All in the Family Magazine

Photos of CAFE Members

2 0 1 3

FAMILYA L L I N T H E

FAMILYM A G A Z I N E

A Resource for Family Business

Sponsored By

SUCCESS STORIES | NEXT GENERATION LEADERS | FAMILY TRUST ACCOUNTS | FIRE DRILLS | SUCCESSION PLANNING

www.cafecanada.ca

2 A l l i n t h e F A m i l y 2 0 1 3 A Business Link Media Group Publication

By Scott LeSLie

Sally McGarr has been “thinking pink”

for 25 years now. The owner and oper-

ator of Sally McGarr Realty Corp. first

introduced her distinctive rose pink

signs when she opened for business back in 1988.

Her signage has not changed—and neither has Sal-

ly’s commitment to providing a personal brand of

service, the kind that is harder to find with the big

real estate franchises these days.

“People prefer to deal with someone they can

trust,” Sally explains, “someone who can make

their life easier. The real estate process can be a

challenging one. We want to make things as simple

and stress-free for our clients as possible.”

One of the largest independent real estate firms

in the Niagara Region, Sally McGarr Realty Corp.

deals in a wide variety of properties across Ontar-

io—everything from farms, homes and condos to

commercial and rental units. Her long established

slogan says it all: “Cottages to Castles.” The firm is

year Founded: 1988 | St. catharines: 905.687.9229 Niagara-on-the-Lake: 905.468.9229mcgarrrealty.com | [email protected] [email protected] Locations: 5 St. Paul crescent, St. catharines 1615 Niagara Stone Road, N.o.t.L

Sally McGarr Realty Corp., BrokerageIndependent real estate brokerage celebrates 25 years of serving the Niagara Region and beyond.

also a proud member of the Niagara Association

of REALTORS®, the Ontario Real Estate Associ-

ation, and the Canadian Real Estate Association,

allowing the McGarr Group to access multiple list-

ing services nationwide.

Back to BasicsSally wasn’t an overnight success story by any means.

It all began when she first attained her real estate li-

cense back in 1982. After becoming a full broker in

1984, Sally was invited to act as broker to open a new

real estate franchise in St. Catharines. She spent the

next four years working at this franchise.

But it didn’t take long for Sally to realize the fran-

chise mentality didn’t sit well with her. The reason

was simple. It was missing that personal element.

“It was strictly business,” she says of the cor-

porate brokerage she was at. “There were far too

many salespeople coming and going, and everyone

was in it for themselves. Buying or selling a home

is a very personal experience. It requires a personal

approach with people, and that just wasn’t there.”

Sally had dreams of starting up a smaller bou-

tique-style brokerage that would have a more per-

sonal touch than the large real estate franchises.

“It was time to go back to the tried and true,” she says.

After doing some soul-searching and consider-

able planning, Sally launched Sally McGarr Real-

ty Corp. on December 6, 1988, setting up shop in a

newly-renovated home at 7 Duke Street in St. Cath-

arines. Things would start out modestly. At the

time, there was just Sally, another salesperson, and

two administrative staff. Fortunately, her busi-

ness began to blossom. Salespeople were increas-

ingly attracted by Sally’s family approach, and

her company’s lack of franchise and institutional

advertising fees. Referrals began to grow—and so

did Sally’s sales force.

In January 1991, Sally made the transition to

a much larger and higher profile location at 5 St.

Paul Crescent. And that pattern of growth has con-

tinued well into the new millennium.

Today, Sally has eight support staff, 20 sales-

people and five people who are currently in the

licensing process. Many of them are among the top

sales and listing representatives in the region. Over

the years, McGarr Realty has also handled the sales

and marketing of over 30 new home and condo de-

velopments throughout Niagara.

“We’re involved with two right now,” Sally

Part of the McGarr Group.

A Business Link Media Group Publication A l l i n t h e F A m i l y 2 0 1 3 3

says, “and have another 121 townhome develop-

ment coming up for sale very soon in St. Catha-

rines. In this development there will be at least 30

freehold bungalow townhomes.”

Preparing for the FutureThere have been many changes in the real estate

field since Sally first started out. The internet has

built stronger connections between the salesper-

son and client, and tools like Facebook, Twitter

and blogs have all become industry standards.

Sally herself has always been determined to up-

date her business to better serve her clients’ needs. In

2004, for instance, Sally established a second office

on 1615 Niagara Stone Road in Niagara-on-the-Lake.

In the past year, the McGarr team has also begun

listing and selling many rural and farm properties

in places like Guelph and Chatham, not to mention

cottage properties as far north as Muskoka. Much of

their shift into rural properties is due to the recent

addition of Sales Representative Dale Petrie who

has an extensive connection with 26,000 farmers

throughout Ontario.

Sally McGarr Realty Corp. has always had a very

local presence, particularly with its striking pink

signs. But in recent years, the McGarr team has

been able to leverage several new national and in-

ternational connections.

Three years ago, the firm became a member of

AventureTM Realty Network—an organization of

Canada’s leading independent brokerages and one of

the fastest growing real estate organizations in Cana-

da, covering over 1,400 communities. McGarr Realty

is the exclusive affiliate for the Niagara Region.

In 2013, Sally also became affiliated with Lux-

ury Portfolio International and The Leading Real

Estate Companies of the World (Leading RE). Both

organizations are for independent real estate com-

panies only and have representation in over 45

countries worldwide. LeadingRE is the number

one real estate organization in the world, outsell-

ing any global real estate franchise.

Sally feels these connections with independent

brokers around the world enable her firm to tap

into some refreshing creative thinkers and new

innovative ideas.

“With our various network affiliations, we now

have coverage and connections throughout the

world for national and international referrals,”

she explains. “It’s really given us a level playing

field in which to do business.”

Keeping It PersonalOne of the keys to the success of Sally McGarr Re-

alty Corp. is their reliability. Several of the McGarr

Group has been with the firm for 20 years or more,

providing a consistency to both the company and

the client. For example, Sally’s Office Manager

Emma Trozzolo has been working with her since

1982, and treats the company as if it were her own.

Sally relies on her expertise daily.

At Sally McGarr Realty Corp., their group

works closely with one another—something Sally

has instilled from the very beginning.

“We do a lot of things as a group,” she explains.

“We take seminars together, have staff parties, and

celebrate one another’s successes. We even have

round table discussions Tuesday mornings as a

team so we can discuss market activity, mortgage

rates and preview our new listings.”

A high percentage of Sally’s assignments come

through referrals and with good reason. The Mc-

Garr Group is well-prepared and incredibly thor-

ough with their research. As dedicated experts in

their field, they also have connections with an ex-

tensive network of lenders, home inspectors, law-

yers, appraisers and insurance brokers.

Over the coming year, Sally is looking forward to

expanding the size of her St. Catharines office and add-

ing more sales and support staff to accommodate the

growth of her business. But when it comes right down

to it, Sally isn’t concerned with being bigger. She’s fo-

cused on being the best—for her clients’ and staff’s sake.

“We want to help people and help them under-

stand the process,” she says. “The more they know,

the more they feel in control—and the more pleas-

ant their experience will be with us.”

And 2013 is a celebration of the McGarr Group

doing the right thing for 25 years. AITF

Sally McGarr, owner and operator of Sally McGarr Realty Corp., Brokerage.

www.mcgarrrealty.com


~ 2 ~

Sally McGarr Realty corp., Brokerage

~ 5 ~

ontario Auto collisioncARStAR

~ 9 ~

Beatties Basics office Products

~ 11 ~

Dell Smart Home Solutions inc.

~ 13 ~

Homes By Hendriks

~ 14 ~

Pinder’s Security Products

~ 15 ~the William Douglas Group

Manulife Securities incorporated

~ 18 ~

Peninsula Flooring Ltd.~ 19 ~

c.R. Smith Financial~ 20 ~

canadian Association of Family enterprise

~ 23 ~

Mountainview Homes~ 24 ~

Rain tree Roofing~ 25 ~

critelli’s Fine Furniture~ 27 ~

Lincoln Hearing clinic~ 29 ~

Flair Kitchen Design

~ 30 ~

Whisky Run Golf club~ 32 ~

croMade cabinetry~ 33 ~

impression Homes by Mira

~ 35 ~

F.e. coyne insurance Brokers

~ 36 ~

Life’s emergency training

~ 39 ~

Business Link Media Group

P R O F I L E S

R E S O u R C E S6 Start succession planning early 8 in case of emergency…please contact?10 Grooming next generation leaders12 Law in family business16 Passing on the business22 Who gets dad’s office?26 Business valuations

28 common family disputes 31 Family trusts34 Become a time champion34 Personal lawsuits on the rise36 improve your chance of success37 tax planning for the family business38 Family business, valuations, succession planning

ADAM SHieLDS

PReSiDeNt AND co-PUBLiSHeRBUSiNeSS LiNK MeDiA GRoUP

F amily.. .It’s a very sim-

ple word but it’s one

that has a great deal of resonance to all of us. It’s

the glue that holds us together. It tells us who

we are, where we’ve been and where we’re going.

It’s also the basis of our latest publication—

All In The Family Magazine.

Since our company started a decade ago,

we’ve had the pleasure of meeting countless

individuals throughout the Golden Horseshoe

area that are running successful businesses.

However, one of the common threads that

bind many of these successful firms together

is their strong family ownership.

This year, we felt it was important to spot-

light our family businesses and recognize all the

strengths they bring to the table. The enclosed

stories focus on the struggles and successes these

firms have undergone, and provide tips that

will hopefully educate and inspire today’s new

generation of business owners. To round out

our magazine, we’ve included several articles

by financial and legal experts on the issues and

circumstances facing many family businesses.

You may not know it—but our firm is also a

family-run operation. It’s something we take

great pride in.. .just like the publication you

hold in your hands. AITF

We hope you enjoy

All In The Family Magazine.

P u B L I S H E R ’ SN O T E

opinions and comments within this publication reflect those of the writers and not necessarily that of the Busi-ness Link Niagara Ltd. All advertising accepted is subject to the Business Link Niagara Ltd.’s discretion. the Business Link Niagara Ltd. will not be responsible for damages arising out of errors in advertisements. Any design, artwork, copy-right or typesetting supplied by the Business Link Niagara Ltd. is for the exclusive use by the Business Link Niagara Ltd. Any other use not authorized is an infringement of copyright. No part of this publication may be reproduced or transmitted in any form or by any means, without prior written permission of the Business Link Niagara Ltd.

Disclaimer: the articles within are presented as a general source of information only and is not intended as a so-licitation nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. the publishers assume no re-sponsibility in the correct or incorrect use of this infor-mation. For more information on this topic or any other investment or financial matters, please contact the appro-priate consultant.

PhotographySandra ozkur Photography Shelly cameron Photography

David Gruggen Photography

Contributing WritersJ.R. McAlister, t. Hoxie, N. Smith, S. Leslie, M. Wallace, D. Bruce

Q. Wong, L. Lang, c. Miles, c.e. Abela. t.c. cooper, t. GravesB. Mcelroy, A. Rowell, B. Horsley

CirculationAll in the Family Magazine is distributed to approximately

37,000 businesses throughout the Niagara, Hamilton and Halton regions via canada Post.

Publisherthe Business Link Niagara Ltd.

36 Hiscott St, Suite 200, St. catharines, oN L2R 1c8tel: 905.646.9366 Fax: 905.646.5486email: [email protected]

www.BusinessLinkMedia.com

Director of AdvertisingJulie Shields

Co-PublishersJim Shields, Adam Shields

www.businesslinkmedia.com

http://www.linkedin.com/groups/Business-Link-2413451?trk=myg_ugrp_ovr

http://www.facebook.com/pages/The-Business-Link/79565214984?ref=stream

www.twitter.com/thebusinesslink


By Scott LeSLie

Acar accident can be one of the

most difficult and stressful times

in your life. Fortunately, there’s

a collision repair expert out there

you can trust to help ease the pain—Ontario Auto

Collision CARSTAR.

Serving the greater Hamilton region, Ontario

Auto Collision CARSTAR is a full service collision

and glass repair facility. Family owned and operat-

ed, the shop provides complete collision repairs in

addition to restoration services like paintless dent

removal, detailing, towing service, glass repair,

and stone chip protection. Ontario Auto Collision

CARSTAR also has audited trust relationships with

many prominent insurance firms.

The Mercanti family has been committed to

delivering high quality auto repair service for

over 50 years now.

Ontario Auto Collision Limited was originally

founded on 322 Gage Avenue North in Hamilton

by brothers Guerino, Nardino, and Antonio Mer-

canti back in 1961. Over the years, the Mercantis

would take several steps to grow their operation—

from operating five family-owned locations to

franchising locations. In 1994, the Mercanti

family’s two Hamilton repair facilities became

the very first CARSTAR franchises in Canada.

The second generation of the Mercantis—three

brothers Tony, Sam and Remo—would go on to

purchase the two Hamilton locations at 322 Gage

Avenue North and 1124 Rymal Road East from

their relatives in 2005.

By becoming affiliated with CARSTAR, the Mer-

cantis have been able to offer a wealth of benefits to

Ontario Auto Collision CARSTARThe Mercanti family has been one of Hamilton’s most trusted collision and glass repair experts since 1961.

year Founded: 1961 | Gage Avenue North: 905.549.4602 Rymal Road east: 905.383.3700 www.oacgage.com | [email protected] [email protected] Locations: 322 Gage Avenue North, Hamilton 1124 Rymal Road east, Hamilton

From left to right: Tony, Guerino, Sam and Remo.

their clientele including competitive pricing, top

quality materials, and a lifetime warranty for the

life of the vehicle.

Having grown up around the auto repair indus-

try, the three Mercanti brothers have set the indus-

try benchmark and know how important it is to

provide quality workmanship, quick turnaround

times and an exceptional level of service—qualities

essential for success.

“CARSTAR is approved and equipped to repair

all makes and models of vehicles,” says Tony Mer-

canti, president and general manager, “so we get

referrals from all kinds of local dealerships, wheth-

er it’s Mercedes Benz, Volvo, Ford Lincoln, VW

Audi, Toyota, Mazda or Nissan. They appreciate

our quality—and we appreciate their business. It’s

not uncommon for customers to be referred from

regions like Niagara, Kitchener and the GTA.”

Over the years, Ontario Auto Collision

CARSTAR has continued to grow in size and rep-

utation. Between the two locations, the Mercantis

have 60 employees and service approximately

5,000 vehicles each and every year. The Mercan-

tis have renovated and enhanced their facilities

to make them more inviting and conducive to

their customers’ needs—and their Gage Avenue

location can now efficiently handle commercial

fleets. They’ve even made a firm pledge to invest-

ing in new technologies like BASF water-based

paints, the latest in digital imaging estimating

software, and developing electronic links with

insurance companies so they can process claims

faster than ever.

Having highly-qualified technicians on staff

is another area where Ontario Auto Collision

CARSTAR really outshines the competition. The

Mercantis’ facilities have received Gold Class Pro-

fessional status from I-CAR for their high level of

collision repair training. (Both locations are look-

ing to achieve the rare Platinum Class by 2014.)

