Fair versus equal

Given the fact that approximately 80 per cent of businesses in Canada are family owned, ranging in size from small all the way to large-scale corporations, the importance of thorough and detailed succession planning cannot be understated.

A commonly identified fear among family business owners is creating family disharmony during succession, and there are strategies to consider which could ease this stress.

One of the first steps in family business succession planning is understanding your goals through inclusive intergenerational discussions – family meetings in a business setting.

These meetings provide a forum

In accounting for all factors of a business, regardless of the situation or complex circumstances, there are succession planning tools that effectively address all parties. Such as: • Using non-business assets to equalize for other children. • Using life insurance as an equalizer for children not involved or sharing in the value of the business.