I run a small commercial cleaning company in Ottawa with about 12 employees. Revenue is around $1.4M and I've been thinking about exiting for a couple of years now. The problem is I have no idea where to start looking for a buyer. I don't want to just put an ad on Kijiji. Are there specific places in Ottawa where business owners actually find buyers? I've heard of brokers but the fees seem steep. Any advice would help.
Selling a Business
How do I find a buyer to sell my business in Ottawa?
I sold a landscaping business in Ottawa two years ago. I used a broker, and honestly the fee was worth it because I had no network of buyers. But if you want to avoid that, start with your own contacts: suppliers, competitors, maybe a key employee who wants to take over. You'd be surprised how many deals happen quietly likee that.
What's your industry? That changes things a lot. Cleaning companies are often bought by larger regional players or private equity firms rolling up services. You might look at who's been acquiring in eastern Ontario.
Commercial cleaning, mostly office buildings and some light industrial. I've seen a few bigger companies buying up smaller ones but I don't know how to approach them without looking desperate.
I've heard good things about the Ottawa Business Brokers Association or whatever it's called. Maybe check their member list. But honestly the best leads I got were from my accountant and lawyer. They know who's looking to buy.
Not sure brokers are thhat steep around here. I talked to one in Kanata and it was like 8% on the first million then lower after. Might be negotiable. Worth a coffee meeting at least.
Have you looked at business-for-sale marketplaces? There's a few Canadian ones. They're not perfect but at least you get some inbound interest. Just be ready for tire kickers
Also try the local chamber of commerce or BNI groups. Sometimes buyers are just other members looking to expand. But I'd second talking to your accountant first. They often know who's in acquisition mode.
One more thing: get your financials in order before you approach anyone. Buyers will ask for three years of clean statements. That alone will save you a lot of back and forth. Good luck.