20 Cover Story INTANGIBLE ASSETS When it comes to selling a business, intellectual property is usually the most attractive, and valuable, part of the enterprise.
THE RIGHT PIECES
As with a sports team, the group of professionals
preparing and executing a succession plan needs to
be carefully selected to ensure the right mix of talents
that will mean people work as a unit.
Just because Canada’s economy is recovering doesn’t
mean business owners can hike the asking price for
their company. But undervaluing means cash will be
left on the table. Finding the right valuation requires
planning and number crunching to make sure everyone
walks away satisfied.
Plans for finding a successor must begin well in
advance in order to assure the smoothest transition
possible. The first step is determining to whom the
owner will sell the business— family, a third party —
and then formulating an appropriate strategy.
What would happen if the only person who knew all
the ins and outs of the business was injured in a car
crash or suffered a heart attack? Is there a plan to cope
in a worst-case scenario?
Generation Y has been gaining influence in the
workforce for some time, and they should not be
PASSING THE TORCH
When passing a business down in the family, an honest
assessment of the offspring’s skill is needed to ensure
People who don’t know when or how to leave aren’t
much fun at parties. And they aren’t much fun in
business either. How not to be one of them.