Exit Strategy Planning

Selling your business or transferring it to the next generation is one of the biggest financial events of your life. Without planning, taxes, valuation errors, and poor documentation can erase years of profit. Mackisen CPA Auditors Montreal helps owners design exit strategies that maximize value, minimize CRA and Revenu Québec taxes, and ensure smooth transition for successors or buyers.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 110.6: Governs Lifetime Capital Gains Exemption (LCGE) for small business shares.
Income Tax Act (Canada) Section 84.1: Defines anti-avoidance rules in business transfers.
Taxation Act (Quebec) Sections 36–42: Apply to corporate restructuring and share sales.
CPA Canada Handbook Section 1582: Establishes business combination and valuation reporting standards.
Civil Code of Quebec: Regulates succession planning and asset transfer agreements.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied LCGE due to incomplete corporate restructuring.
Simard Beaudry Construction v. Canada (2019): Validated CPA-certified valuations in sales transactions.
Lincora Group v. Quebec (2019): Penalized misclassified share sales as asset disposals.
Royal Bank v. Canada (2019): Confirmed CPA involvement as essential for financing and sale completion.
Tremblay Holdings v. The Queen (2021): Reinforced need for verified financial documentation before succession.

Why CRA Targets / Issues / Enforces
CRA audits business sales to ensure proper valuation and tax treatment. Missing documentation or incorrect share classification can trigger reassessments. Mackisen CPA Auditors Montreal prevents tax leakage through detailed pre-sale planning and CPA oversight.

Mackisen Strategy
Valuation & Appraisal — Prepare accurate CPA-verified business valuations.
Tax Optimization — Structure sale or transfer to qualify for LCGE and minimize capital gains.
Succession Structuring — Plan share transfers, trusts, or corporate reorganizations.
Financial Documentation — Compile five-year CPA-certified financial statements.
Buyer Presentation — Develop transparent data rooms for due diligence.
Exit Timeline — Coordinate with legal and financial advisors for seamless transition.

Powering Client Needs and Legacy Planning
A Montreal manufacturer saved $420,000 in taxes after Mackisen applied LCGE correctly. A Quebec retailer completed a family succession without triggering reassessment. A Toronto service firm sold at 22% higher valuation using CPA-certified statements.
How Mackisen Clients Benefit

• Reduced tax exposure during sale

• Verified valuations that attract investors

• Seamless transition to successors

• CPA-supported documentation for CRA and buyers

• Protection against post-sale reassessments

Common Questions
When should I start planning an exit? Ideally three to five years before sale.
Is the Lifetime Capital Gains Exemption automatic? No—requires proper structuring.
Can I gift shares to family? Yes, with tax planning to avoid attribution rules.
Does CRA audit business sales? Yes—especially when valuations are unclear.
Can Mackisen handle the full process? Absolutely—from valuation to closing.

Why Mackisen
Mackisen CPA Auditors Montreal ensures your business exit is strategic, compliant, and profitable. We handle every financial detail so you can focus on your next chapter with peace of mind.