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Webinar: Watch Bringing Clarity to Succession Planning

Watch TABIA’s webinar on succession planning for business owners, where SuccessionMatching demystifies succession planning and explores common transition paths, practical timelines, and steps owners can take to begin planning for the future of their businesses.

▶️Watch the webinar recording: https://youtu.be/ppxQnQ9tX0Y

📅Book a complimentary 30-minute consultation with SuccessionMatching here: https://form.typeform.com/to/tMsqdNxo

🏷️ Find out more details about the exclusive TABIA discount with SuccessionMatching (a $3005 discount!):  

TABIA’s aim is to make finding a buyer and succession planning more affordable and accessible. Your business’s successful transition to the next generation will help keep main streets strong.

❓Check out SuccessionMatching’s answers to questions asked during the webinar, below

Q&A

Please note responses are generalized, if you want details specific to your business we encourage you to reach out to SuccessionMatching to take advantage of their complimentary 30-minute consultation.

FINDING BUYERS

Q1. “How do we find 3rd-party buyers?”

Routes include confidential marketplaces, like SuccessionMatching, industry brokers, targeted outreach to strategic buyers and investor pools. Confidentiality and buyer pre-qualification save time and protect the business.

• You will need: A 1-page seller summary and a target buyer profile (industry, size, geography).
• Next step: SuccessionMatching can tell you more about their marketplace in a complimentary consultation.

Q2. “How to find Toronto buyers for an established florist in Northern Ontario?”

SuccessionMatching’s platform has a number of potential buyers looking for Main Street businesses. You will also want to think through if there are any key staff that might be a good fit to purchase the business or consider selling to a competitor.

• You will need: A 1-page seller summary with more information about your business and target buyer profile.

Q3. “I run a ladies consignment store in a small town (I don’t own the building); would you recommend customers as buyers? I’m a one-person show.”

Customers are more likely advocates than operators. Consider regional buyers, partner/operators, or investors who will hire a manager. Lease status matters to buyers/lenders; document your landlord relationship. Emphasize documented processes and margins.

• You will need: A copy of your lease, store financials and customer concentration. If you book a consult we can propose a confidential outreach list and scripts.

VALUATION

Q4. “How do you value your business?”

Common methods: income approach (DCF/capitalized earnings), market multiples (comps) for businesses like franchises, and/or an asset approach. SuccessionMatching can walk you through this process.

• You will need: 3-5 years’ financials, owner adjustments and customer concentration.

Q5. “Are buyers on your platform global or just Canadian?”

SuccessionMatching’s marketplace includes primarily Canadian buyers, but we do also have a number of international buyers looking at business acquisition as an immigration pathway in some provinces. Buyer geography depends on industry and regulatory limits; SuccessionMatching matches by fit and confidentiality preferences.

Q6. “Is there a way to get an approximate valuation up front to decide if selling is worth it?”

Yes, a ballpark valuation (quick SDE/EBITDA multiple or simple DCF) from 3 years’ financials is fast and indicates whether pursuing a sale is worthwhile; a formal valuation follows if promising.

• You will need: 3 years’ P&L and owner adjustments.

Q7. “How do I value a business for an ESOP and ensure management adopts an owner mindset?”

Employee Stock Ownership Plans (ESOP) need a formal valuation, clear governance, staged share purchases and a training/ownership culture plan. Use independent valuation and phased purchases tied to performance; prepare management with governance and accountability training. You can book a consult with SuccessionMatching for partner recommendations and a practical ESOP rollout. ESOP planning can be included in the FSP or we can introduce you to the leading expert on ESOPs in Canada.

• You will need: Financials, proposed ESOP terms and management biographies.

Q8. “How do I balance sale price valuation and how long before should I start the share transfers?”

Start valuation and transfer planning 12-24 months ahead. Use staged transfers, earn-outs and tax planning. Early legal/tax advice avoids surprises. SuccessionMatching can help outline timing and tax considerations in a complimentary consult (but bring the documents outlined below to the session).

• You will need: Shareholder agreement, tax history and timeline.

Q9. “Are we not discussing value or worth; a calculation to set a selling price?”

