A wave of new companies about to hit the market

To hear it from the Business Development Bank of Canada (BDC), there’s a buyer’s market in small businesses in the offing. BDC released a study on business transitions on Sept. 30 that indicates 41 per cent of business owners plan to exit their business in the next five years. Of those, only a quarter plan to pass the business on to a family member; more than half expect to sell their business to an outside party (the remainder mostly intend to simply wind down operations). Further, most are neglecting the kind of investments that might maximize the value they receive for their companies, though there are notable exceptions. Entrepreneurs with larger companies—more than 20 employees—tend to be more aggressive with their business development right up to the day they sell.