Creaghan McConnell Group LTD. - The Exit Strategy Company

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Introduction

How We Collaborate with Our Client’s Advisors

Success Stories

Introduction

More than 70 percent of family-owned businesses in Canada never make it into the hands of the second generation. Too often, lack of planning-or poor planning-leaves the next generation ill prepared to manage the wealth.

At Creaghan McConnell Group Ltd., we call ourselves The Exit Strategy Company™ because we specialize in helping business-owning families plan and prepare for transitioning their business, either to the next generation of the family or to new owners entirely.

We understand that part of transition planning for a family business is preparing the next generation for the responsibilities that the business will place on them. Many owners want to pass on not just the physical and financial assets of the business but also the accumulated knowledge and wisdom that account for their businesses' ongoing success.

In our 20 years of helping business owners with transition planning, we've discovered that most clients have the accumulated wisdom and experience to know what they should be doing; at the same time few have articulated a game plan clearly, and even fewer have an understanding of their financial requirements and how they will be funded. CMG's unique Exit Strategy Process™ helps our business-owning clients achieve four important objectives:

to clarify their business and personal situation completely and to articulate specific goals
to identify and develop appropriate financial solutions to support their goals
to assure that those solutions will be implemented at the lowest net cost
to support future development of the plan through detailed annual performance reviews

At CMG, we always work as a part of our clients' team of advisors. Our expertise lies in our ability to formulate strategies that maximize the capital available for future family requirements and minimize the cost of accessing that capital. We help our clients establish a secure and reliable source of funds to meet future needs in a manner more cost and tax-effective than traditional solutions. We work regularly with Canada's top legal, tax and financial advisors to create solutions for a wide range of circumstances and opportunities that will require future capital.

Our Unique Processes
We use many specialized processes to achieve results for our clients. Key among them are:

The Family Fairness Plan™
We help business owners articulate their wishes about business succession and their estate, and we draw up a high-level conceptual sketch of what needs to be built to ensure their wishes are implemented. We will also consult with family members to understand their goals regarding the business and their part in it. We then distill the owner's issues and the family's issues into a framework they can all agree upon. This process results in clarity for everyone involved-the business owners, their families, and their advisors.

The Family Rule Book
The Family Fairness Plan allows us to take the next step and document the rules for all the owners going forward. We then assist them in selecting and defining the key principles that will form the basis of their written business agreement. This ensures that all parties know in advance what will happen under any circumstances.

The Family Funding Report
The commitments that arise from The Family Fairness Plan generate capital needs for the future. To ensure the financial strength and flexibility of the company, it is usually best to think these requirements through and fund them in advance. Key issues to consider in this regard include providing for the owner's financial security in retirement and/or compensating family members fairly for their involvement in the business or for their decision not to be involved. The goal should be to meet all capital requirements without impairing the company's ability to reinvest and grow.

We identify the various financial options that could satisfy our clients' capital requirements and we review these with the business owners and their advisors. We then help them select the best products and strategies that best meet their needs. We also coordinate the advisory process to ensure that all professional advice-legal, tax planning, banking, insurance, etc.-is properly integrated.

The Result: Financial Blueprint and Peace-of-Mind

CMG's clients are overwhelmingly positive about the results we achieve with them, including the strengthening of both business and family relationships. Clients are relieved when they have settled the question of whether to sell their business or pass it on to family members and when they have put in place a workable succession plan. For many, the peace of mind that comes from knowing that their plan genuinely satisfies their family and business priorities is the most valuable result of all.