SuccessionMatching, an online marketplace developed for business sellers and buyers to connect, has also noticed an uptick in the desire for US citizens to purchase Ontario-based businesses since the Toronto Raptors won the NBA Championship.
A coincidence? Alison Anderson, CEO of SuccessionMatching, thinks not. “This year we have seen an increase in US citizens interested in purchasing a business in Canada to immigrate to our country.” said Anderson. “I think the “We the North” changed many Americans perception of what Canada is and serendipitously/inadvertently showcased our diversity.”
This is good news for Canadian business owners looking to sell because considering an international buyer can come with a multitude of advantages. One of the biggest policy changes made was the ability to sell ⅓ of the business to an international buyer. This can boost the business itself with tremendous value, involving the buyer for cash injections for expansion and allowing all parties involved to participate in the growth of the business.
Selling the business over a period of time can also be more tax advantageous and allow for the development of a natural and gradual succession plan.
Immigrant buyers can come with anything from foreign connections to beneficial management experience. Let’s not forget that selling to an international buyer might also help them achieve a better way of life, immigrating from countries with less opportunity.
What’s next? There is a strong population of serial entrepreneurs, looking to sell and move on to their next great adventure. Funding this next chapter requires successful business transitions to positive buyers.
“We currently have a number of international buyers looking specifically to purchase in the GTA,” said Alison. “It would be great to connect them to the right businesses in the near future.”