In the webinar we discuss both. Valuation provides an objective range; asking price is a market strategy that accounts for deal structure, financing, and risk allocation. Since there are a number of factors that impact each individual business SuccessionMatching walks businesses through this process one-on-one.

• You will need: 3 years financials and owner adjustments are needed for the consult.

Q10. “I want to sell to employees but make sure I get maximum price as if selling to a third party.”

Achieve near-market value by using an independent valuation, staged purchases or third-party co-investment, and market comparables. Financing (VTB, bank loans, ESOPs) can bridge employee affordability while preserving value. SuccessionMatching can provide more advice on how to support Employee Stock Ownership Plans.

• You will need: Financials and proposed employee buyer details.

BUSINESS-TYPE QUESTIONS

Q11. “What if the business I’ve built is in my own name?”

Personal-name businesses can be sold, but you must make the brand transferable (sell goodwill, license the name, or incorporate and sell shares). Buyers want clear, transferable rights to the brand. Depending on your timelines, you may consider setting up a corporation and rebranding before you start looking for a potential buyer.

• You will need: Legal status (sole prop or corporation), ownership of domain/trademarks, and a list of how client relationships that are connected to your personal identity.

Q12. “I’m a sole proprietor and the name is my own.”

Similar to the answer above but the additional context is helpful. Sole proprietorships require extra steps (often incorporation or an asset sale) to be lender-friendly and salable. Incorporation before sale often simplifies transfer and tax planning. Making sure there are clean financials, separating out the personal from the business expenses oftentimes takes the longest for these businesses. You can book a consult to map incorporation/transfer steps and tax considerations questions to ask your accountant at the year-end meeting.

• You will need: Recent financials and how client contracts are held.

Q13. “I have a corporation, not sole proprietorship.”

Corporations generally allow more flexible sale structures (share vs asset sale) and tax planning. Focus on clean financials, shareholder agreements and normalized owner compensation. You can book a consultation and SuccessionMatching will prioritize documents for a share or asset sale.

• You will need: Recent corporate financials and shareholder agreements.

Q14. “We might only be able to sell by offering a VTB and that scares us. We don’t want to take the business back.”

VTBs expand buyer pools but increase seller risk. Mitigate risk via a reasonable down payment, security (collateral/guarantees), staged payments tied to performance in order to monitor cash-flow, and clear default remedies. Consider alternative financing (bank, vendor + external investor) where possible. In a consultation on this topic SuccessionMatching can help you draft VTB term options that reduce seller exposure or propose alternative financing and make introduction to lenders that SuccessionMatching has good relationships with.

• You will need: Proposed VTB terms, buyer financials/profile and seller cash requirements at close.

Q15. “I have a service-based business.”

Great for setting up transitions over time and you can hire your buyer to mentor under you. If your transition timeline is shorter, service businesses sell on normalized earnings, client concentration, recurring revenue and documented processes. Normalize owner pay, document workflows and reduce owner dependency to increase value. In the complimentary consult, SuccessionMatching can help you navigate marketability based on location, industry, and your timelines.

• You will need: 3 years’ P&L, client concentration data and process documentation status.

Q16. “What about a business that owns a brand and sells online?”

Short answer: This is very attractive and opens up your buyer pool. Brand/IP and recurring online revenue increase valuation if ownership is clear and revenue is transferable. Buyers want proof of ownership (domain, trademarks), channel economics and platform risk mitigation.

• You will need: Analytics, proof of ownership and revenue by channel.
• Next step: Book consult and talk through some of the fears that buyers have when evaluating online businesses.

FINANCIAL & OPERATIONAL

Q17. “You mention taking personal items off the books (e.g., cell phone). I use both business and personal credit cards.”

Normalize owner/personal expenses so EBITDA represents the business only. Reconcile credit card charges and document reimbursements, buyers and lenders expect clean, consistent adjusted earnings. Book consult for a short normalization checklist you can complete quickly.

• You will need: To collect recent credit card statements and accounting notes.

