Business Ownership Succession & transition – Calgary

Goodbyes are always hard, but saying goodbye to your business is also complicated. Paladin CMS makes it simpleby helping you see your options and understand the pros and cons.  In the last 26 years, we have helped hundreds of businessesachieve sustainable growth, augment business value,complete smooth transitions, andstrengthen their business legacy after an ownership or management change.

Business Succession Planning

What is Business Succession, Planning &Process?

Business succession is, “Who will take over after you to run the business?”  Although business succession is often thought to be a complete ownership exit, such is not always the case.  Some owners want to continue enjoying financial benefits from ownership but no longer carrythe daily leadership burden.

Business succession planning is first and foremost about not having to run your company.  A full or partial ownership exit may be part of that.Owners have choices in how this may be done.  Paladin helps you understand your choices, assess which option is best for you, and put a plan of action into place.

Our processes will reduce the costs, reduce the risks, lead and coordinate all relevant, multi-disciplinary professionals that may be needed, and ensure the complex aspects of doing succession transitions are brought together to achieve a successful result, with matters that include: company readiness, valuation, restructuring, tax planning, consensus building, family/stakeholder/shareholderconflict resolution, contingency planning, estate planning, financial modelling, executive management development, financing and more.

For effective succession transition planning, Paladin works with you to develop and realize your transition vision.


Planning for Different Types of Ownership Change

Depending upon your personal and business goals and situation, you may have one or more of the following options to plan your business succession.


a) Employee Share Ownership &Planning

“A 2000 Rutgers study found that ESOP companies grow 2.3% to 2.4% faster after setting up their ESOP than would have been expected without it.Companies that combine employee ownership with employee workplace participation programs show even more substantial gains in performance. A 1986 NCEO study found that employee ownership firms that practice participative management grow 8% to 11% per year faster with their ownership plans than they would have without them.”(

Employee Share Ownership Planning (ESOP) is a fruitful, though usuallylong-term way of gradually transferring full or partial ownership to employees. While it oftenincentivizesemployees, employees seldom have the financial resources to invest in the company and may require support.

Planning for an ESOP demands a long-term vision and is best for companies with either steady cash flow or an exciting value growth proposition.  Successful ESOP’s require the right culture and understanding employee attitudes.ESOP’s works best with an exciting vision, value growthand/or cash flow.  Paladin guides your ESOP planning by starting with an employee assessment that helps you see the issues and the future before you incur expensive legal costs.  Once your ESOP is assessed as feasible and we understand the important issues, we’ll work with you to put it into place.


b) Family Business Ownership Transition Planning

Family-owned businesses generate around 60% of Canada’s GDP and employ 6 million people. It’s a shame only 30% of family businesses survive after transitioning to a second generation.The figure drops to 12% when the business is passed on to the third generation, and all but 3% of family businesses close down after succession to the fourth generation.

Transferring ownership of a business you’ve worked tirelessly to build is a daunting decision. That’s why many owners delay it until the last moment. The post-transition health and performance of your business depends on selecting your successors early and giving them time and support to develop the vision and skills they will need to lead the business.

Paladin works closely with you to understand your family business and figure out your options. We help you earmark your worthy successors and identify the training and development gaps that need to be filled. We assess your business value, ascertain rights and liabilities, help you with the legal documentation, and make arrangements to keep your business operation running smoothly during the transition.


c) Management Buyouts

The business may be sold to a partner(s) or senior management team who know the business and would like to see it prosper. Management buyouts(or “MBO’s”)require intricate planning, documentation, knowledge, and foresight in order to be successful. Identifying a team leader, establishing governance, knowing the right sources of financing, understanding the legal implications, and predicting the conflicts and contingencies that are likely to arise are some of the factors without which MBO will not deliver the desired outcome.

Paladin assists owners and management teams plan and implement immaculate MBO transitions that lead to long-term stability and growth. With a rare 26 years of experience, we can help you with the financial, legal, cultural, and strategic aspects of MBO ownership transition.


Management & Governance for Succession

When the successors have been selected, their training and development needs have to be identified, training programs accordingly planned, and a sound governance protocol must be put in place. The roles and relationships, potential points of conflict, legal and financial obligations of the parties, the shape of the business during and after the transition, contingencies and roadblocks—everything has to be brainstormed and visualized until an accurate picture of the future emerges.


Hiring a Consultant& Professionals

The treacherous waters of succession and transition planning are best navigated with the help of consultants that offer objectivity and the means to success. When the decision to succeed present senior leadership and transfer ownership has been made, your Transition/succession consultant is the one who will establish the game plan, support execution, keep an eye on the ball, and coordinate the assigned professional team to get it done right.It is crucial to evaluate your potential consultants and perform your due diligence because hiring the wrong consultants can leave you with long-term issues that are hard or impossible to fix and can be detrimental toyour business.

Paladin focuses on the role of a planner, advisor, and integrator, and would recommend and involve trusted professionals in all of the abovementioned areas. Top-end professionals arenecessary for flawless planning. You don’t need to worry about a thing as we’ll ensure the best.


Why Work with Paladin CMS

An extensive and diverse succession planning experience spanning all types of businesses and all succession transition options; an eagerness to work closely with you to understand your business and make it thrive; and a transparent and affordable fee structure are the top three reasons to work with us. More than 26 years in the industry have allowed us to streamline our working procedures, which make sure your business transition goes like clockwork.


What We Can Do for Your Business

After you’ve explained your intentions and requirements during the initial free consultation, we get to work acquiring a deeper understanding of your business and the situation. We’ll ensure you understand your options, set the goals and objectives, sequence the right steps,build the plan,ensure key stakeholders are onboard, establish accountability, timelines, and resources.

As required, the work may include a business valuation;review and coordinate all documentation; identify tax, estate, and financial implications; establish procedures for conflict resolution;give you clear tasks and timelines for any additional transition steps along with the milestones to monitor progress. We implement the plan and continuously review and adjust it to the emerging circumstances until the transition is complete.