For businesses aiming to succeed and excel, sustainable growth is crucial. Discover potent strategies to drive growth; whether to improve your performance, adapt to change, secure your business, or exit and transition. Navigate these key paths to success.
Perform
Adapt
Secure
Exit
Perform
Your business is under pressure, and you need to assess how it’s performing. As a result, you may need to take drastic measures.
Conducting a business, financial, and operational review is necessary to assess how your organization is performing. You should review your sales in detail (regional and by stock-keeping unit), the profitability of each product or service, your customer base, your working capital requirements, and any macroeconomic factors impacting your business.
A review will help you understand your performance trending, current financial position, and how much cash is required or tied up in your working capital balances. Communicating the plan that’s derived from your assessment to your stakeholders can help manage them effectively through any headwinds that your business may be facing.
Business assessments can help you learn what steps are required to improve your company’s short and long-term viability.
For more information, reach out to:
Clark Lonergan647-730-0934
[email protected]
A restructuring can be either completed on an informal or formal basis. An informal restructuring may involve negotiating with your stakeholders the amount you can pay that’s owed to them and the timeline associated with those payments. This can be more difficult if you have a large number of stakeholders.
A formal restructuring is under the Companies Creditors Arrangement Act (CCAA) or the Bankruptcy and Insolvency Act (BIA). While both have similarities, there are also some material differences (CCAA requires greater than $5 million in debt).
To learn more, reach out to:
Jervis Rodrigues604-443-4724
[email protected]
In the event you’re unable to get your debtors to pay all or a portion of what’s owed to you as a creditor and assuming that your debt is secured, you can appoint a receiver under your security agreement or make an application to the court for the appointment of a receiver or interim receiver.
Under a private appointment, the receiver will act on behalf of the creditor that appointed it and its primary duties are for that creditor.
Under a court appointment, the receiver will act on behalf of all creditors and acts in an unbiased manner with all creditors.
Unsecured creditors have the ability to petition the debtor into bankruptcy for the realization of the debtor’s assets for the benefit of all creditors in order of priority as set out in the Bankruptcy and Insolvency Act (BIA).
To learn more, reach out to:
Jervis Rodrigues604-443-4724
[email protected]
Adapt
You want to ensure you have enough money to keep the business running. There are many options to choose from.
When looking at your cash flow, you want to have a strategy to minimize the amount of cash you spend and improve the amount of cash coming in. This means looking at what’s critical and what’s not.
Some non-essential operating expenses may include meals, entertainment, and travel. You should also look for ways to reduce expenses or extend current payment terms. This may mean renegotiating your lease, finding less expensive/alternative suppliers, and monetizing excess equipment that’s not required.
You need to collect money from clients as soon as possible and pay the suppliers that are most critical to keeping your business running first. Also, talk to your suppliers to see if there are payment plans available and ask your creditors if they can forgive a portion of your obligation.
For more information, reach out to:
Clark Lonergan
647-730-0934
[email protected]
In the competitive global talent market, businesses face challenges due to demographic shifts, specialized skill gaps, and the demand for flexible work options. Addressing these demands while planning for a hybrid workplace is crucial for your business's prosperity.
Some of the current issues include:
- Defining, planning for, and adapting to hybrid work life.
- Keeping your employees engaged and your culture intact.
- Managing through change and transformation.
- Maintaining and enhancing productivity.
- Attracting and retaining top talent.
BDO’s People Advisory team has HR professionals with hands-on experience and comprehensive expertise in HR best practices. We can help your business achieve its strategic objectives and improve its bottom line by leveraging your organization’s biggest asset: people.
For more information, reach out:
Hali Van Vliet
705-712-1605
[email protected]
Businesses aiming to scale proven technology can face challenges in securing funding whether it was for research, market development, hiring, or capital needs. However, funding opportunities are available to support these growth strategies and mitigate associated business risks.
There are various grants and government incentives that can match today’s business needs for different business sizes, industries, and development stages. You may be wondering what’s available for your business and whether you qualify or not.
Explore ways you access grants through a comprehensive approach to funding programs.
For more information, reach out to:
Craig Mulcahy902-536-0634
[email protected]
Your business may be able to operate with the money it has for now, but it may need additional funding in the future. Here are some potential sources of capital:
Existing lenders—Work with your current lender to try to get additional capital or more flexible payment terms.New or supplemental lenders—A new lender may offer better terms than your existing lender, while a supplemental lender can provide you with a new source of capital.
Equity investors—An equity investor can also provide you with additional support, but it will take time to arrange funding.
Leasing companies—If you need equipment, you can rent or lease to own. It’s a more expensive form of financing, but you don’t have to give up equity.
For more information, reach out to:
Anne-Marie Henson
519-931-2445
[email protected]
Many business owners will look at ways to minimize the amount of tax they or their beneficiaries will have to pay.