Q18. “Capital gains exemption: what businesses/structures wouldn’t be eligible?” (high level)

High level (Canada): the Lifetime Capital Gains Exemption (LCGE) applies to qualifying small business corporation shares that meet active business and holding-period tests. Asset sales, trusts or non-qualifying shares may be ineligible. Specific eligibility depends on corporate history and tax facts.

• You will need: To set up a meeting with your accountant, we will review share history and income sources. Book SuccessionMatching’s consult and we’ll flag documents the accountant/tax lawyers will need.

Q19. “Is there a cashflow or profit amount that makes a business marketable versus liquidating assets?”

No single cutoff. Buyers want predictable, positive normalized cashflow, margins and proof the business can run without the owner. Operating businesses with consistent profits typically sell for more than liquidation value.

• You will need: To identify which valuation methodology to use. Collect the last 3 years financials and have them ready for assessment. You can book a consult with SuccessionMatching to talk through valuation methodology that is right for your industry.

Q20. “What if I want to close and sell off assets and I have a corporation?”

Liquidation is valid but often yields less than selling as a going concern. Corporate form affects tax and creditor priorities. Compare net after-tax proceeds of liquidation vs a going-concern sale.

• You will need: Balance sheet, liabilities and asset list. Book consult for a simple compare of liquidation net vs likely sale value. If you would like to proceed with closing the business and selling off the assets, SuccessionMatching can direct you to the Federal Government of Canada website that provides a great step by step process to closing the corporation.

Q21. “How do I calculate the value of the remaining 4 years of my government contract?”

Model the contract as projected future cash flows (account for renewal probability, performance risk and any non-transferability), then discount to present value or fold into a Discounted Cash-Flow model. If the contract requires personal relationships or is non-assignmentable, its market value is reduced.

• You will need: The contract, historical cash flows tied to it, renewal/assignment clauses, and notes on owner dependency. Book the consult and upload the contract + 3 years’ financials for a numeric approach and a recommendation about bringing in a valuation specialist.

Q22. “I run two divisions as a one-person show. Should I add employees or sell and let a new owner grow it?”

Two paths: (A) professionalize (hire/process) to grow value, or (B) position as a platform for a buyer. The choice depends on your appetite to invest time/capital and expected ROI.

• You will need: P&L by division, margins and your personal plans. Bring that to the complimentary consultation and SuccessionMatching will talk you through both scenarios.

Q23. “Are there issues for a business held in a trust?”

Trust ownership can complicate transfer mechanics and tax outcomes; it’s often workable but requires legal/tax advice. Buyer and lender comfort and beneficiary consent are key.

• You will need: Trust documents and ownership history. If you book a consult SuccessionMatching can outline questions for your lawyer and next steps.

Q24. “How to share & retain pertinent information?”

Create a transition repository: SOPs, key contacts, secure password vault, and mentorship schedule. Prioritize the 10 tasks only the owner performs and document those first.

• You will need: An idea of who you are selling to before you can set up a plan on how to gather the information and when to share it. If you book a consult, SuccessionMatching can provide a one-page capture template and priority plan.

SUCCESSIONMATCHING

Q25. “How long in advance should I connect with SuccessionMatching before exit?”

Ideally 12-36 months before exit. Two years gives time to increase value and preserve options; if you have months instead of years, SuccessionMatching will prioritize urgent fixes.

• Next step: Book consult now and SuccessionMatching will give a tailored readiness timeline.

Q26. “Would your services help someone buying out their partner?”

Yes. SuccessionMatching oftentimes work with partners or key staff through the business transition process. Oftentimes it is helpful for both parties to go through our formal succession planning program together so everything is documented and can be used as a way to discuss expectations that fit both parties needs. The discounted cash-flow draft can be used to get financing and SuccessionMatching can help make suggestions on potential structures.  These transactions are often simpler than third-party sales but still require a clear valuation and payment structure.

• You will need: Have both parties sit down and write out their BATNA. This can be done in our program or on your own.
• Next step: Book consult and SuccessionMatching can walk through each parties BATNA then make a recommendation.

Q27. “What is the average cost of working with a company like SuccessionMatching for the average 7-year process?”

