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Dany Boutin, who owns the Métro Plus supermarket in Dolbeau-Mistassini, ensured the family business’s continuity by transferring it to his children, Naomi and Olivier.
The new owners will be investing $5M to renovate the supermarket. This is a perfect example of entrepreneurial succession.
During a Radio-Canada radio interview, Éric Dufour, Regional Vice-President and National Business Transfer Leader at Raymond Chabot Grant Thornton said, “It’s not easy to get an entrepreneur to start thinking about this, it triggers a sense of mourning.”
Additionally, in a Radio-Canada newscast, he explained to broadcaster Mélissa Paradis that “Only 10% of entrepreneurs initiate a business transfer process and they often delay doing so.
However, there appears to be a change, given the labour shortage issue. Entrepreneurs are realizing that, in light of this situation, one solution is to bring key personnel onboard as shareholders. They are talking to family, getting more information and are now developing true succession plans.”
In Quebec, many business owners have not begun to prepare their succession. According to a Business Development Bank of Canada study, 60% of business owners are 50 years old and over and more than 41% expect to leave their business in the next five years. Regions with lower populations are the first to be affected by these statistics and often find it difficult to compete with larger urban centres.
This is why it’s important to prepare your business transfer. In addition to the concept of mourning Éric Dufour mentioned, the apparent complexity of a business transfer and the fear of distressing the business’s employees are other reasons that hinder the transfer.
In a series of articles for subscribers on entrepreneurial succession published in Les Affaires last year, Éric Dufour outlined the steps for a successful transfer: “The process can begin with a transfer of responsibilities. This can be followed by a reflection on the next steps, such as progressively introducing a shareholder structure. In this way, the owner’s involvement is gradually reduced while he or she goes through the essential mourning period.”