More than three-quarters of small- and medium-sized business owners plan to exit their companies in the next decade, adding urgency to the need for solid succession plans, according to a new report.
“For 75 per cent of those businesses that want to exit, they want to retire,” Corinne Pohlmann, senior vice-president of National Affairs at CFIB, said. “So for many, the proceeds from the sale of their business becomes their retirement plan.” That makes it all the more important for business owners to prepare succession plans, she said.
But what happens to that $2 trillion in assets is crucial, because about 50 per cent of Canada’s gross domestic product is created by small- and medium-sized businesses, which together employ more than 80 per cent of workers, Pohlmann said.
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