06 May 2019
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

What options are available for a self-employed worker in debt? Bankruptcy is sometimes the only solution, but another option may be considered.

In a La Presse interview, Éric Lebel, Partner and Licensed Insolvency Trustee at Raymond Chabot Grant Thornton, explains why bankruptcy may be a solution for planning retirement.

He looks at the example of a self-employed worker struggling with a high debt load and proposes various debt repayment scenarios. Lebel mentions that, in addition to bankruptcy, another lesser-known option is available: a consumer proposal, a reduced repayment agreement with creditors.

Read Lebel’s advice (in French) for avoiding debt issues as retirement draws near.

Are you have experiencing financial difficulties? Call on an expert for a confidential consultation at no charge.

06 May 2019  |  Written by :

Éric Lebel is a partner at Raymond Chabot Grant Thornton. He is your expert in recovery and...

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03 May 2019
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

A successful business transfer must be well planned and thought out. It’s a process that should be started several years before the final step.

In an interview with Informe Affaires (in French), Éric Dufour, Vice-President, Partner and Entrepreneurial Succession Leader urges Quebec entrepreneurs to act now and plan their business succession.

Dufour explains: “About 90% of entrepreneurs in a position to transfer their business don’t have a success plan. A succession plan is a preventive measure, it means setting your thoughts down on paper, for both personal and business matters. Moreover, improvising is another trap to avoid.”

Don’t hesitate to ask our entrepreneurial succession and business transfer experts for advice on preparing an appropriate succession plan.

06 May 2019  |  Written by :

Éric Lebel is a partner at Raymond Chabot Grant Thornton. He is your expert in recovery and...

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29 Apr 2019
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

Entrepreneurial Succession Study

A concern with a human scale

QUÉBEC CITY, April 29, 2019 – The Chambre de commerce et d’industrie de Québec (CCIQ), Raymond Chabot Grant Thornton and Desjardins shared the revealing results of an economic study documenting the impacts of the delay in entrepreneurial succession in the Greater Québec City area. An overview of the issue was developed using data from an e-survey conducted by Léger with CCIQ and Desjardins members, and Raymond Chabot Grant Thornton clients as well as some of their partners, from January 25 to February 25, 2019. The response rate was 11% of a sampling of 1,827 entrepreneurs.

Julie Bédard, CCIQ President and CEO, said: “While there have been successful entrepreneurial transfers in the Greater Québec City area, we must acknowledge that there is a delay in the implementation of entrepreneurial succession plans. The study reveals that investments, hindered by this delay, represent $97M, while the total economic impact is close to $200M. We want to better support entrepreneurs in this process; this is why this study presents interesting solution possibilities. The CCIQ intends to provide strong leadership by gathering all those involved around the same table to ensure the sustainability of businesses in the region.”

Vice-President and National Entrepreneurial Succession Leader at Raymond Chabot Grant Thornton Éric Dufour added: “To ensure the sustainability of our businesses, there must be investments, even when a transfer is on the horizon. More than half of business leaders (54%) confirm that investments are affected in a succession situation, which undermines the development of our businesses. Entrepreneurs need to be able to continue investing. To do this, they need to know about all of the programs available to them to carry out a successful succession plan, in addition to benefitting from tax fairness at the time of the transaction, which isn’t always the case, federally speaking, when selling to a family member, for example. The human aspect is also very important in succession planning, even more so than financial and tax planning according to 76% of the leaders surveyed. This is also why, for several years now, our team has been using an integrated succession approach that takes into account all human, psychological, legal, financial and tax aspects.”

Richard Quinn, Senior Manager, Business Transfers, at Desjardins, said: “The results of this study are worrisome considering that 93% of respondents between the age of 45 and 55 do not know about any of the available financial programs. However, financing is a crucial step for a successful transfer process. Not only does it enable transferors to secure their financial needs in relation to their retirement plan, but it also enables the succession to fulfil its dream of acquiring a business and making it grow. Desjardins plans to attack this problem head on.”

