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Keeping Businesses in the Family Through Financial Planning

Posted: October 31, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking, knowledge bureau, succession planning, Evelyn Jacks, Small Business, ce credits, tax course, tax preparation for proprietorships, income splitting, financial education, CE summits, business development, intergenerational issues, income sprinkling, family businesses, business builders, small business taxation, business succession, lifetime capital gains exemption, family debt management, year-end planning, tax workshops, Advising Family Businesses

Statistics show that only 30 per cent of businesses are transitioned to the next generation. However, we’re entering a time when family businesses are going to play a much more integral role in economic growth and development. Why is this, and what does that mean for advisors and tax professionals?

According to The Harvard Business Review, public companies are losing dominance in an economy that is valuing knowledge and investment quality at an increasing rate versus being numbers-driven alone. Large publicly-traded companies focused strictly on the numbers game will see fierce competition from family businesses that have proven to be more adaptable, as they foster, and focus on retaining, the most innovative minds. Family businesses also tend to look further into the future – not just at the current month, quarterly or annual goals; they strive to sustain their businesses as part of succession planning.

The upcoming generations of business professionals are demonstrating that they have the necessary entrepreneurial mindset that will make them effective business builders, and ideal candidates for taking the reins in their family businesses. Advisors can relate to these trends; they are reflected in the financial services industry as advisory businesses evolve and adapt to address threats and changes. Financial advisors need to focus on enhancing their value propositions due to CRM2 and robo-advisor competition, for example.


If we’re heading into a period where family businesses are expected to thrive, what do these trends mean for advisors and tax professionals who service clients with small family businesses? There’s a new regime when it comes to taxation of private corporations, and understanding the new and emerging rules with regards to restrictions on income-splitting and the lifetime capital gains exemption will be essential. Effective family debt management will also become increasingly important to give family businesses the chance to transition from one generation to the next.

This year’s workshops at Knowledge Bureau’s CE Summits will provide financial advisors and tax professionals with the functional skills that are essential when assisting family business clients today under the theme Year-End Planning for Investors and Small Businesses. These one-day workshops will be in Winnipeg, Calgary, Vancouver and Toronto between November 21 and 28, 2017. Visit the Fall CE Summit registration page for further information.

Additional educational resources: Executive Business Builder Program, Advising Family Businesses course.

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