Acquiring a Canadian business is sometimes it’s a fast and easy way to enter the market. In Canada, there is a big problem that is a scarcity of workforce, when you acquire a company you also acquire the most valuable asset the workforce.
The two most common ways to acquire a business are the share purchase and an asset purchase. In a share purchase, you acquire a part of the total of the company including all assets and liabilities.
In an asset purchase, a buyer can choose what asset he/she would like to acquire and which liabilities to assume.
According to the size of the company, you may need government approval.
In our experience, the best way to acquire a Canadian company is to collect as much as information you can find regarding the company and the market it operates. Conducting business in Canada can be very different so it’s important to understand the market. If you are not 100% sure about your choice purchasing shares in installments (20 – 20 – 15) can be the best way of action.
If you thinking to acquire a business in Canada you can contact us at hello@diginess.ca, another great tool to get informed is the Invest in Canada website investcanada.ca.