“The driving public needs to know that our facil-

ities will meet and even exceed the new Ontario Col-

lege of Trades requirements of protecting and creat-

ing a public register, ensuring they employ qualified

tradespeople,” explains Sam Mercanti.

It’s all part of the CARSTAR commitment to mak-

ing each vehicle repair an easy and painless process.

“We use dedicated technicians and state-of-the-art

technology to make sure each vehicle is repaired right

the very first time,” Remo Mercanti says. “We want

to get our clients back in their vehicle and back on

the road safely.” AITF

www.oacgage.com


PRoviDeD By ARGoSy PARtNeRS LiMiteD

The Partnership Structure

A s an incoming equity partner, Argosy’s pri-

vate equity funds, The Shotgun Fund and

The Succession Fund, typically buy between 35%

and 65% of the company from selling sharehold-

ers. Although not involved in the operations of the

business, Larry Klar said “that Argosy’s nominees

to the boards of directors add value on matters rang-

ing from strategic planning, review of management

depth and succession to capital structure oversight,

assessment of opportunities and risks, the evaluation

of possible acquisitions, and maximizing value.”

The Succession FundThe Succession Fund buys shares from selling share-

holders in owner-operated businesses, and helps re-

solve family business ownership transition issues.

When business owners want to buy out one or more

of their legacy shareholders, or want to sell some of

their own shares for succession planning purposes,

The Succession Fund facilitates these liquidity ob-

jectives through its “Chips off the Table” solution.

Succession planning should be a deliberate pro-

cess and not a one-time event. Klar said that “busi-

ness owners should realize that the best time to plan

is when you can afford the time to properly evaluate

alternatives and seek input from professional advi-

sors. You ideally never want to be forced to accelerate

your family business succession because of illness,

divorce or death, so it’s always best to plan ahead.”

Business succession planning is an investment

in the future of your company for the owners, em-

ployees and customers. Planning is the key to future

success for everyone whose efforts have helped the

business to grow. The existence of a succession plan

emphasizes your commitment to your company’s

long-term growth, and creates confidence among

shareholders, lenders, employees and suppliers.

What business owners should be considering:You have various alternatives of course, and some

tough questions to answer. Do you want to sell the en-

tire company in due course? Do you want to sell some

now and achieve the rest of your liquidity later? Is it

important to you that ownership remain with family

members or management? Is the incumbent group of

family members or managers even capable of taking

over and managing the business? How will they fi-

nance the purchase, and can they gain the confidence

of lenders, investors, customers and employees?

Most family business owners don’t build their busi-

nesses with selling them as a top priority, but more

should. This involves regularly updating a written stra-

tegic plan for the future priorities and direction of your

business, candidly outlining both strengths and risks,

and creating an organization chart that allows for the

evaluation of those senior managers best qualified to

meet the company’s challenges. Strive to make yourself

replaceable, so the business and managers can grow and

prosper without you.

The valuation and business review process often in-

dicates that some management depth, capital struc-

ture and profitability issues should be addressed

before proceeding, not only to support valuation

expectations, but to have a more saleable business.

Starting succession planning early will ensure an ef-

fective process with due consideration to the many

issues that family business owners face. AITF

Argosy Partners Limited is located at 141 Adelaide Street West,

Suite 760 in Toronto. For more information, call 416.867.8090 or visit

www.successionfund.com or www.shotgunfund.com.

Start succession planning early“Most family business owners don’t build their businesses with selling them as a top priority, but more should.”

www.successionfund.com

www.denningers.com


By JoHN R. McALiSteR ii

K nowing what to do when disaster strikes is some-

thing we all hope first responders are prepared

for without thinking twice. Army commanders spend

weeks and months preparing their soldiers for battle.

They drill, and they practice and they drill some more

until no one has to think too much when they are called

to action—they simply do. If you own a family business

or you are the head of a large public enterprise, you no

doubt have fire drills and other emergency contingency

plans you prepare your employees for just in case the

worst happens. As a business owner, you have countless

numbers of families who rely on your sound decisions

each day to make certain the business continues on a

path of success and growth. And do not forget your

vendors and your customers who have come to rely on

what you produce. They need you too.

It makes no difference whether you are the owner of

a small business with a couple of employees or one who

employs thousands. Every owner I have met thinks

about the same things each day. They all worry about

market share, making payroll, financing the next big

project, etc. As an advisor to business owners for over 25

years, I have heard countless stories of family tragedy

and how many of them not only survived but thrived

through all of the tumult. By now you are probably

thinking of someone you know who owns a business

where a disastrous event took place and what trans-

pired. To some of you who are reading this now, this

type of tragedy has already struck close to home. So

what would happen to your company if this was your

last day at the office for six months due to an accident

or serious illness or worse still, you were killed? Can

you imagine for a moment all the decisions that would

need to be made? For starters, when is the last time you

reviewed the following documents?

Your will and trust agreements.

Your business succession plan.

Your insurance policies—all of them including

property casualty, business, etc.

Have you verified ownership/beneficiary

designations?

Your children’s will(s)—you need to know if you

have been named as a guardian for your minor

grandchildren and if this is still feasible at your age.

Chain of command when you are not around.

Bank account passwords, etc.

Could your business succession plan pass a “fire

drill” exercise? If not, your family, your employ-

In case of emergency…please contact?

ees, and your customers could suffer greatly. I have

helped countless family enterprise owners through

a fire drill exercise to test the strength of their cur-

rent documents, their team, and their family mem-

bers to see if it will stand up against several types of

catastrophic events. A partial list includes:

Divorce of a family member.

Serious illness or disability.

Loss of key personnel (non-family).

Death of a major shareholder.

The idea is to put as much stress on the underlying

issues we are testing as possible so that the owner(s)

can see what works and what fails and how to correct

the problems we have identified.

In one particular instance, a successful construc-

tion company owner of mine asked me to help him

pretend his untimely death to test the planning we

had put in place about a year earlier. When I asked

why he said that a vendor of his whom he had come

to rely heavily upon died suddenly and he was

witness to the company’s downfall due to family

squabbles over—you guessed it—money and control.

When I went to visit my client (I will call him Bob)

we discussed how he thought he wanted this exercise

to play out with his family. Bob said that he wanted to

pretend that he died suddenly and that he wanted the

entire family present (even the two children who aren’t

part of the business). I would be the “master of ceremo-

nies” and he wanted his attorney and CPA to also attend.

No bankers or bonding people would be invited in case

we found some critical flaws to the business continuity

(we did). He wanted this exercise to be as realistic as pos-

sible including sharing all aspects of he and his wife’s

financial situation. I asked him directly if he wanted

everyone present to see everything as this can sometimes

be a risky move. His answer without hesitation was defi-

nitely “yes” because he felt they were all mature enough

to see the details. Bob’s cover was to fly the other family

members who did not live close by for a Monday meet-

ing after a weekend family gathering. Attendance was

mandatory as some very important financial matters

of the family would be discussed.

The meeting started with Bob sitting in his usual

chair in the boardroom and he was the first to arrive

and was not talking or interacting much with his fami-

ly—anyone present could already sense something was

different that day. Mom did not sit next to Bob (this

was pre-planned as well). I informed everyone we were

there to discuss the future of XYZ Construction Co.

because Bob had passed away the night before. I said,

“Although Bob is here today and still very much alive,

everyone is to act as if he had indeed died.” The look in

every family member’s eyes was priceless. Bob’s son

Jeff was being groomed as the successor to XYZ and

had already been gifted some stock. This exercise was

probably the hardest for Jeff that day because his men-

tor was sitting eight feet away and very much alive. As

we began discussing some critical issues Jeff began to

stutter and stammer his way through constantly look-

ing at his mom and then over to his dad. It was painful

to watch and about ten minutes into the discussion

Bob came alive for a brief moment and sternly said

to Jeff that he needed to work through his fears and

relax as this was a test of the emergency system just like

they have to do before one of their building projects is

issued a certificate of occupancy. Bob said nothing else

for another hour. As I watched the events unfold here

I couldn’t help but wonder how many other families

would give nearly anything to have experienced an

exercise like this before a tragic event actually occurred.

We took the time to diagram the estate and where all

of the money would be going and when. The other two

advisors and I were amazed at how attentive everyone

was to the smallest details in the documents. All the

children wanted to make sure their mom would be well

taken care of and no one asked about what they were to

receive because everyone knew how important XYZ’s

survival was to the community.

After the meeting was over and everyone present had

time to reflect upon the exercise, there were some inter-

esting takeaways that I feel are worth mentioning. The

attorney was so impressed with the exercise that he did

the same thing with his law partners so that they could

witness first-hand the power of the words they write for

their clients, and he now does the same type of meeting

with his larger business owner clients. The CPA and I

both solidified our relationship with the other family

members. Bob and Jeff realized that they need to spend

more time together and they agreed to meet for lunch

every Thursday and to have strategy sessions twice a

month. They also determined that they had to stop trav-

elling together in the same vehicle. Bob and his wife were

pleasantly surprised that all of their children wanted

XYZ to succeed due to its tremendous impact on so many

lives. All of the children thanked me and their parents

for the meeting and they said they wouldn’t mind doing

it again every few years—minus their dad pretending to

have died. One of the daughters told me several months

later that this exercise was something she would nev-

er forget and that when her father or mother actually

passed away (hopefully a long time from now) she felt

she would be better able to handle it.

You have spent a lifetime building your business

to where it is today. How would you prefer to be re-

membered? As someone who built a lasting legacy

for generations to enjoy or one who failed to build

the foundation necessary for it to thrive long after

you are no longer around? My hope for your family

is that you want the best for family members you

will never meet, but trust me; they will know who

you were just like other great leaders in history. AITF

John McAlister lives in Roswell, GA (USA). He is president

of McAlister Advisory Group. His practice is geared primarily

to the closely held family enterprise. He may be reached at

[email protected] or 404.276.0628.

FIRE DRILLS


By teD Hoxie

Looking back at 150 years of Beatties’

history is a humbling, and an uplifting

experience at the same time. I am

humbled to be counted among the

remarkable people that have been at the helm of

this organization. It was my privilege to learn from

the best of them, and those lessons have shaped the

course of my life with Beatties. And what a life it

has been! When I step back and take a look at the

company that we’ve created, I’m in awe. The scope,

the sophistication, and the esteem we enjoy in the

community go far beyond anything Lawrence

Beattie could ever have imagined. And best of all,

we did it without changing our core values.

Our culture is rooted in a tradition that stretches

back over a century and a half. The aim of that

tradition is simple. Whether corporate or consumer,

we want our customers to be customers for life. Every

decision we make is geared to that end. We treat

every customer as if he or she is our only customer.

Consistency and honesty are paramount in our

approach. It’s a philosophy that was instilled in me

by Lawrence and Rodger Beattie, and in the tradition

of the people who have occupied the president’s chair

before me. I have made it job one in our organization.

As president you are expected to lead, but in

order to be successful you have to listen as well. I do

a lot of listening these days. Of course you listen to

your customers first. That is a given, but it is my

great fortune to have the most loyal and dedicated

staff you’ll find anywhere. These are the front-line

people. They’re out there where “the rubber meets the

road.” I learn from their experience in the field. Their

good ideas of today become the company policies of

tomorrow. My door is always open to them.

Many of our people have been with Beatties 10, 20

even 30 years. They are more like family than employees,

and that fact is reflected in their team approach and

unswerving dedication to customer service. They are the

backbone of the organization. The success I’ve enjoyed

over the years is traceable directly to them.

Although Beatties is 150 years old, we have

always maintained a Niagara focus. Our association

with many of our customers goes back decades. We

enjoy the familiarity and accessibility of being a

local company. It’s good for our customers, it’s good

for Beatties, and the spin-off for the local economy

is an important bonus.

As countless philosophers have pointed out,

change is a constant. That is certainly true in our

business as we move from supplying paperclips to

everything used in the office.

What remains steadfast and unshakeable is our

practice of treating the customer as we would like

to be treated. Beatties has been doing it for the past

150 years, and it’s what we do best. AITF

Beatties Basics Office Products“What remains steadfast and unshakeable is our practice of treating the customer as we would like to be treated.”

year Founded: 1860 | 1.800.263.4977 | www.beatties.com | [email protected] @beatties_basics | Like Beatties Basics office Products on facebook!

Located: 399 vansickle Road St. catharines

Ted Hoxie, President of Beatties Basics Office Products.

www.beatties.com


Grooming next generation leadersWork on strategy implementation together.

By NeiL SMitH

W hen you consider turning over your company to the

next generation, you hope that they will enjoy growth

of the business and many new successes.

How that will be accomplished is the real question to ask. The answer may

lie in working together now to define the future direction of the company and

working together to implement the plan.

Having a business strategy process that you can complete yourself and keep

current over time gives you the opportunity to make business strategy an

ongoing teaching exercise for the next generation.

In the process to set business strategy you will have the opportunity to

discuss and review the key drivers for success of your business. However, the

best learning opportunity for the next generation is likely to learn how to

implement business strategy. Implementation requires a committed effort

and is where real value is created for the business. Working through the

implementation steps with the new leader can be a valuable experience.

The upcoming leader needs to experience the challenges of growing the

business and dealing first hand with the obstacles to growth and results. It’s best

if they tackle challenges head-on but with guidance as they proceed.

Some of real issues for them may be organizational. These issues can involve

getting each employee to do a good job, to get teams to buy-in to targets and to

get the whole organization to work as one machine with all parts synchronized.

The next generation leader needs to know how to run the business and how

to change it. Learning to use business strategy to direct the company can be

important preparation for them. Work together with them to set strategy and

especially to work through implementation. AITF

Neil is the president and founder of Vector 17 Strategy Advisors (www.vector17-advisors.com) which

helps business owners be hands-on with setting and managing strategy for their companies. Neil was a

business owner for over 25 years and during that time developed a simple and practical strategy

system which is now offered by Vector 17.

www.vector17-advisors.com


By Scott LeSLie

Jason has had a lifelong interest in

technology. So when the time came to

launch his own business in 2000, there

was no question what it was going to be

about. He wanted to be Niagara’s go-to

expert for custom home electronics.

“In the early days, we were dealing with very

basic types of systems,” Jason says, “and there was

just one employee—me.”

But times change, businesses grow and the best

ones rise to the occasion.

Today, Dell Smart Home Solutions has become

Niagara’s leading provider of custom residential

electronics. Its team provides everything from home

automation, home theatre, lighting control and

structured wiring to multi-room audio, in-house

communication and advanced security solutions.

The Dell Smart Home Solutions team also has years

of expertise in several areas including system design,

installation, programming, project management,

and home technology support.

As a member of the Niagara Home Builders

Dell Smart Home Solutions Inc.Dell family firm celebrates over 12 years of providing custom home electronics excellence to Niagara—and beyond.

year Founded: 2000 | 905.684.DeLL (3355) | [email protected] | @dellsmarthome | Like Dell Smart Home Solutions on facebook! | Located: 261 Martindale Road, Unit 2, St. catharines

Jason says. “We also do some commercial work—

usually one of our residential customers that needs

a system installed in their boardroom at work.”

