“As a era of household enterprise founders and house owners determine whether or not or to not step down as CEO, troublesome selections about what ought to occur to the enterprise, subsequent era readiness, and the way finest to protect household wealth and legacy all have to be rigorously examined,” Yannick Archambault, Companion, Nationwide Chief, KPMG Household Workplace, stated in an announcement.
“Profitable households that take a multidisciplinary strategy to addressing rising challenges and have been proactively getting ready the enterprise, their household and their successors shall be in a greater place to decide on the optimum path ahead,” Archambault stated.
Among the many household enterprise leaders surveyed, 71% stated they’ve an in depth succession planning course of and/or formal plan in place to establish the continuity of their companies. One other 19% stated they’ve a plan, however not an in depth one, whereas 6% don’t have a plan however report their households have an understanding of who’ll be subsequent in line to run the enterprise.
The survey additionally discovered 70% of household enterprise leaders are accelerating their succession plans or effecting them earlier than January 21, 2024 to keep away from incoming tax adjustments launched within the 2023 federal finances.
These adjustments, which impression the tax remedy of enterprise transfers to a member of the family, can have ramifications for enterprise house owners’ capacity to say a lifetime capital good points exemption, with extra stringent necessities that what exist at present for the intergenerational switch of shares of a family-owned company.
