By Al Ruggero
Recently, staff from Emery Village BIA attended the annual OBIAA (Ontario Business
Improvement Area Association) Conference held in Mississauga.
While the conference provides an opportunity to learn from specialists in various fields that
inform our work at the BIA, this year’s event drew my attention to a unique seminar given by
Frank Miele, an instructor in Economic Development who teaches at Toronto Metropolitan
University’s School of Urban and Regional Planning.
His topic was Business Succession Planning, a process often overlooked in the busy lives of
many of our numerous family-run businesses, but important nonetheless, as many founders and
operators of enterprises reach retirement age or seek new direction for their future lives.
In Emery Village, our BIA is fortunate to have so many family-run businesses with a long history
and legacy, built on entrepreneurs with perseverance, hard work, and success. We have also
witnessed retirements, transitions to family members taking over, and sometimes the sale or
closure of the business due to retirement. Unfortunately, COVID-19 has, in many cases,
accelerated decisions on the part of ownership to leave the business earlier than they
forecasted. Frank Miele had some advice to help business owners considering succession.
Here are some takeaways from his presentation:
Setting an end goal with a smooth transition, whether through family succession or sale,
requires careful planning preceded by strategic foresight and a road map of sorts to achieve
desired results while avoiding potential pitfalls.
In cases where family members are involved or potentially interested in taking over, it is
important to assess their competencies and aspirations and any potential for conflicts to arise.
Just handing the keys over to the next generation is not always in everyone’s interest and
sometimes leads to rifts, disappointment, and possible failure, especially if the family member
taking over does not want to run the business and is especially reluctant to disappoint their
father (or mother). Sometimes the transition is fraught with unanticipated stresses to the
operation, business model, or the bottom line. Expect the unexpected when it comes to the
emotional impact of your decision, so plan accordingly and enlist ambassadors who will help sell
your plan to others when the time is right.
Communication becomes key, and not just within the family orbit. Bring in the professionals as
early as required before embarking on your plan.
If you decide to explore the sale of the business, perform a thorough evaluation and set a
realistic price, especially if you plan an early exit. Don’t neglect to prepare detailed
documentation of the business and include the strengths, successes, and the positive aspects.