Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for December 2019

Canada’s Wave of Business Transition

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Readers of my blog (and LinkedIn posts and if you’ve attended one of my Bidding War sessions) know that while there have been plenty of small & medium-size business sales in recent years, there are many more to come.  It is a matter of demographics … 20% of Atlantic Canada’s population is already over the age of 65, and most of the children of those that are business owners don’t want the business (in my experience) … so, the reality is that many business owners are going to sell, even if some have been putting off the decision.

Our firm BDO recently partnered with FEI Canada for a survey of business owners about their succession plans.  While the findings may not be new to some of us, they are further corroboration of the above demographic reality.

  • 54% are expecting to sell within 2 years;
  • 19% are expecting to sell within 3-5 years;
  • 83% have less than $100mil in annual revenue.

https://www.feicanada.org/ajaxfilemanager/uploaded/SELLING_BUS_SURVEY_EN%20(002).pdf

Written by Dan Jennings

December 24, 2019 at 11:21 am