As entrepreneurs get closer to retirement, many of them would like to hand over the reins of their family business to their children. However, transferring the company to your children could be more complicated than selling it to strangers.
In an interview in L’Étoile du Lac, Éric Dufour, Partner and Vice-President, Management Consulting, tells us why:
“At the provincial level, the situation has been rectified, but this is not the case at the federal level. There is no tax exemption of up to $900,000 that applies when selling to family members. This complicates the transaction. You have to be prepared to make monetary sacrifices, because a company’s value, that’s the owner’s pension fund. It’s an obstacle and it’s time for the government to change this outdated 1980s tax system.”
Dufour also pointed out that the key to a business transfer lies in planning: “You have to undertake a plan that spans four years. An inter-generational overlap occurs, which means there is an adaptation period. This makes it all the more important to be supported in the process.”
The issue of intergenerational business transfers is still a concern for our Firm. In Quebec, a number of constraints still exist while at the federal level, the entire issue persists. We invite you to view the Firm’s recommendations, including recommendation 7 in the prebudget recommendations presented to the Quebec government at the time of the last Quebec budget.
Contact one of our entrepreneurial succession experts for support during the important process.
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Catallaxy, Raymond Chabot Grant Thornton’s subsidiary takes its blockchain and cryptocurrency expertise worldwide with the signing of a partnership agreement with Grant Thornton Switzerland/Liechtenstein.
Under the agreement, Catallaxy will handle all of their projects involving cryptocurrency auditing over the next two years. Additionally, the Swiss/Liechtenstein firm wants to use Abacus, the cryptocurrency audit software solution developed by Catallaxy. This unique association provides Grant Thornton international visibility and widespread potential.
Emilio B. Imbriglio, President and CEO of Raymond Chabot Grant Thornton said: “When we created Catallaxy in 2017, we wanted to make Montréal a global blockchain technology expertise centre in the Grant Thornton organization. The agreement signed with GT Switzerland/Liechtenstein marks the achievement of this objective.”
GT Switzerland/Liechtenstein’s clientele includes numerous cryptocurrency entities, representing some 30 projects for Catallaxy in the coming years. This first agreement should pave the way for more partnerships with other member firms of Grant Thornton around the world.
Michel Besner, Managing Director of Catallaxy stated: “Switzerland/Liechtenstein’s regulatory framework has prompted many cryptocurrency foundations to set up in that country, creating a strategic centre in the world of cryptocurrencies. We are pleased to provide our expertise, support and technological tools to help GT Switzerland/Liechtenstein become a leader in their country.”
Marco Valenti, from GT Switzerland/Liechtenstein added: “As the cryptocurrency sector is expanding in Switzerland/Liechtenstein, it’s a plus to be able to count on the benefits of the Grant Thornton organization and call on our best specialists, such as Catallaxy. Thanks to our collaboration, we will be in a position to better serve our clients’ interests and position ourselves as market leaders. The agreement was prompted by our desire to become more competitive in this growing area.”
Cryptocurrency audits
The surge in cryptocurrencies has led an increasing number of organizations to own these types of currencies. Because of recent government positions on cryptocurrency legislation, it is imperative for auditors to obtain an understanding of this new asset class in order to implement sufficient and appropriate audit procedures. This translates into a range of issues in practice. The lack of regulations, immature technologies, security considerations and the quantity of data are major challenges for auditors and businesses alike.
The combination of an exclusive technology and a real-time audit software solution developed by Catallaxy gives Grant Thornton a competitive edge with a unique service offering specifically designed for digital asset audits that meet the auditor’s needs.
About Catallaxy
A Raymond Chabot Grant Thornton subsidiary, Catallaxy develops products in the fields of finance, accounting, digital economy and digitization of physical assets (consumer goods, food assets, real estate, manufacturing and legal documents).
Catallaxy has a group of experts in innovative technologies, such as cryptographic data analysis, blockchain, tokenization and artificial intelligence.
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With more than twenty-five years of professional experience in North America and Europe, Vincent Cartier joins Raymond Chabot Grant Thornton’s management consulting team.
Vincent Cartier’s arrival in our Management Consulting team will solidify the firm’s risk management and internal audit expertise thanks to the 25 years of professional experience in North America and Europe.
Vincent is motivated by the practical assistance he provides his clients. He supports organizations in various sectors in setting business risk priorities and developing efficient and effective risk management methods. He believes “that there is nothing more rewarding than hearing ‘Thank you!’ from a satisfied client.”
A stronger service offering
In his new role, Vincent will be working with Nicolas Plante, Partner and Leader of the Management Consulting Group and his team.
“We are very pleased to welcome Vincent to our team. His wide-ranging experience with large corporations and extensive business network will help further expand our group’s significant service offering,” says Nicolas Plante.
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Raymond Chabot Grant Thornton is proud to join forces with CCH Tagetik to offer a new automated performance management solution across Canada.
This tool supports the finance department’s consolidation, analysis and reporting processes as well as the finance and operations departments’ planning and budgeting process.
Thanks to the new partnership, one of the only ones between CCH Tagetik and a Canadian firm, the firm can offer its clients the opportunity to lower the Total Cost of Ownership (TCO). This solution streamlines and modernizes budgeting and planning processes, shortens close and consolidation cycles, accelerates the financial reporting process and easily generates in-depth analyses. It has an easy to integrate open, unified and multiplatform architecture.
David Mayrand, Partner, Management Consulting, stated: “In practical terms, this tool serves to simplify up to 70% of the planning cycle, accelerates the closing processes by 50% and reduces reporting time by 40%. These are substantial benefits that we are pleased to offer our clients.”
The new association between Raymond Chabot Grant Thornton and CCH Tagetik expands the EPM solutions offering, which also includes IBM Planning Analytics and SAP BPC.
Our certified experts can help you find the best technology solution for your business. Contact us today to find out how to optimize your financial performance.
To learn more about the CCH Tagetik performance management solution, go to www.tagetik.com.