1. Boomers are Moving OnCurrent StatusIn Canada the Boomers were born during the period from 1947 to 1966. The Boomershave been very entrepreneurial and their time has come. It is their time to move on.From 2006 to 2016 between 34% and 55% of privately-held companies will changehands mostly boomers. As a result there will be huge downward pressure on price forthese privately-held companies. While there will be buyers, with plenty of cash, therewill be plenty of options for them it will be a buyers market.The current market for selling such businesses has been distorted since the severedownturn 4 years ago as there are now companies which would have sold years agobut deferred while they got back on their feet.Lack of PlanningFamily-held businesses are in for somesurprises - sons and daughters who arenot interested in taking on theresponsibility of running the company.Seventy-five percent do not have anyexit strategy in place. Too many havedone little or no estate planning recipes for disaster. Maximizing wealthand minimizing taxes have beenforgotten.If you want your business to successfully transition to a family member or a third party,careful positioning and planning have become paramount, more important than everbefore. A good exit includes an integrated plan resolving personal, business, legal,financial, tax and estate planning issues. These ingredients take time whether involvingfamily or third parties.Strategic PlanningYou and your business need to focus on improving profitability, building an effectivemanagement team and many other factors to make your business more attractive andmaximize your after-tax selling proceeds.Preparing the owner includes taking steps to address financial issues and emotionalissues. Lack of preparation of the psychological side of selling your business will leadto future problems in too many cases.

2. Why Plan Now? By 2009 there will be a five-fold increase over the number of businesses sellingcompared to those for sale in 2004. There may be more cash-rich potential buyers available in the first half of theboomer bubble (a 10 year period) from 2005 to 2010. The economic cycle is good currently, creating a good selling atmosphere. It takes 1 to 2 years of focused activity to get your business ready to sell. We are currently experiencing the lowest income tax rates in the last 35 years.There is a pay-off for those that get an early start. It is possible that you will get asignificant premium over the price of unprepared sellers. Good planning can alsoreduce and/or defer the income taxes at the time of the sale. The most overlookedbenefit of good planning is the Peace of Mind of the owner/seller.Take charge, after all the process of selling your business just may be the mostimportant decision that you make in your life time.Getting StartedGet informed. See your professional advisor at MacKay LLP to develop a plan that mayalso include a lawyer, insurance broker and financial planner.