Business Owners Not Prepared For Transition

With ongoing uncertainty caused by the COVID-19 pandemic, more than a third (37 per cent) of business owners surveyed in Canada wish they could retire, transition, or sell their business but are not prepared, says a poll by KPMG in Canada. It found 24 per cent of business owners who don't have an exit plan but want to leave within one to two years, regret not selling or transitioning their business before the pandemic. "For family business owners, the readiness of the next generation to assume control of the business is a key consideration when thinking of retirement," says Yannick Archambault, national family office leader for KPMG in Canada. "Most business owners need to feel confident their business is in safe hands with the next generation or a strategic third-party, before making the decision to sell or transition the business.” Overall, 28 per cent of owners are ready to retire or sell the business but feel obliged to stay on because their successor is not prepared to take over the business. “This may or may not be a family member who has been involved in the running of the business," he says.