Skip to content

Chamber surveys 'daunting' topic of succession planning

75% of Timmins business owners eyeing retirement have no succession plan in place, either formal or informal, Chamber report finds
AdobeStock_343143469
Stock image

The Timmins Chamber of Commerce has launched a second report on the local state of business succession planning locally.

Given the growing importance of appropriate succession planning, the report outlines the feedback from 100 locally owned and operated businesses that provides a pulse check on where they are in the lifecycle of their business, how the pandemic may have shifted their plans to sell and securing the ongoing viability of these legacy businesses that support our commercial tax base.

To benchmark where the 2019 survey respondents find themselves now, especially after a global pandemic, the chamber undertook a 2022 Business Succession Planning survey.

In October and November 2022, a new survey was launched and distributed to members known to be family owned or operated, the chamber said in a news release.

Of the 220 family-owned businesses, 100 participated in the survey employing 2,775 people.

"It's important that the chamber continues to understand the barriers in undertaking formal succession planning. Without a plan, local entrepreneurs are at risk of losing out on getting top dollar for their most important aspect — their business," said Dan Ayotte, chamber president, in a news release.

"We want to share this report with our members, stakeholders, and, more importantly, our funders and legislators who have the authority and the capacity to provide clear and concise resources that are adequately funded."

The report is meant to give a general overview of the preparedness of family-run businesses should a transition be on the horizon.

The survey asked business owners what obstacles they faced, their plans to acquire a business, prospective buyers, exit timelines, and how they identified potential buyers. The report examines whether they are taking steps to ensure they get top dollar for their business while securing its continued success.

"We at the chamber know how confidential and daunting business succession planning can be. Having begun this work back in 2019, our lobbying efforts have brought new programming through the Ministry of Labour, Immigration, Training and Skills Development of Ontario on the Ontario Immigrant Nominee Program," said Ayotte.

"However, given the extreme complexity and layers involved in this important planning, the chamber is determined to assist and encourage professionals, local business owners, and government to prioritize succession planning."

As nearly three-quarters of business owners surveyed are poised to retire within the next decade, there is a growing need for succession planning and support for the next generation of entrepreneurs.

The report identifies that 75 per cent of survey participants do not have any formal or informal plan.

Having an appropriate continuity plan in place will help better preserve the value of the business and safeguard employment during the transition phase.

It is also essential to retain and celebrate these businesses in Timmins as they provide various products and services, keeps pricing competitive, and maintain a healthy and vibrant commercial base.

To read the report, click here.