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As Canada’s population ages, more small and medium-sized business owners approaching retirement are considering an exit plan. For many, the question shouldn’t be if they should exit; it’s how. A well-executed exit strategy does more than simply hand over the keys. It’s about protecting your legacy, maximizing value, and securing your financial future.
If you’re a business owner in Alberta, 2025 presents unique challenges and opportunities for succession planning, business valuation, and, ultimately, a successful transition. Whether you’re ready to sell in the next year or just beginning to explore your options, this step-by-step exit planning strategy will help you prepare.
Why Exit Planning Matters Specifically in 2025
As more baby boomer entrepreneurs in Alberta approach retirement, the market is seeing an influx of businesses for sale. This increased competition makes preparation all the more crucial.
Demographic factors this year are also interesting. As many citizens age out of business, high immigration rates from the last several years have ensured there are eager young buyers ready to live the Canadian dream. 2025, however, marks a turning point as immigration policies become stricter.
Without a solid plan, you risk underselling your business, facing tax burdens, or losing control over how and when you exit. Planning ahead allows you to set the terms of your transition, reduce risk, and improve your business’s appeal to potential buyers.
Step 1: Understand the Value of Your Business
The first step in any exit plan is to get a clear picture of what your business is worth. This goes far beyond multiplying revenue by a rough industry multiple.
A comprehensive business valuation considers:
- Your financial statements and cash flow
- Industry benchmarks
- Customer concentration and recurring revenue
- Market position and brand value
- Operational efficiencies
Having your business professionally evaluated by a qualified advisor ensures that you don’t leave money on the table. It also helps set realistic expectations and gives you time to make value-boosting improvements before listing.
Step 2: Define Your Personal and Financial Goals
Exit planning is about more than the business; it’s about your life. Ask yourself:
- Do I want to retire fully or stay on in some capacity?
- Do I want to transfer the business to family, employees, or sell to a third party?
- What are my income needs after the sale?
- What legacy do I want to leave?
Your answers will inform the structure of your exit, whether it’s a full sale, phased transition, or management buyout. Clarifying these goals early on will help your advisory team craft a customized plan that aligns with your future.
Step 3: Build a Strong Transition Team
No successful exit happens in a vacuum. You’ll need the support of experienced professionals who understand the Alberta business environment and regulatory frameworks.
Key players often include:
- Transaction advisor or business broker: Coordinates the sale process and markets your business to the right buyers.
- Chartered accountant (CPA): Prepares your financials and helps you understand the tax consequences of a sale.
- Corporate lawyer: Ensures legal compliance and protects your interests during negotiation.
- Wealth advisor or financial planner: Helps structure your post-sale finances to support your retirement or future ventures.
In fact, 7 out of 10 businesses don’t sell without the involvement of a qualified advisor. This highlights how essential it is to have the right professionals guiding your exit. Our close rates at Alberta Business Exchange are near-perfect—proving the value of a knowledgeable, experienced team in making your exit both successful and seamless.
Working with specialists who routinely handle business exits in Alberta ensures that you’re not blindsided by the legal or financial complexity of the transaction.
Step 4: Get Your Financials and Operations in Order
Buyers want to see stability, transparency, and scalability. Before listing your business, make sure your books are clean and your operations are well-documented.
- Update financial statements and reconcile discrepancies
- Formalize employee contracts and vendor agreements
- Document key processes and systems
- Address any outstanding liabilities or compliance issues
Streamlining your operations not only improves business value but also reduces buyer concerns that can delay or derail a deal.
Step 5: Start Planning for Provincial and Federal Taxes
The tax implications of a business sale in Alberta can be significant, especially if you’re unprepared. A proactive tax strategy could save you hundreds of thousands of dollars.
Common considerations include:
- Capital gains exemptions for Canadian small business owners
- Holding company structures
- Share sale vs. asset sale implications
- GST/HST responsibilities
Proper planning with your accountant and lawyer will ensure that you minimize your tax burden and avoid regulatory surprises.
Step 6: Develop a Marketing Strategy to Attract Serious Buyers
When the time comes to sell, you’ll need a marketing campaign that goes beyond a simple listing. Marketing your business confidentially and effectively requires positioning it in a way that appeals to qualified, motivated buyers.
This includes:
- Creating a compelling confidential information memorandum (CIM)
- Targeting the right buyer pool: competitors, investors, or internal candidates
- Managing buyer inquiries and maintaining confidentiality
Your transaction advisor or broker will handle most of this process, ensuring your business is presented in the best possible light.
Step 7: Plan for Post-Sale Transition and Legacy
A successful exit doesn’t end at closing. How you transition out of the business can impact employee morale, customer retention, and long-term brand reputation.
You may need to:
- Stay on during a transition period
- Mentor the new owner or management team
- Communicate changes clearly to staff and clients
Planning this stage carefully ensures a smoother handoff and protects the business you’ve built. Revisit your goals from step 2 to get a good idea of how you want this transition period to proceed. Expect a stronger connection to the business if you pass it on to family versus someone totally new. If you want a clean break, then you’ll need to be firm with your terms.
Common Mistakes to Avoid
- Waiting too long to plan: It can take 12–24 months to properly exit a business.
- Overvaluing the business: Emotional attachment often inflates expectations.
- Failing to prepare financially: Unclean books or hidden liabilities scare off buyers.
- Ignoring tax implications: You could owe significantly more than anticipated.
- Going it alone: Exiting without experienced help can cost you time, money, and peace of mind.
Ready to Plan Your Exit Strategy in Alberta?
At Alberta Business Exchange, we specialize in helping small and medium-sized business owners across Alberta plan for successful, profitable exits. Whether you’re just starting to think about retirement or actively preparing to sell, our team of transaction advisors, evaluators, and brokers is here to guide you every step of the way.
Book a confidential consultation today and take control of your business future.