Why we're passing
On the surface this looks reasonable — 15 years in operation, GTA location, repeat clients, $2M in revenue. But run the actual numbers and three problems appear quickly enough that we'd walk away without requesting the NDA.
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Problem 01 — Multiple
5.3x SDE for a cyclical, project-based event rental business with declining revenue. That's SaaS pricing for a discretionary-spend company. Already had one price reduction — the sophisticated buyers looked and passed.
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Problem 02 — Rent
$10,215/month rent = $122,580/year = 43.6% of SDE going to the landlord. The healthy benchmark is under 15%. You are at nearly three times that threshold.
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Problem 03 — Industry Risk
Live entertainment and events is a sector that was devastated by COVID and has recovered unevenly. Corporate events budgets are under pressure. Buyers are pricing in cyclical risk that sellers haven't fully accepted yet.
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The Bottom Line
Pass. If the asking price drops to $800–900K (roughly 3x SDE) this becomes a different conversation. Watch for a second price reduction and reassess if it gets there.
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Listing via A R Business Brokers · ID 3697 · aldrin.ca
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05 — Buyer Framework
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The Canadian Financing Stack
How to close a $1–3M business with less cash than you think
The most common reason serious Canadian buyers don't close deals isn't finding the right business — it's convincing themselves they don't have enough capital. Here's the framework that changes that math.
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Layer 1 — BDC Loan (50–65%)
BDC provides acquisition loans covering 50–65% of the purchase price. 7–10 year terms. No real estate required as collateral — the business itself serves as security. For a $2M deal: $1.1–1.3M from BDC.
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Layer 2 — Vendor Take-Back (10–20%)
A loan from the seller to you, paid back over 2–5 years. Reduces cash needed at close and keeps the seller financially motivated for a smooth transition. A 15% VTB on a $2M deal = $300K you don't need to bring to the table.
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Layer 3 — Buyer Equity (20–30%)
After BDC and VTB, you cover the remainder. On a $2M deal that's ~$500K — not $2M. That's the number most buyers are working toward.
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Coming Next Issue
How to approach a seller directly before the listing goes public.
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06 — Market Pulse — Q1 2026
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Asking multiples by sector (SDE basis) — based on current Canadian listings
| Sector |
Multiple Range |
| Trades & Home Services | 2.5–3.8x |
| Healthcare & Professional Services | 3.0–5.0x |
| Food & Hospitality | 1.5–2.5x |
| Technology & SaaS | 4.0–7.0x |
| Events & Entertainment | 3.5–5.5x ▲ |
| Manufacturing & Distribution | 2.8–4.2x |
What's Moving
Trades businesses continue to be the most competitive category. Strong recurring revenue, aging owner base, straightforward operations. Expect multiple competition and faster timelines on well-priced listings. Allied health businesses moving faster than regulated clinical practices.
What's Sitting
Events, entertainment, and hospitality showing extended days on market. Well-priced trades in Ontario & BC: 60–120 days. Professional services: 120–180 days. Events & hospitality: 180+ days.
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07 — Resource Radar
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01 |
BDC — bdc.ca
Starting point for any Canadian acquisition financing conversation. If you haven't had a conversation with a BDC account manager yet, that's your first call.
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02 |
BizBuySell Canada — bizbuysell.com/canada
Largest public listing aggregator for Canadian SMB deals. Filter by province, industry, and cash flow range for a solid weekly scanning workflow.
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CVCA — cvca.ca
Monitor for deal flow intelligence and market reports. Their annual Canadian M&A report gives useful context on where professional capital is flowing.
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04 |
Ownrship Deal Scoring Tool
Use it before you request any NDA. Score the listing across nine criteria, understand the risks, and walk into your first broker conversation knowing exactly what questions to ask.
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08 — Sign Off
That's Issue #1.
If something in here was useful, forward it to one person who's thinking about buying a Canadian business. That's the only way this newsletter grows — one serious buyer at a time.
If you have a deal you'd like scored, a question about the acquisition process, or you're a business owner quietly thinking about a transition in the next few years — reply to this email. I read every one.
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Ownrship
ownrship.ca · [email protected] · read.ownrship.ca
Thinking about transitioning your business in the next 1–3 years?
Our readers are Canada's most serious business buyers. Get in touch.
Not financial advice. For informational purposes only.
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