Emilio B. Imbriglio
President and Chief Executive Officer | FCPA, FCA, MBA, CFE, ICD.D.

Business leaders have shared their entrepreneurial vision with our President and CEO, Emilio B. Imbriglio, in exclusive interviews.

Always relevant, their comments deserve our attention. This is the second in a series of three interviews.

In these videos, Marc Dutil, President and CEO of Canam Group Inc. discusses several topics, including micromanagement, leadership style, strategy and investor relations management.

Everything you do has to be out of respect.

Our firm is proud to present these high-level meetings filmed in an unusual and spectacular location: outside, on the roof of Place Ville Marie.

To find out more, view these short videos.

 

Marc Dutil on micromanagement

 

On leadership style

 

On strategy

 

On investor relations management

27 Nov 2018  |  Written by :

Mr. Imbriglio is partner and the President & CEO of Raymond Chabot Grant Thornton. He is in charge...

See the profile

Next article

Our webinar on recent developments in Accounting Standards for Private Enterprises (ASPE) that took place on November 21st is now online.

The session will provide an overview of the following, among others:

  • New or revised accounting standards, including amendments to Section 1591, Subsidiaries, and Section 3051, Investments, relating to the cost method;
  • The projects and activities of the Canadian Accounting Standards Board, including the one on redeemable shares issued in a tax planning arrangement;
  • Some practical issues regarding cryptocurrencies.

Each participant will be able to take a test at the end of the session. A training certificate, which applies to training hours recognized by the Quebec CPA Order (OCPAQ), will be given to each participant who passes the test.

Please note that this information session is in French.

Access the session here.

Next article

Christian Menier
Partner | CPA, CA, M. Fisc. | Tax

We regularly hear about RRSPs, TFSAs and RESPs. No, it’s not a series of Scrabble letters; these are three very different savings mechanisms.

How can you make sense of this all? How can you choose what’s right for you? To answer these questions, let’s see what’s behind these letters and look at the main characteristics of each.

RRSP

The most popular, the Registered Retirement Savings Plan (RRSP) is a mechanism put in place by the tax authorities to promote retirement savings. The contributions permitted in this plan are limited by precise tax parameters based on earnings and contributions made to other retirement plans. The RRSP’s primary characteristics are:

  • Contributions are deductible from income;
  • Income generated in an RRSP is not taxable;
  • Amounts withdrawn from an RRSP will be taxed.

TFSA

More recent than the RRSP, the Tax-Free Savings Account (TFSA) has its own set of rules. Contributions are limited to a yearly cumulative ceiling, which is currently $5,500. If you have unused contribution room from previous years (since 2009), it will automatically be carried forward. As such, if you contribute to a TFSA for the first time in 2018, you can contribute up to $57,500 in the plan. The TFSA’s other characteristics are:

  • Non-deductible contributions;
  • Income generated in a TFSA is not taxable;
  • Amounts withdrawn from a TFSA are not taxed.

RESP

Last but not least, the Registered Education Savings Plan (RESP) allows individuals to make contributions to a plan for with the purpose of funding a child’s post-secondary studies. Annual contributions are not limited, but the cumulative ceiling is $50,000. The RESP’s other characteristics include:

  • Non-deductible contributions;
  • Income generated in an RESP is not taxed;
  • Contributions can be reimbursed to the payer with no tax impact;
  • Earnings, paid in the form of an education assistance payment, are taxable for the plan’s beneficiary (i.e. the child studying).

Contrary to an RRSP and a TFSA, an RESP gives entitlement to government incentives. In fact, the federal and provincial governments provide a subsidy for each child beneficiary of an RESP, from birth until the year they turn 17. The maximum annual financial aid is $750 per beneficiary, that is, 30% of the first $2,500 in contributions paid yearly. Low- and medium-income families can obtain additional assistance. Each child is entitled to a maximum cumulative of $7,200 for federal purposes and $3,600 for Quebec.

Advice

To get the maximum savings possible, use each of these financial mechanisms wisely based on your saving ability. Since they have their own advantages, you need to examine their objectives properly in order to prioritize the best plan for you.

Don’t hesitate to contact your tax specialist or financial advisor to make the best investment decisions possible.

22 Nov 2018  |  Written by :

Christian Menier is a partner at Raymond Chabot Grant Thornton He is your expert in taxation for...

See the profile

Next article

Walid Safi
Partner | Financial advisory

Financing offers for mergers and acquisitions are highly favourable right now. What steps should you take for a successful process?

There is a lot of capital available in Quebec, so much so that you can negotiate advantageous conditions if you want to acquire another business.

The search for financing must be based on a solid process in order to be carried our smoothly, in the most profitable and least risky way for you. Here are the main steps of the process and our tips for success.

1. Establishing an accurate portrait of your business

Above all, it’s important to have the most complete and accurate view of your business. Make sure you know the sources of its profitability, accurately measure the value of its assets, etc.

2. Assessing the purchase price

The current abundance of capital tends to increase the value of transactions. Various valuation methods can be used to determine the value of a transaction. The best option is to call on a business valuation expert to determine a fair price.

3. Estimating your financial needs and borrowing capacity

You must be prudent and realistic. All lenders evaluate a financing application based on its underlying risk and want to ensure that their clients will be able to meet their commitments in case of unforeseen events.

Therefore, you need to establish different scenarios for your business (for both growth and declines). Our experts will help you develop and validate these scenarios by applying resistance tests to guarantee that you can stay the course in difficult situations.

Make sure you have the necessary funds not only to finance the transaction, but also to support current operations (working capital, capital assets, internal growth projects,
etc.).

Note that there’s an adjustment period after a transaction, during which the business’s performance may not be as strong as planned. So you will need to inject enough oxygen into your capital structure to get through this period.

You also need to think long-term to ensure that you will be able to refinance your debt once it comes to maturity. For example, ask yourself what would happen if your business was not performing well when the time comes to refinance.

Don’t forget that there are two main types of traditional financing for which lenders use different ratios in order to evaluate your borrowing capacity:

  • Asset-backed financing, especially used for businesses that have significant inventories and assets, such as distributors. Lenders will take into consideration the value of the assets and the fixed charge coverage ratio (to measure the business’s loan repayment ability once it has assumed its current expenses).
  • Cash flow financing, especially used for businesses whose assets are not very high. Usually, two ratios are considered by financial institutions: debt to EBITDA (earnings before interest, tax, depreciation and amortization) and the fixed charges coverage.

This said, lenders may use several other ratios.

4. Soliciting financing

The purchase price, your borrowing capacity and any balance of sale (the portion of the value of the transaction that you will ultimately reimburse to the seller) will determine whether you also need to obtain equity financing from co-investors.

Generally, financial institutions will ask that equity financing represent 35% to 55% of the transaction’s value, entirely injected by yourself or by joining forces with a co-investor.

It is essential to develop a capital structure with an optimal combination of both types of financing that provides you with sufficient leverage for today and in the coming years. However, make sure this leverage is not excessive.

Lastly, we recommend soliciting several lenders and financial partners at the same time to accelerate the process and, the competition will help you negotiate the most advantageous terms and conditions.

Are you thinking about buying a business? Contact our multidisciplinary team. Our experts will guide you every step of the way.


 

Do you know business people who dare to think and do things differently? You have until December 20, 2018 to nominate a candidate.

22 Nov 2018  |  Written by :

Walid Safi has over a dozen years of experience in mergers and acquisitions. Contact him !

See the profile