As a wave of retirements approaches, small business ownership in Canada is undergoing a significant transition. According to Kevin Zhao, Senior Engagement Manager at Sapling Financial Consultants, this shift is largely driven by a generational “succession crunch.” Many business owners are reaching retirement age, but family succession is no longer guaranteed. In numerous cases, children have chosen different career paths or aren’t considered ready or suitable to take over the family enterprise. As a result, more businesses are entering the market in search of buyers.
Kevin Zhao
This evolving landscape has sparked increased interest from a variety of acquirers. Private equity firms are particularly active, especially in industries like HVAC and fire protection services, where consistent revenue and essential service demand offer attractive investment potential. Smaller buyers—often referred to as “searchers”—are also seeking opportunities to acquire and operate businesses directly, giving sellers a more hands-on and personalized succession option.
For business owners looking to exit successfully, Zhao emphasizes the importance of early preparation. Ideally, sellers should begin planning two to three years before retiring. This allows time to organize financial statements, improve accounting systems, and align the business with the expectations of professional investors.
In addition to clean financials, potential buyers are attracted to businesses with stable, recurring revenue, predictable expenses, and growth potential. Companies in declining industries or those showing downward performance trends are far less appealing.
Zhao advises working with experienced advisors—accountants, legal professionals, and consultants—to ensure the sale process runs smoothly and to maximize business valuation. Ultimately, a thoughtful and well-prepared exit strategy is key to securing a strong outcome in today’s competitive small business market.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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