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About this edition
Illuminating possibilities.
In this edition of the SMB Pulse, we're officially announcing our new partnership with Employment Hero — Canada's all-in-one Employee Operating Software. We've combined our human-led, integrated business services with their software to help Canadian business leaders scale confidently.
Retiring founders and mid-market leaders are facing a predicament: As the federal government introduces new tax incentives for Employee Ownership Trusts, the path to succession isn’t as linear as it once was. Also read more about how Canada is initiating a major shift toward Indo-Pacific markets to reduce its reliance on the United States.
We’ve partnered with Employment Hero!
Elevated support for Canadian SMBs.
Our mission at Spraggs Group is to empower the visionary leaders of Canada’s economic backbone — the small to mid-sized business. We’re excited to announce that with our new partnership with Employment Hero, Canada’s first connected HR platform, our clients receive a 20% evergreen discount on their software.
That means that you’ll get our senior-level, integrated HR, legal*, and financial business consulting with Employment Hero’s streamlined payroll, hiring, HR, and benefits platform. The human-led and on-demand support from Spraggs Group is backed by Canada’s most powerful HR tech from Employment Hero.
Check out the details on our partnership by clicking the button below. If you aren’t yet a Spraggs Group client, take a look at our Vistera business support subscription — it’s your business’s fractional, expert financial, HR, and legal departments, all bundled together into a single package. You get senior-level support without the enterprise price tag.
Check out our partnership and get started today!
Employee Ownership Trusts
Retiring soon? Sell to your employees.
As a wave of founders approaches retirement — 76% of Canadian business owners plan to exit in the next decade, to be exact — Employee Ownership Trusts (EOTs) have emerged as a prominent, yet unusual succession route. This structure enables owners to sell the majority of their business to trusted employees at fair market value, securing their financial exit while preserving the company’s mission and culture.
$10M tax incentive: EOTs offer more than just a way to protect your legacy; they come with a massive tax break. The federal government has introduced a substantial, time-limited incentive to encourage the use and implementation of EOTs. Between January 1, 2024 and December 31, 2026, individual sellers can exclude up to $10 million in capital gains when selling to a qualifying trust.
The Employee Ownership Trust advantage: Employee Ownership Trusts hold several advantages over other forms of exits. Unlike standard trusts, EOTs are exempt from the 21-year limit on holding shares, serving as a permanent ownership vehicle. The trust typically finances the buyout using future company profits; thus, employees do not pay out of pocket. With one-third of the board composed of employees, workers have a say in their company's governance.
What this means for you: For a business owner who’s looking to retire with their company of 30 or more employees and a mid-market valuation, the policy window is closing in fast. The current tax exemption is scheduled to sunset by the end of the year, and this could be a rare opportunity for you to maximize net proceeds while ensuring the firm's future is in good hands.
Global trade diversification
Federal government eyeing the Indo-Pacific.
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