Buying
Buy a business in BC, step by step
To buy a business in BC, start with clear criteria and work through to your first day in charge.
The buyer journey
Seven steps to owning a business
Timeframes are rough guides only.
- 1
Define what you want a week or two
Industry, size, location, your role and your budget. Clear criteria save everyone time.
- 2
Line up financing a few weeks
Talk to your own bank or a commercial banker early. I can introduce commercial bankers I trust. Some buyers also use the federal Canada Small Business Financing Program.
- 3
Search often months
Listings, direct approaches and introductions. Send me your criteria and I’ll watch for a fit.
- 4
Sign an NDA and review a few weeks
Read the information package, meet the owner, and test whether you really want to run this business.
- 5
Make an offer a few weeks
Price, structure, conditions and the owner’s transition role in a letter of intent (LOI).
- 6
Due diligence often 30 to 90 days
Accountant, lawyer and lender review the books, contracts, staff and lease. Check BC Registry records too.
- 7
Close and take over weeks to months
Sign, fund, assign the lease, and learn the business alongside the seller.
From the other side of the table
What a seller will ask you
Owners usually sell once, and they want to know the person across the table is serious before they open their books. The buyers who show up ready get the information package first, and often get the deal.
Owners and former owners tend to be taken seriously, because they know what running a business takes. If you haven’t run one before, show the experience you do have and who will help you.
Have these answers ready before your first coffee with an owner.
- Proof of funds
- A recent statement or a letter from your lender showing you can do the deal. Pre-approval from your bank or a commercial banker helps a lot.
- Your experience
- What you’ve run or managed before, and how it relates to this business. Bring the names of any partner or manager who will help.
- Who decides
- If a spouse, partner, investor or board has a say, tell the owner up front.
- Your timeline
- When you want to close and when you can start. Be honest; owners plan their lives around it.
- Your plans for staff
- Most owners care a lot about their team. Say what you intend to do.
- A written offer with a deposit
- A letter of intent with a modest, refundable deposit says you’re real far better than a verbal number. Your lawyer can set the conditions.
Be the buyer owners choose
Owners care who they sell to
Show your experience, your financing and your plans for staff. A respectful, prepared buyer often wins over a slightly higher offer.
