Wes Novotny speaks with CBC News about the growing interest in employee ownership trusts as Canadian business owners consider alternatives to selling to third parties, including US buyers.
He notes that the federal government's introduction of a C$10 million capital gains tax exemption has made the model more attractive for founders weighing their succession options.
"The tax incentive is a nice kicker and definitely gets them interested and gets them looking at it more in-depth," Wes says.
While the incentive has helped spark interest, he points out that timing is critical, as it is set to expire at the end of this year. Business owners considering an employee ownership trust need to start planning early to determine whether the structure is right for them.
Wes also highlights the broader impact of the model. Employee ownership trusts can be positive for employees, their communities and the economy, while also helping entrepreneurs preserve their legacy as their business continues.
Wes was also featured in CBC's accompanying video discussing the advantages and challenges of employee ownership trusts.
CBC readers can watch the video here and read the full story here.