Overview of issue and analysis of impacts

Among respondents, 76% are worried about other aspects in addition to the financial and fiscal ones:

  • When asked about the reasons inciting them to consider entrepreneurial succession, 74% of respondents aged 55 years and up and 50% of those aged 35 to 55 expressed a desire to slow down. Therefore, more leaders want a better quality of life;
  • The labour shortage and management challenges affecting the younger generations are also major issues slowing the pace.

The study also showed there is a significant slowdown in investments in our region:

  • 54% of respondents confirm avoiding the investments needed for transactions or the growth of the business in the absence of complete answers related to the succession plan.

Relevant solution options

Given the economic impact resulting from the delay in implementing entrepreneurial succession plans, here are pertinent recommendations to consider:

  • Restructure the ecosystem for guiding entrepreneurs by creating an action table with the various stakeholders involved in this issue;
  • Improve the communication of information to enable entrepreneurs to learn about existing financial support programs;
  • Promote a progressive approach by maximizing good intergenerational coexistence;
  • Continue the fight for tax fairness with respect to transactions between family members;
  • Set up a training program and plan to prepare entrepreneurial buyer-managers.

The report is available by clicking here.

About the Chambre de commerce et d’industrie de Québec

The Chambre de commerce et d’industrie de Québec (CCIQ), which has more than 4,700 members, raises awareness, mobilizes and acts to promote the economic development of its members and community. The largest group of business people in eastern Quebec, it is the privileged voice of the business community in Québec City and the main voice for the regional economic community.

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.

About Desjardins Group

Desjardins Group is the leading cooperative financial group in Canada and the fifth largest in the world, with assets of $295.5 billion. It has been rated one of Canada’s top 100 employers by Mediacorp Canada. To meet the diverse needs of its members and clients, both individuals and businesses, its full range of products and services is offered through its extensive network of points of service, virtual platforms and subsidiaries across Canada. As one of the strongest banking institutions in the world according to The Banker magazine, Desjardins has capital ratios and credit ratings that are among the best in the industry.

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Source:
Étienne Cummings
Manager, Communications and Public Relations
Chambre de commerce et d’industrie de Québec
418-906-1748
[email protected]

Francis Letendre
Chef, Affaires publiques
Raymond Chabot Grant Thornton
514 390-4201
[email protected]

06 May 2019  |  Written by :

Éric Lebel is a partner at Raymond Chabot Grant Thornton. He is your expert in recovery and...

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26 Apr 2019
Éric Lebel
Partner | CPA, CA, CIRP, LIT | Recovery and reorganization

Rémi Fortin, Assurance Partner and Head of the Beauce offices, was inducted into the Ordre du mérite georgien at the April 25, 2019 gala.

On behalf of the Partners and all Raymond Chabot Grant Thornton employees, we’d like to extend our most sincere congratulations to him!

His candidacy, presented by the Moisson Beauce organization, was selected along with four other exceptional citizens of the City of Saint-Georges.

The Ordre du mérite georgien is the City’s highest tribute and honours men and women who stand out and contribute more than any other to the development of their community, its outreach and its quality of life.

Rémi Fortin has made a point of staying involved with the Beauce business community and its economic, sports and community associations through his participation in various local and regional organizations for almost 25 years.

In order to develop a clear understanding of the community’s needs, Rémi Fortin has been a member of several local and regional committees and boards of directors, where his presence and recommendations are greatly valued.

This award is a testament to the extensive commitment and dedication to his community and fellow citizens that he has shown throughout his career as well as his exceptional leadership qualities. Never counting his time, at work or in his professional and social activities, he is an inspiring role model for his peers, young people and his community.

06 May 2019  |  Written by :

Éric Lebel is a partner at Raymond Chabot Grant Thornton. He is your expert in recovery and...

See the profile