Business Succession
Planning.
Protect your life's work. We design tax-efficient exit strategies to smoothly transition your business to the next generation or prepare it for a lucrative sale.
Securing Your Legacy
You've spent years, perhaps decades, building a successful business. But without a formalized succession plan, the wealth you've created is at risk of being severely eroded by taxes, family disputes, or operational disruption upon your exit or passing.
At Teixeira Accounting, we understand that succession planning is deeply personal. It's not just about numbers; it's about family dynamics, securing your retirement, and ensuring the business you built continues to thrive. We combine empathetic consulting with rigorous tax structuring to ensure your transition—whether to family, management, or a third-party buyer—is smooth, secure, and highly tax-efficient.
Estate Freeze Tax Deferral Estimator
See how an estate freeze locks in your current tax liability and passes future growth to your successors tax-free.
*Estimates are for illustrative purposes. An estate freeze locks your tax liability at the current valuation, deferring the tax on future growth to the next generation.
This tool is for general information only and does not replace professional tax or accounting advice.
The Three Paths of Succession
Every business owner eventually exits their business. The only question is how. We help you navigate the three primary paths of succession:
1. Intergenerational Transfer (Family Succession)
Passing the business to your children requires careful balancing. You need to fund your retirement, treat non-active children fairly, and minimize the tax hit. We utilize Estate Freezes and Family Trusts to lock in your tax liability, pass future growth to the next generation tax-free, and maintain your control over the business until you are ready to step away.
2. Management Buyout (MBO)
Selling to your key employees ensures the business remains in capable hands. However, employees rarely have the capital to buy you out upfront. We structure vendor take-back (VTB) mortgages, earn-outs, and leveraged buyouts to finance the transition while protecting your payout.
3. Third-Party Sale
Selling to a competitor or private equity firm often yields the highest valuation. We prepare your business for sale by cleaning up the balance sheet, conducting a formal valuation, and structuring the transaction (Share Sale vs. Asset Sale) to maximize your after-tax proceeds.
Advanced Tax Strategies for Succession
The Canadian tax code provides significant opportunities for business owners who plan ahead. Failing to utilize these strategies can result in the CRA taking a massive portion of your life's work.
The Lifetime Capital Gains Exemption (LCGE)
Currently over $1.25 million, the LCGE allows you to sell shares of a Qualified Small Business Corporation (QSBC) tax-free. We ensure your corporation meets the strict active asset tests required to claim this massive exemption.
Section 85 Rollovers
We use Section 85 of the Income Tax Act to transfer assets or shares into a holding company or a new corporate structure on a tax-deferred basis, which is the foundational step of most estate freezes.
Family Trusts
By introducing a Family Trust into your corporate structure, we can multiply the LCGE among family members, potentially shielding millions of dollars in capital gains from taxation upon the sale of the business.
Corporate Purification
If your operating company holds too much excess cash or passive investments, it will not qualify for the LCGE. We implement strategies to "purify" the company by moving non-active assets to a holding company.
The Timing is Critical
Effective succession planning cannot happen overnight. It requires foresight and preparation. Ideally, you should begin the succession planning process 3 to 5 years before your anticipated exit.
This runway is necessary because:
- The LCGE requires the corporation to meet holding period and asset tests for 24 months prior to a sale.
- An estate freeze takes time to implement and for the future growth to compound in the hands of the successors.
- Grooming the next generation of leadership or preparing the management team for a buyout is a multi-year process.
Our Succession Planning Process
- Discovery & Goal Setting: We sit down with you to understand your retirement needs, family dynamics, and vision for the company's future.
- Valuation & Assessment: We conduct a formal valuation of the business and assess its current tax structure and LCGE eligibility.
- Strategy Design: We present multiple succession scenarios (Family, MBO, Third-Party) detailing the tax implications and net proceeds of each.
- Implementation: We work alongside your corporate lawyers to execute the reorganization, draft shareholder agreements, and set up trusts.
- Ongoing Advisory: We monitor the plan year-over-year, ensuring the company remains purified and the transition stays on track.
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Don't Leave Your Legacy to Chance.
Start planning your exit today to maximize your wealth and ensure a smooth transition.
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