Working with us through the TABIA partnership costs $3,995. This includes one on one sessions with a SuccessionMatching team member to help understand the succession planning process and collect and have documents ready to share with potential buyers whether that’s your family members, key staff or third parties. You will receive a financial analysis and a draft discounted cash flow to better understand a potential valuation range on your business. 

Business consultants and accounting firms charge between 25,000 to over 50,000 for these services. 

Our package also includes access to our marketplace where you can list your business for one year and you can actively engage potential buyers on our site. Business owners are not charged a commission on the sale of their business. Most business brokers charge the same fee as us, a $2,000 listing fee but then also charge 6-20 percent commission on the sale of your business. 

On a million dollar sale, there is a cost savings of 200,000 to 300,000 dollars for using our services. 

Q28. “What information should I have ready for initial consultation?”

Before the call think through when you would ideally like to sell the business to, if there is a family or staff member that might be interested in purchasing it, and a list of fears that you have about the transition. Oftentimes its helpful to write out a list of these fears so SuccessionMatching can help you solve for it or reassure you that there are ways of mitigating the risk.

• After the call, you will need to collect and provide the 3 most recent years’ financial statements + year-to-date profit and loss statement; recent tax returns (owner/corp). Use this checklist when booking the 30-minute consultation.

TIMING

Q29. “How soon should I talk to adult children about succession and balance their career aspirations?”

Start early and keep conversations exploratory (years ahead). Use a family board, clear role descriptions, objective skills assessments and staged mentorship. Respect independent careers and offer options (minority ownership, phased entry).

• You will need: To set up a succession plan and then approach the candidate.
• Next step: Book consult and SuccessionMatching will walk you through what a lot of members do after the plan is complete, as mentioned on the webinar, we really love the family board meetings and assessment, and can provide a template.

Q30. “Is a different approach required when selling due to sudden illness?”

Yes, you need an accelerated contingency plan: interim leadership, rapid valuation/sale options and estate planning (POA, health directives). The priority is speed, continuity and value protection.

• You will need: Org chart, any emergency plans and legal/estate docs. Understanding of what you value the most in the transition, for example would you rather get a higher dollar amount or be off work sooner.
• Next step: Book a consult and SuccessionMatching will prioritize an emergency transition checklist and legal referrals.

Q31. “If it takes 2-3 years to be ready, should I look at buyers now or wait?”

Depends on where you are in the process and how much of your plan you have written down. Oftentimes people will do both in parallel, but potential buyers will walk away from the table if you do not have the basics organized such as an asking process.

• Next step: Book consult and SuccessionMatching will help you identify seller readiness.

Q32. “I have leases 2-20 years across locations; how soon should I start ESOP planning relative to lease expirations?”

Start ESOP planning 12-24 months before major lease expirations. Lease security is material for buyers and ESOP financing; align ESOP milestones with lease renewals.

• You will need: Lease summaries and intended ESOP timeline.
• Next step: Book consult with lease notes. SuccessionMatching can talk through where you are in the process and recommend a next step through our services or some trusted professionals that specialize in ESOPs.

Q33. “My lease is up end of year and I’m considering sale – is it too late?”

Not necessarily; start landlord negotiations now. Renewals or landlord consent to assign materially affect buyer and lender confidence.

• You will need: The lease and landlord contact information. If you book a consult, SuccessionMatching can prepare landlord negotiation talking points and timing options.

Q34. “I have 7-figure revenue and growing profitability, but flat topline for 2 years, is this a red flag?”

Not automatically. Profit growth with flat revenue can be positive (margin improvement). Buyers will investigate whether flat revenue is temporary or structural. If margins and recurring cashflow are strong, that’s attractive.

• You will need: Margin trends, customer churn and market context.
• Next step: Book a consult with KPIs and SuccessionMatching will diagnose if it’s a red flag or a strength.

Legal & Accounting Disclaimer

The responses and guidance above is general and for educational purposes only. It does not constitute legal, tax, accounting or investment advice. SXNM SuccessionMatching Ltd and its representatives are not your lawyer or accountant. For advice specific to your circumstances, consult a qualified lawyer, accountant or tax advisor before acting. SuccessionMatching’s Formal Succession Planning program provides planning and marketplace services but is not a substitute for professional legal or tax advice.