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From Canada: The Time for EOTs is Now
Canadian business owners are anxious about future exit strategies - and EOTs are the answer
In Brief: Canadian business owners have plans to sell their businesses - and EOTs are the answer to their succession anxiety.
Why It Matters: Canada recently announced plans to amend their income tax law and allow for the creation of Employee Ownership Trusts, or EOTs. In her article for The Good Men Project, Christine Cooper argues that now is the right time for such advancements. She cites data showing that 76% of surveyed Canadian business owners are interested in selling their businesses in the future. This so-called ‘tsunami’ of business successions could lead to the loss of jobs and uncertainties for local business communities. However, Cooper argues, if owners can choose an EOT as their succession plan, they can prevent company turmoil and better insulate themselves and their employees from the impacts of potential economic downturns.
What’s Next: Canadian business leaders have formed the Canadian Employee Ownership Coalition, which is advocating for the inclusion of EOT legislation in Canada’s 2023 budget.
Go Deeper: Read Christine Cooper’s full article here.