Dany Boutin, who owns the Métro Plus supermarket in Dolbeau-Mistassini, ensured the family business’s continuity by transferring it to his children, Naomi and Olivier.

The new owners will be investing $5M to renovate the supermarket. This is a perfect example of entrepreneurial succession.

During a Radio-Canada radio interview, Éric Dufour, Regional Vice-President and National Business Transfer Leader at Raymond Chabot Grant Thornton said, “It’s not easy to get an entrepreneur to start thinking about this, it triggers a sense of mourning.”

Additionally, in a Radio-Canada newscast, he explained to broadcaster Mélissa Paradis that “Only 10% of entrepreneurs initiate a business transfer process and they often delay doing so.

However, there appears to be a change, given the labour shortage issue. Entrepreneurs are realizing that, in light of this situation, one solution is to bring key personnel onboard as shareholders. They are talking to family, getting more information and are now developing true succession plans.”

In Quebec, many business owners have not begun to prepare their succession. According to a Business Development Bank of Canada study, 60% of business owners are 50 years old and over and more than 41% expect to leave their business in the next five years. Regions with lower populations are the first to be affected by these statistics and often find it difficult to compete with larger urban centres.

This is why it’s important to prepare your business transfer. In addition to the concept of mourning Éric Dufour mentioned, the apparent complexity of a business transfer and the fear of distressing the business’s employees are other reasons that hinder the transfer.

In a series of articles for subscribers on entrepreneurial succession published in Les Affaires last year, Éric Dufour outlined the steps for a successful transfer: “The process can begin with a transfer of responsibilities. This can be followed by a reflection on the next steps, such as progressively introducing a shareholder structure. In this way, the owner’s involvement is gradually reduced while he or she goes through the essential mourning period.”

Ask our entrepreneurial succession experts for advice.

Quebec SMEs Study Reveals Recruiting and Retaining Talent, Digital Shift and Competitiveness at Heart of Concerns

MONTRÉAL, April 17, 2019 – Raymond Chabot Grant Thornton takes the concerns of local businesses to heart and decided to survey 300 SME business leaders to better understand the issues and challenges they face. The study highlights the following: international markets remain under-exploited, recruiting and retaining talent are a concern and the digital shift is essential for sustainability.

Conquering international markets: a huge potential to be exploited

The study reveals that only 10% of businesses carried out international development in the last two years and one in ten SMEs plans on doing so in the next five years. Raymond Chabot Grant Thornton President and CEO, Emilio B. Imbriglio said: “In a globalization era, the international market presents a huge opportunity. It’s astonishing to note that Quebec SMEs focus mainly on local growth, when in fact they now have global access. Local businesses need to take advantage of international agreements put in place by our governments, such as the Comprehensive Economic and Trade Agreement between Canada and the European Union, the newly signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or the new version of NAFTA. They could be better supported, particularly given the fact that 81% of businesses surveyed that have set up operations abroad consider their transaction to have been successful.” This being said, companies are still pursuing growth opportunities: 62% have completed development activities in the past two years; 37% diversified their products and services, 31% created strategic partnerships and 27% entered a new market.

Digital shift: challenges and opportunities

Although the digital shift seems to be a major challenge for Quebec SMEs, only 43% invested in it last year. “You have to invest continuously to remain competitive in a business environment where digital and other technologies are omnipresent,” added Imbriglio.

More broadly, the survey reveals that 41% of leaders do not have the financial means to develop innovation and 51% are not aware of all the financial resources available. Imbriglio stated: “Companies must be given the means to achieve their ambitions in order to invest in innovation. As our firm has been proposing for many years, an innovation tax credit is essential to help them increase their technology investments and enable them to pursue growth opportunities.”

Labour shortage – a key priority

Although businesses are investing in training and development (83%), the greatest challenge is recruiting staff (48%), followed by retention (23%). According to Marc Audet, President of AURAY Sourcing, a Raymond Chabot Grant Thornton subsidiary: “In the context of the current labour shortage, local businesses will have to find creative solutions to fill this gap. One possible approach is to recruit specialized talent from outside the country, since temporary immigration makes it possible to fill key positions quickly across the province. Perhaps some of the funds generated by the Immigrant Investor Program, that are not subsidized by the government, could be allocated to cover part of the international recruiting costs. These small amendments would help support the growth of Quebec businesses.”

For more information, click here or download this document to view the survey highlights and other issues raised by Quebec SMEs (available in French only).

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The firm‘s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals help accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,600 professionals, including approximately 200 partners, working in over 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton global organization, our global footprint spans across more than 135 countries with over 53,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

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Source:

Francis Letendre
Head, Public Affairs
Raymond Chabot Grant Thornton
Tel. : 514 390-4201
[email protected]

Once again this year, Raymond Chabot Grant Thornton is a partner of the Grands prix de la relève d’affaires of the Regroupement des jeunes chambres de commerce du Québec.

This event celebrates the achievements of its members, young influential, visionary and dynamic entrepreneurs across the province.

Submit your candidacy before May 3, 2019 in one of the 12 categories, particularly for Buyer of the year (Business transfers) sponsored by our firm.

Candidates are evaluated based on their achievements, the relevance of their vision, benefits for their industry, their involvement in the socio-economic development of Quebec, leadership, innovation and contribution to their industry.

Our firm is proud to be collaborating to the success of young, local leaders who, through their professionalism and determination, contribute to the growth of Quebec and success of its organizations.

The Gala will take place on June 14, 2019. See you there!