The landscape of business ownership in Canada is experiencing a seismic shift. Over the next decade, an estimated 76% of Canadian business owners plan to sell their businesses, according to the Canadian Federation of Independent Business.That represents a staggering $2 trillion in assets poised for transition.
Despite the scale of this impending change, only 9% of owners have a formal transition plan in place. This disconnect demands immediate attention. It presents both a challenge and an opportunity for our industry.
Transitioning a business is not a one-time event; it’s a complex journey that requires foresight, expertise and tactical execution, along with a strategic advisory service to provide counsel on deal sourcing, due diligence, company valuation and negotiation to help clients take advantage of growth opportunities and realize maximum value.
Whether your client is looking to retire, pursue new ventures or simply pass the torch, the process of exiting a business must be approached with the same diligence and care that built it in the first place.
If you’re not comfortable providing this guidance, add a subject-matter expert to your list of professionals you refer clients to.
There are five areas your business-owner clients must consider when navigating the intricacies of a smooth transition.
1. Exit planning and timing
A successful exit begins with a strategic, values-driven plan.
Business owners must align their personal readiness with market timing and long-term legacy goals. This ensures that the transition is not only financially sound but also emotionally and ethically aligned with the owner’s vision.
2. Valuation and deal structuring
Accurately determining business value is a foundational step in any transaction.
Help the client determine the operation’s value. If there’s a gap between buyer and seller valuations, find ways to reconcile the difference by structuring the deal in a way that works for both parties.
Whether it’s a sale to a third party or a transfer within the family, the right deal can make all the difference. Closing valuation gaps is vital to ensure money isn’t being left on the table.
3. Preparing for due diligence
It can be a daunting process, but with proper preparation, due diligence becomes a manageable step toward a successful sale.
It requires organizing financials, legal documents and operational records, while proactively addressing potential red flags that could derail a deal.
4. Buyer landscape and process strategy
Finding the right buyer is more than a numbers game — it’s a strategic alignment of values, vision and discretion. While financial metrics matter, true success lies in identifying a buyer whose goals and culture align with those of the business. This requires thoughtful profiling of ideal candidates — not just their capacity to pay, but a long-term fit and shared vision for the future.
To support this, access to global data and technology is essential. Leveraging advanced platforms can help identify buyers worldwide, monitor comparable transactions and understand the valuation metrics being used in real time. This intelligence informs pricing strategy and strengthens positioning.
Confidentiality is paramount. Using secure virtual data rooms ensures sensitive information is protected while enabling efficient due diligence. Managing the process with precision — from initial outreach to final negotiations — helps maintain discretion, protect business continuity and preserve employee morale and client relationships.
Creating competitive bid tension is a key value driver. A well-orchestrated process, underpinned by strategic communication and disciplined execution, ensures that buyers are engaged, timelines are respected and optionality is preserved — all while selling in silence.
5. Transitioning the business
The final handoff is where legacy meets logistics. Defining post-sale roles, ensuring financial clarity and preserving what the company stands for are crucial components of a successful transition.
Avoiding post-deal pitfalls — such as earn-out disputes or cultural misalignment with new ownership — requires foresight, clear planning and attention to transitional details.
As the wave of business transitions accelerates, the need for expert guidance has never been greater. It presents a significant opportunity for you to strengthen client relationships and expand your business.
The stakes are high — not just for individual owners, but for the Canadian economy as a whole. Businesses are more than balance sheets; they are the lifeblood of communities, the result of decades of hard work and a foundation for future growth.
For business owners contemplating their next chapter, your message should be clear: don’t wait. A well-executed transition plan is not just a safeguard — it’s a strategic advantage.
Dave Turnbull is senior vice-president, head of Private Company Advisory at IG Private Wealth Management