Leah Tolton speaks with the Globe and Mail about de-risking family businesses and tactics for diversification.
She says that different diversification possibilities have ramifications for tax planning and dividend policies. “There are ways to make it so that the wealth and value created by the existing owners is preserved, and that the people who take over can get the benefit of their efforts to grow the value of the business.”
Leah points out that discussions about where the business is at, where it’s going, and plans for the family wealth and legacy are complex, and require those sorts of widespread and continuing discussions. “You want to consider whether the family has a goal of generating wealth beyond this generation. Not every owner is comfortable having that conversation, so having a professional can help facilitate that. In the end, can the people in the plan live with the plan?”
Globe and Mail subscribers can read the full article here.