Selling a Business

Selling the business you built is a transaction most SME owners go through only once. It's also often the one with the greatest impact on their personal wealth and on the future of their team.

A successful sale is usually prepared three to five years in advance. That time lets you understand what your business is really worth, reduce its reliance on you, get your financial information in order and plan the tax side of the sale so you keep as much of the value you've created as possible. It also helps you choose the right moment to put your business on the market and find a buyer who will ensure its continuity.

In this featured topic, our valuation, tax, financing and business sale experts answer the questions SME owners ask most often: where to start, how much your business is worth, whether to sell shares or assets and how to manage the transition once the sale is closed.

The Seven Steps of Selling Your Business in Quebec

From setting your objectives to planning the transition after the sale, every step matters. Learn how to prepare your SME, find the right buyer and see the transaction through to closing.

 

Growth Through Acquisition: How to Ensure a Successful Transaction

Buying a business can accelerate your SME’s growth, provided you first assess your financial and operational capacity. See how to choose the right target, structure the financing and make the integration a success.

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Sales, Acquisitions and Succession Planning for SMEs: Which Questions Should you ask Yourself?

Preparing to sell a business starts well before the search for a buyer. Key steps include setting your objectives, readying the business and transaction information, determining its value, identifying potential buyers and negotiating the sale terms. Having a clear understanding of the steps involved in selling a business helps you plan effectively and avoid unpleasant surprises.

A business’s value depends on more than its revenue or profits. Profitability, growth potential, risk level and industry-specific factors can all affect its valuation. These elements should therefore be assessed when determining the value of a business before negotiations begin.

For an established SME, an acquisition can accelerate growth by providing immediate access to existing resources and operations. It can open new markets, broaden the customer base, add expertise or bring in a team with in-demand skills. Before proceeding, however, determine whether growth through acquisition aligns with your SME’s objectives and resources.

Before pursuing an acquisition, assess whether your SME has the capacity to proceed. Your financial capacity determines how much you can invest, while operational capacity indicates whether you can integrate another business without disrupting current operations. Properly preparing for growth through acquisition therefore starts with this assessment.

Buying shares and buying assets can have different consequences for both parties, particularly for tax purposes. The parties’ circumstances, the assets involved and the transaction structure should therefore be reviewed to determine the best option. This includes carefully assessing the tax implications of acquiring a business.

After the transaction closes, the priority is to integrate the acquired business and identify synergies between the two organizations, including in operations, workforce and procurement. This step is essential to fully realize the benefits of the acquisition and achieve the expected return.

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