At Dell Smart Home Solutions, Jason is in

charge of sales and business development while his

wife Christine takes care of areas like marketing

and community outreach. And the Dells’ years of

dedication have certainly paid off.

The family now has a full technical team of six

and sports a state-of-the-art showroom and office

location in St. Catharines. In 2008, Dell Smart Home

Solutions was named the Niagara Home Builders

Association’s Company of the Year for the firm’s

dedication to the home building industry.

Jason and Christine are currently hoping to grow

their staff further and develop an even closer bond

with the interior design community. But over the

long haul, they keep looking forward to helping

their clients create the perfect atmosphere.

“It’s just plain fun,” Jason says of their work.

“There can be a lot of beauty in a new house—but

it’s largely passive. A lot of what we do is active

enhancement. By adding a little technology, we can

turn a house into a home and make things more

exciting for everyone.” AITF

From left to right: Sarah Snoei, Daryl Klassen, Christine Dell, Jason Dell, Chris Wiens and Stephen Lamers. Jason Dell, owner of Dell Smart Home Solutions Inc.

Association, Dell Smart Home Solutions works

with electricians, HVAC contractors, landscapers,

architects, builders and interior designers to ensure

the most effective and seamless installations

imaginable. Dell Smart Home Solutions is also a

proud member of the Custom Electronics Design

and Installation Association (CEDIA)—a global

trade association that specializes in planning and

installing custom home electronic systems.

All of Dell’s technicians are fully CEDIA-

certified. Jason says keeping on top of new

developments is critical if they want to succeed in

their industry.

“The technology is changing all the time,” he

explains. “That’s just the nature of the business.

We attend vendor training year round, and each

fall our team goes to the CEDIA Expo so we can

keep up with all the latest developments in home

electronics systems.”

Many of Dell’s client projects take place in the

Niagara Peninsula. But the Dell team routinely

works in the GTA, and has also worked on vacation

properties as far away as the Cayman Islands.

“We mainly work with residential clients,”

www.dellsmarthomesolutions.com


By MoiRA WALLAce

F amilies have unwittingly been in business for centuries, al-

though the landscape has changed for family businesses. Con-

sider the farmer and his family, who would seed, grow and harvest

his crops for sale in the marketplace for income and profit. As society transformed

to an industrial based economy, the family business restructured itself to meet

those needs. With today’s ever changing family structure and economy, it’s not

good enough or even possible to operate the family business based on rules of

tradition with only one breadwinner.

For tax savings, income splitting and investment profit opportunities, all

family businesses should be incorporated, even if only one family member is

directly involved in the business. The sole participating member would hold the

only voting shares and the other family members are issued dividend bearing

shares, which allow for profits to come out of the company and be split for tax

savings. Where more than one family member participates in the company, the

family business should have a shareholders’ agreement, setting out the various

rights and obligations of each voting member.

The shareholders’ agreement should define the roles of participating relatives,

setting out the requirements to be added as a shareholder or to obtain a greater

share in the company, as well as the conditions under which a relative will be

released from the company or the company will be sold or shut down. Other

agreements will need to be drafted including employment, bonus and any share-

holder loan agreements to ensure transparency in the event of a government audit.

The division between the business and family is also important in the event

of a breakdown in the family or business unit, as the company assets, profits

and losses are kept separate and apart from any matrimonial property. The

distinction becomes more relevant as both the family and business grows, when

non-blood relatives are added to the mix and may have a sense of entitlement

or based on their participation, may be entitled to a share of the company. As

changes occur in the business and family structure, the shareholders’ agreement

should be revisited to ensure its contents continue to be applicable and relevant.

Families in business with each other should also document their personal

affairs. It makes little sense to clearly define the business affairs and not have

it reflected in personal documents like pre-nuptial or co-habitation agreements,

wills and powers of attorneys. These documents should define another’s rights

and entitlement to manage and receive the company assets and affairs upon the

occurrence of a predefined event, which may have a different result than what

is legislated in divorce and estates law. Without these documents, even the best

shareholders’ agreement may not protect the company from falling in the hands

of a disowned, disgruntled, disinterested, divorced or non-blood related relative.

Ideally, a family business should survive for generations and be a prosperous

venture for all of its participating family members. The family business can be

a treasure of gold or an albatross around one’s neck. The best way to ensure it is

a treasure is to seek the advice and help of a lawyer, accountant and investment

advisor, who will work together to structure the business based on the specific

nuances of the family dynamics and involvement in the company. A family

business is as unique as the family itself. Legal care should be taken to help

the family business flourish for as long as the bloodline prevails and a family

interest remains in having the company survive. AITF

For all your family business needs, please contact Moira Wallace, BA, MA, LLB, Chief Loophole Advisor

and Notary Public at 905.575.0732, email [email protected] or visit Moira’s website at www.wallacelaw.

ca. You can also follow Moira on twitter @loopholeadvisor.

Law in family business“The family business can be a treasure of gold or an albatross around one’s neck.”

www.wallacelaw.ca


By Scott LeSLie

Whether you’re looking to build

a new home or renovate an

existing one, it can be a

difficult process trying to

find the right builder for the job. You need someone

who listens—someone who can understand your

needs and bring all your ideas to life. You need

Homes by Hendriks.

Working on projects all the way from Oakville

to Fort Erie, Homes by Hendriks is an innovative

builder and renovator, specializing in custom home

construction, additions and renovations, and light

commercial projects.

For years now, Homes by Hendriks has been

built on a solid foundation of hard work and fine

craftsmanship—not to mention honesty, integrity

and dedicated experience.

It all began back in 1961 with a young immigrant

named Arnold Hendriks. Arnold was busy

supporting his family by working at a building

supply store. But long-term prospects were dim and

the young man dreamed of putting his building

talents to better use. Later that year, he did something

about it, establishing Arnold Hendriks Building &

Remodeling, a small one-man renovations firm.

Homes by HendriksAward-winning team of builders and renovators bring over 50 years of passion and integrity to every project.

year Founded: 1961 | 905.563.7681 | www.homesbyhendriks.com | [email protected] @homesbyhendriks | Like Homes By Hendriks on facebook!

Location: 4618 Sandy cove Drive, Beamsville

Arnold’s son Ron would come on board the family

business full-time in 1978, having worked side-by-

side with his father through many summers. Arnold

eventually retired from the family business in 1993.

But Ron and his wife Yvonne would continue to

guide the renamed “Homes By Hendriks” to new

heights. Over the years, the Hendriks’ team of highly

skilled designers, builders and tradespeople have built

some of the finest homes in Ontario and diversified

their operation to include light commercial projects

in their repertoire.

Ron Hendriks has always had a passion for building.

And that spirit of dedication also extends to the Hendriks’

son Darren, who is construction and project director. The

same goes for each member of the Homes by Hendriks

team including Rudi Marinc who has been the Hendriks’

construction manager for more than 20 years.

The Hendriks team is one of the most knowledgeable

builders around—always learning, always updating

their skills through various workshops in order to keep

abreast of changes in the industry. And that dedication

to quality has resulted in dozens of recognitions for

the forward-looking firm including multiple home

builder association awards and Tarion Warranty

Corporation Awards.

As Niagara’s most highly-lauded custom home

builder, the Hendriks family recently celebrated their

50th year in business and continue to demonstrate a

strong belief in the principles of quality, consistency

and integrity that Arnold Hendriks set in motion so

many years ago. And now with the third generation

of the family business firmly in place, the Hendriks

look forward to satisfying their customers’ building

needs for years to come.

At Homes by Hendriks, making their customers

happy isn’t just a way of doing business. It’s a way

of life. AITF From left to right: Darren, Ron and Yvonne Hendriks.

www.homesbyhendriks.com


By Scott LeSLie

Back in 1886, an enterprising young man named Bennison

Pinder bought a small parcel of land at 18 James Street in St.

Catharines for $500 and erected a brick building to house his

new locksmith and repair business. Little did Bennison know

that well over a century later his modest operation would become a leader in

integrated security systems and security hardware.

Family owned and operated for over 126 years, Pinder’s offers a wide

range of services including locksmithing, access control systems, security

safes, video surveillance, wholesale door and hardware supply, high security

key systems and contract hardware. Their staff can handle it all—from lock

changes and repairs to custom doors and frames to auto openers and fire exit

devices to digital locks and intercoms.

Pinder’s is one of the largest independent security companies in Ontario with

a staff of over 40 lock and electronic specialists. Focused on the commercial,

industrial and institutional markets, Pinder’s has worked with everything

from universities and hospitals to hydro facilities and heavy industries.

Pinder’s supplies and services a full range of products including leading edge

technologies in video surveillance, license plate recognition and remote mobile

viewing. Other services include e-security access control electronic products.

This wide range of latest technologies allows all of its customers and potential

clients to create a safe and secure facility and environment.

“We’ve been in St. Catharines for over a century now,” says Greg Pinder,

the owner of Pinder’s Security Products, “but we’re not ones to rest on our

laurels. We have to earn our clients’ business every single day. We have to

be ready for anything.” AITF

Pinder’s Security ProductsThe Pinder family has grown their traditional locksmithing business into one of Ontario’s largest independent security firms.

year Founded: 1886 | 905.934.6333 1.800.263.5768www.pinders.com | [email protected]: 25 Nihan Drive, St. catharines

Greg Pinder and his son Brandon Pinder invite you to visit Pinder’s showroom at 25

Nihan Drive, St. Catharines to view the latest security technologies.

www.pinders.com



The William Douglas Group Manulife Securities IncorporatedBurlington area benefit consulting and financial planning firm has been proudly serving small and medium-sized businesses since 1998.

year Founded: 1998 | 1.888.522.9494 | www.wdg.ca | [email protected]: 101-1005 Skyview Drive, Burlington

Bill McElroy, B.A., C.F.P., CIM, President and Principal of The William Douglas Group and Senior Investment

Advisor at Manulife Securities Incorporated.

By Scott LeSLie

When you need to get your

finances under control, it’s

important to have an expert

in your corner like the

ones at The William Douglas Group—a premier

benefit consulting and financial planning firm

headquartered in Burlington.

Founded in 1998, The William Douglas Group has

a strong focus on serving the financial and corpo-

rate planning needs of the small and medium-sized

business community. Over the years, the firm has

become one of the most highly-esteemed sources

of financial solutions and advice in the Golden

Horseshoe area.

“We work closely with our clients so we can get

a better understanding of their situation,” says Bill

McElroy, president and principal of The William

Douglas Group and Senior Investment Advisor at

Manulife Securities Incorporated. “We help them

make informed financial decisions so they can build

and protect their business—and prepare for the future.”

The William Douglas Group can provide in-

depth assistance with life and mortgage insurance,

key person insurance, buy-sell funding, critical

illness and long term disability insurance as well

as group benefits and pension plans. Manulife Secu-

rities Incorporated offers a wide range of financial

products including stocks, bonds, Exchange Traded

Funds (ETFs), mutual funds, GICs, RRSPs, RRIFs

and LIFs. Manulife Securities Incorporated can

also offer executive financial planning, retirement

planning and succession planning services. Many

firms in today’s market offer a variety of financial

solutions. But the team at The William Douglas

Group has always prided itself on its commitment

to putting their clients’ needs first.

“We’re committed to delivering the very best

group benefit and savings plans available for our

clients,” Bill says. “We strive to provide exceptional

personal account management and professional ser-

vices that are best suited to each company.”

One big reason behind the success of The William

Douglas Group is the firm’s decades of experience in

offering benefit and financial guidance.

Bill has over 20 years of experience; he started in

the financial services business in 1991 and attained

his Chartered Financial Planner designation (CFP)

from the Canadian Institute of Financial Planning

in 1998, and his Chartered Investment Manager

designation (CIM) from the Canadian Securities

Institute in 2013. Over his career, Bill has written

articles that have appeared in numerous business

and industry publications.

At The William Douglas Group, Bill has also

surrounded himself with a highly-qualified team

of individuals including Associate Advisor Tony

Bostock, Office Manager ute Potticary and Execu-

tive Assistant Kaitlynn Reid.

“We have a wealth of expertise in our respective

fields,” Bill says, “and if we don’t offer a service, we

have built a strong team of ‘strategic partners’ that

can. That way, our clients are assured of getting the

best solutions possible.”

With its knowledgeable professionals and complete

range of products and services, The William Douglas

Group has the ability to meet any financial need.

“When it comes to their finances, people need to

know they’re being well-protected,” Bill explains,

“and we’re committed to providing that security

for years to come.” AITF

Manulife Securities Incorporated is a Member of the Canadian Investor Protection Fund.

www.wdg.ca


By DoUG BRUce AND QUeeNie WoNG

T he baby boomer generation of small and mid-

sized business owners is fast approaching re-

tirement. As a result, there is going to be a massive

turnover of business ownership and assets in Canada

within the next decade. A business succession plan

is key to facilitating this process. While about half

of business owners have a succession plan, more

planning is required to ensure a smooth transition

of small business ownership. The value of business

succession planning cannot be underestimated giv-

en that about $1-trillion of business assets could be

transferred to the next generation in the next decade.

Since the recession, one third of business owners with

a succession plan either delayed or accelerated the

date when they expect to leave their business.

IntroductionThe implications of the aging demographic trend

in Canada, and other developed countries, has been

well documented when it comes to pension, health

care and other social policy issues. The phenomenon

of thousands of business owners planning to retire

and transfer ownership of their businesses will have a

major impact on Canada’s economy as a whole. While

a massive transfer of business ownership and assets is

inevitable, Canada is not quite ready for the change.

Succession planning is critical to the business

owner and the small and mid-sized enterprise

(SME) sector. It is a long-term process and not a one-

time event requiring high investment on behalf

of the business owner. Every business succession

is unique. It can significantly affect the future of

Canada’s overall economy and job creation potential

Passing on the business to the next generationSurvey results on small business succession planning.

as three quarters of all businesses in Canada employ

fewer than five employees and more than half of

employed Canadians work for a small or mid-sized

business. Currently, the SME sector contributes ap-

proximately half of the Canadian economy.

Just how prepared are SME owners in succession

planning? Based on CFIB survey data, over half

of SME owners do not have a succession plan (see

Figure 1). About 40% of business owners have an

informal plan. Only 9% of owners have a formal

written plan.

This report addresses current obstacles and op-

portunities to business succession planning. If SME

owners can be better informed and guided through

the process, there are certainly better chances for a

smoother transition.

Business Exit StrategyPrevious Experience with Succession PlanningFor some SME owners, business succession plan-

ning is nothing new. In fact, many SME owners

have been through succession planning if they have

inherited the business through family or have pur-

chased an existing business in the past. One in five

business owners purchased or inherited their busi-

ness from a family member(s) (see Figure 2). Over a

quarter of business owners purchased their business

from previous owners. Out of the business owners

that replaced previous owners, slightly more than

a quarter were involved in a succession plan in the

past (see Figure 3).

However, the majority of business owners (51%)

resorted to starting their business from scratch.

