FREQUENTLY ASKED QUESTIONS
About Buying, Selling, and Financing a Business in Canada
ABOUT OSPREY CAPITAL
What does Osprey Capital Partners do?
Osprey Capital Partners is a Canadian business advisory firm specializing in mergers and acquisitions, business sales, acquisitions, financing, valuations, and strategic advisory services for mid-market companies
How long has Osprey Capital been operating?
Osprey Capital Partners has been advising Canadian businesses since 1998.
Does Osprey Capital work with businesses across Canada?
Yes. We advise business owners, entrepreneurs, investors, and companies across Canada on a wide range of transaction and financing opportunities.
How do I start the process?
The first step is a confidential consultation with one of our advisors to discuss your goals, evaluate your situation, and determine the best strategy moving forward.
How can I contact Osprey Capital Partners?
You can contact our team through our website, by phone, or by completing our online inquiry form to schedule a confidential discussion.
Contact us today
SELLING A BUSINESS
How do I sell my business in Canada?
Selling a business involves preparing financial records, determining valuation, identifying qualified buyers, negotiating terms, conducting due diligence, and completing the transaction. Working with an experienced M&A advisor can help maximize value, maintain confidentiality, and manage the process from start to finish.
Read more on Selling a Business
How long does it take to sell a business?
Most mid-market business sales take between 6 and 12 months, depending on factors such as company size, industry, financial performance, market conditions, and buyer demand.
What is my business worth?
The value of a business is typically determined by several factors, including EBITDA, revenue, profitability, growth potential, industry trends, customer concentration, management strength, and market comparables. A professional valuation can provide a realistic estimate of market value.
How are businesses valued?
Business valuation methods commonly include:
- EBITDA multiple valuation
- Discounted cash flow analysis
- Asset-based valuation
- Comparable transaction analysis
The most appropriate method depends on the business and industry.
Do I need to disclose that my business is for sale?
Not necessarily. Most business sales are conducted confidentially. Qualified buyers are required to sign Non-Disclosure Agreements (NDAs) before receiving sensitive information.
Who buys businesses?
Potential buyers may include:
- Strategic buyers
- Private equity firms
- Family offices
- Individual entrepreneurs
- Competitors
- Existing management teams
The right buyer depends on your goals, industry, and desired transaction structure.
What documents do I need to sell my business?
Common documents include:
- Financial statements
- Tax returns
- Customer and supplier information
- Corporate records
- Employment agreements
- Asset schedules
- Legal contracts
Preparing these materials early can help streamline the process.
Can I continue operating my business during the sale process?
Yes. Maintaining normal operations and financial performance is critical during the sale process. Buyers typically expect the business to continue operating successfully until closing.
What is due diligence?
Due diligence is the buyer’s investigation of the business. It typically includes reviewing financial records, legal agreements, operations, customer relationships, employees, and growth opportunities.
How can I maximize the value of my business before selling?
Business owners can improve value by:
- Increasing profitability
- Reducing customer concentration
- Strengthening management
- Improving financial reporting
- Diversifying revenue streams
- Documenting operating procedures
BUYING A BUSINESS
How do I buy a business?
Buying a business generally involves identifying opportunities, evaluating financial performance, conducting due diligence, securing financing, negotiating terms, and completing the acquisition.
How much money do I need to buy a business?
The amount required depends on the purchase price and financing structure. Many acquisitions combine personal equity with bank financing, vendor financing, or private investment capital.
Can I finance a business acquisition?
Yes. Acquisition financing may be available through traditional lenders, private lenders, government-backed programs, vendor financing, and private investors.
What is vendor financing?
Vendor financing occurs when the seller agrees to finance a portion of the purchase price, allowing the buyer to make payments over time.
What should I look for when evaluating a business?
Buyers should assess:
- Revenue and profitability
- Customer concentration
- Industry outlook
- Management team
- Growth opportunities
- Competitive position
- Operational risks
What is an asset purchase versus a share purchase?
An asset purchase involves buying selected assets and liabilities, while a share purchase involves acquiring ownership of the entire company. Each structure has unique tax, legal, and operational implications.
How long does it take to buy a business?
Most acquisitions take between 3 and 9 months, depending on financing requirements, complexity, due diligence, and negotiations.
What industries does Osprey Capital work with?
We work with a wide range of industries, including manufacturing, industrial services, transportation, distribution, technology, healthcare, construction, and business services.
MERGERS & ACQUISITIONS
What is a merger and acquisition (M&A)?
Mergers and acquisitions refer to transactions involving the purchase, sale, consolidation, or combination of businesses.
Why should I hire an M&A advisor?
An experienced advisor can help:
- Identify qualified buyers or acquisition targets
- Maintain confidentiality
- Structure transactions
- Negotiate terms
- Manage due diligence
- Maximize value
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is one of the most commonly used measures of business performance and valuation.
What is a Letter of Intent (LOI)?
A Letter of Intent outlines the key terms of a proposed transaction before detailed due diligence and final legal documentation begin.
What factors influence transaction value?
Factors may include:
- Profitability
- Growth rate
- Industry conditions
- Customer diversification
- Management strength
- Market position
- Competitive advantages
BUSINESS FINANCING
How can I finance a business purchase?
Financing options may include:
- Senior bank debt
- Mezzanine financing
- Asset-based lending
- Vendor financing
- Private equity investment
- Growth capital
What types of businesses qualify for financing?
Lenders and investors typically look for businesses with stable cash flow, experienced management, strong financial performance, and clear growth opportunities.
What is growth capital?
Growth capital is financing provided to support expansion initiatives such as acquisitions, equipment purchases, market expansion, hiring, or operational improvements.
Financing a Business
What is recapitalization?
A recapitalization restructures a company’s capital by introducing debt, equity, or both. It may be used to fund growth, provide shareholder liquidity, or facilitate succession planning.
Financing a Business
Can I raise capital without giving up control?
In many cases, yes. Debt financing and certain structured capital solutions can provide funding without requiring the owner to surrender equity ownership.
Financing a Business
MERGERS & ACQUISITIONS
What is a merger and acquisition (M&A)?
Mergers and acquisitions refer to transactions involving the purchase, sale, consolidation, or combination of businesses.
Why should I hire an M&A advisor?
An experienced advisor can help:
- Identify qualified buyers or acquisition targets
- Maintain confidentiality
- Structure transactions
- Negotiate terms
- Manage due diligence
- Maximize value
What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is one of the most commonly used measures of business performance and valuation.
What is a Letter of Intent (LOI)?
A Letter of Intent outlines the key terms of a proposed transaction before detailed due diligence and final legal documentation begin.
What factors influence transaction value?
Factors may include:
- Profitability
- Growth rate
- Industry conditions
- Customer diversification
- Management strength
- Market position
- Competitive advantages
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Toronto, Ontario, M5H 3P5
416.867.8300
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