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Ownership process

The transfer of ownership process generally comprises four steps:

Thinking about a transfer of ownership model

Consulting experts

Choosing from the available solutions

Approval and implementation

  • During the first step, the future buyers think about an ownership transfer model that will best suit them. For example, in the case of a family succession, the succeeding child or children will participate in the discussions regarding the shares they each will receive, including those who will not be working in the business. In the case of a transfer outside the family, the succession should address whether or not the actual owner-manager will retain any shares and if that will be acceptable to the successor.
  • The second step is consulting experts, because the financial, tax, and legal issues involved in the transfer of ownership are important and often complex. The issues are linked to regulatory considerations that must be followed to the letter. It is even recommended that you consult these experts as early as the first step of the process.
  • Over the course of the third step, the diverse solutions are examined in light of the expert advice received, the various possibilities and the constraints of the circumstances. The parties agree on important terms (price, payment terms, balance of sale, other clauses) of the transition. A timeline is agreed upon.
  • The fourth step is approval and implementing the decisions. The signing of the final documents sets the transfer of ownership in motion. The timing of this step can be very short, or it can be many years.