Richter > A change in shareholders is coming. How can I make this easier?

A change in shareholders is coming. How can I make this easier?

Quote of the day
" When valuing a business, you need to be able to look past the numbers. You need to identify the value drivers that will allow the business to compete, to grow and to generate free cash flow well into the future. "
Andrew Michelin CPA, CA, CBV, CFF

Your goal

Changes are happening in my business and it means parting ways with a shareholder, and/or onboarding a new one. How can I make the transition a smooth one for everyone involved, while at the same time ensuring that I’m protecting myself and my business?

How we can help

They say there’s strength in numbers. Partnering can be a great experience, but that’s not to say there won’t be bumps in the road. Perhaps you no longer share the same business vision, you now find yourself at a different stage or with different goals.

Maybe you’re expanding and need to add talent, or one of your children is ready to join the business.  In every scenario, positive or otherwise, making sure you and your business are protected should always be a priority.

Planning for Succession

When everything is running smoothly it’s the ideal time to plan for a day when that may not be the case.

Shareholders’ agreements and/or shareholders’ disputes

It’s a good idea for your shareholders’ agreement to include provisions dealing with the valuation of the business in different contexts that could arise (for example, termination of employment, death, disability or the desire of one shareholder to leave the company). These provisions can help companies avoid costly and disruptive shareholder disputes.

Where shareholder disputes do arise, a professional valuation can help resolve the dispute thereby avoiding litigation or protracted negotiations that could be disruptive to the business. If the dispute cannot be resolved outside the Courts, our valuations will provide objective, independent evidence leading to a fair and equitable decision with respect to value.

Employee share purchase and option plans (ESOPS)

ESOPS – including employee share purchase plans, employee stock option plans, and more creative vehicles, such as phantom stock plans – are becoming increasingly common. These plans present valuation challenges in respect of their administration, the preparation of the financial statements of the issuing company, and tax planning for the beneficiaries (i.e. the employees).

See also: Exiting a Business – Consider All Options

Meet our experts

The people behind the expertise.

Tasso Lagios

Tasso has been guiding high net worth entrepreneurs, business owners and their families to help them set out their goals to ensure long-term business and wealth succession.

Scott Binns

‘Unique’ is a term often used in relation to Scott. Easy going, personable, and knowledgeable, he is a captivating public speaker and a driven professional.

Mitchell Silverstein

For over 25 years, entrepreneurial clients have benefited from Mitch’s ability to bring clarity to business strategy and tax planning challenges while adding value to their corporate entities and families.

Michael Corber

Caring, devoted, decidedly compassionate and with a good sense of humour, Michael is a pleasure to work with! Very involved in his clients affairs, many say his work-ethic is nothing short of awesome.

Earl Forman

If you are looking for a methodical mind, Earl Forman is your man. He is famous for having all of his files lined up in perfect columns. He has, undoubtedly, the neatest desk in our entire office. 

Fred Fuchs

Utterly reliable and supportive, Fred has been managing complex mandates and working with international clients for years.

Stéphanie Lincourt

CPA auditor, CA
With her 15 years of assurance experience, Stephanie has developed particular expertise in the real estate and automobile sectors which she uses to the advantage of her entrepreneurial clients.

Andrew Michelin

This most affable of colleagues, Andrew applies his quick wit, intelligence and smarts to every aspect of his work.

Lorne Richter

Lorne enjoys a close relationship with his clients and is never satisfied with the conventional wisdom approach to tax matters. He develops innovative, custom-made solutions.

Shawn Rozansky

CPA auditor, CA
Shawn is a truly pleasant and persuasive individual - but don't let his affable nature fool you into thinking he’s a pushover - he will challenge you until he is sure that every angle of every problem has been thoroughly considered.

Jordan Gould

With over 25 years of experience, Jordan takes pride in forging close relationships with his clients that are rooted first and foremost in trust, respect and understanding.

Vimal Kotecha

Vimal’s soft-spoken nature belies his tough but fair style. These qualities, combined with his ability to lead by example, helped make Vimal a revered leader in our team.

Mitchell Stein

Known by his clients and colleagues to be meticulous, hardworking, reliable and a deliverer of high-quality results, Mitch prides himself on his ability to identify tailor-made solutions to meet the needs of his entrepreneurial clients.

Michael Szirt

This sought after professional has over 25 years of experience in both professional services and industry. Michael has been an auditor and strategic advisor to companies in technology variety of sectors.

Daniel Tannenbaum

No matter how complex a situation, Daniel always brings a rational and innovative approach, delivered with a balanced and confident demeanor.

Diane Tsonos

With her knowledge, dedication, extraordinary professionalism and people skills, Diane is an integral part of Richter.

Harvey Zalcman

Harvey has over 30 years of experience as a business advisor, providing assurance services to a diverse entrepreneurial clientele primarily in the technology, manufacturing, service and distribution sectors.

Mindy Mayman

B.A., Econ., Fin. PI., FMA, CIM
Mindy assists her clients through the challenges inherent to wealthy families and helps them secure peace of mind for today, and comfort and clarity for the future.

Alana Geller

As a trusted advisor to families, businesses and professionals for nearly 15 years, Alana has a remarkable ability to work successfully in all situations.

Giovanni Di Maria

CPA auditor, CA
Giovanni has acquired over 20 years of expertise advising companies in a vast array of industries.
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