Given that potential business owners may prefer

to start a new venture from the ground up, they

may not consider purchasing an existing business

instead. As a result, business owners will be chal-

lenged in finding suitable buyers.

For SME owners that have either purchased

or inherited their business, about one in five

business owners were involved in an informal

business succession plan. Only 6% of these busi-

nesses were involved in a formal written plan. For

existing business owners, many may still not see

the value of succession planning since they did

not take part in the past.

Almost three in five business owners that have

been involved in a succession plan upon taking own-

ership/control of their business currently have a

succession plan for their business. This is a positive

sign that past business succession planning has been

constructive and aided business owners in carrying

their operations forward.

About half of SME owners who were not involved

in a succession plan with the previous owner now

have a succession plan (informal or formal) for them-

selves. Some reasons why business owners may not

have a succession plan include business owners are

not aware of the benefits of such a plan or lack time

and resources to plan ahead. Those who have decided

to take business succession planning into their own

hands may have learned from past experiences and

realized that proper planning can better position the

business into a sale or takeover upon the exit date.

Current Business Owners with Succession PlansBusiness Exit TimelineClose to half of SME owners plan on exiting their

businesses in the next five years (see Figure 4). This

number has increased dramatically from 2006 when

more than one third of businesses were in the same

position. This shift can be explained mostly by the

fact that business owners have aged and that their

exit date is now that much closer on the horizon. The

majority of business owners that plan on exiting in

the next five years are typically those in business for

at least 11 years and those aged 50 and over.

Looking ahead ten years, slightly more than

three quarts of owners intend to exit their business.

To put this into perspective, Canada’s SME sector

will face a massive transfer of business assets—about

$1-trillion—to a new generation of owners. Business

succession planning is the one way to ensure that

this substantial transfer of wealth takes place effec-

tively and promotes a strong business sector.

Reasons for Exiting BusinessOver four in five SME owners will exit their busi-

ness due to retirement (see Figure 5). The difficulty

in selling off a business is problematic since most

business owners rely on the sale of their business

as the main source of retirement income. Another

13% of business owners (mostly those under the age

of 50) plan on moving to another business venture.

“The value of business succession planning cannot be

underestimated given that about $1-trillion of business assets

could be transferred to the next generation in the

next decade.”


Tax considerations 60%

Required qualifications and skills of your successor 56%

Legal considerations 49%

How the successor will be trained/prepared for the role 46%

Mechanics for the purchase or transfer 45%

Roles of other key members of the business during transition 40%

A timetable (e.g. date of official transfer) 26%

Financing for the successor 43%

Process for selecting successor 25%

Process for resolving disputes during the transition 16%

Method of Exiting BusinessAlmost half of SME owners plan on selling to a buy-

er or buyers unrelated to them (see Figure 6). Over

one third of them intend on selling or transferring

to their family members. About 5% of business own-

ers will wind down their business while another 5%

of business owners do not have a plan. ultimately,

business owners will need help finding potential

buyers since the majority plan on selling to an out-

side buyer. Similar assistance is required for those

passing their businesses on to family members.

Details of Succession PlanA succession plan helps business owners deal with

complex topics (see Figure 7) such as tax issues (60%),

require qualifications and skills of successors (56%),

legal issues (49%), how the successor will be trained/

prepared for the role (46%), and mechanics for the

purchase or transfer (45%).

Formal business succession plans serve an im-

portant purpose which cannot be replaced by infor-

mal plans. Critical issues such as tax or legal matters

should be addressed in written form and reviewed

by professionals. Such details if left unformalized

can be detrimental when the business owner leaves

the business unexpectedly.

Compared to informal plans, formal written

succession plans tend to incorporate more fre-

quently issues that include mechanics for the

purchase or transfer of a business, a process for

resolving disputes during the transition, and a

timetable. While formal succession plans are able

to help business owners prepare for many of the

obstacles upon exit, business owners must con-

tinue to actively monitor and assess their plans

to ensure they remain relevant and timely. It is

essential that business owners revisit their plans

regularly to incorporate changes in personal or

business circumstances. AITF

Doug Bruce is the vice-president of research and Queenie Wong is

a senior research analyst for the Canadian Federation of Independent

Business (CFIB). For more information about the CFIB, please

visit www.cfib-fcei.ca.

Figure 1Existence of business succession plan by current business owner (% response)

No 51%

Yes, a formal written plan 9%

Yes, an informal plan

40%

Figure 2How business owners acquired ownership/

control of current business (% response)

Purchase from family member(s)

14%

Transferred from family member(s) 6%

Spun-off from another business 3%

Purchased from previous owner(s)

26%

Started business from scratch

51%

Figure 3Existence of business succession plan by

previous business owner (% response)

No 59%

Yes, a formal written plan 6%

Don’t know 14%

An informal plan (i.e. unwritten) 21%

Figure 4Expected business exit date (% response)

Don’t know 6%

In the next 1 to 5 years 38%

In the next 6 to 10 years 29%

Within 12 months 10%

More than 10 years from

now 17%

Figure 5Reasons for exiting business (% response)

Retirement 85%

Move on to another business venture 13%

Other 6%

No suitable successor 6%

Business is not profitable enough 5%

Start full-time employment elswhere 2%

Don’t know 2%

No potential buyer 3%

Figure 6Methods for exiting business (% response)

Transfer to family member(s) 19%

Sell to family

member18%

Don’t know 5%

Other 5%

Wind down (close) the business 5%

Sell to buyer(s) unrelated to my

family 48%

Figure 7Succession plan details (% response)


Peninsula Flooring Ltd.Family owned and operated flooring company has 50 years of fulfilling its customers’ flooring dreams.

year Founded: 1963 | 905.468.2135 | www.peninsulaflooring.ca | [email protected] Location: 13 Henegan Road, virgil

By Scott LeSLie

People are always looking for a way to

improve the value of their homes—

and number one on their list is often

having a beautiful new floor. At Pen-

insula Flooring in Virgil, its professional team is

proud to help their customers realize their flooring

dreams quickly, easily and affordably.

Originally founded by Sieg Wiens back in 1963,

Peninsula Flooring is owned and operated by Lloyd

Redekopp and John Dyck. Serving residential and

commercial customers throughout the Niagara and

the Golden Horseshoe areas, Peninsula Flooring is

also a member of FloorsFirstTM—Canada’s largest

association of independent floor covering stores

which has been in business since 1938.

Lloyd says their customers are guaranteed to find just

what they’re looking for in terms of price and variety.

“We have one of the largest selections of carpet,

area rugs, ceramic tile, hardwood, vinyl, laminate

and cork flooring around,” he explains. “Our show-

room has over 8,000 square feet of carpet and floor-

ing on display from brand names like Interface,

Centura and Olympia Tile.”

Peninsula Flooring prides itself on their years of

expertise in the flooring industry and their ability

to serve their clients’ every need.

“At Peninsula Flooring, we understand that floor

covering and upholstery purchases are an important

investment and the finishing touch to any home,”

Lloyd says. “We take the time to discuss all our cus-

tomers’ decorating and product requirements. After

determining their needs, we’ll offer expert recom-

mendations to best suit them and their budget.”

Throughout its long history, Peninsula Flooring

has developed a strong reputation for always doing

that little bit extra for their customers. For instance,

their staff offers free in-home consultations and

quotes as well as free shipping to locations through-

out Niagara. They even provide after-sales service

on all the products they offer.

According to Lloyd, the Peninsula Flooring

team is a close-knit group of friends, family, and

partners, working together toward a common goal

of providing exceptional service to its customers.

With 10 installers—each one with over 15 years of

experience—and four decorators to help out with

colour and product selections, customers can expect

only the best from these flooring industry experts.

“Our sales staff in our showroom has a real

knack for understanding our customers’ needs and

ideas for their homes,” Lloyd says. “They have a

remarkably good ability to help people pick out

just the right flooring and colours to suit their

preferred décor.”

Experience and reliability have been two of Pen-

insula Flooring’s most important principles right

from the very beginning. However, Lloyd feels their

staff commitment to satisfying each customer is the

real reason behind their ongoing success.

“Most of our business comes through word of

mouth,” he says, “and that speaks volumes about

the quality of the products and service we offer

here. We’re committed to bringing new life to our

customers’ floors and you can really see that in the

final product.” AITF

From left to right: John Dyck, Michelle Neudorf, Lloyd Redekopp, Wendy Janzen and Samantha O’Brien.

www.peninsulaflooring.ca


C.R. Smith FinancialLeading financial services firm has a long history of serving its clients and the community.

year Founded: 1974 | 905.687.4063 | www.smithfinancial.ca | [email protected] Location: 502 80 King Street, St catharines

Doug Smith with his father Chuck Smith.

By Scott LeSLie

CR. Smith Financial has been serving

Ontario’s financial services needs

for nearly four decades—and that’s

a family tradition that sits well with

Doug Smith, the company’s owner and operator.

Specializing in employee benefits, life, critical

illness and disability insurance, as well as wealth

management, C.R. Smith Financial has been

providing personalized, results-oriented service

ever since the company was first established by

Doug’s father Chuck back in 1974.

“We provide exemplary service and security

based on a foundation of integrity, dependability

and progressiveness,” Doug says. “There is no better

feeling than knowing that our clients are happy

with our efforts and our contribution will allow

them to enjoy a sound financial future.”

Born in Peterborough, Chuck moved to St.

Catharines with his family in 1968. Back then, he

worked as a financial centre manager for Mutual

Life before deciding to launch the Charles R. Smith

Insurance Agency. Initially dealing in life insurance

and guaranteed interest / annuity products, Chuck

began diversifying into the group benefits market.

After graduating from Wilfrid Laurier

university and working independently for

two years, Doug decided to continue the family

tradition and joined his father’s agency in 1989,

purchasing half of the business in 1992.

“It was a dream come true working with my dad,”

Doug says. “I grew up around the business so I lived

the pros and cons of the business. There were lots of

evening appointments, lots of 60-hour work weeks.

But there was also the freedom of flexible hours and

knowing you were rewarded for hard work.”

Throughout its history, C.R. Smith Financial

has maintained its fundamental ideals of

trustworthiness, stability and consistency. But

serving the community is another big part of the

firm’s successful philosophy.

“My father taught me the importance of helping

others in need,” Doug explains, “and I’m always

proud to give back to our community. Our firm

has sponsored dozens of local teams and sporting

events over the years—from old-timers hockey to

men’s basketball.”

Doug’s biggest investment in the community is the

Wise Guys Charity Fund—a group of local business

people that raise funds for various worthwhile causes.

Founded by Doug and his father over 20 years ago, the

Wise Guys Charity Fund holds a week of fundraising

events each July. In 2013, the charity will surpass over

$2-million raised which has been donated to dozens

of local charitable organizations.

Doug’s father Chuck retired from the family firm

in 1997 and stepped down from managing the Wise

Guys Charity Fund in 2001, although he remains the

honorary chair. But Wise Guys continues to be a family

affair in more ways than one. Doug’s sister Kerry Fast,

niece and nephew Ally and Jay, and sons Thom and

Alex, have all become active in the Wise Guys cause.

Doug says his sons may be taking on a role in

the family firm somewhere down the road. In the

meantime, C.R. Smith Financial looks forward to

looking after its clients’ needs and delivering the

best service possible.

“When it comes to their finances, people need to

know their future and their families’ well-being are

protected,” Doug says. “We’ll continue providing

that security and exceeding our clients’ expectations

for years to come.” AITF

From left to right: Debbie Pratt, Doug Smith and Cindy Haines.

www.smithfinancial.ca


Most people would be surprised, if not shocked, to learn that an estimated 80% of all businesses worldwide are family-owned and

operated and account for a whopping 70-90% of global GDP1. Alarmingly, recent studies suggest that owing to the aging of the baby-boomers, half of all family businesses will transition to the next generation within

the next five years. Needless to say, if these transitions are not handled properly the impact on the Canadian economy could be profound.

Family businesses involve a unique and complex interplay of family, management, and ownership which presents both opportunities and challenges, and sometimes conflict, particularly as successive generations get involved in the business but have

divergent goals, values and expectations. These issues can be difficult to manage, especially when transitioning the business from one generation to the next.

For the past 30 years, the Canadian Association of Family Enterprise (CAFE) has been helping business families manage these challenges. One of the key benefits CAFE offers is participation in Personal Advisory Groups (PAGs) which consist of 8–12 members from other family businesses who meet monthly to share peer support, experience and advice in an atmosphere of strict confidentiality. In addition to the PAG experience, CAFE offers a variety of educational programs and resources, online forums, workshops, seminars, special events and a national conference all designed to school members on family business best practices.

If business families implemented only a few best practices, their chances for successful transition would be greatly improved. CAFE advocates using regular family business meetings and/or family councils to promote communication, and a board of advisors or independent board of directors to give the family access

to impartial expert advice. AITF1 Family Firm Institute, Global Data Points

year Founded: 1983 | 905.337.8375 1.866.849.0099 | www.cafecanada.ca | [email protected] @cafecanada | Location: 465 Morden Road, Suite 112, oakville

CAFEHelping Business Families Succeed

Canadian Association of Family Enterprise

CAFE headquarters in Oakville. From left to right: Sheila Simms, Office and Communications Coordinator; Emma Ramos,

Managing Director CAFE Central Ontario; Lorraine Bauer, Managing Director; and Paul MacDonald, Executive Director.

www.cafecanada.ca

www.cafecanada.ca


CAFE Central Ontario – Helping Business Families Succeed!

In 1983, a group of family business own-

ers formed a network of fellow owners/

participants to help one another meet

the special challenges faced by fami-

ly enterprise, through the exchange of present

knowledge and past experience. Recognizing that

other businesses could benefit from a similar ex-

perience, the Canadian Association of Family

Enterprise was formally constituted on Decem-

ber 12, 1983, a not-for-profit association with 15

founding directors. Thanks to the dream, wis-

dom and commitment of our founders, CAFE has

grown to consist of 12 chapters stretching from

the coast to coast.

Today, CAFE Central Ontario provides ser-

vices, resources and support to those involved in

family enterprise in the Golden Horseshoe area.

Membership includes both extended business

families and the advisors that counsel them.

Our members benefit from three levels of

shared experience:

Individual experience through online resources:

Thanks to our advisory members, CAFE has been

amassing articles, papers and case studies. These

together with archived newsletters make up the

bulk of education and information materials for

business families. These are supplemented by a

growing number of videos and webinars—available

only to members.

Probably the most common challenge family

business members face is isolation—it is often

difficult to discuss problems with other family

members, and those outside family business

often don’t understand the unique dynamics of

family enterprise.

CAFE’s Personal Advisory Groups (PAGs)

meet this challenge head on by providing an

unparalleled opportunity to discuss succession,

business management, strategy, and family is-

sues with other members of family businesses.

CAFE regularly facilitates and hosts workshops,

seminars, and webinars featuring the industry’s

foremost family business experts and advisors.

