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Learning CentreSelling a business

The Business Sale Centre

Selling a business in Ontario, from deciding whether and when to sell through valuation, finding a buyer, agreeing terms, closing and the months after. What each step involves, what the law says, who does what, and where a lawyer fits.

Where are you right now?
How to weigh timing and get a first sense of value before you tell anyone.

Selling a business in Ontario, from deciding whether and when to sell through valuation, finding a buyer, agreeing terms, closing and the months after. What each step involves, what the law says, who does what, and where a lawyer fits. Six stages carry you through it — decide & value, prepare, find a buyer, agreement, closing and after — each explaining what happens, who is responsible, and what Ontario law requires. Calculators, a glossary and guides to download sit alongside the stages, and every one ends with our flat, published fee and a way to start a file online.

Who you'll deal with

And what each one is actually responsible for.

Business broker

Markets the business confidentially, screens buyers for seriousness and financial capacity, and is paid by you under the listing agreement.

Regulated by Not licensed unless real property is included (RECO)
Accountant

Normalizes earnings, advises on structure and price allocation, and prepares the financial package a buyer will ask for.

Regulated by CPA Ontario
Chartered business valuator

Gives an independent opinion of value where the price is contested, a family member is buying, or a lender needs one.

Regulated by CBV Institute
Buyer

Negotiates price and structure, runs its own due diligence, and decides which employees and contracts it will take on.

Buyer's lawyer

Drafts and negotiates the purchase agreement, runs searches, and prepares the buyer's closing deliverables.

Regulated by Law Society of Ontario
Landlord

Decides whether to consent to the lease assignment, on what conditions, and whether to release you from the lease.

Your lawyer

Reviews the letter of intent, manages the data room and disclosure, negotiates the agreement and runs your side of closing.

Regulated by Law Society of Ontario

Words worth knowing

A few from the full glossary.

Letter of intent

A short document recording price, structure and main terms before the purchase agreement. Usually non-binding on the deal, binding on confidentiality and exclusivity.

Exclusivity (no-shop)

A binding promise you make not to negotiate with other buyers for a set period while the buyer does diligence.

Due diligence

The buyer's investigation of the business's finances, contracts, employees, premises, licences and legal exposure before committing to close.

Asset sale

Selling listed assets of the business rather than shares. You keep the corporation; most liabilities stay with you unless assumed by the buyer.

Share sale

Selling the shares of the corporation that owns the business. The corporation, with all its contracts, history and liabilities, carries on under new ownership.

Representations and warranties

Your statements of fact about the business in the purchase agreement. If one is untrue, the buyer's remedy is usually an indemnity claim.

Ready when you are.

Start a file online in about seven minutes, or ask a lawyer first. Flat, published fees.

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