BDC Transition Program offers consulting and financing to Canadian business owners passing the torch

BDC Transition Program Canadian SMEs and Transition Planning  BDC Consulting: Maximize the value of your business  BDC Financing: Transfer or sell your business

Unique program offers term loans for both tangible and intangible assets

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. 

"It has been estimated in 2005 that there was $1.2 trillion in assets owned by Canadian companies ready to transfer to the next generation of owners by 2010¹," 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 Highlights
Help 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's growth. 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 not yet formally planned how they will retire.

About BDC
BDC 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.

¹CIBC Study: "Are Canadian Entrepreneurs Ready For Retirement?" 2005

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For more information or an interview:

Eva Boucher-Hartling
BDC Media Relations Manager
514-283-7929
Contact by email