Exit Strategy Planning — Preparing Financially To Sell Or Succession Plan

Selling or transferring your business requires precision—one misstep in valuation or tax structure can cost years of profits. Mackisen CPA Auditors Montreal guides business owners through every financial, legal, and compliance step to ensure a smooth, profitable transition aligned with CRA and Revenu Québec regulations.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 110.6: Governs Lifetime Capital Gains Exemption (LCGE) for qualified small business shares.
Income Tax Act (Canada) Section 84.1: Prevents tax avoidance on share transfers.
Taxation Act (Quebec) Sections 36–42: Apply to corporate reorganizations.
CPA Canada Handbook Section 1582: Defines business combination standards.
Civil Code of Quebec: Regulates succession agreements and share sales.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied LCGE for poor documentation.
Simard Beaudry Construction v. Canada (2019): Approved CPA-audited valuations.
Lincora Group v. Quebec (2019): Penalized misclassified asset transfers.
Royal Bank v. Canada (2019): Validated CPA participation for financing approval.
Tremblay Holdings v. The Queen (2021): Reinforced proper documentation for family succession.

Why CRA Targets / Issues / Enforces
CRA scrutinizes every sale or succession to ensure accurate valuation and taxation. Missing or inaccurate records lead to reassessment. Mackisen CPA Auditors Montreal structures and documents transactions with CPA precision to minimize taxes and maximize value.

Mackisen Strategy
Valuation & Appraisal — Prepare CPA-certified valuations for shares or assets.
Tax Structuring — Apply LCGE and other exemptions correctly.
Succession Planning — Organize family and corporate share transfers.
Due Diligence — Prepare full audit-ready records for buyers and CRA.
Exit Execution — Coordinate closing, reporting, and CRA documentation.

Powering Client Needs and Smooth Exits
A Montreal distributor saved $500,000 in taxes with Mackisen’s capital gains planning. A Quebec retailer completed a family transfer without reassessment. A Toronto software company increased sale value through CPA-certified statements.
How Mackisen Clients Benefit

• Higher business valuation credibility

• Minimized CRA and Revenu Québec tax exposure

• CPA-audited compliance for buyers and regulators

• Seamless transaction process

Common Questions
When should I start exit planning? Ideally 2–5 years before sale.
Do I qualify for LCGE? Yes, with proper corporate structuring.
Can Mackisen handle valuation? Absolutely—with CPA-certified expertise.
Does CRA audit business sales? Yes, frequently.
What’s the key to a smooth exit? Early planning with CPA oversight.

Why Mackisen
Mackisen CPA Auditors Montreal turns business transitions into profitable outcomes. We ensure your exit is strategic, compliant, and rewarding