be able to offer good support from start to finish and especially after the transaction.<\/p><p>Unfortunately, the lack of a succession plan is very common. The seller and the buyer do not understand the time that the entire repurchase process can take. This can become a brake on the transaction. Also, the human aspect is underestimated. Employees, customers and suppliers must be informed to avoid uncertainty.<\/p><p>Another important point is that our role is also to increase collaborations with Repreneuriat Qu\u00e9bec and under players such as RCMs and financial institutions. And of course to complement tax specialists, notaries, lawyers and accountants to move projects forward more quickly.<\/p><p><strong>\u00a0<\/strong><\/p><p><strong>Trends and challenges in business succession<\/strong><\/p><p>As we can see, the models of buyers are evolving. There is more and more external succession and mergers and acquisitions at the same time. Moreover, it is not uncommon to see 2-3 internal buyers join forces. I also feel more open to being accompanied. But there is still a lot to do and we hope that entrepreneurs will consider collaborating with the CFDCs and CAEs for any business transfer process. It is our duty to create links, to go and see them in the field to detect difficulties, help them and refer them to training, mentoring units or other actors in the field if necessary.<\/p><p>Our biggest challenge in business transfers is to collaborate, innovate and adapt to local realities. I believe that our network has everything it takes to turn this challenge into an opportunity for growth and sustainable development for our communities. And to succeed in renewing our local economic fabric, all ideas are welcome. The CFDCs and BDCs also offer adapted financing, particularly through products such as Transfer Strategy Financing, which supports buyers in the acquisition of a business. This type of loan offers flexible terms with advantageous terms such as a capital holiday and repayment terms adapted to the reality of the project. A concrete lever to facilitate the recovery and ensure the continuity of businesses in the regions.<\/p><p>\u00a0<\/p><p><strong>Pascal Harvey<\/strong><\/p><p><strong>President and Chief Executive Officer<\/strong><\/p><p>\u00a0<\/p><h6><em>[1] Repreneuriat Qu\u00e9bec : \u00c9tude nationale du repreneuriat &#8211; Sommaire ex\u00e9cutif<\/em><br \/><em>[2] CPA Canada : Business Transfer Entrepreneurs<\/em><br \/><em>[3] KPMG Canada, Rapport Focus Qu\u00e9bec : Focus Qu\u00e9bec<\/em><br \/><em>[4] Indice entrepreneurial qu\u00e9b\u00e9cois 2022 : Indice 2024<\/em><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Recently, following my participation in the Takeover Summit, meetings, workshops and discussions with members of the R\u00e9seau des SADC et CAE, we took a moment to take stock of business transfers in Quebec. A current subject, anchored in daily life, particularly in the regions. To illustrate the extent of the phenomenon, here are some figures. [&hellip;]<\/p>\n","protected":false},"author":86,"featured_media":15478,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1595,1638],"tags":[],"class_list":["post-15483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-posts","category-the-pulse-of-the-regions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SADC-CAE - The Challenges of Business Transfer: Solutions and Inspiration<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sadc-cae.ca\/en\/the-challenges-of-business-transfer-solutions-and-inspiration\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SADC-CAE - The Challenges of Business Transfer: Solutions and Inspiration\" \/>\n<meta property=\"og:description\" content=\"Recently, following my participation in the Takeover Summit, meetings, workshops and discussions with members of the R\u00e9seau des SADC et CAE, we took a moment to take stock of business transfers in Quebec. 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