and interaction with the rest of the
employees, as well as aligning the skills
of the team with the needs of the business to achieve the goals of the new
business plan). The ownership succession plan should address the availability
of assets to fund the selling owners’
retirement needs, the estate liquidity
requirements, wealth preservation and
transfer strategies, outside shareholders
or investors.
Adding or Changing Minority
Shareholders?
While not necessarily as complex as a
complete business ownership transition,
keep in mind that similar considerations
may arise in situations such as adding or
changing minority shareholders.
Remember to start your planning
early. Hire competent advisors and start
with the management succession plan
that will dictate where to start on an
ownership transfer.
Working with Your Lenders
and Vendors
For any ownership change, asset transfer
or acquisition, it may be that your
arrangements or agreements with your
lenders or vendors require prior
approval, therefore it is very important
to engage them early in the process and
to ensure that you receive their
approvals prior to finalizing any transi-
tion. Notifying lenders and vendors
including your CDF Account Manager at
least 60 days prior to your transition
date should provide enough time to
identify and navigate around any hur-
dles to a smooth transition. It is in every-
one’s best interests to ensure that no sur-
prises occur during or after the transi-
tion:
• Lenders and vendors have a respon-
sibility to know who their clients
are. Outgoing and on-boarding own-
ers will need to collaborate with
lenders and vendors and share new
business plans and changes to the
business that will affect established
relationships and arrangements.
• Sellers will want to avoid defaulting
in their obligations and any ongoing
liabilities after the transition of the
business. This can result from lenders
being engaged too late in the process.
New owners may not have the same
experience or credit worthiness as the
outgoing owner. CDF and other
lenders will require the new owner to
apply for financing and may not be
able to offer the same commitments
under the same conditions. Both out-
going and on-boarding owners
should be actively involved with CDF
and in providing us with the docu-
mentation required to come up with
the best financial solution for the
business and ensuring all parties are
aware of their responsibilities
throughout the transition.
Boating Industry Canada has reprinted this GE Spotlight document as a convenience and as an introductory tool and summary guide to assist in your succession planning. However, CDF is not a tax or estate specialist. Please consult with a tax or estate advisor or other professional regarding the subject matter discussed
in this GE Spotlight. CDF will not be liable for any damages arising from the use of this Spotlight.
This Spotlight is furnished as a means of providing you with a general guide to, and broad outline of, certain practices and procedures employed by GE Commercial Distribution Finance Canada (“GE CDF”). It is
by no means exhaustive and shall not be considered or construed in a way whatsoever to be exhaustive as to
the policies, procedures or practices of GE CDF with respect to your financing arrangements with GE CDF.
There may be events, circumstances or any other reason whatsoever that may require a derogation to, change
or an alternate application of, the information provided in this Spotlight by GE CDF.GE CDF reserves the
right, in its sole and absolute discretion, to amend or alter the application of the practices and procedures
described in this Spotlight at any time. The content and any information in the Spotlight is subject to change
at any time by GE CDF, at its sole discretion.