Through engaging presentations and interactive

discussions, a wide range of complicated topics

are covered such as succession planning and

implementation, taxation issues and financing,

family law and estate planning, ownership tran-

sition, selling the firm outside the family, family

conflict and rivalry, and conflict resolution and

mediation. AITF

The Family Business Forum: A Short Talks Half Day Conferencetwice a year, cAFe celebrates family business by sharing personal stories and a comprehensive agenda geared to our audience of family business leaders. Speakers are all leaders in current trends and best practices in the field of family enterprise.

To learn more visit: www.cafecanada.ca/forum.

www.cafecanada.ca/forum


By LoiS LANG, PSy.D.

W hen it comes to family business succession

planning, one thing is certain: Most family

business leaders don’t do it, they don’t do it well, or

they wait to do it until it’s too late. While the CEO

longevity in non-family businesses is an average of

six years for a family owned businesses, CEOs tend

to stay for 20 to 25 years.

Sure, that long tenure contributes to leadership

stability and consistency, but it can also fuel flat

growth, narrow business focus, and decreasing lead-

ership drive. Additionally, when the CEO and other

top level executive family members do not step aside

in a timely manner, it causes a high level of frustra-

tion in the next generation who is ready to charge

forward and make their mark. Once it becomes clear

that the children might reach their mid to late fifties

before taking over, it becomes hard to hold on to the

ambitious ones. That’s why all family businesses need

to have a solid succession plan in place—one that helps

the senior generation leave with ease and welcomes

the well-prepared next generation.

While succession planning can happen at any level

within the organization, we commonly think about

the top five to eight key positions for a written, struc-

tured succession plan. So, as you plan your company’s

future leadership, keep these points in mind.

1 Think beyond seniority. Many family business

executives choose their future leaders based on

seniority (i.e. “She’s the oldest, so she will be our next

CEO.”). In some families, the next in line is the oldest

male. Of course, a single owner can make the easy

Who gets dad’s office? Five tips for family business succession planning

decision to pass the business leadership to the child

of their choice. But this “easy” choice can backfire if

the adult child or the one with the most seniority has

not gained respect from other family members and

employees. In other words, often the easy choice or the

obvious choice isn’t the best choice. Therefore, be open

to broadening your search beyond the next of kin.

2 Embrace a more professional process of skill

evaluations, performance assessments, and

reviews of career history. The more thoughtful,

objective, and inclusive the process of bringing on

the next leader is the more likely that the transition

will be embraced. Succession readiness calls for a

written transition plan and an individual devel-

opment plan for the future CEO within three years

of the planned succession date. Implementation of

the plan may involve identifying other executive

team members with succession needs, building a

coaching plan, and providing stretch assignments

in different functional areas of the company.

3 Rank possible successors based on key criteria.

Rather than just appoint the next oldest family

member to the leadership role, consider creating a list

of all the possible successors and rank them from 1 to

10 (with 10 being high) in each of the following areas:

Past work experience and advancement history

Education

Geographic mobility, if appropriate

Learning agility

Prior leadership positions—size and scope of lead-

ership responsibilities

Advancement potential

Advancement desire

Interpersonal skills

Assessment of the individual compared to the

company’s values and leadership competencies

Past performance ratings

The ability to take risks

Decision-making ability

Problem-solving ability

Doing this for each potential successor will help you

see which ones are best positioned to move the com-

pany forward. Finding a successor with the right

mix of skills, attitude, drive, character, and expe-

rience that matches your business will ensure the

family company succeeds for the long term.

4 Groom the next generation. Once you have a suc-

cessor in mind, offer him/her additional devel-

opment through such things as job rotations, stretch

assignments, additional profit and loss responsibility,

and additional exposure to board members and cus-

tomers. The more emphasis you place on prepping

the next leader, the smoother the transition will be.

5 Consider a non-family leader. When a family

business member utters the words, “Let’s con-

sider a non-family CEO,” the first reply is usually

a colourful “no!” However, a non-family CEO fre-

quently brings diverse, in-depth experience to drive

business growth, bringing professional alliances,

partnerships, and strategy opportunities. They can

be a great mentor for the next generation of family

leaders—often then known as a “bridge CEO” from

one generation to the next. While the family may

hold all the stock, it is critical to develop a perfor-

mance incentive that will reward and retain the

non-family CEO and an employment agreement

that will fairly treat and protect the CEO.

Choose who’s nextThoughtful on going planning for succession is a

must for long-term business success and sustain-

ability. Therefore, start now. Develop a clear plan

about the succession of senior leader positions in-

cluding who will be next, when the transition will

take place, and how that successor will be groomed

to make the move smoother. The more planning

you do now, the better the future will be—for you

and your family business. AITF

Lois Lang is a speaker and consultant with Evolve Partner Group,

LLC where she helps organizations become high performance

workplaces. Lois works with clients on management succession

readiness, organizational/team strengthening, executive coaching,

executive compensation design, wage studies and mediated conflict

resolution. For more information on Lois’ speaking and consulting,

please visit www.evolvepartnergroup.com or contact Lois at lois.lang@

evolvepartnergroup.com or 209.952.1143.


By Scott LeSLie

When you’re dealing with a

premier homebuilder like

Mountainview Homes, you’re

not just another number in a

production line—you’re number one.

For over three decades now, the Bascianos have

worked hard to make Mountainview a force to be

reckoned with in the local homebuilding industry,

constructing more than 4,000 homes throughout

the Niagara Peninsula—everywhere from Fort Erie

to Grimsby to Kitchener-Waterloo.

In addition to its new home division, Mountain-

view has expanded its operation to include a full-ser-

vice construction and property management compa-

ny. Mountainview is also the only builder in Niagara

with a Design Centre. More recently, Mountainview

renovated and re-launched the now renamed “Design

House”—a 3,000 square foot facility where homebuy-

ers will find an endless supply of home design ideas

and accessories—all in one convenient location.

Led by President Mark Basciano and Operations

Manager Mike Memme, Mountainview has been

recognized time and again for its commitment to

excellence. In 2012 for instance, Mountainview

won the Avid Ratings Award for being among one

of the top builders in Canada in terms of customer

year Founded: 1979 | 905.688.3100 | www.mountainview.com | [email protected] @mountainviewhms | www.facebook.com/mountainviewhome

Located: 3350 Merritville Highway, Unit 9, thorold

Mountainview Homes Family-run homebuilding company has been a leader in design, innovation and service for more than 30 years.

satisfaction. The company won three Awards of

Distinction at the Niagara Home Builders Associ-

ation’s 2012 Awards of Excellence. Mountainview

was also named Ontario Home Builder of the Year

by the Ontario Home Builders’ Association in 2007.

The Bascianos have always been firm believers in

giving back to their community. That’s why Moun-

tainview has built a solid reputation as “Citizen of Ni-

agara.” A strong supporter of Niagara College, Mounta-

inview has also made major contributions to countless

local causes and non-profit agencies over time.

The homebuilding industry has changed a great deal

over the years. But the Basciano family remains true

to the same principles that have guided them from the

very beginning. Design, innovation and service have

all become hallmarks of the Mountainview operation.

And Niagara homebuyers can rest assured they’ll

experience those qualities and more—when they

hire the Mountainview team to make all their

homebuilding dreams a reality. AITF

Mountainview Homes President Mark Basciano and Operations Manager Mike Memme.

www.mountainview.com


Rain Tree RoofingFamily owned and operated roofing firm brings a new perspective to each roofing job.

year Founded: 1989 | 905.510.4366 | www.raintreeroofing.ca | [email protected] Located: 2186 Mountain Grove Avenue, Unit 220, Burlington

By Scott LeSLie

Carmen Johnson spent many years

working in the service industry,

waiting on her customers’ needs.

But she’d always wanted to find a

career that would fuel her creativity and still allow

her to take care of people. The answer was “Rain

Tree Roofing”—a professional roofing business she

launched in 2008 with the aid of husband, Darrell, an

accomplished roofing and renovations entrepreneur.

Rain Tree Roofing specializes in roof removal,

repair and remodeling. Based in Burlington, Rain

Tree Roofing has served customers throughout

the Golden Horseshoe area including Mississauga,

Burlington, Stoney Creek, Hamilton and Ancaster.

The firm can handle soffit, fascia and eaves work

as well as skylight, window and door installations.

The Rain Tree Roofing team has over 25 years

of combined experience in the residential roofing

and renovations industry. But Rain Tree Roofing

is not your average roofing company. Each crew

member goes out of their way to be clean, polite

and professional while offering a high quality of

workmanship. Carmen prides herself on being

hands-on with her customers, often supervising a

job or checking with a homeowner months later

to see how they’re making out with their new roof.

Fully insured and licensed, Rain Tree Roofing is

never afraid of doing that little bit extra, whether it’s

laying down plywood to protect gardens and railings

or reducing and recycling site waste. All installations

come backed by a 10-year workmanship guarantee,

over and above all standard product warranties.

The Rain Tree Roofing team is dedicated to

their work, and it shows. Over 90% of their business

currently comes through referrals. And it’s a customer

commitment that will never change. AITF

Carmen Johnson, owner of Rain Tree Roofing with her team of specialists.

www.fruitlandmanufacturing.com

www.raintreeroofing.ca


By Scott LeSLie

Back in 1914, Thomas H. Critelli, with

the help of his father, Joseph, opened

a modest grocery and hardware store

in downtown Thorold. But it was the

furniture end of his business that would fuel Thom-

as’ passion—and create a Critelli family legacy for

years to come.

Today, Critelli’s Fine Furniture is located in St.

Catharines, and boasts one of the widest selections of

collector quality furniture and home accessories in

Ontario. With five floors of showroom space, Critel-

li’s offers many of the most respected names in the

furniture industry—brands like Stickley, Hancock

& Moore, Stressless, and Henredon—not to mention

a full interior decorating service, and a world of fab-

rics and leathers to choose from.

Joe Critelli, owner and president of Critelli’s, says

clients can be overwhelmed by all the choices at first.

However, Critelli’s furniture experts have a wealth

of interior design experience to help guide people

through their selection and purchase.

“Our sales and design team are respectful and

eliminate things that aren’t right for their clients,”

Joe says. “Our staff helps pick out furniture like it’s

Critelli’s Fine FurnitureThe Critelli family has dedicated itself to providing Ontario with the ultimate in fine-crafted furniture.

year Founded: 1914 | 905.684.8108 | www.critellifurniture.com | [email protected] Location: 126 King Street, St catharines

going into their own homes.”

Joe says their clients are often underwhelmed

by the sameness and lack of quality they find

at many of the large furniture chains. Shoppers

won’t have that same experience with the Critelli

family. At Critelli’s, their furniture inventory

is sourced from trusted manufacturers across

North America, and imported from as far away as

Norway, Italy and Vietnam. The bulk of Critelli’s

merchandise is also handmade, built by expert

craftsmen who’ve dedicated their lives to making

collector quality furniture.

“People are always telling us they’ve handed our

furniture down to their son or granddaughter,” Joe

says. “Our handcrafted furniture is built to last a

lifetime. We’re very green in that sense. You won’t

find our furniture in a landfill any time soon.”

Joe feels his family’s dedication to qualities like

comfort, design, durability and fine craftsmanship

has helped set Critelli’s apart from the competition

for decades.

“Every single day, we get to work among beauti-

ful things,” he says, “and some of the finest brands

available. The industry in general is price driv-

en—but that’s not the case with us. We’re style and

value driven.”

Next year, Critelli’s Fine Furniture will be cel-

ebrating its 100th year in business. But there have

been many changes since the day Thomas Critelli first

opened his doors. In recent years, the Critelli family has

continued to expand its show space and even launched

Transitions: New Lifestyle Furniture by Critelli—a

contemporary furniture store operated by Joe’s sister

Misette, and located just moments away. Critelli’s also

has two websites at www.critellifurniture.com and

www.transitionsfurniture.com where clients can

browse the company’s brands at their leisure and

enjoy a convenient pre-shopping experience prior

to visiting their stores.

As time goes by, there’s been talk of the Critelli

children joining the family business somewhere

down the line. But for now, the current generation

is focusing their attention on providing the best

possible service to their clients.

“Our clients have very discriminating tastes,”

Joe explains, “and we’re passionate about finding

just the right furniture for them. We give them the

opportunity to really express their own personal

style—and we’re dedicated to meeting and exceeding

their expectations.” AITF

www.critellifurniture.com


By coRey MiLeS BAcc., c.A., c.B.v.

T here are a number of circumstances which

lead to the need for an independent business

valuation. These include the purchase and sale of

the business, obtaining financing, the transfer of a

business to the next generation and litigation such

as shareholder and matrimonial disputes.

With the demographic of society changing due

to the aging of baby boomers, we are seeing more

retirements of the entrepreneurs who have started

these businesses, leading to an expanded need for

succession planning. In order to avoid potential con-

flict with the Canada Revenue Agency, a business

valuation should be prepared under the standards

of the leading authority in Canada, the Canadian

Institute of Chartered Business Valuators.

There are a number of different techniques used

in valuing a business, as no two situations are identi-

cal. The three that we will touch on are asset based,

income based and market based. In each situation

it must be determined which methodology is to be

used to arrive at fair market value.

The first method we will discuss is the asset-based

method. This can be done on either a going con-

cern basis or a liquidation basis. The asset-based

approach will often be used when a business is not

generating a significant return on the underlying

assets of the business, which could be a situation

with a farm that is operating on land with a value

that is much greater than the profit being generat-

ed. This method is also used in a situation where the

business is losing money and unable to continue,

resulting in the use of a liquidation approach.

The basic premise of the asset-based approach

is that the value of the business is the fair market

value of the assets less the fair market value of the

liabilities. Liquidation calculations will also incor-

porate the costs of disposition and other profession-

al fees required to wind up the company.

An income-based approach can incorporate a

number of different methodologies. Those used will

depend upon the situation surrounding the entity

being valued. In the case of a start-up company that is

experiencing fluctuating cash flow from year to year,

a discounted cash flow approach will likely be used.

This is done as there are not stable cash flows to which

you can apply a fixed multiple, so the projected cash

flow of the company is present valued to determine

the total worth of the company at the valuation date.

If the company has had stable earnings that are

expected to continue into the future, a capitaliza-

tion of earnings, cash flows or earnings before inter-

est, taxes, depreciation and amortization (EBITDA)

may be employed. The multiple applied will vary

based on certain factors such as industry, geographic

region or other company specific factors. Gener-

ally, if there is less risk and/or a greater potential

for growth, there will be a higher multiple applied.

The market-based approach has limitations

when it comes to privately held businesses as there

are generally not a lot of comparable company

transactions available. It is much more commonly

used in valuing public companies due to the avail-

ability of information. In its simplest form, this ap-

proach looks at the current business and compares

to other businesses that are similar in nature and

the amounts that they transacted for.

These methods are not used in isolation and the val-

uator will often use a combination of these, in conjunc-

tion with certain rules of thumb from the industry, to

determine the value of the business. AITF

If you have further questions regarding business valuations, please feel

free to contact Corey Miles or another financial services specialist at

Durward Jones Barkwell & Company LLP.

