Exit Strategy Planning — How To Financially Prepare Your Business For Sale Or Succession

Your business exit will define your financial legacy. Whether selling or passing it on, accurate valuations, tax strategies, and CPA oversight can save millions. Mackisen CPA Auditors Montreal prepares exit plans that maximize sale value, protect family wealth, and ensure CRA compliance.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 110.6: Provides Lifetime Capital Gains Exemption (LCGE) for qualified shares.
Income Tax Act (Canada) Section 84.1: Prevents capital stripping on transfers.
Taxation Act (Quebec) Section 36–42: Defines restructuring and succession reporting.
CPA Canada Handbook Section 1582: Establishes valuation and transaction reporting standards.
Civil Code of Quebec: Governs legal transfers and inheritance structures.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied LCGE for incomplete restructuring.
Simard Beaudry Construction v. Canada (2019): Validated CPA-audited valuations.
Lincora Group v. Quebec (2019): Penalized unverified asset transfers.
Royal Bank v. Canada (2019): Confirmed CPA documentation for sale-based lending.
Tremblay Holdings v. The Queen (2021): Emphasized pre-sale documentation consistency.

Why CRA Reviews Exits Closely
Business sales are prime audit targets. CRA verifies valuation, structure, and capital gains accuracy. Mackisen CPA Auditors Montreal prepares verified financials that eliminate tax risk and maximize net proceeds.

Mackisen Strategy
Valuation & Certification — Provide CPA-audited business valuations.
Tax Optimization — Apply LCGE and structure sale for minimum tax.
Succession Planning — Manage intergenerational transfers or employee buyouts.
Due Diligence — Prepare buyer-ready CPA reports and records.
Exit Coordination — Oversee filings, CRA forms, and final audits.

Powering Client Needs and Legacy Planning
A Montreal manufacturer avoided $750,000 in taxes with Mackisen’s exit strategy. A Quebec franchise sold 20% higher with CPA-certified valuations. A Toronto family-owned business completed seamless succession planning.
How Mackisen Clients Benefit

• Lower taxes and stronger valuations

• CRA-audited financial credibility

• Family succession support

• Transparent sale documentation

Common Questions
When should I start exit planning? Minimum 3 years prior.
Do I qualify for LCGE? Yes, if shares meet CRA criteria.
Does CRA audit business exits? Yes—especially small business sales.
Can Mackisen manage both sale and tax filings? Absolutely.
Will buyers trust CPA valuations? Always—they’re lender and investor approved.

Why Mackisen
Mackisen CPA Auditors Montreal ensures your business exit is strategic, compliant, and financially secure. Our CPAs protect your profit, your legacy, and your peace of mind.