For entrepreneurs, building out and scaling up an enterprise can be among life’s most fulfilling and rewarding experiences. At some point however the matter of exiting the business, whether through family succession or through an outright sale, will arise. While such an exit, particularly in the case of a sale, can be highly lucrative and open up a world of newfound freedom and opportunity, it may also present challenges around personal identity, direction, and financial continuity. This article explores these topics and highlights the very human and emotional aspects along with the financial considerations that this kind of transition may bring about.

A majority of businesses in Canada are family businesses—privately owned companies where one or more family members of the owner (usually children) work in the business. In many cases, the question of succession planning and whether the children will eventually take over ownership of the business often arises.

Passing on a family business to the next generation is a major life event of which many owners dream. Realistically, this does not magically happen and requires carefully mapping out a family business succession plan. This article looks at the challenges of family business succession and highlights preparations to make for a smooth transition.