Corey Miles, BAcc., C.A., C.B.V., is a chartered accountant with

Durward Jones Barkwell & Company LLP, located at 69 Ontario

Street in St. Catharines. For more information, call 905.684.9221

or visit www.djb.com.

Independentbusinessvaluations

www.thematcomgroup.com


Lincoln Hearing ClinicHusband and wife team providing personalized hearing care to the West Niagara community.

year Founded: 2010 | 905.563.HeAR (4327) | www.lincolnhearing.ca | [email protected] @lincolnhearing | www.facebook.com/lincolnhearingclinic

Location: 4413 ontario Street, Suite 103, Beamsville

By Scott LeSLie

In the spring of 2010, Jerry and Lorraine

Laufman were looking for a change. For

several years, the couple had been work-

ing for a hearing clinic franchise. But the

small chain had developed into a big corporation

and sales targets—rather than service—were becom-

ing the norm.

“It was really getting away from serving the pa-

tients’ needs,” Jerry explains. “Lorraine and I wanted

to get back to basics so we could give our patients the

personal treatment they deserve.”

The answer? Jerry and Lorraine decided to launch

the Lincoln Hearing Clinic that November.

Located in Beamsville, Lincoln Hearing Clinic is

a full-service hearing centre offering a wide variety

of hearing services including hearing aid prescrip-

tions, audiological services, hearing aid sales and

repairs, ear wax removal, custom noise protection,

aural rehabilitation, counseling and industrial

audiology. The Laufmans provide hearing tests to

people of all ages.

When it comes to inventory, the Lincoln

Hearing Clinic stocks hearing aid batteries and

accessories, ear molds, swim plugs, musician ear

plugs, monitors and industrial noise protection

as well as FM systems and Bluetooth accessories.

Family owned and operated, the Laufmans’ clin-

ic has become a real breath of fresh air to themselves

and their patients alike—for a number of reasons.

The hearing aid industry has changed dramati-

cally in the past several years. Many hearing clinics

are owned by hearing aid manufacturers. As a result,

many clinics promote their own hearing aid brands

which can reduce the patient’s selection of hearing

products. That’s not the way the Laufmans work. At

the Lincoln Hearing Clinic, they carry all makes and

models of hearing aids. Hearing aid selection is based

on the patient’s hearing loss and lifestyle needs.

“We’re an independent family business so we’re

not tied down to a particular brand,” Lorraine says.

The Laufmans are always hands-on when it

comes to serving their patients—and that’s some-

thing they take great pride in.

“With a lot of chains, appointments are only al-

lowed to go on for so long,” Jerry says. “At our clinic,

we provide as much time as the patient deserves. We

can come right to their home to service them. That’s

something you just don’t see anymore.”

Experience is another area where the Laufmans

really shine. A registered audiologist, Jerry has been

providing audiology and hearing aid services at hear-

ing clinics and health care centres across Niagara for

over 20 years. Jerry has also worked for years as a mu-

sician, giving him a more well-rounded perspective

when he’s treating his patients’ hearing concerns.

Lorraine has a strong background in the hearing in-

dustry herself, having worked as a regional trainer in

the hearing aid sector and taken extensive training in

customer service and office management.

Hearing aids in Ontario are a regulated device,

which ensures consistent hearing aid prices at all

hearing clinics. And the Laufmans say that regula-

tion enables the Lincoln Hearing Clinic to compete

with the biggest of them.

“We can match their price,” Lorraine says of their

competition, “but they can’t match our service.” AITF

Co-owners Jerry Laufman, B.A., M.A., Reg. Audiologist, CASLPO; and Lorraine Baker-Laufman, Clinic Manager.

www.lincolnhearing.ca


Common disputes among family business owners

By cARoLiNe e. ABeLA

T hose involved in a family business

face a unique set of obstacles and

responsibilities not encountered in other

areas of the business world. Addressing those obstacles,

while maintaining and nurturing familial relationships,

can be a challenge. This article highlights some frequent

disputes or obstacles encountered in family businesses

which can result in litigation.

Unfair compensation in relation to contributions madeunfair compensation or no compensation is a common

complaint in family business disputes. It is also not

uncommon for a family business to be used like a bank

account for family members’ expenses. In order to avoid

disputes regarding compensation, it is important to keep

salaries and job qualifications separate from monies re-

ceived as a shareholder.

Shareholder wanting out of the family businessEveryone has special talents and qualities; however, not

everyone can, or should be, the president of the family

business. Dividing ownership in a business equally among

family members regardless of their interest in the compa-

ny or their competencies often results in unhappiness and

litigation. Such shareholders are owners in the business not

by choice or hard work but by obligation. Conversely, it

is unfair for those who make contributions and dedicate

themselves to the business to receive amounts equal to their

siblings. Control of the business should be given to those

desiring involvement in, and who are committed to, the

continuation of the family business. Although an even split

will prevent your children from thinking you favour one

child over the other, there are other ways to provide equal

distribution of worth without jeopardizing familial peace.

Favouritism of the matriarch or patriarch towards an adult childPower and money are key motivators in family disputes;

however, years of perceived preferential treatment of one

child over another is a recurring issue underlying litiga-

tion. A shareholders agreement can provide a mechanism

for a resolution when there are disagreements. A provision

for alternative dispute resolution, such as mediation, can

help facilitate a settlement while preserving the ongoing

relationship of the family. Although the mediation will

not necessarily solve the underlying issue in the litigation,

it does provide a forum for family members to be heard,

which is ultimately what is needed.

Not receiving financial or other information in the family businessShareholders commonly complain that they do not receive

financial or other information regarding the family busi-

ness. This can lead to feelings of resentment. However,

typically, the business was run in such a manner for

years. It could also be that certain classes of sharehold-

ers are not entitled to receive certain information. A

shareholders agreement can provide a list of the types

of documents and information that are required to be

disclosed to shareholders.

Spousal DisputesAnother source of disputes is when a spouse or ex-spouse

becomes an unwanted partner in a family business. A solu-

tion is for a shareholders agreement to contain a limitation

on share transfers. Alternatively, a marriage contract that

focuses on the family business shares is important in order

to avoid disputes.

The above disputes can result in litigation. The available

court remedy ranges from the wind down of the family

business, a shareholder being bought out, the removal

of a director or the sale of the business. In order to avoid

the significant costs of such disputes and to help preserve

family relationships, a number of steps should be taken.

For advice on what steps to take or when disputes are im-

minent, please contact WeirFoulds LLP. AITF

Caroline Abela is a partner whose practice focuses on commercial,

estates and trusts litigation. She has appeared as counsel before all

levels of courts in Ontario and has also appeared before the Federal

Court of Canada. Caroline has authored many articles and papers.

She has been an adjunct professor at the University of Western

Ontario and is a regular lecturer on a variety of legal topics. Contact

Caroline at 416.947.5068 or [email protected].

www.weirfoulds.com


By Scott LeSLie

Lee Tokar is creative owner and lead

designer of Flair Kitchen Design in

St. Catharines—an interior design

firm that specializes in kitchens and

home renovations.

For decades now, Lee and his team have been

providing their customers with exceptional crafts-

manship and award-winning designs—working on

literally hundreds of residential projects. As a trust-

ed renovation expert associated with Trademaster

Custom Interior Renovations (a sister company

located in St. Catharines), Flair Kitchen Design is

maintaining a strong reputation for its creativity,

fine workmanship and attention to detail.

“We build beautiful kitchens as a dealer for Norcraft

Cabinetry of Winnipeg,” Lee says with pride. “They’ve

proven to be a leader in the industry and Canada’s

number one manufacturer of quality cabinets.”

Lee himself has been working as a custom renovation

and homebuilding contractor for over three decades in-

cluding eight years as a custom kitchen designer. He says

that wealth of experience has been incredibly beneficial

to his clients. But Lee particularly enjoys helping them

make their dream kitchen a reality.

“Based on the client’s selection of cabinet door

style, wood species and finish, we can provide them

with the ideal kitchen—at a price that fits their bud-

get,” he says. “We can take care of every aspect of

kitchen renovations—treating every client as a fu-

Flair Kitchen DesignAccomplished custom kitchen design team owner has over three decades of professional design and renovation expertise.

ture spokesperson for our professional execution

of their project.”

Flair Kitchen Design’s specialties include kitchen

design and installation, countertops and backsplash,

flooring and wall finishes, and appliance installations.

The firm has hundreds of cabinet styles and finishes to

choose from—all of them 100% Canadian-made. Flair

Kitchen Design is also the go-to expert when it comes

to structural, plumbing, electrical renovations.

Whether it’s updating an old kitchen or giving

it a complete makeover, the Flair Kitchen Design

team has always been committed to building a solid

relationship with each client—from the first phone

call to the final touch.

Lee offers free estimates and designs at no obliga-

tion, providing clients with a complete set of three

dimensional drawings so they can see what their

new kitchen will look like before the team proceeds

with any work. (For greater convenience, Lee can

meet with clients in their home or at his design stu-

dio on 52 Scott Street West in St. Catharines.)

Flair Kitchen Design is committed to earning the

client’s trust. It’s a practice Lee has followed ever since

he first went into business in 1969 as a home improve-

ment specialist. All written estimates are guaranteed

for 60 days, and each new cabinet installed is under

warranty for as long as the client owns their home.

The Flair Kitchen team takes great pride in de-

livering the ultimate in quality, experience and

selection—and look forward to tackling each new

project and design challenge. But at the end of the

day, Lee knows from his many years of experience

that success comes down to one thing—the customer.

At Flair Kitchen Design, many of its projects come

in the form of referrals—and that strong word of

mouth is earning them the reputation of being one

of the most respected kitchen designers around.

“I’m from the old school where we put 100% into

customer service,” Lee says, “because their satis-

faction assures us of continued success in today’s

economy, something that is sorely lacking from

big business.” AITF

year Founded: 2010 | 905.682.6000 | www.flairkitchendesign.com [email protected] | Location: 52 Scott Street West, St. catharines Lee Tokar, Creative Owner and Lead Designer.

St. Catharines/Stoney Creek: 905.682.6000

www.flairkitchendesign.com


By Scott LeSLie

The Nieuwland family’s golf course started out rather modestly.

Lou and his wife Maribeth originally purchased the scenic 135-

acre property back in 1984, and built the family home there

the following year. Looking for new business opportunities,

the Nieuwlands decided to launch a new golf course on their property, formally

applying for a building permit in 1986.

In 1989, when the top left picture was taken, the Nieuwlands opened “The

Owl”—an executive nine-hole course lined with mature pine, walnut and cherry

trees. They would go on to add two more full length nine-hole courses—“The

Fox” and “The Serpent”—in 1992 and 1997 respectively.

Last year, they opened the Bootlegger B&B, adding a stay and play to the golf

course, and this year an 18-hole “disc golf” course will be opening in early June.

There’s no question that family has played a major role in the success of Whisky

Run. The Nieuwlands’ four children all spent their summers working on the golf

course, and now the three youngest siblings have taken full-time positions with

the family business. Kevin acts as golf course superintendent, Luke is pro shop

manager, and Jessica is in charge of HR and event management. AITF

Whisky Run Golf ClubTwenty-four years and growing!

year Founded: 1989 | 905.835.6864 1.877.835.6868 | [email protected] | @whiskyrun | www.facebook.com/whiskyrungolfclubLocated: 631 Lorraine Road, Port colborne

From left to right: Lou, Maribeth, Kevin, Luke, Jessica, Hendrik and Olivia.

From left to right: Hendrik, Maribeth, Luke, Kevin,

Lou and Jessica Nieuwland, pictured here in 1989—the year

the golf course opened.

www.whiskyrun.com


By tRevoR c. cooPeR

A family trust allows high-income Canadians to save

taxes by earning investment income in the hands

of children or grandchildren that pay little or no taxes. Al-

though it varies by province, every child or grandchild in

Canada that has no other income can earn up to a certain

amount of investment income tax-free every year, subject

to the income attribution rules applying. A family trust can

be established to take advantage of this annual opportunity,

while still providing the parent or grandparent with access

to the monies funded to the trust.

If you have low-income children or grandchildren,

there are three major benefits of setting up a family trust:

1. Assuming your child or grandchild has no other in-

come, they can earn up to a certain amount of invest-

ment income tax-free every year due to their basic

personal tax amount.

2. Because you loan money to the family trust, you should

not lose access to the loan capital.

3. Investment income earned in the trust can be used

to pay for expenses that directly benefit the child or

grandchild, such as private school, post-secondary ed-

ucation, lessons and camps.

What is a trust?A trust, unlike a corporation, is not a legal entity but rather

a relationship between the trustee(s) and the beneficia-

ries. The trustee holds legal title to the property within the

trust, and the beneficiary holds beneficial title. Beneficial

ownership means that the beneficiary has rights to the

property, even though they may not be the registered own-

er of the property. The trustee must exercise their powers

in accordance with the terms of the trust for the exclusive

benefit of the beneficiaries.

The provisions of the trust are set out in a trust agree-

ment or deed. The trust agreement details the name(s) of

the trustee(s), the scope of their powers, the beneficiary

or beneficiaries of the trust and how the trust assets are

to be managed.

There are many reasons why people establish trusts including:

Holding assets for minor, disabled or spendthrift

beneficiaries until an appropriate distribution date.

Income splitting.

Privacy.

Creditor protection.

Probate tax avoidance.

Part of an estate freeze transaction for a business owner.

Family Trusts How you can help your children while enjoying important tax advantages.

The RBC Dominion Securities Family Trust has been

structured primarily for the purpose of splitting invest-

ment income with low-income family members. The RBC

Dominion Securities Family Trust agreement may not be

appropriate for some of the other reasons that trusts are

established (listed above). You should consult with your

tax and legal advisors if you want to set up a trust for a

reason other than primarily income splitting.

How income splitting helps minimize taxesThere are two reasons why income splitting can help you

reduce your family’s tax burden:

1. Canada’s tax system is based on graduated tax rates. A

graduated tax rate system means that the higher your

taxable income, the higher your tax rate.

2. Everyone in Canada has a tax-free basic personal

amount which varies by province. This means a fami-

ly member (regardless of age) that has no other income

can earn the following amounts every year tax-free,

subject to the attribution rules:

Interest income tax-free up to the basic personal

amount

Capital gains tax-free up to two times the basic per-

sonal exemption amount since only 50% of capital

gains are taxable

Even higher amounts of Canadian public company

dividend income tax-free due to the dividend tax credit

These two reasons mean that if you are a high-in-

come earner and you can shift some of this income to

low-income family members, your family can realize

substantial tax savings every year (subject to income

attribution rules).

As a result of these two factors, if income can be shifted from

a high-income parent or grandparent to a low-income child or

grandchild, then the family can realize substantial tax savings.

A family trust can be established to take advantage of this tax

saving opportunity.

Choosing the right option for youTo meet your family’s specific needs, RBC Dominion Se-

curities offers three types of trusts:

1. RBC Dominion Securities Formal Trust

2. RBC Dominion Securities Family Trust —

Discretionary

3. RBC Dominion Securities Family Trust — Age 40

The primary difference between the RBC Dominion Secu-

rities Formal Trust and the two RBC Dominion Securities

Family Trusts is that the Family Trusts permit the par-

ent to loan monies to the trust with or without interest,

whereas any monies contributed to the Formal Trust are

considered irrevocable gifts.

