Lesson #2

Add this wisdom to your financial advisory value offering

Here are some facts you need to know if you wish to be successful and effective in the private business owner marketplace:

  • There are approximately 450,000 private businesses in Canada with a notional or book value of over $1.3 trillion.
  • The vast majority is owned by baby boomers who are headed for the exits over the next five to 10 years.
  • Only one of every four will sell.
  • Of those that do sell, only 25% will get anywhere near what they think their business is worth.
  • And, as much as 65% of the money those lucky few receive will be lost to taxation.

It’s not a pretty picture.

But, an advisor armed with this information can do something about it.

Welcome to the second of 18 educational installments from the PROCORP Special Advisor Training Program.

Special Advisor Training Program Installment #2

In this installment we offer some proven knowledge about how to help a business owner prepare their businesses for a more lucrative sale.

Let’s begin by assuming you now know what you are dealing with in terms of the owner’s real agenda. (Which is a significant assumption because getting to the truth of what they really want is often the greatest challenge you face when trying to truly help a business owner. Future installments will study owner “attitudinal” issues in detail).

So then, it is now time to focus on the most important issue: getting the investment capital or business value into the hands of the owner. This is a complex problem and you must consider the following points:

  • Is there currently any real cash in the company?
  • Are there any potential buyers?
  • Does the business have any value and if so what is it?
  • Who can provide financing?
  • What is the owner’s time frame?
  • What are the current tax liabilities in the company?
  • What are the tax consequences for the purchaser?
  • What are the tax consequences for the seller?

To learn more about these issues and what you can do about them, login or register to download:

The Liquidity Crisis in Private Business: 
Who’s affected and what you can do about It

 

Why consider joining the PROCORP Special Advisor Training Program?

Consider these facts about the private business owner marketplace:
  • There are approximately 450,000 private businesses in Canada with a notional or book value of over $1.3 trillion.
  • The vast majority is owned by baby boomers who are headed for the exits over the next five to 10 years.
  • Only one of every four will sell.
  • Of those that do sell, only 25% will get anywhere near what they think their business is worth.
  • And, as much as 65% of the money those lucky few receive will be lost to taxation.

While this is not a pretty picture… it is an unprecedented opportunity for any advisor willing to acquire the knowledge and work with a highly specialized team.

Register or login here to access all of the valuable content that PROCORP has to offer.

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