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Buyer FAQs

Your Guide to Buying a Business in Ottawa: Frequently Asked Questions

We understand that buying a business comes with many questions. To assist you, we’ve compiled a comprehensive list of FAQs.

At Sunbelt Canada, we offer business opportunities across the country, ranging from small, owner-operated enterprises priced as low as $250,000 to large corporations valued in the millions. Whether you’re a new entrepreneur, an experienced business owner, or part of a large corporation, Family Office, or Private Equity Group, we have options suited to your needs.

Our listings span a wide array of industries, from hospitality and software to countless others. Our objective is to find the perfect business match for each buyer, and we consistently have a diverse selection of quality businesses available for purchase in Canada.

When deciding whether to buy a business or start your own in Ottawa, the statistics suggest purchasing an existing, successful business is often the better choice. With a pre-existing business, you gain trained staff, immediate cash flow, loyal clients, a proven location, reliable suppliers, established marketing programs, and systems that work. Over 98% of buyers through Sunbelt Ottawa are successful, while 65% of start-ups fail. Buying an established business greatly reduces risk and increases your chances of success.

Buying a business in Ottawa is both rewarding and challenging. It involves responsibility, risk, hard work, and some stress but also brings satisfaction, financial growth, and personal development. Before buying, assess your strengths, weaknesses, and risk tolerance. Choose a business you enjoy and are good at managing. Stay within your financial means and ensure you’re prepared to handle the demands of business ownership. Owning a business offers freedom, the chance to build wealth, and a direct connection between your efforts and results, but it’s important to be ready.

The process of buying a business in Canada is detailed and requires careful planning. We recommend reading “Insider Tips on Buying a Business in Canada,” available as a free download from Sunbelt Canada or in hard copy at our Sunbelt Ottawa office. This guide walks you through the buying process, considerations, and potential challenges.

Yes, a business broker offers invaluable assistance, including:

  • Access to quality businesses that align with your skills, financial resources, and goals
  • In-depth financial analysis and valuation
  • Documentation preparation and due diligence management
  • Offer drafting, negotiation, and financing assistance
  • Guidance through the entire buying process to reduce risk

Sunbelt Business Brokers have access to hundreds of business opportunities across various industries and sizes. They will help you find a business that suits your needs and guide you through the entire process, ensuring you avoid common mistakes and secure a business that’s right for you.

Sunbelt Canada has the tools, the processes, well trained and experienced Business Brokers and an enviable track record of success that results in success for you-the buyer. You are protected throughout the process and end up achieving your goals and dreams.

In most cases, Sunbelt Ottawa’s services are free for buyers, as we are typically paid by the seller. In certain instances, there may be fees for specific services, which will be discussed with your business broker before you begin.

To inquire about a specific business, you’ll need to sign a confidentiality agreement and provide your financial information, experience, skills, goals, and desired lifestyle. Start by viewing the businesses for sale on our website.

Due diligence is your opportunity to verify the accuracy of the business information provided. Sunbelt Ottawa can recommend trusted advisors to assist with financial and legal due diligence, though we are dual agents with responsibilities to both the buyer and seller. You’ll need a financial advisor (accountant) and a legal advisor (lawyer) to help review the business and ensure everything is in order.

A good business aligns with your talents and skills, provides suitable financial rewards, is enjoyable, meets your lifestyle goals, and is something you’re proud to own.

You should aim to pay slightly less than you can afford to ensure you have reserves for unforeseen challenges. The business should generate enough cash flow to service debt, support your lifestyle, and provide a return on investment. Sunbelt Ottawa will help structure the deal to meet your financial needs.

Assess the cash flow, projections, and track record of the business. Sunbelt Ottawa Business Brokers will help you make an informed decision. While there are no guarantees, over 98% of our clients have been successful.

In Canada, financing small business purchases can be challenging. Banks generally don’t lend to buy small businesses. Typical financing includes:

  • Seller financing (around 20% of the purchase price)
  • Loans from Business Development Canada or Canada Small Business Loans (50+%)
  • Buyer’s equity (savings or Home Equity Loans) covering 20%–30% It’s important to also secure working capital, which can often be arranged through a line of credit.

Yes, Sunbelt Ottawa offers buy-side engagements, where we assist buyers in finding and purchasing businesses that we don’t represent. There is a fee for this service, but we provide a thorough evaluation to ensure the right fit and structure the deal to suit your needs

This decision depends on several factors, including the seller’s tax history, potential liabilities, access to the Lifetime Capital Gains Exemption, and the transferability of licences and permits. Your Sunbelt Ottawa Business Broker will advise on the best strategy for your purchase.

Common mistakes include:

  • Failing to understand the real value and potential of a business
  • Becoming overly focused on the numbers and missing a good opportunity
  • Falling in love with the idea of owning a business without doing thorough due diligence
  • Allowing professional advisors to make the purchase decision for you, rather than considering the big picture

Most deals in Ottawa include seller financing, a non-compete clause, training and transition programs, and representations and warranties from the seller. Sunbelt Ottawa Business Brokers will help you negotiate terms that work in your favour.

There are several programs available for business-related immigration to Canada. While Sunbelt is not an immigration consultant, we can refer you to qualified professionals who can assist. The programs change frequently, so it’s important to obtain current advice.

Acquiring a business is an excellent growth strategy if the fit is right. Synergies can increase profitability and reduce costs. Sunbelt Ottawa can help you explore acquisition opportunities and guide you through the process to ensure a smooth integration.

Ready to Take the Next Step in Buying a Business in Ottawa?

At Sunbelt Ottawa, we are committed to helping you navigate every step of the business buying process. Whether you’re a first-time buyer or a seasoned entrepreneur, our experienced brokers are here to guide you toward finding the perfect business that aligns with your personal and financial goals. With our comprehensive resources, industry expertise, and proven track record, we ensure your business purchase journey is smooth and successful. Contact us today to explore the opportunities available and take the next step towards owning a thriving business in Ottawa.