Question 1

What is the minimum budget to buy a business in BC?

Accepted Answer

Most viable SME acquisitions in BC start around $150,000–$250,000 all-in — this includes your down payment, our engagement fee, legal and accounting costs, and working capital. Businesses below that range exist but typically carry higher operational risk or lack documented financials. During our initial strategy call we size what's realistic for your specific capital position.

Question 2

How long does the average acquisition take from first call to close?

Accepted Answer

Six to nine months is the most common range for a well-prepared buyer who knows their target profile. Buyers who narrow their criteria quickly and move decisively on the right deal can close in three to four months. Buyers still exploring broad categories may take twelve months or more. We work at your pace — but we also help you stay disciplined so you don't miss the right deal.

Question 3

Do I need business ownership experience to buy a company?

Accepted Answer

Not necessarily. Many of our most successful clients are corporate professionals buying their first business. What matters more than prior ownership is domain knowledge in the sector you're entering, the ability to delegate, and access to advisors who've done this before. We evaluate your readiness candidly and recommend industries where the operational learning curve is manageable.

Question 4

Can you help me find off-market businesses that aren't publicly listed?

Accepted Answer

Yes — off-market sourcing is one of the core advantages of working with a boutique advisory. Publicly listed businesses have been picked through; off-market sellers are often motivated, less leveraged in negotiation, and priced more fairly. We reach sellers through industry networks, direct outreach, and our relationships with accountants and lawyers who advise owners considering exits.

Question 5

What types of businesses do you recommend for first-time buyers?

Accepted Answer

Service businesses with recurring contracts (cleaning, landscaping, HVAC maintenance agreements) and businesses with a management layer already in place are generally the safest first acquisitions. They tend to be less dependent on the owner's personal relationships and easier to transition. We avoid recommending heavily owner-dependent restaurants or businesses where the product is the owner's personal skill.

Question 6

What industries are the most active in BC acquisitions right now?

Accepted Answer

HVAC and mechanical, food service, healthcare (dental, physiotherapy), cleaning and janitorial, and technology SaaS are the most consistently active sectors in BC. Immigrant investor demand for gas stations and convenience stores also remains high. Sectors seeing compressed multiples right now include some retail categories and restaurants without real estate.

Question 7

Can I buy a business remotely if I'm not yet in Canada?

Accepted Answer

Yes. Many of our clients are outside Canada when they start the process and relocate at or after close. We conduct all advisory work remotely. For immigration-linked transactions the physical presence requirements depend on your specific pathway — we'll flag those timing constraints early and coordinate with your immigration counsel.

Question 8

How do I know if my business is ready to sell?

Accepted Answer

The four readiness signals we look for: three years of clean, accountant-prepared financials; a management layer that can run day-to-day without you; customer revenue not concentrated in one or two clients (aim for under 20% from any single account); and an assignable lease or owned real estate. If you're missing one of these, we can help you build a 12–24 month exit plan to close the gap.

Question 9

What is my business worth?

Accepted Answer

Most SME businesses in BC are valued on a Seller's Discretionary Earnings (SDE) or EBITDA multiple. The multiple ranges from 1× (basic retail, owner-dependent operations) to 6× EBITDA and above (recurring-revenue SaaS, dental practices, businesses with strong management). During our valuation engagement we run a full SDE recast, benchmark against comparable transactions, and give you a defensible range rather than an optimistic number you can't support in due diligence.

Question 10

What is SDE and how is it different from profit?

Accepted Answer

Seller's Discretionary Earnings (SDE) is your net profit plus your owner's salary and benefits, plus non-recurring expenses (one-time legal fees, personal vehicles run through the business, etc.). It represents the true economic benefit to a full-time owner-operator. For larger businesses we use EBITDA — earnings before interest, taxes, depreciation, and amortization — which excludes personal add-backs and is used for businesses that employ a management layer.

Question 11

How confidential is the sale process?

Accepted Answer

We treat every mandate with full confidentiality. Buyers sign an NDA before receiving any identifying information about your business. We use a blind business profile (no name, no address, no identifiable details) at the inquiry stage. Your staff, customers, and suppliers do not need to know until you choose to disclose — typically at or very close to closing.

Question 12

Can I sell just the assets instead of the whole company?

Accepted Answer

Yes, and it's a common structure for SME transactions. An asset sale means the buyer purchases the equipment, customer contracts, brand, inventory, and goodwill — but does not take on your corporation's history, liabilities, or tax obligations. Share sales are cleaner from a seller's perspective but buyers typically prefer asset sales unless there are compelling reasons otherwise (transferable licences, contracts that require share continuity). Your transaction lawyer will guide the right structure.

Question 13

How long does it take to sell a business?

Accepted Answer

Well-prepared businesses priced at market typically sell within three to nine months of going to market. Businesses that are over-priced or have unclear financials can sit for a year or more without a close. Our role is to ensure your business is packaged and priced to move — not priced to generate tire-kickers.

