6 worked Exit Planning case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to exit planning work, not a specific client's file.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $130,000 Freed — Owner Without a Forecast, Barrie
Client: An owner running the business without a cash-flow forecast · Where: Barrie, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$130,000
Compliance failuresNone
ReportingMonthly
The situation — An owner running the business without a cash-flow forecast, Barrie, Ontario
An owner running the business without a cash-flow forecast in Barrie, Ontario was opening in a second province — different filing obligations, a different payroll regime, and a covenant breach discovered only when the bank called already in the file.
What we did for An owner running the business without a cash-flow forecast, Barrie, Ontario
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — An owner running the business without a cash-flow forecast, Barrie, Ontario
Growth was absorbed without a compliance failure. $130,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · CRA review defended
$77,000 Reassessment Reduced To Nil On Review — Acquiring Clinic Group, Ottawa
Client: A clinic group acquiring a competitor · Where: Ottawa, Ontario · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$77,000
Prior filingsUndisturbed
The situation — A clinic group acquiring a competitor, Ottawa, Ontario
A review notice arrived at a clinic group acquiring a competitor in Ottawa, Ontario covering exit planning for two tax years. The auditor's working position was an adjustment of $77,000, driven by a growth plan with no forecast behind it and no financing lined up.
What we did for A clinic group acquiring a competitor, Ottawa, Ontario
Rather than negotiate, we rebuilt the record. We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A clinic group acquiring a competitor, Ottawa, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $77,000 and leaving the prior filings undisturbed.
Case Study 3 · Missed incentive claimed
$140,000 In Credits Claimed That Prior Filings Had Missed — Contractor Scaling Bids, Regina
Client: A construction company bidding larger contracts · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Credits claimed$140,000
Years adjusted5
Review outcomeNo adjustment
The situation — A construction company bidding larger contracts, Regina, Saskatchewan
A construction company bidding larger contracts in Regina, Saskatchewan had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat a covenant breach discovered only when the bank called.
What we did for A construction company bidding larger contracts, Regina, Saskatchewan
We tested each activity against the eligibility criteria rather than the description on the invoice, then produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted.
The result — A construction company bidding larger contracts, Regina, Saskatchewan
$140,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Sale and succession
Share Sale Restructured, $435,000 Less Tax On Closing — Expanding Manufacturer, Lethbridge
Client: A manufacturer planning a plant expansion · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Tax saved on closing$435,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A manufacturer planning a plant expansion, Lethbridge, Alberta
A manufacturer planning a plant expansion in Lethbridge, Alberta was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends, which would have reduced the price or killed the deal outright.
What we did for A manufacturer planning a plant expansion, Lethbridge, Alberta
We cleaned up the historical file, set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A manufacturer planning a plant expansion, Lethbridge, Alberta
The deal closed at the agreed price. $435,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · Backlog brought current
5 Years Filed, $29,000 Removed From The Assessed Balance — Corporation Facing Covenant Test, Surrey
Client: A corporation approaching a covenant test date · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Years filed5
Assessed balance removed$29,000
CollectionsStopped
The situation — A corporation approaching a covenant test date, Surrey, British Columbia
A corporation approaching a covenant test date in Surrey, British Columbia had not filed for 5 years. The CRA had issued arbitrary assessments, and the business was carrying an owner making hiring decisions on last quarter’s bank balance on top of a growing interest balance.
What we did for A corporation approaching a covenant test date, Surrey, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time, filing the years in sequence rather than all at once.
The result — A corporation approaching a covenant test date, Surrey, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $29,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $38,000 Saved Each Year — Succession-Planning Family Business, Victoria
Client: A family business planning succession · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Annual saving$38,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A family business planning succession, Victoria, British Columbia
A family business planning succession in Victoria, British Columbia had outgrown the structure it started with. A healthy bank balance made up almost entirely of deposits for work not yet performed was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A family business planning succession, Victoria, British Columbia
We mapped the current structure, modelled the target, and built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A family business planning succession, Victoria, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $38,000 a year while removing the exposure the old one carried.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
