61 questions to answer before selling your business
What are the most common questions about selling a Canadian business?
Selling a business is a complex decision, and Canadian owners tend to ask the same core questions about value, process, tax and timing. The 61 most frequently asked questions cluster into a handful of themes that map the entire journey from preparation to closing, tailored to the Canadian landscape of tax considerations, legal nuances and market dynamics.
Common themes among the questions
- Valuation — how a business is valued, the three main valuation methods, rules of thumb, and typical multiples of earnings or revenue
- Pricing and proceeds — what to ask, how to maximize value, how to sell above market value, and what happens to cash reserves at closing
- Process and timeline — the steps to sell, how long it takes, and how to sell privately, to a competitor or as a franchise
- Marketing and buyers — where to list, how to find qualified buyers, and how to keep the sale confidential
- Tax and structure — share sale versus asset sale, the Lifetime Capital Gains Exemption, and overall tax implications
- Legal and due diligence — required documents, handling outstanding contracts and leases, and the roles of lawyer and accountant
- Readiness and transition — assessing if the business is ready, succession planning, employee transitions and seller financing
- Advisors and timing — whether to use a broker or M&A advisor, mistakes to avoid, and whether now is the right time
Rather than searching for each answer piecemeal, a confidential consultation with an experienced advisor can address these questions in the context of your specific situation.
Key facts: common questions about selling a Canadian business
The 61 owner questions cluster into themes: valuation, pricing, process, marketing, tax, legal, readiness, advisors
Tax questions centre on share versus asset sales and the Lifetime Capital Gains Exemption
Process questions cover steps, timeline and selling privately, to a competitor or as a franchise
A tailored advisor consultation answers these faster than piecemeal online research
Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances.
