Halifax, Nova Scotia, September 27, 2006 - BDC today introduced a Transition Program that will make consulting and financing solutions available under one roof to Canadian entrepreneurs who, in unprecedented numbers, must plan the succession of their business. Under the program, financing will be available for both tangible and intangible assets, ultimately filling a gap in the Canadian financial services sector. "There are an estimated $1.2 trillion in assets owned by Canadian companies ready to transfer to the next generation of owners by 2010," said Jean-René Halde, BDC President and CEO. "BDC is playing a complementary role to help ensure that these business ownership transitions are successful by offering a solution which will provide financing for transactions beyond the traditional risk profile of financial institutions," he added. BDC Transition Consulting HighlightsHelp SMEs:
Define, develop and implement a transition plan
Clarify objectives and those of other potential successors
Preserve and increase the value of their businesses
Work with outside experts (tax, legal etc.) to assist entrepreneurs
Through coaching for buyers and sellers involved in a business transition.
BDC Transition Financing Highlights
Term loan leveraging tangible and intangible assets ranging from land, building, and equipment to intellectual property, goodwill and client list
Subordinate financing for more complex or structured transactions.
Next to starting a company, deciding how to exit a business - whether it is passed on to family, internal management or sold to outside interests - is the most important decision most business owners will make. But not enough Canadian entrepreneurs are planning for this important stage of their company'sgrowth. A recent survey by the Canadian Federation of Independent Business (CFIB) found that 71% of entrepreneurs said they wanted to retire within 10 years. Astonishingly, 28% of surveyed entrepreneurs have an informal succession plan while only 7% have a formal plan which means close to 65% of those business owners have no idea how they would retire.About BDCBDC is a financial institution wholly owned by the Government of Canada. BDC actively supports the development and growth of Canadian small and medium-sized businesses through its complementary financial, investment and consulting solutions. For more information visit www.bdc.ca.
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For more information:
Eva Boucher-HartlingBDC Media Relations Manager514-283-7929Contact by email
