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# Why get a valuation for transition planning?
- URL: https://blog.sellingyourcanadianbusiness.com/why-get-a-valuation-for-transition-planning/
- Published: 2024-04-09T13:14:38.000Z
- Updated: 2026-08-14T18:55:21.000Z
- Description: Why most business transitions fail, and the three things to plan at once, succession, financial and estate structure, and life after the business, before you exit.
- Author: Karl E. Sigerist, Jr., ICD.D
- Tags: Articles Sell-Side, #review-paused-too-similar, #review-excerpt-missing-2026-08-14

How should you plan the transition of your business, your family and yourself?

After decades building a company that provides for your family, supports your employees and serves loyal customers, the question becomes: what happens next? Will the business thrive after you are gone, and how do you secure your family's future and your own? Baby boomers (born 1946 to 1964) own 42% of small businesses in Canada, and a 2017 BDC survey found 41% of entrepreneurs expect to exit within five years — yet most are not prepared.

Why transitions so often fail

\- 33% of family businesses survive into the second generation  
\- 20% of businesses transact for sale  
\- 75% of owners have no formal transition team  
\- 80% have no written transition and succession plan  
\- 50% have done no planning at all  
Many owners regret exiting within the first year due to a lack of preparation and clarity about their future.

Plan three aspects at the same time

1\. Business succession planning — a clear strategy for passing leadership to the next generation, employees or a strategic buyer  
2\. Financial, tax and estate planning — structure personal and family wealth for long-term security and minimize tax liabilities  
3\. Life-after-business planning — decide what your future looks like post-business, including new purpose and passions

Transition planning is not a solo endeavour: combine legal, tax, accounting, wealth and sell-side advisory expertise, and lean on a personal coach and a peer group of founders who have walked the same path.

Key facts: transition planning

Boomers own 42% of Canadian small businesses; 41% expect to exit within five years (2017 BDC survey)  
Only 33% of family businesses reach the second generation; about 20% transact for sale  
80% of owners have no written succession plan; 50% have done no planning whatsoever  
Plan three things together: business succession, financial/tax/estate, and life after business  
Build a team: legal, tax, accounting, wealth and sell-side advisors, plus a coach and peer group

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Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.