Looking Into a Business for Sale in Ontario – What Should I Know?

[ashley03111]

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Hey everyone,

I’m exploring potential opportunities to invest in or take over a small business and came across listings for business for sale Ontario. I’m curious to hear from people who have experience in this area.

For those who have looked into buying or running a business:

What are the most important factors to consider before making a purchase?

Are there common pitfalls that first-time buyers often overlook?

Any tips for evaluating whether a business is a good fit?

I’d really appreciate hearing your experiences, advice, or lessons learned—it’s always helpful to get real-world insights before jumping in!

[Daniel-Ric]

If you’re looking at buying a small business in Ontario, the biggest things to validate are the numbers (tax returns/financial statements, owner add-backs, true cash flow, customer concentration, and whether revenue is repeatable), the reason it’s being sold (and how dependent it is on the current owner), and any legal/operational risks (leases and landlord consent, contracts, employees, licenses/permits, outstanding liabilities, and any CRA/HST/payroll issues). A common pitfall is overpaying for “potential” or trusting seller-provided reports without independent verification, so it’s worth doing proper due diligence with an accountant and a lawyer, and speaking to key customers/suppliers where possible. To see if it’s a good fit, be honest about how involved you want to be day-to-day, what skills the business requires, and whether you can maintain or improve the business without the seller—ideally with a transition period and clear training/handover terms in the purchase agreement.