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Local entrepreneurs must make succession planning a priority: Chamber

A recent report suggests that many small to medium sized business have no formal or informal succession plan in place
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NEWS RELEASE
TIMMINS CHAMBER OF COMMERCE
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The Timmins Chamber of Commerce officially launched its Transition Planning report at their General Member Meeting at the Schumacher Lion’s Club on June 13. The report highlights key findings in a recent survey that asked local family-run enterprises how and when they plan to exit their business and what measures they have in place to ensure both their future financial security and continued success of their business.

“In continuing with identifying local projects of key importance to its members, the Timmins Chamber Municipal Affairs Committee undertook the task of conducting a transition planning survey,” said Val Venneri, Chair of the Municipal Affairs Committee. “The survey asked business owners where they are in the lifecycle of their business, how prepared they are to sell their business and if they are taking the steps necessary to realize the best price for their most valuable asset — their business,” added Venneri.

The report sheds light on the obstacles faced by soon-to-retire business owners, identifies their plans to acquisition a business, who their prospective buyers are, what their exit timelines are, and how they identify potential buyers. In the report, the committee examined whether business owners are taking steps to ensure they get top dollar for their business while securing its continued success.

Some unsettling statistics arose from the report which identified that many local small to medium-sized entrepreneurs (SMEs) have no formal or informal succession plan in place.

“Without an existing transition plan, business owners may miss key steps in the sale of their business. Their financial security and continued success of the business are not only crucial to the future business owner, but to the prosperity of our local economy as well,” said Venneri.

Venneri added, “Transition planning can be daunting for owners of SMEs who lack the appropriate resources. The most cited barrier in transition planning and the eventual sale of their business is finding a buyer for their enterprise. Access to information on valuing their business ranked second in the list of barriers when it comes to transition planning. Without proper information, the process of financing a transition plan and valuing the business can be difficult, leaving many unsure of where to start.”

The recommendations and index of local Chamber member resources will seek to encourage our local business community to find value in planning, highlight how and where local professionals can help, and that government recognizes opportunities to assist with the coming shift.

To access the full report, click on the link below or visit timminschamber.on.ca

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