Answers to Help You Buy, Sell & Grow

Yes, some businesses can be operated by first-time owners. However, buyers should understand the business model, financial requirements, staffing needs, industry regulations and operational responsibilities before purchasing. Franchises and businesses with a training or transition period can be a good starting point for new owners.

There is no single minimum amount. The required capital depends on the purchase price, financing, deposit, working capital, inventory, equipment and other transaction costs. Buyers should budget beyond just the asking price.

Potential financing options may include bank financing, seller or vendor financing, and other commercial financing arrangements. Eligibility depends on the buyer's financial position, the business itself, and the specific transaction.

Due diligence is the process of verifying the financial, legal, operational and physical information associated with a business before completing the purchase, including financial records, contracts, licences, liabilities, employees and assets.

Timelines vary widely, but the process generally includes a search phase, an offer with conditions, a due-diligence period, financing arrangements and closing, often several weeks to a few months depending on the transaction's complexity.

In an asset sale, the buyer purchases the business's specific assets and sometimes liabilities. In a share sale, the buyer purchases shares of the company itself, taking on the business as a whole, including its history. The right structure depends on the transaction and should be reviewed with a lawyer and accountant.

Yes. A lawyer should review the purchase agreement and other transaction documents before you sign or close, regardless of the size of the business.

Yes. The asking price is typically a starting point. Offers can also include other negotiable terms beyond price, such as deposit, financing conditions, closing date, included inventory or equipment, and transition support.

Depending on the purchase agreement's conditions, buyers may be able to renegotiate price or terms, request the issue be resolved before closing, or walk away from the deal if conditions are not satisfied.

Common triggers include retirement, relocation, changing careers, partnership changes, pursuing another opportunity, or simply being ready to move on. Your reason for selling can also shape your timeline and preferred deal structure.

Business value can depend on revenue, profitability, cash flow, assets, location, lease terms, industry, growth potential and market conditions. A professional business valuation may be appropriate for certain transactions.

Not necessarily. Many sellers choose confidential marketing to avoid alerting employees, customers, competitors or suppliers, while still reaching qualified buyers.

Confidential marketing methods can include blind listings without the business name or exact address, non-disclosure agreements before sharing sensitive details, and pre-qualifying buyers before releasing financial information.

Commonly requested documents include financial statements, tax returns, sales records, payroll information, lease documents, equipment lists, inventory information, supplier agreements, franchise agreements if applicable, and licences or permits.

Sellers can ask about a buyer's financial capability, financing plans, business experience, intended use of the business, timeline, and whether professional advisors are involved.

It depends on the transaction. A broker can help with valuation, marketing and negotiation for a fee, while a marketplace listing on a platform like SellBusiness.ca can help sellers reach buyers directly. Many sellers use a combination of both.

Vendor financing is when the seller finances part of the purchase price, to be repaid by the buyer over time. It can help bridge a financing gap and make a business more attractive to buyers, though it carries risk for the seller and should be structured carefully with legal advice.

Commercial opportunities may include retail properties, industrial properties, warehouses, office buildings, restaurant properties, mixed-use properties, and other income-producing or owner-occupied commercial real estate.

The answer depends on your financial position, business plans, investment objectives, financing, expected holding period, and the specific property. Buying builds equity but requires more capital upfront; leasing offers more flexibility.

TMI generally refers to taxes, maintenance and insurance, or a similar bundle of additional occupancy costs charged to a commercial tenant, depending on the lease structure. Always review the specific lease for its actual definition.

In a triple net or NNN lease, the tenant typically pays a base rent plus property taxes, insurance and maintenance separately. In a gross lease, the tenant typically pays one rent amount that includes most or all of these costs. Terms vary by lease, so always review the actual agreement.

Cap rate, or capitalization rate, is a common metric used to evaluate a commercial property's potential return, generally calculated as the property's net operating income divided by its purchase price or current value.

Yes. Commercial real estate transactions involve title, zoning, environmental and lease considerations that should be reviewed by a qualified real estate lawyer before closing.

Yes, commonly through a commercial mortgage. Down payment requirements, rates and terms vary by lender, property type and the buyer's financial profile. Speak with a qualified commercial lender for specifics.

Key items include sales and POS records, the lease and its remaining term, required licences such as food handling and liquor if applicable, equipment condition and ownership, and health inspection history.

Restaurant value is often assessed using seller's discretionary earnings, lease strength, equipment condition or value, and location or foot traffic, in addition to revenue.

A turnkey restaurant generally means it is fully equipped and set up to continue operating with minimal changes. Buyers should still verify what is actually included and confirm equipment condition before relying on the term.

Licensing requirements depend on the province and the specific business. Buyers should confirm licence transferability and requirements with the relevant provincial authority and legal counsel.

This is done through a lease assignment, which typically requires landlord consent. Buyers should review the remaining lease term, renewal options, and any personal guarantees before proceeding.

Depending on what the store sells, licences or permits may be required for items such as tobacco, lottery and alcohol. Requirements vary by province and municipality. Buyers should confirm current requirements with the relevant authorities.

Valuation typically considers the mix of revenue such as in-store sales, fuel and lottery, profit margins, lease strength, and the condition or value of equipment and inventory.

Gas stations typically require environmental due diligence related to fuel storage tanks and potential soil or groundwater contamination. Buyers should work with qualified environmental professionals and legal counsel.

Financing options may include bank financing, seller financing, and in some cases financing programs offered through suppliers or distributors, depending on the transaction.

A franchise disclosure document is a document franchisors are generally required to provide to prospective franchisees, outlining fees, obligations, financial information and other important details before signing a franchise agreement.

Costs vary widely by brand and typically include an initial franchise fee, build-out or equipment costs, working capital, and ongoing royalty and marketing fund fees. Always confirm exact figures directly with the franchisor.

Franchise agreements are often more standardized than independent business purchases, but some terms, particularly around territory or specific local conditions, may be open to discussion. Review the agreement with a lawyer experienced in franchise law.

A franchise typically comes with an established brand, operating systems, training and ongoing support, along with fees and operating restrictions. An independent business offers more flexibility but without built-in brand support.

Consider brand strength, unit-level economics, territory protection, the level of ongoing support, franchisee turnover and resale value, in addition to the upfront cost.

Retail valuation typically considers revenue and margins, inventory value, lease strength, and location or foot traffic, in addition to profitability.

Inventory is often priced separately from the business itself and valued at closing based on a physical count. Buyers should clarify what is included and how aged or obsolete stock will be handled.

Review permitted use, any co-tenancy requirements, rent escalation clauses, remaining term, renewal options, and assignment provisions before completing a retail purchase.

Recurring revenue, diversified and non-concentrated client contracts, low owner dependency, and transferable client relationships tend to make service businesses more attractive to buyers.

Manufacturing valuations often weigh equipment condition and replacement cost, supply or customer contracts, and facility considerations more heavily, while service business valuations focus more on recurring revenue and client retention.

Verify the equipment's age, condition, ownership status such as owned, financed or leased, existing liens, maintenance history and realistic replacement cost.