One option is to freeze the value of your estate. Completing an estate freeze when the value of your business has fallen will reduce the tax bill when you pass away.
There’s also the option to implement a trust/holding company structure. If the business generates excess funds, the funds can be paid to a holding company on a tax-free basis, and the business can maintain eligibility for the lifetime capital gains exemption.
If you’ve already frozen the estate and the value of your business has declined since the original freeze, you have the option of refreezing the business at the current value and allowing the growth from today on accrue to the next generation.
To learn more, reach out to:
Quinton Pullen
236-766-1578
[email protected]
Secure
Whether thriving in challenging conditions or pursuing rapid growth, it is crucial to prioritize security now and in the future.
Make sure you review your insurance coverage on a regular basis. Businesses often realize they do not have enough protection when considering the shifting market status as well as the rise in fraudulent and cybersecurity activities.
You should consider the type of products you need to weather the next unexpected event, such as:
- Commercial property insurance
- Business income loss insurance
- Directors and officers’ liability insurance
- Errors and omissions insurance
- Crime and fraud insurance
- Cyber risk and data breach coverage insurance
- Equipment breakdown insurance
- Commercial general liability insurance
- Commercial auto insurance
- Home-based business insurance
Other types of insurance you may require include management liability insurance, professional liability insurance, and event cancellation insurance. While not all insurance products are needed for every type of business, reviewing what coverage you have and purchasing additional insurance you need can give you peace of mind.
For more information, reach out to:
Chetan Sehgal
416-775-7812
[email protected]
Your business faces a number of risks—some are known and others are unknown. While it’s impossible to eliminate all risks, it’s possible to proactively address vulnerabilities. Knowing what the challenges are can help you prepare for managing and mitigating risk.
Implementing an enterprise risk management (ERM) program should be done throughout the business in order to foster a culture of risk awareness.
An ERM assessment can help your business determine how to better manage operating costs, protect key relationships, improve earnings, and align operations with your stakeholders’ expectations.
For more information, reach out to:
John Asher
604-443-4704
[email protected]
In order for a business to grow, there needs to be bottom-line and top-line growth. There are three common ways to boost both profit and revenue:
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Acquire more customers—You should research what they like to buy, what propels them to make a purchase, and customize your marketing and communications strategy accordingly.
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Increase transaction frequency—Winning new customers is more costly than having existing customers purchase from you again.
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Increase transaction sizes—This can be done through cross-selling (additional items to add value), bundling (bundling together products or services into a single purchase), upselling (getting the customer to buy a more expensive item or upgrades), or creating new product or service lines to sell to existing customers.
For more information, reach out to:
Tim Sothern
519-576-5226
[email protected]
When your business is in good shape financially, it may be time to consider making an acquisition. Purchasing another company can increase market share, reduce costs, and diversify the number of products or services you offer.
For instance, a vertical acquisition will give you more control over the production and distribution process while reducing the number of intermediaries.
An acquisition can also be made to acquire talent (such as a strong salesperson) or to purchase customer lists.
The acquisition process usually begins with searching for a target. You’ll then perform due diligence before creating a letter of intent and finalizing the sales and purchase agreement. This is where the help of a trusted business advisor is beneficial.
For more information, reach out to:
Adam Mallon
780-643-6192
[email protected]
Exit
Business succession is critical; it involves significant effort and investment. Prepare for a seamless exit strategy that aligns with your goals.
When it comes to ensuring a smooth and successful business transition, you need integrated and proactive strategies.
Whether you're passing the business to the next generation or considering a sale to an outside buyer, planning for the future of your business is a crucial step that needs to consider both your personal and business goals of all involved individuals.
Planning for a transition goes beyond minimizing the potential tax burden, it needs to cover more angles including:
- Improving your business governance processes.
- Ensuring fairness in entrance and exit procedures for shareholders.
- Developing a comprehensive wealth plan to protect, preserve, and grow your existing assets.
Throughout the transition planning process, it’s important to foster open communication among all parties involved. Learn more about BDO’s exclusive Discovery Questionnaire, specifically crafted to involve all key stakeholders and gain insights into their existing opinions regarding business planning, management, and operations, both for the present and the future.
For more information, reach out to:
Jeff Noble
905-272-6247
[email protected]
Due diligence is crucial for successful M&A transactions. It helps you understand financial performance drivers, identify and understand risks, and optimize negotiations for the best deal. By conducting thorough due diligence across financial, tax, IT, HR, operational, commercial, and reputational aspects of your investment decisions, you can ensure you are best positioned to execute a transaction.
Sell-side due diligence is increasingly more common and as equally crucial and valuable, empowering you as a seller to maintain control during M&A while enhancing deal credibility, increasing the likelihood of closing and reducing the risk of price deterioration. Conducting sell-side due diligence is a prudent investment in your divestiture decision.
For more information, reach out to:
Sunil Sharma
416-457-7018
[email protected]
