One-third of Quebec’s 127,000 entrepreneurs are over 55 years old, and 12,500 are considering selling their businesses in the next 12 months. The drawback is that there are far fewer people ready to start businesses today than there were 10 or even 5 years ago. In short, succession is uncertain for many, and the aging population is certainly affecting the future of many companies.
Firstly, what is a collective takeover? It’s a mode of transferring a business that allows employees or external actors to collectively take over a business, either entirely or partially. This takeover can happen through a cooperative or a non-profit organization created for the takeover or one already in existence.
And why might takeover be considered a solution, both for the person selling (the seller) and those buying (the buyers)?
In summary, the power of a group. For instance, when the Mont-Orignal ski resort was on the verge of closing, a strong community solidarity movement allowed a group of local residents to buy the resort.
Another example: the owner of Au bout du rang farm in Saint-Félix-de-Valois, tired of managing the business alone, offered her employees the opportunity to create a cooperative.
From these examples, the Centre for Social Responsibility and Citizenship Studies (CERSE) identified over 300 similar cases in Quebec in 2020.
1. Takeover provides resources that one doesn’t have alone: shared responsibilities, management, finances, etc.
2. There are specific funding sources for collective entrepreneurship, along with a strong support network, including organizations like the Quebec Business Transfer Centre (CTEQ) and the CDRQ, as well as other cooperatives and non-profits, often sympathetic to each other.
3. Finally, the collective model aims to be sustainable and based on common values. It’s no coincidence that cooperatives have a survival rate twice as high as private businesses.
According to the CTEQ, 50% of sellers don’t know the value of their business. To address such questions, as well as legal, management, or governance aspects, seeking the right advice can save time, unnecessary efforts, and even money.
You can find specialists within CDRQ, CTEQ, and gather plenty of information on the Repreneuriatcollectif.ca website.
As the Collective Takeover Coordinator at CDRQ, Soda Diack hosts a webinar on collective takeover titled “Transfer or Acquire a Business Collectively.”
Throughout the webinar, several topics will be covered: