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№ 01Business Purchase & Sale · Toronto

Buying or selling a business in Toronto

Downtown, deals lean toward professional services, IT and managed-services firms, and e-commerce brands built around a lease-light footprint — while restaurants, salons and independent retail change hands steadily across Toronto's inner suburbs. The legal work looks different depending on which kind of business you're in, and we scope it that way from the first call.

№ 01.1Regional Data

Toronto, by the numbers

Every figure below traces to a named public source — no estimates, no filler.

110,277
Employer businesses in Toronto
Statistics Canada, Canadian Business Counts, Table 33-10-1097 · December 2025
97.6%
are small businesses (1–99 employees)
Statistics Canada, Canadian Business Counts, Table 33-10-1097 · December 2025
107,592
small businesses trading here
Statistics Canada, Canadian Business Counts, Table 33-10-1097 · December 2025
1
municipalities anchor the region
Region membership per the Toronto page family

Private-sector employment, by employer size — Canada-wide

Small (1–99): 46.6%Medium (100–499): 17.0%Large (500+): 36.4%

ISED, Key Small Business Statistics 2025 (2024 data). A Toronto-specific breakdown isn't published — with 97.6% of local employer businesses being small, the local picture likely tilts further toward small business.

Typical patterns across Ontario deals — not a quote or advice; every deal is confirmed on its own facts.

№ 01.2The Deal, End to End

Six steps, from offer to ownership

The same sequence underlies almost every owner-run Toronto deal — what changes from deal to deal is how long each step takes.

Reaching an agreement

01

Offer or letter of intent

Buyer and seller agree on price and key terms, usually informally, before lawyers draft anything binding. We review before you sign — even a "non-binding" LOI can lock in terms you didn't mean to fix.

usually 1–2 weeks
02

Agreement of purchase & sale

The APS sets out price, structure (asset or share), conditions, and closing date. We draft or review it and negotiate the protections — reps, warranties, holdbacks — that actually matter for your deal.

1–3 weeks to negotiate
03

Due diligence & searches

Corporate, PPSA lien, litigation, and licence searches confirm what you're actually buying. We chase the seller's lawyer, the registries, and any regulator whose sign-off your deal needs.

2–4 weeks, in parallel

Getting to closing

04

Financing & third-party consents

Landlord, franchisor, lender, and licensing-body sign-offs are chased in parallel with the paperwork. In Toronto this is usually about client contracts and platform accounts rather than real estate — an MSA's change-of-control clause or a marketplace account review can take longer than any landlord's sign-off.

often the critical path
05

Closing day

Funds, keys, and signed documents change hands. We coordinate directly with both sides' lawyers and the lender so nothing is left to a last-minute phone call.

1 day, once conditions are met
06

After closing

Registrations, licence transfers still in progress, and any post-closing deliverables — like a holdback release — get tracked to completion, not left for you to chase.

1–2 week tail
Most owner-run Toronto deals close in 30–60 daysLarger or fleet/franchise deals typically run longer.
№ 01.3Deal Structure

Asset purchase or share purchase?

This is the first real decision in almost every deal — and it changes what you're buying, what you're taking on, and how it's taxed.

QuestionAsset purchaseShare purchase
What you buyThe business's assets — equipment, inventory, lease, goodwill, name.The shares of the company itself — everything it owns, and everything it owes.
Seller's liabilitiesGenerally stay behind with the seller's corporation.Generally come with the company, known and unknown.
Tax angle — sellerStraightforward proceeds treatment in most cases.May qualify for the lifetime capital-gains exemption on qualifying small business shares.
Tax angle — buyerA stepped-up cost base on assets bought; an HST s.167 election may apply.Cost base carries over from the seller — a different position for the buyer.
Licences & contractsMust generally be re-issued or assigned into the buyer's name.Usually stay in place, since the corporation itself doesn't change.
EmployeesEmployment Standards Act continuity rules typically apply.Employment generally continues uninterrupted — the employer doesn't change.
Typical use in TorontoMost restaurant, salon, retail and e-commerce deals — a buyer generally wants a clean set of assets, not a decade of a downtown lease's history.Common in IT/MSP and larger franchise-group sales, to keep client contracts and the corporate track record intact.
What you buy
Asset sale

The business's assets — equipment, inventory, lease, goodwill, name.