The demand loan feature of the RBC Dominion Secu-

rities Family Trusts allows the parent full access to the

loan capital at any time by calling back all or a portion of

the loan. As a result of this “safety feature,” the parent is

likely more comfortable to fund greater amounts to the

RBC Dominion Securities Family Trust than to the RBC

Dominion Securities Formal Trust. Greater funding to

the RBC Dominion Securities Family Trust may allow the

trust to generate more investment income that is subject

to little or no tax.

Having said this, by loaning larger amounts to the RBC

Dominion Securities Family Trust, there will likely now

be more investment income that must be paid to the bene-

ficiaries or used directly for their benefit. You should take

this into consideration when determining how much to

loan to the family trust.

Using a trust to pay for children’s expensesA family trust is a tax-effective strategy to create long-

term wealth for your children or grandchildren. However,

if structured correctly and documented properly, it may

also be possible for the trustee to use some of the trust’s

investment income (interest, dividends and capital gains)

to pay for expenses that directly benefit the minor child

rather than let it all accumulate in the trust.

Some types of expenses that may qualify as directly

benefiting the child include:

Private school tuition.

Post-secondary

school fees.

Lessons.

Camps.

Sports equipment.

Gifts.

Nanny expenses.

If the trustee plans on using the trust’s income to pay for

expenses of the beneficiary, the expenses must unequiv-

ocally benefit the beneficiary, and the trustee must keep

proper records. In some cases where an expense is tax-de-

ductible to the parent (e.g. daycare, some nanny expenses,

etc.) it may be more tax-effective for the parent to pay this

expense directly rather than have it paid by the trust.

Family Trust versus an RESPMany parents and grandparents have contributed to a

Registered Education Savings Plan (RESP) in order to

save for post-secondary education. Due to the government

grant Canada Education Savings Grant (CESG) available

with an RESP and the tax-deferred growth within an

RESP, saving for a child’s or grandchild’s post-secondary

education costs using an RESP is a sound financial strategy

for most parents and grandparents.

A family trust is not necessarily meant to replace an

RESP. However, an RESP has limits on contributions and

when and on what expenses the funds can be spent. A family

trust tends to be more flexible in terms of funding limits and

when and for what expenses the funds in the trust can be used.

Therefore, depending on your goals, a family trust can act as

a supplement to an RESP, a tax-efficient vehicle to pay for a

broader category of expenses for the beneficiary, regardless

of age, or as a long-term savings vehicle for the beneficiary.

If you are looking for a way to help your children,

while enjoying important tax advantages, the RBC

Dominion Securities Family Trust may be the right

choice for you. AITF

For more information, Trevor Cooper, vice president and director,

associate portfolio manager can be reached at 905.546.5832 or

[email protected].

This article is supplied by Trevor Cooper, an investment advisor

with RBC Dominion Securities Inc. (Member–Canadian Investor

Protection Fund). This article is for information purposes only.

Please consult with a professional advisor before taking any action

based on information in this article.


By Scott LeSLie

CroMade Cabinetry is in the business

of making people’s living spaces

come alive. That may sound like a

tall order—but then, CroMade has

always been one to step up to the challenge.

Based out of St. Catharines, CroMade is a full-

service custom cabinetry firm, providing its

clients with exceptional craftsmanship and award-

winning design. In just eight short years, CroMade

Cabinetry has quickly become Niagara’s first and

last choice for high end custom cabinetry, working

on numerous residential projects throughout the

Niagara Region—and across southern Ontario.

“Cabinetry” may be part of its name—but that

doesn’t mean CroMade is limited to kitchen cabinets.

CroMade can create work for nearly any room in the

house—whether it’s home offices, paneled libraries,

basement bars, bathroom cabinets and vanities or

home theatres. CroMade can even accommodate

any style, budget or design requirement. The only

real limit is the client’s imagination.

Tom Zivcic is the owner and founder of

CroMade Cabinetry. Tom is no newcomer to

the custom cabinetry field, having honed his

skills at countless job sites over the years and

worked closely with his father who was a long-

time cabinetry installer. In November of 2005,

however, he decided it was time to launch his

own cabinetry business.

There were other cabinetry companies in his

area—but Tom wanted to set his new business

apart from the competition. For a start, most

cabinet companies deal with outside suppliers or

designers—that’s not the case with CroMade. At

CroMade, the entire cabinetry process is taken care

of in-house by its team of expert cabinetmakers

and finishers. (One team handles the design and

build work while another team takes care of the

sanding and finishing aspects.) CroMade can even

manage the entire installation—from start to

finish—without any outside contractors.

Exceeding expectations is a big part of CroMade’s

ongoing success. Every member of its team goes that

extra mile—no matter how discerning the client’s

tastes might be. For example, CroMade can customize

each piece to meet the client’s exact specifications—

it doesn’t matter whether it’s in the detailing, colour

or dimensions.

As the go-to woodworking experts, CroMade

has built up a strong reputation in the industry

for its exceptional creativity and attention to

detail. Over the past decade, CroMade has received

several prestigious awards from the Ontario Home

Builders Association in the Best Bathroom Design,

Best Alternative Room Design and Outstanding

Kitchen Design categories.

CroMade CabinetryAward-winning custom cabinetry firm is committed to creating high end work that’s built to last.

year Founded: 2005 | 905.688.6222 | www.cromade.ca | [email protected] Location: 142 cushman Road, St. catharines

Through the years, CroMade has also made a

big impression on the people that matter most—

the clients. The majority of CroMade’s client work

comes through referrals with many families and

homebuilders turning to its professional expertise

time and again.

Tom and his team pride themselves on being able

to provide the utmost in value and workmanship,

and look forward to every assignment that comes

their way. It may be an enormous undertaking.

But it’s all part of their commitment to making

their clients’ home living dreams come true. AITF

Tom Zivcic, owner and founder of CroMade Cabinetry.

Shown above is a maple beaded face-frame kitchen with glazed finish. The island is cherry with custom stain, complete with granite countertops.

www.cromade.ca


By Scott LeSLie

Mira Filipovic believes everyone

deserves a home that’s personal-

ized to meet their exact require-

ments—and with good reason.

Mira is the president and owner of Impression

Homes by Mira, an upscale custom homebuilder

and land developer. Originally based in London,

Mira is now expanding into the Niagara Region and

looks forward to calling Niagara “home.” Developing

unique luxury homes and condos, Mira takes care of

every stage of the process—from designing and build-

ing to decorating and project management.

“For most people, a home is the biggest invest-

ment they’ll ever make in their lives,” she explains,

“so they deserve the very best. I work closely with

each client because I want to help them create a

home that meets their needs and lifestyle perfectly.”

The homebuilding industry has been in Mira’s

blood all her life. Her father Marko was a home paint-

er for over 50 years and her mother Kata often worked

alongside with him, cleaning the new homes and

preparing them for people to move in. When Mira

was growing up in St. Thomas and Tillsonburg, her

mother would often bring her along to the job sites.

As she grew older, Mira began working side-

by-side with her father and mother, helping them

clean, sand and paint newly-built homes for var-

Impression Homes by Mira

Upscale custom homebuilder thinks outside the box by developing luxury homes and condos with a woman’s perspective in mind.

ious homebuilders. And those early experiences

would give Mira a wealth of ideas and knowledge

when it came to launching her own homebuilding

business in 1996.

The most prominent of these principles was Mira’s

expansive walk-in closets, providing larger garages

to accommodate family-oriented vehicles like min-

ivans, and developing additional space options for re-

grouping and distressing. Mira pays close attention to

areas like wirings so homes can be outfitted with the

latest in appliances and technology. She also designs

over-sized laundry rooms that can lend themselves

to multiple uses such as crafting and entertaining.

Catering exclusively to the female market is a

novel idea and one that has garnered Mira a great

deal of success in recent years. Mira is currently in

the middle of developing Oakridge Heights—a new

upscale modern luxury condo site overlooking the

Thames River in London. This secluded develop-

ment features a number of mature trees, a grassy

ravine and a nature trail that winds along the river

and is within walking distance of nearby Spring-

bank Park. Oakridge Heights also makes extensive

use of natural materials, not to mention the finest

in workmanship and design. Mira also has plans to

begin working on two large custom homes in Niag-

ara along the escarpment.

For years now, Mira has been proud to design

custom luxury living homes that are helping beau-

tify southern and central Ontario. And with all her

success at the local level, Mira is hoping to expand

her unique luxury home concepts to many other

communities throughout Ontario and beyond.

Mira’s love of the homebuilding field led her to

establish Impression Homes by Mira. But it was her

passion for designing custom luxury living homes

for women that has made all the difference with

her clients. AITF

year Founded: 1996 | 519.860.5556 | www.impressionhomes.com | [email protected] www.facebook.com/impressionhomes | Location: Serving Southwestern and central ontario

desire to pay close attention to the needs of women.

In today’s world, women have become household de-

cision makers and Mira is committed to designing

luxury properties that reflect their lifestyle. That

means putting an emphasis on storage space with

Mira Filipovic, President of Impression Homes by Mira. Luxury Ensuite

Greatroom

www.impressionhomes.com


By toM GRAveS c.i.P., c.c.i.B.

u nfortunately our society is becoming

more litigious.

Not only are there more lawsuits being initi-

ated than ever before, the amounts being sought

are getting higher and higher. Nowadays it’s not

unusual for personal lawsuits to seek damages in

the two, three and even five million-dollar range.

Your home and auto policies already provide

basic liability protection. However, if you are

presented with a statement of claim that exceeds

the limits provided by these policies, an umbrella

liability policy might be the answer to protect you

in just such a case.

As long as the basic limit on your home and

auto policies is at least $1,000,000, you will be eli-

gible to increase your protection with a personal

umbrella. Depending on your needs or comfort

level, you can increase the limits of your personal

insurance policies to $2,000,000, $3,000,000 or

more in a cost-effective way.

A personal umbrella will not only increase

the liability limits on such things as cottages,

watercraft, all terrain vehicles or recreational

vehicles but can also provide coverage beyond

that provided by the underlying policies.

Personal lawsuits are on the rise!

This includes limited coverage for:1. Directors and officers of non-profit organiza-

tions including condominium corporations;

2. Personal injury for claims related to such

actions as libel, slander, discrimination and

wrongful eviction.

Finally, personal umbrellas provide worldwide

coverage for personal actions with the exception

of automobile coverage, which is restricted to

Canada and the u.S.

As your assets grow, so does your liability ex-

posure. A personal umbrella policy can increase

your liability limits at a reasonable cost and give

you peace of mind.

If you want to buy additional protection for

yourself and your family talk to your agent or

broker about purchasing a personal umbrella

policy. AITF

Tom Graves, C.I.P., C.C.I.B. is the vice-president of operations for

The Mitchell & Abbott Group Insurance Brokers Limited. For more

information, please call 905.385.6383, toll free 1.800.463.5208

or direct at 905.381.4212. Have a question? Email mail@

mitchellabbottgrp.com or visit www.mitchellabbott.com for further

information. The Mitchell & Abbott Group Insurance Brokers

Limited is located at 2000 Garth Street, Suite 101 in Hamilton.

By DeNNiS o’NeiLL

1 PlanningTime needs to be planned. Time

never stands alone. Time requires a

result. A purpose-goal—something to gage by. Some-

thing beneficial. Productivity. Relaxation. Enjoy-

ment. Giving/helping. Or investment of time with

a hope of future return such as getting the proper

training or practice of skills so as to become masterful.

Masters get a greater return for their time.

2 BalanceTime can have diminishing returns. “All work and

no play makes Jack a dull boy.” When Jack works all the

time, his payoff from hours worked begins to decline.

Balance makes Jack overall more happy and more pro-

ductive. The 20/80 rule applies to time. We accomplish

80% of our productivity in 20% of our time. After the

20%, shouldn’t we shift to something more productive?

3 Longevity-developers

The only way to gain more time comes from lon-

gevity. An investment in physical and mental health

can deliver quality of life immediately. Then extended

years of enjoyable living and productivity. We all have

24 hours in a day, no more or no less. But, people vary

in longevity. Longevity rests partly in our own hands.

4 Clear PrioritiesTime champions are effective. Effective means do-

ing the right thing. Efficient means doing things right.

Time champions don’t waste time and effort on piddly

stuff at the expense of main priorities. Time champions

know what not to do. They also know the old saying: “a

stitch in time saves nine.” Priorities include getting clear

on our core values, the things most important to us. As

Roy Disney Sr. said “When values are clear, decisions

are made easy.” And then we can quickly get at actions.

5 Pacing

Time champions set time-frames. Deadlines.

Time frames and deadlines force us to work at the

right pace. Time frames encourage concentration

and focus. Time champions don’t procrastinate.

They get stuff done. When the time comes to work,

they work. Hard. AITF

Dennis O’Neill, The Business Growth Coach is located

in Niagara-on-the-Lake. For more information on how to grow your

business, please call 905.641.8777, email [email protected] or

visit www.dennisoneillcoach.com.

Can you become a time champion?Consider the five principles of time champions.


F.E. Coyne Insurance Brokers Leading family run insurance brokerage has been serving clients with their personal, commercial and specialty insurance needs for over 100 years.

year Founded: 1910 | 905.735.0970 1.800.461.4694 | www.fecoyne.com | [email protected] Location: 164 Divison Street, P.o. Box 700, Welland

AtF.E. Coyne Insurance Brokers,

the secret of its success comes

down to one thing—offering

a personal brand of service

you just can’t find with larger insurance firms.

For over a century now, F.E. Coyne Insurance

Brokers has been one of Niagara’s leading choices

for insurance, handling a wide range of personal

insurance policies—everything from homes, con-

dominiums, rental and seasonal properties to au-

tomobiles, boats and mobile homes.

When it comes to commercial businesses, F.E.

Coyne Insurance Brokers manages a variety of areas

including small businesses, commercial automo-

biles, fleets, contractors, offices, rental properties

and construction sites. The F.E. Coyne team can even

help clients out when they need coverage for special

instances like hobby clubs, temporary events, liquor

liability issues and even travel insurance.

F.E. Coyne Insurance Brokers success story all be-

gan back in 1910 when Fred Earl Coyne joined Henry

Cox’s small real estate and insurance firm. Soon after,

Fred purchased Mr. Cox’s company and started what

would be a four generation family business. Nancy and Albert Hendriks.

In the early stages Fred worked alongside with

his wife Florence. Family stories rumored that

they worked from a desk made of orange crates

in the old Woolworth building in downtown

Welland. Through the years there were many

changes in the F.E. Coyne operation but it re-

mained a place where the Coyne family served the

Niagara Region’s families with quality service and

the highest standards.

In the 1940s, Fred and Florence’s daughter, Eli-

nor, started working for the family company and

by the 1970s, Fred Coyne had retired from the com-

pany’s daily operations and Francis ‘Bud’ Smith,

Fred’s son-in-law, assumed the position of president

and general manager.

