A recent survey from Angus Reid presents an interesting perspective on how B.C. business may evolve and change in the very near future, due to decisions that owners need to make.
The survey comes from Angus Reid and National Bank and suggests that the changes could have a significant impact on B.C.’s business ecosystem.
According to the survey, the primary reality that could shake up business is the fact that nearly 47 per cent of Western Canada mid-market business owners expect to retire within the next decade. In B.C. specifically, that jumps to 53 per cent.
Here in B.C., the findings reveal that despite the fact that these business owners plan to sell or transfer their business, just under half haven’t engaged with advisors to support the process.
The survey also found that succession planning is about more than financial returns. Among B.C. owners planning a sale or transfer, ensuring business continuity (45 per cent) ranked ahead of maximizing financial return (39 per cent).
The findings put B.C. in a very different category than the rest of Canada when it comes to intentions of closing or winding down their businesses. Thirty-five per cent of business owners said they’re likely to wind down or close down, compared to 16 per cent nationally.
“The results show us that Western Canada is entering a period of significant business transition,” said Paul Gill, senior vice president and co-head of commercial banking and private banking, Western Canada at National Bank.
“Many business owners are approaching retirement at the same time and will need to make decisions about the future ownership of their businesses –businesses that employ people, serve communities and drive the regional economy. The decisions these owners make over the next decade will likely have an impact well beyond their own retirement.”
For business owners who are considering a sale or transfer, the survey says that spending more time with family (37 per cent) “is the leading personal priority,” followed by the ability to “fully retire” (36 per cent). Thirty-one per cent said the priority would be to pursue a new business venture.
“The earlier owners begin the planning process, the more options they may have to protect the value of their business, support employees and achieve their personal goals,” Gill added.