Business Succession Planning
Business owners wishing to sell their companies can register an ESOP plan which will provide tax credits for employees who purchase shares directly from the business owner. The employee investor receives a 20% provincial income tax credit on the employee's investment.
Businesses must be prepared for the dramatic change in leadership they will face as owners and managers retire.
Employee ownership is a tool that can help businesses meet these challenges. It’s a proven strategy for helping owners sell their businesses.
A business succession ESOP plan should have a reasonable expectation that within 5 to 10 years of registering the plan, eligible employees will acquire at least 10% of the voting shares of the company and that at least 30% of the employees of the company who are eligible under the plan, will acquire shares through the plan.