Montreal, August 17, 2022 — In the wake of the labour shortage, the retirement of baby-boomers and the many business owners this generation comprises will trigger a wave of business transfers and an intergenerational handover of assets on a scale never before seen.

In anticipation of this profound shift, the Chambre de la sécurité financière (CSF) recently published a series of articles on business succession in its magazine CSF. This comprehensive report will give financial services advisors greater insight into the issues that arise when transferring a business, which will require them to have an in‑depth understanding of their clients’ needs. Other topics covered include the increasingly prominent role of women entrepreneurs, the importance of planning several years in advance and questions around taxation.

“In the decade ahead, the role of CSF members will be critical for the viability of the entrepreneurial fabric of Quebec, as a successful business transfer depends on proper planning and also presents financial, taxation and human challenges that need to be addressed,” stated Marie Elaine Farley, President and Chief Executive Officer of the CSF, adding that “business owners who are considering a transfer should take an upstream approach to this complex process. Advisors supervised by the CSF, who have an ethical obligation to act in their clients’ best interests, are in an excellent position to advise them and orchestrate the entire process with the required professionals.”

A pivotal time for SMEs in Quebec

• Since 2016 there have been 52,000 successful business transfers in Quebec, but double that number failed due to a lack of planning or the absence of professional advice.
• According to Statistics Canada, more than 15,000 businesses changed hands in Quebec in 2021.
• Nearly one quarter of Quebec business owners plan to proceed with a transfer in the next five years, and this trend is expected to pick up speed over the next decade.
• While 80% of SMEs in Quebec are family businesses, many owner‑managers underestimate the complexity of a transfer, which can lead to failure, leave SMEs in a vulnerable position and spark family conflicts.
• In addition, 43% of family businesses have no succession plan, and 30% have only an informal plan.

IQPF 2022 Congress: an opportunity to take it to the next level

Incidentally, the theme for the 2022 Congress of the Institut québécois de planification financière, taking place in Montreal and online on September 22 and 23, is “À chacun sa part – Planifier le transfert de son entreprise” (in French only). It’s a great opportunity to get ready for what’s ahead and learn more about the financial planner’s role!

"The fact that one in four business owners is thinking of selling his or her business is a societal issue in Quebec today and it raises a lot of questions and financial planning needs," says IQPF President & CEO Chantal Lamoureux, LL.B., CPHR. Addressing the Chamber's members, she adds: "Even if you don't have entrepreneurs among your clients, the IQPF congress is also for you. Because your clients are all concerned about the transfer of their assets. They want to know how to make sure that transfer is done fairly among all their heirs."

About the Chambre de la sécurité financière

The Chambre de la sécurité financière's mission is to protect the public by regulating all aspects regarding mandatory continuing education, ethics and discipline of its 32,000 members, who include financial security advisors, group insurance and group annuity plans advisors, financial planners, mutual fund dealer representative and scholarship plan dealer representatives. www.chambresf.com

About the Institut québécois de la planification financière

For more than 30 years, the Institut québécois de planification financière (IQPF) has been a leader of financial planning in Quebec. It has established itself on the North American scene by setting the highest standards. The IQPF has made the financial planner the expert sought after by all consumers who want to preserve and increase their wealth. The IQPF's mission is to protect the personal finances of the public by training financial planners and establishing standards of professional practice. The IQPF has nearly 5,000 affiliates. For more information, visit iqpf.org.

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Media inquiries:
Geneviève Fontaine
gfontaine@chambresf.com
(514) 434‑2347