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For successfully transferring a business, it is essential to reconcile the needs and visions of each party involved. Alexandre Bergevin, President and CEO of Medical Design, shares his experience.
Based in Montréal, Medical Design was founded in 1983 and quickly became a leader in the development of custom medical equipment. Alexandre later succeeded his father. But it was in 2012 that he began to consider taking over the business.
Naturally, it was important for the seller, Gilles Bergevin, to leave the company in good standing, while the buyer wished to make it his career project and establish himself as a leader. An outsider’s perspective enabled the transition to go smoothly, and ensured that both parties’ needs were taken into account.
An outsider’s perspective that made the transition easier
Partner at Raymond Chabot Grant Thornton and national leader in business transfers, Éric Dufour and his team guided the transition every step of the way. They focused on stakeholders’ common goals and the best way for carrying out the various measures to be put in place.
“One of the first things I noticed about the Raymond Chabot Grant Thornton team was their professionalism, but also the human touch they brought to the project,” said Alexandre.
The team drew up an overall picture of the situation, covering all facets: management issues, human resource management, the buyer’s potential, as well as the technical, financial and fiscal aspects.
They took the time to build a relationship of trust in order to initiate a thought process with the seller and the buyer, and analyzed every angle right up to the final diagnosis. Together with both parties, they identified all blind spots and determined how to manage the risks.
“We had our fair share of challenges to tackle,” said Alexandre. He points out that both the human and financial aspects had to be taken into account. Working with a multidisciplinary external team enhanced the efficiency of the process.
Entrepreneurs considering handing over the reins of their business should take action as soon as possible. One must be prepared for a business transfer. What’s more, the current context is favourable, thanks to the tax rules that now facilitate family transfers.