Selling Your Canadian Business: A Step-by-Step Guide to Maximizing Value and Securing Your Legacy

Canadian entrepreneurs with startups pulling in $5 million to $50 million in annual revenue face a familiar crossroads: grind out organic expansion or snap up a rival for quicker wins?

The choice matters more than ever in a market where speed trumps patience. Companies pursuing acquisitions boast short-term revenue growth rates 8.3 percentage points higher than those sticking to internal efforts. For mid-sized firms like yours, buyi...

As a Canadian business owner with a company generating between $5 million and $50 million in annual revenue, deciding to sell your privately held enterprise is a big step. In this mid-market segment, share sales are common. They let buyers acquire the entire entity — including assets, liabilities and tax attributes — while often giving you favorable tax treatment, such as access to the lifetime capital gains exemption.

But the share...

More Than Just The Bottom Line: Why Professional Service Firms Acquire Rivals

In the competitive landscape of professional services – from law firms and accounting practices to consulting agencies and architectural studios – the decision to acquire a rival isn't just about snatching up market share. While the core business principles of reducing competition and boosting the bottom line certainly apply, these strategic moves are...

For Canadian business owners of privately owned companies with $10 to $50 million in annual revenue, selling your lower-middle market business is a high-stakes opportunity. Often, an unsolicited approach from a stakeholder—such as a rival, supplier, customer, or management team member—triggers the sale process. By integrating Porter’s Five Forces analysis, a skilled M&A advisor can leverage competitive dynamics to create an auc...

As a Canadian business owner preparing to sell your $10 to $50 million revenue company through a broadly marketed M&A process led by an M&A advisor, you’re likely navigating a complex but exciting transition. One critical concept that will arise during negotiations, particularly in the Letter of Intent (LOI) from a buyer, is working capital—and specifically, the requirement to leave a certain amount of working capital in th...

As a Canadian business owner running a lower middle market company—typically generating $5–$100 million in annual revenue or $2–$20 million in EBITDA—you may be wondering about the pool of capital available from private equity (PE) firms and strategic acquirers looking to buy businesses like yours in 2025. The good news? There’s a substantial amount of money out there, and your business could be an attractive target. Here’s a break...

As a Canadian business owner of a privately held company generating $5 million to $50 million in annual revenue, selling your business is a high-stakes endeavor that can define your financial legacy. Businesses in this lower middle market segment typically exhibit earnings before interest, taxes, depreciation and amortization ranging from approximately $1 million to $10 million, depending on industry margins (often 10-20% of revenu...

A management buyout (MBO) is a strategic transaction where a company’s management team purchases all or part of the business, often with external financing. This approach allows managers to take control of a company they know intimately, leveraging their expertise to drive future success. Below, we explore the key aspects of an MBO, its benefits, challenges, and steps to execute one effectively, including the critical role of hirin...

In a Canadian business share sale, the Share Purchase Agreement (SPA) is the cornerstone document that formalizes the transfer of shares from the seller to the buyer, detailing critical terms such as purchase price, representations and warranties, indemnities, conditions precedent, and post-closing obligations. The Letter of Intent (LOI), typically non-binding except for provisions like confidentiality or exclusivity, precedes the ...

The first step in selling your mid-market Canadian business ($5M–$50M in annual revenue) is defining your “Why Sell?” statement—a clear articulation of your motivations and goals for the sale. This foundational step ensures your decision aligns with your personal, financial, and emotional objectives, setting the tone for the entire process. For mid-market owners, selling often involves complex considerations, such as transitioning ...

For owners of privately-owned Canadian businesses generating $10 to $50 million in annual revenue, receiving an unsolicited call from a potential buyer can be both intriguing and disruptive. These cold outreach attempts—whether from private equity firms, strategic buyers, individual investors, other entrepreneurs, the company’s major customers, major suppliers, or major rivals—often prompt a direct response from business owners, ev...

For Canadian business owners navigating the sale or purchase of a company, a Quality of Earnings (QoE) report can be a powerful tool. This detailed financial analysis examines the sustainability and quality of a company’s earnings, often playing a key role in mergers, acquisitions, or investment decisions. However, producing or requiring a QoE report isn’t always necessary or prudent. Here’s a guide for Canadian business owners on ...

Self-Assessment: Are You Ready for Due Diligence?

Business owners preparing to sell their company can use this self-assessment, based on the article “Common Issues Found in Due Diligence and What Sellers Should Fix,” to gauge readiness. It features questions linked to key issues from the article, helping owners pinpoint areas for improvement. Answer each question with “Yes,” “No,” or “Not Sure,” and follow the action steps to a...

Receiving unsolicited interest in buying your company can be both thrilling and overwhelming. The prospect of a sale brings a mix of emotions—pride in what you’ve built, curiosity about the buyer, and uncertainty about whether the offer truly reflects your business’s value. After engaging in discussions, meeting with the interested party, sharing financial information, and receiving a formal Letter of Intent (LOI), the critical que...

For Canadian business owners aiming to scale their operations, acquisitions offer a powerful strategy to achieve rapid growth, expand market share, and enhance competitiveness. While organic growth—building your business incrementally through internal efforts like increasing sales or developing new products—has its place, acquisitions can deliver transformative results faster and more effectively. A key driver of this value is valu...

As a Canadian business owner preparing to sell your business, you may encounter the term "equity roll" during negotiations, particularly when dealing with private equity firms, strategic buyers, or other sophisticated investors. An equity roll, also known as a rollover or equity rollover, refers to a transaction structure where the seller retains a portion of their ownership in the business by "rolling over" som...

For Canadian business owners selling a company with annual revenues between $5 million and $50 million, reaching the management meeting stage in the mergers and acquisitions (M&A) process is a pivotal moment. This phase, typically occurring after initial offers or letters of intent (LOIs) have been received, is where potential buyers get an in-depth look at your business and its leadership team. Engaging an M&A advisor has ...