Question 14

What happens if a deal falls through during due diligence?

Accepted Answer

It happens, and it's not the end of the process. Most deal failures happen for one of three reasons: undisclosed issues surfaced in due diligence, financing fell through on the buyer's side, or the buyer lost conviction. We do pre-due-diligence preparation with sellers specifically to minimize surprises and to ensure you're back on market quickly if a deal collapses.

Question 15

What multiple should I expect for my type of business?

Accepted Answer

SaaS and recurring-revenue tech companies typically see 3×–8× ARR. Dental and medical practices trade at 4×–6× EBITDA. HVAC businesses with service contracts command 2×–3.5× SDE. Restaurants sit at 1.5×–2.5× SDE. Retail stores are typically 1×–2× SDE excluding inventory. These are ranges — your specific multiple depends on customer concentration, management layer, growth trend, and market conditions at the time you go to market.

Question 16

Can I include the real estate in the sale?

Accepted Answer

Yes, and real estate materially increases deal value and broadens your buyer pool. Commercial real estate is valued separately at market (typically by an independent appraisal) and either included in the transaction price or structured as a separate real estate purchase alongside the business. Owner-occupied commercial property in BC is in strong demand.

Question 17

What is a normalised or recasted income statement?

Accepted Answer

A recast income statement adjusts your reported financials to show what the business earns under normal operating conditions. Common adjustments include adding back one-time expenses, replacing above-market owner salary with a market-rate management salary, removing personal expenses run through the business, and smoothing non-recurring revenue. Buyers and their accountants expect to see a recast P&L — we prepare it as part of every seller engagement.

Question 18

How do I account for inventory in the sale price?

Accepted Answer

Inventory is typically excluded from the headline business price and counted separately at cost at or near close. The final count is done during the transition period. For retail businesses this is a significant negotiation point — make sure your inventory records are current and accurate before you go to market.

Question 19

What is goodwill and how is it valued?

Accepted Answer

Goodwill is the value of intangible assets — brand reputation, customer relationships, trained staff, systems and processes — above the net value of the physical assets. In an SME transaction, goodwill is the difference between the purchase price and the fair market value of the hard assets. Buyers pay for goodwill because it's what generates future cash flow beyond what the equipment alone would produce.

Question 20

What does due diligence involve?

Accepted Answer

Due diligence is the buyer's formal investigation of the business before closing. It covers financial due diligence (3 years of tax returns, P&Ls, bank statements), legal due diligence (lease review, contracts, litigation history, IP), operational due diligence (staff interviews, supplier relationships, customer concentration), and environmental or regulatory due diligence where applicable. We coordinate the process and flag anything that should affect price or terms.

Question 21

How long does due diligence take?

Accepted Answer

A well-prepared seller with clean records and a responsive advisory team typically completes due diligence in 30–45 days. Complex transactions (multi-location, regulated industries, environmental issues) can take 60–90 days. Our pre-sale preparation for sellers and pre-LOI checklists for buyers are designed to compress this window.

Question 22

What is a Letter of Intent (LOI)?

Accepted Answer

An LOI is a non-binding document that sets out the key commercial terms of the proposed acquisition — purchase price, payment structure, deal type (asset or share), key conditions, exclusivity period, and closing timeline. Signing an LOI kicks off the formal due diligence period. Most LOIs are non-binding on price but binding on exclusivity and confidentiality for a fixed period.

Question 23

What is an earn-out and when is it used?

Accepted Answer

An earn-out ties part of the purchase price to the future performance of the business after closing — for example, 20% of the price paid over two years if EBITDA targets are met. Earn-outs are common when buyer and seller disagree on valuation, when the business is growing rapidly and the seller wants upside participation, or when a key customer relationship needs to be transitioned. They add complexity and should be structured carefully.

Question 24

What is a vendor take-back (VTB) and why would a seller offer one?

Accepted Answer

A vendor take-back is when the seller finances part of the purchase price — essentially lending the buyer a portion of the deal and being repaid over time with interest. Sellers offer VTBs to bridge a buyer's financing gap, signal confidence in the business, and often to improve after-tax proceeds. Buyers like VTBs because they demonstrate the seller's conviction and reduce upfront capital requirements.

Question 25

What warranties and representations does a seller have to give?

Accepted Answer

In a purchase agreement, the seller warrants the accuracy of information provided during due diligence — that the financials are correct, there are no undisclosed liabilities, the business owns what it says it owns, and key contracts are in good standing. Buyers hold back a portion of the price (5–10%) for 12–18 months to cover warranty claims. Your transaction lawyer negotiates the scope and survival period of reps and warranties.

Question 26

What is a non-compete agreement in a business sale?

Accepted Answer

A non-compete restricts the seller from starting or joining a competing business in the same geography and industry for a defined period — typically 2–5 years. Courts in BC require non-competes to be reasonable in scope, geography, and duration to be enforceable. Buyers pay for goodwill; a non-compete is what protects that goodwill after closing.