Seller's liabilities
Asset sale

Generally stay behind with the seller's corporation.

Tax angle — seller
Asset sale

Straightforward proceeds treatment in most cases.

Tax angle — buyer
Asset sale

A stepped-up cost base on assets bought; an HST s.167 election may apply.

Licences & contracts
Asset sale

Must generally be re-issued or assigned into the buyer's name.

Employees
Asset sale

Employment Standards Act continuity rules typically apply.

Typical use in Toronto
Asset sale

Most restaurant, salon, retail and e-commerce deals — a buyer generally wants a clean set of assets, not a decade of a downtown lease's history.

We tell you which structure fits — before you sign anything.

№ 01.4Due Diligence, Both Sides

What gets checked before closing

Different lists depending on which side of the deal you're on — both matter for how smoothly closing goes.

If you're buying

  • Financial statements & normalized earnings
  • PPSA / lien searches
  • Litigation & execution searches
  • CRA / HST account status
  • WSIB clearance certificate
  • Licence & permit standing
  • The lease, assignment terms & landlord consent
  • Key contracts & change-of-control clauses
  • Employees & ESA obligations
  • Client MSA change-of-control clauses reviewed line by line, for IT and managed-service purchases
  • Marketplace and platform account transfer terms confirmed, for e-commerce purchases
  • Downtown commercial lease assignment history and landlord standing
What we do: run the searches, chase the certificates, and flag anything that changes your price or your conditions.

If you're selling

  • Clean books & tax filings current
  • Contract assignability audit
  • Licence standing confirmations
  • Equipment lien payouts
  • Staff plan for closing day
  • Lease estoppel / landlord early contact
  • Client contracts audited for consent-to-assign requirements before you list
  • Marketplace account standing confirmed ahead of diligence
What we do: tell you what a buyer's lawyer will ask for — before they ask for it.
№ 01.6Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Most deals start here

An owner-run business

A café or restaurant, a salon, a franchise unit, or a trades business in Toronto — usually one buyer, one seller.

Start my file
A bit more involved

A larger or more complex deal

A company with several owners or employees, bank financing, real estate, or a deal that needs negotiated protections before you sign.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.8Before You Ask

Toronto closing questions

Can I just take over the seller's Amazon or Shopify account when I buy an e-commerce business?

Generally no — marketplace and platform accounts are typically tied to the seller's login and are contractually restricted from simply being handed over. Most deals structure this as a formal transfer application to the platform, verified and completed alongside closing rather than assumed to happen automatically. We flag this early so it doesn't stall your launch.

Does a client's MSA automatically transfer when an IT or MSP business is sold?

It depends on the contract, but many managed-service agreements include a change-of-control or assignment clause that requires the client's consent — even on a share sale, if the clause is broadly drafted. We review your key contracts early so you know which clients need a conversation before closing, not after.

How does a downtown Toronto commercial lease assignment typically compare to a suburban plaza?

It varies by building, but larger downtown landlords and property-management companies can take longer to review an assignment than an independent plaza owner, partly because more internal approvals are involved. We open that conversation as early as your deal allows to avoid it becoming the bottleneck.

What happens to a restaurant's AGCO liquor licence in a Toronto sale?

On most asset sales, the buyer applies for a transfer or a new licence with AGCO rather than inheriting the seller's authorization automatically. On a share sale, the licence generally stays with the corporation. Either way, this step often sets the pace for the rest of the closing timeline.

Is a holdback typical on a Toronto e-commerce or IT/MSP sale?

There's no single standard, but a modest closing holdback against undisclosed liabilities is common on owner-run deals, and larger or recurring-revenue businesses more often add escrow or earn-out terms tied to client retention. We negotiate the size and release conditions to fit your specific deal.

№ 01.9Resource Register

Official Toronto resources

ResourceOfficial link
City of Toronto business licensingVisit www.toronto.ca
Toronto Public Health (food premises)Visit www.toronto.ca
AGCOVisit www.agco.ca
Office of the Privacy Commissioner (PIPEDA)
Customer-data transfer
Visit www.priv.gc.ca
WSIB clearance certificatesVisit www.wsib.ca
CRA business registrationVisit www.canada.ca

Industries we cover

Adjacent regions

Acting for buyers and sellers across Toronto: Toronto.

Fixed quote before work begins.

Tell us about your Toronto deal — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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