Real Life Business Succession & Estate Planning Case Study

This real life case study documents the services provided by Stern Cohen to a business owner with succession planning needs. While we realize that every client has unique requirements, this is a good example of how the Stern Cohen team has assisted two generations of clients: the business owner and the business purchaser – with the transition of a business and estate planning services.

Situation:

A successful Toronto business owner wanted to sell his business and retire; but his children were not interested in succession. The company’s sales manager; however, was interested.

Services & Solutions Provided by Stern Cohen LLP:

• Strategic planning including concept, estate freeze, redemption formula, profit sharing plan for new owner, pension for retiring owner.
• Tax compliance, including tax rollover elections.
• Valuation relating to goodwill & real estate.
• More recent advice given on selection of wealth manager and diversification of investments.

Benefits:

• Share system established to benefit both original and new business owner.
• Original business owner is paid full value of business after 5 years including a pension.
• New business owner is now a wealthy person with an established business.

Update:

• New business owner has done a corporate reorganization and established a family trust for the benefit of his children some years ago.
• Most recently, succession planning has started for the new owner.

If you own a business and you’d like our expert assistance with Tax, Succession or Retirement Planning, please contact Stern Cohen LLP.