Question 27

How do buyers typically finance a business purchase in Canada?

Accepted Answer

The most common financing stack is: 30–50% personal down payment, 30–50% BDC or chartered bank acquisition loan (with the business assets and cash flow as collateral), and potentially 10–20% vendor take-back from the seller. SBA-equivalent financing in Canada is primarily through BDC's Business Acquisition Financing program, which offers competitive rates for acquisitions up to $5M.

Question 28

Can I use my RRSP or TFSA to fund a business acquisition?

Accepted Answer

Direct use of registered funds for private business acquisitions is restricted under the Income Tax Act. However, there are specialist structures (such as holding company arrangements) that allow some tax-efficient deployment of capital. This is a matter for your tax accountant and corporate lawyer — we can refer you to professionals who specialize in acquisition financing structures.

Question 29

What does BDC Business Acquisition Financing offer?

Accepted Answer

BDC's acquisition financing program lends against the value of the business being purchased — including intangible assets like goodwill — which traditional bank financing often won't touch. Terms typically run 7–10 years with competitive floating or fixed rates. Eligibility requires the buyer to have relevant industry experience or a strong management track record. We work with buyers to prepare BDC-ready financial packages.

Question 30

Do banks lend for business acquisitions in Canada?

Accepted Answer

The major chartered banks (RBC, TD, BMO, Scotiabank, CIBC) do lend for acquisitions, but their appetite depends heavily on the nature of the business assets and the buyer's profile. They're more comfortable with asset-heavy businesses (equipment, real estate) than with goodwill-heavy businesses (professional practices, service companies). BDC is often a more practical first option for first-time buyers.

Question 31

How does BizBuy.ca's Reverse Lehman fee structure work for sellers?

Accepted Answer

Our Reverse Lehman success fee scales down as deal size increases: 10% on the first $1M of transaction value, 8% on the next $1M ($1M–$2M), 6% on the next $1M ($2M–$3M), and 4% on everything above $3M. The minimum success fee is $25,000. We charge a $7,500 non-refundable engagement fee upfront, which is credited against the success fee at closing. This structure aligns our incentives with yours — we only earn the majority of our fee when the deal closes.

Question 32

What does the $7,500 engagement fee cover?

Accepted Answer

The engagement fee covers our full seller preparation work: SDE recast and valuation analysis, preparation of the confidential business profile and blind teaser, NDA management, and the first phase of buyer sourcing and qualification. It signals serious seller intent and ensures we're both committed before investing significant advisory time. It is fully credited against the success fee at close.

Question 33

Are your services a substitute for lawyers and accountants?

Accepted Answer

No — and any advisory that positions itself that way is misrepresenting its scope. We provide deal origination, valuation, negotiation strategy, and process management. Your transaction lawyer handles the purchase agreement, due diligence coordination, and regulatory matters. Your accountant reviews financial statements and advises on tax structure. All three are necessary on any material transaction.

Question 34

Can buying a business in BC support an immigration application?

Accepted Answer

Yes, under specific programmes. The BC PNP Entrepreneur Immigration Regional Pilot requires an eligible investment and business creation in an approved BC region. The Start-Up Visa requires a letter of support from a designated organization. The C-11 Self-Employed visa is for specific cultural and agricultural categories. Immigration eligibility is highly specific to your situation — we refer all immigration questions to licensed RCICs and immigration lawyers, and flag timing constraints that affect deal structure.

Question 35

Do you work with buyers outside of BC?

Accepted Answer

Yes. We advise buyers across Canada and international buyers targeting Canadian acquisitions. Our BC deal flow is the deepest, but we have relationships and referral networks in Ontario, Alberta, and across Canada. All advisory work is conducted remotely — geography is not a constraint.

Question 36

What's the first step to start working with BizBuy.ca?

Accepted Answer

Call or email us for a no-obligation discovery conversation. We'll discuss your goals (buy or sell), your timeline, and your capital position. If there's a fit, we'll recommend next steps — whether that's a buyer strategy session, a seller valuation engagement, or simply a referral to another specialist if our services aren't the right match for your situation. Call (604) 632-4959 or reach us at Ali@Sedighi.ca.

Question 37

What makes BizBuy.ca different from a traditional business broker?

Accepted Answer

Business brokers typically represent sellers and are compensated on commission — their incentive is to close the deal, not necessarily to close the right deal for your situation. We operate as an independent advisory: on the buy side we represent the buyer's interests exclusively; on the sell side we focus on value maximization and process integrity, not volume. Our Reverse Lehman fee model and flat engagement fee reflect that positioning.

Frequently Asked Questions

Getting Started — Buyers

Selling Your Business

Valuation & Pricing

Due Diligence & Deal Structure

Financing an Acquisition

Fees, Process & Immigration

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