Venture for Canada has established an advisory council to help strengthen entrepreneurship through acquisition in Canada as business owners prepare to transfer billions of dollars in assets over the next decade.
The Toronto-based non-profit organization announced its Entrepreneurship Through Acquisition (ETA) Advisory Council, bringing together eight professionals from business ownership, investing, finance, law, accounting and entrepreneurship education to advise on programming and efforts to develop the sector.
The announcement comes as 76 per cent of small-business owners plan to exit their businesses over the next decade, representing more than $2 trillion in business assets that could change hands, according to the organization. Only nine per cent of owners have a formal succession plan in place.
Venture for Canada said the council will help inform its educational programming, research and collaboration with stakeholders as it works to expand opportunities for entrepreneurs to acquire existing businesses rather than establish new ones.
Council targets succession challenges
The council includes Mario Nigro, partner at Stikeman Elliott LLP; Alina Martin, founder and CEO of ScalePoint M&A; Marc Nzojibwami, director at Auxano Holdings; Jonathan Bega, managing director at Gestalt Capital; Peter Walker, board member at Employee Ownership Canada; Elspeth J Murray, founder and director of Queen's Centre for Business Venturing; Matthew Hooper, partner at The Operand Group; and Mackenzie Regent, co-founder and partner at Kalos LLP.
Members held their inaugural meeting on May 20, followed by meetings on June 6 and Aug. 19. The latter included Venture for Canada's Entrepreneurship Through Acquisition Roundtable, hosted at The Dais at Toronto Metropolitan University.
Discussions focused on the barriers preventing more Canadians from pursuing business acquisitions and the infrastructure needed to support buyers, sellers, lenders, advisers and educators.
Entrepreneurship through acquisition allows aspiring business owners to purchase and grow an existing company. The approach can also support business continuity by preserving jobs, established relationships and economic activity, the organization said.
However, awareness of the model remains limited, according to the discussions summarized by Venture for Canada. Some business owners are unfamiliar with selling to an individual as a succession option, while prospective entrepreneurs may not have considered acquiring an established business as an alternative to starting one.
Financing and post-acquisition support among barriers
Access to financing emerged as one of the most immediate challenges for prospective buyers, but participants also identified gaps in education, mentorship, professional networks and support after a transaction closes.
New owners can face significant challenges during the first six months after acquiring a business, the organization said, while structured post-acquisition assistance remains limited.
Participants also discussed the potential for government and financial institutions to play a larger role in developing financing options, policy supports and co-ordinated frameworks for acquisition entrepreneurs.
Other proposals included buyer credentialing systems to build credibility with brokers and sellers, as well as stronger partnerships with universities and business schools to introduce acquisition entrepreneurship to prospective business owners earlier in their careers.
The discussions also highlighted the need for greater collaboration among stakeholders, with participants noting that members of Canada's developing ETA community often address similar challenges independently.
Venture for Canada said the advisory council will help identify opportunities to connect those stakeholders and make the path to business ownership more accessible.
Existing programs to expand
The council's work will support Venture for Canada's existing Entrepreneurship Through Acquisition Academy, which includes ETA Bootcamp and ETA 101. The programs introduce aspiring entrepreneurs to business acquisition and provide practical support for those exploring ownership.
The organization has also partnered with Queen's University's Smith School of Business on Buy In Canada, which it describes as the country's first conference dedicated to entrepreneurship through acquisition. The event brought together prospective buyers, business owners, investors and other industry participants to discuss acquisition entrepreneurship and succession.
The next Buy In Canada event is scheduled for 2027.
Venture for Canada is also preparing for Canada's Succession Summit, scheduled for Oct. 17. The event is expected to bring together policymakers, investors, lenders, advisers and other stakeholders to examine changes needed to support business succession and acquisition entrepreneurship.
A Canadian ETA Perspectives Survey ahead of the summit is intended to gather experiences and identify challenges that can help shape the event's programming.
The organization said its training and convening initiatives are part of a broader effort to develop a national ecosystem for business acquisitions. That work includes addressing financing gaps, improving support for new owners, increasing awareness among business sellers and strengthening co-operation among institutions involved in succession.
Venture for Canada said the advisory council will provide strategic guidance as it expands its programming and contributes to national discussions about business succession.
The organization identified collaboration across finance, education, government, business ownership and entrepreneurship support as central to developing more pathways for Canadians to acquire existing businesses.