Today, Bud’s son-in-law, Albert Hendriks has

assumed the position of president. Albert started

working for F.E. Coyne in the 1980s when he mar-

ried Bud’s daughter Nancy. Since then, Albert has

excelled not only at F.E. Coyne but also in the insur-

ance industry. Albert is a past president of Niagara

South Insurance Brokers Association and is also a

board member of IBAO.

F.E. Coyne has remained consistent from gener-

ation to generation—sticking to its old-fashioned

values, and continuing to do the little things like

making house calls or being available for clients

in the evenings. They also remain up-to-date with

technology. Last year they launched their mobile

app where clients can directly make claims straight

from a smart phone.

Nancy Hendriks, Albert’s wife, and their daugh-

ter, Meaghann Fierling, are taking over F.E. Coyne’s

creative aspects and bringing the brokerage online.

This summer they are excited to start connecting

with their clients through social media and will also

be launching F.E. Coyne’s new website.

Family is such an important facet in the F.E. Coyne

culture and remains one of the company’s biggest

strengths. Many of F.E. Coyne’s employees have been

with the company for over 25 years and they have

clients that have been with them for over 60 years.

At F.E. Coyne you are treated as family, and that’s

a personal touch you just don’t get from larger com-

panies. And it has clearly been working. F.E. Coyne

is one of the oldest and most respected insurance

brokerages in Niagara. AITF

www.fecoyne.com


By Scott LeSLie

K athryn Davies is the owner of Life’s

Emergency Training—one of south-

ern Ontario’s leading providers of first aid,

CPR and defibrillator training for individ-

uals and businesses.

Serving everything from construction

sites to offices to retirement homes, Kathryn’s

firm specializes in one and two-day courses

on standard and emergency first aid, public

access and home defibrillation training, and automated external defibrillator

(AED) use. Life’s Emergency Training also sells a number of medical and first

aid products including masks, face shields and AED packages.

“People can die or suffer unnecessarily in a medical emergency—particu-

larly when you’re not ready for it,” Kathryn explains. “The important thing

is to be prepared. It’s all about cutting the risk.”

Life’s Emergency Training serves clients throughout the Golden Horseshoe

area and as far away as Cambridge and Simcoe. All of Kathryn’s programs are

designed to meet Workplace Safety and Insurance Board standards. They’re also

approved by the Heart & Stroke Foundation where Kathryn often works as a facil-

itator. Training courses can be held either at her office or on the client’s premises.

In addition to herself, Kathryn has a team of certified instructors on staff.

All of them have decades of experience in their respective fields. Kathryn is

also proud to welcome her daughter Paige to their staff. Paige is currently

completing her training to be a Registered Practical Nurse.

“In many cases, people are coming to us after the fact,” Kathryn says of her

clients. “They’ve had a workplace incident and weren’t prepared to handle it—

but by then, it’s normally too late. In our business, every second counts.” AITF

Life’s Emergency TrainingConsulting firm provides first aid, CPR and defibrillator training for individuals and businesses.

905.930.7430 | www.lifesemerg.com | [email protected]

Kathryn Davies with her daughter, Paige.

By BiLL MceLRoy B.A., c.F.P., ciM

F amily businesses form the back-

bone of the Canadian economy

today and yet only a minority of these

are successfully passed on to the next generation. In

many cases, these failures could have been prevented

by taking a strategic approach and thoughtful plan-

ning to overcome the hurdles life throws at us.

Sophisticated strategies are needed to ensure

greater success during the life of a business and in

the transition of business ownership. Whether an

owner chooses to sell the business, transition to a

family member or business partner or to fully dis-

solve the business, there are many complex issues to

evaluate before making a final decision.

The William Douglas Group Inc. cares about

helping small businesses survive and thrive during

these challenging economic times. For over 20 years

we have developed strategic alliances with a team

of highly qualified professionals with one goal in

mind: developing customized solutions that best

meet the needs of businesses and their owners.

As with any business, family business planning

Improving your business’ chance of success

is a tough proposition. You need to establish a re-

lationship with a good insurance professional in

conjunction with proper legal counsel and have

an open and frank discussion about all the poten-

tial hurdles your business can be presented with.

One must discuss death, taxes, disability, divorce,

estate equalization, and creditor protection. That

prospect is never an easy one and if ignored, these

issues can be disruptive to both the business itself

and the family involved. Without proper prior

planning, many family businesses will fail or be

liquidated more often than they are transferred

to the next generation.

By working with a team of professionals and im-

plementing proper advance planning, you can help

guard against the risks associated with a transition.

Proper succession planning is a must if you wish to

see your business continue with success onto the

next generation.

Some of the issues we can help your business with are as follows:

Assist a small business owner in minimizing

exposure to capital gains tax.

Devise a strategy to ensure an appropriate divi-

sion of the business owner’s estate between chil-

dren active in the business and those who are not.

Demonstrate how to use a shareholders’ agree-

ment in a family business setting.

Identify common insurance-related errors and

omissions in shareholders’ agreements.

Determine when and when not to use corpo-

rate-owned insurance.

Show you how to use holding companies and

family trusts in business succession and insur-

ance planning.

Effectively use key person life insurance and

living benefits to protect the business and fam-

ily members.

Construct tax efficient retirement income

models within the corporation using various

products and concepts.

Protect assets from creditors.

The end result of working with The William Doug-

las Group Inc. and its strategic partners is developing

and implementing strategic solutions that best meet

the needs of business owners. These solutions min-

imize the tax consequences of ownership transfer

and maximize the value of the business assets and

retirement income. Please feel free to call us for a no

obligation consultation. AITF

Bill McElroy B.A., C.F.P., CIM is the president and principal of

The William Douglas Group Inc. and the senior investment advisor

for his Manulife Securities Incorporated associate office located at

101-1005 Skyview Drive in Burlington. For more information, call

1.888.522.9494, email [email protected] or visit www.wdg.ca.

www.lifesemerg.com


By ALAN RoWeLL MFA, DFA

E veryone knows that income tax-

es are a fact of life. They’re here

to stay—but that doesn’t mean that you

have to roll-over and accept it. No one knows this

fact better that the self-employed Owner-Manager.

Tax Planning becomes a family endeavour that is

carried out year-round; not just something to think

about in April and all you really need to know is

when and how taxation is going to bite you. This

starts with knowing two basic tables. (see right)

Easy to see, the more income you earn, the higher

the income tax rate becomes.

Tax Brackets are fine and everyone should know

them, but real tax planning comes into effect with

Effective Tax Rates. Effective Tax Rates show you the

amount of actual income tax you will actually pay.

StructureIn contrast, a Canadian Controlled Private Corpo-

ration in Ontario pays only a 15% tax rate on every

Federal Income Bracket Federal Rate Ontario Rate Combined Rates

Less than $11,038 0% 0% 0%$11,039 – $43,561 15% 5.05% 20.05%$43,562 – $87,123 22% 9.15% 31.15%$87,124 – $135,034 26% 11.16% 37.16%> than $135,034 29% 11.16% 40.16%> than $509,000 29% 13.16% 42.16%

Federal Income Bracket Federal Rate Ontario Rate Combined Rates

Less than $11,038 0% 0% 0%$11,039 – $43,561 11.20% 4.30% 15.50%$43,562 – $87,123 16.6% 7.52% 24.12%$87,124 – $135,034 19.93% 11.03% 30.96%> than $509,000 26.59% 15.72% 42.31%

2013 Federal Tax Brackets*

2013 Effective Tax Rates

* Ontario income brackets are slightly lower

Tax planning for the family business

dollar earned up to $500,000. The savvy business

owner, who also happens to be an employee of the

corporation they own, can determine their own rate

of pay. So, if you only need a $50,000 wage in order

to pay your personal expenses, only take $50,000.

Leave the rest of the money inside your corporation

where it is taxed at a much lower effective rate.

understanding how much of each dollar earned

becomes the stepping stone for effective tax planning

and allows the self-employed Owner-Manager to use

the brackets to structure their business and financial

affairs to take advantage of the various methods.

Structure starts with a Canadian Controlled Pri-

vate Corporation and the share structure / owner-

ship components with it.

Think of your corporation as one big tap—spraying

money all over the place. If you install three of four dif-

ferent spigots onto the water pipe, you can now control

who gets money, when and how simply by opening

one of the valves. This is known as “Dividend Sprin-

kling” and when structured properly and controlled

among family shareholders becomes the easiest, most

efficient way to share income and minimize taxation.

Multiple family shareholders will also allow

the family owned business to multiply the Cap-

ital Gains Exemption, currently at $750,000 per

shareholder, into tax-exempt millions on the sale

of the business.

The end result—a tax plan designed around a fami-

ly owned business that allows for the creation and

retention of wealth—and all it takes is a little ad-

vance planning. AITF

Alan Rowell, MFA, DFA is a tax service specialist and

president of The Accounting Place located at 154 Grays Road in

Stoney Creek. For more information, please call 905.664.1010,

1.866-938.1010, email [email protected] or visit

www.theaccountingplace.net.

Create a tax plan designed around a family owned business with a little advanced planning.

Kathryn Davies with her daughter, Paige.


By BRUce R. HoRSLey HBA cA cBv

Internal sale: To a son or daughter already working in the business

(intergenerational transfer)

To a management group or key management employee

An employee buyout (ESOP Employee Share Ownership Plan)

Keep business and obtain trusted president to run the business

External sale: To a third party financial purchaser

To a strategic (special) buyer such as a competitor, complimentary business

or supplier out of country competitor (complimentary business) wanting

to entry level critical mass

Via a share offering such as an Initial Public Offering

To a private equity firm

Liquidation of the assets

Refinancing the business and decreasing the funds at risk in the business

Who will pay the highest price: Sell to a strategic or special buyer.A special buyer is a buyer that has a special reason(s) why the business may be

worth a premium to them versus the value of the business on a stand-alone

basis. Examples of some reasons are:

1. Adding a new product line or technology to sell to existing customers.

2. Adding additional customer base to the existing business and discontinu-

ing most of the acquired business’ overhead costs. There may be benefits of

leading market size, increased market presence or strong growth prospects.

3. Obtaining additional sales volume/client base to put through an existing

business, machine/plant with unused capacity, etc.

4. Decreasing the amount of competition in the marketplace.

5. Access to low cost of capital such as a Public Company that has high val-

uation multiple that it is using to acquire many businesses in the same

industry and consolidate the industry.

How do you find these strategic (special) buyersIn order to find a special buyer interested in your business, it is necessary to

perform an analysis to understand your business and what benefits you may

bring to a special purchaser, understand your industry and anticipated future

changes, understand the operations and background of various industry par-

ticipants and analyze potential foreign purchasers (competitors) that may be

interested in entering this marketplace. Then it is necessary to approach the

special buyer with confidentiality agreements appropriately worded to pro-

tect the business’s assets. It is possible the special buyers are not interested for

various reasons or have other priorities currently on their agenda, such as no

capital available for purchase or there are other opportunities at lower prices. It

is necessary to obtain at least two special buyers interested in order to convince

the special buyers to share some of their premium value with the seller. AITF

Bruce R. Horsley, HBA, CA, CBV is the founder of Horsley & Associates Inc. located at

25 Main Street West, Suite 515 in Hamilton. For more information, please call 905.528.4446,

email [email protected] or visit www.hacbv.com.

Family businesses, business valuations and succession planningA good succession plan is useful to assess the alternatives available in retiring and selling a business.

www.hacbv.com


By Scott LeSLe

From the very beginning, Business

Link Media Group has been commit-

ted to staying on the cutting edge of

today’s media industry.

The story of this innovative firm all began

in 2003 when Adam Shields graduated from the

Sports Management program at Brock university.

After taking a brief look into the job market, Adam

decided that working for himself was preferable to

working for someone else. With their deep inter-

est in the advertising field, Adam and his father

Jim came up with an idea. They would launch a

new business-to-business newspaper called “The

Business Link.”

Over the coming weeks, Adam and Jim would

drive around St. Catharines each day and knock

Business Link Media GroupFor a decade, this family-run media firm has been offering a wide range of solutions designed to educate, inform and connect the various business communities.

on all kinds of doors, hoping to garner interest in

their new publication. It was a long and arduous

process but their efforts weren’t in vain. Their

family business began to take off, and Adam and

Jim built many strong relationships that would

help to solidify their presence in the local busi-

ness community.

A few months following the premiere issue of The

Business Link newspaper, Julie Shields (nee Dodge),

Adam’s girlfriend at the time, was interested in the

business and started her career with the firm that

summer. A quick learner and strong salesperson, Ju-

lie would become the company’s director of advertis-

ing—and an official member of the family.

Ever since those early formative days, the

Shields family has continued to build Business

Link Media Group on family values. They are a

family that works with other family businesses

and understand the value of a hard-earned dol-

lar. Always setting their sights on quality rather

than quantity, the Shields family understands the

Golden Horseshoe and its unique business needs.

They pride themselves on running a lean opera-

tion, keeping busy and taking inspiration from

the many business success stories they spotlight

in their publications each month.

They understand that the key to any successful

business is to tell your story, and tell it well. They’ll

stop at nothing to be your business’s cheerleader. By

focusing on the everyday successes in the Niagara,

Hamilton and Halton regions, the Shields family

has strengthened their reputation as your first point

of contact for business success. And if they can’t do

it, they know the experts who can.

As the Shields celebrate their 10th anniversary

in business, Business Link Media Group’s platforms

continue to educate, inform and connect the busi-

ness communities of Niagara, Hamilton, Halton

and beyond. The firm offers a wide range of news-

papers, magazines and specialty publications. Their

ongoing publications include The Business Link

Niagara, The Business Link Hamilton, The Busi-

ness Link Halton, All In The Family Magazine, and

HWS – Health, Wellness & Safety Magazine for the

Niagara and Hamilton/Halton regions. They’re

also firmly committed to changing with the times,

introducing a Business Link Media Group app, an

HWS magazine app, online advertising platforms,

social media and video services. The Shields have

even launched a brand new division—BL Print

Solutions, which offers professionally designed

and customized, top-quality marketing materials

at outstanding prices.

After a decade in business, the Shields family

continues to reflect on the lessons they’ve learned.

Their success can be attributed to taking chances,

embracing changes and looking forward to new

opportunities. They understand today’s challeng-

ing business climate and are always asking them-

selves: “What next?” They enjoy staying ahead of

the game—but they also enjoy being in the game.

If you’re looking to increase your company’s

exposure and growing your business, contact the

experts at Business Link Media Group. There’s no

doubt you’ll be treated just like family. AITF

year Founded: 2003 | 905.646.9366 | www.businesslinkmedia.com | [email protected] @thebusinesslink | Like Business Link Media Group on facebook!

Located: 36 Hiscott Street, Suite 200, St. catharines

The Shields family from left to right: Adam Shields, President and Co-Publisher; Julie Shields, Director of Advertising;

and Jim Shields, Co-Publisher.


www.niagaraparksmeetings.com

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All in the Family Magazine