Ontario Small Business Crisis 47% of Owners wanting to Sell
The Ontario Small Business Crisis: Why 47% of Owners Want Out (And What It Means for You)
Ontario is heading into one of the largest small-business transitions in its history and most owners aren’t prepared.
A recent provincial survey shows that 47% of Ontario business owners plan to sell, retire, or exit within the next five years. That’s tens of thousands of businesses changing hands in a short window — many owned by aging founders who are burned out, succession-less, or simply ready to step back.
The problem?
Most Ontario businesses won’t sell for what owners think they're worth.
Many won’t sell at all.
Below is what’s driving this crisis and how owners can protect themselves before it’s too late.
Owner Burnout Is at an All-Time High
After years of staffing shortages, rising costs, compliance changes, and increased competition, burnout is hitting every industry:
trades
manufacturing
hospitality
real estate & construction
professional services
agriculture
retail
Many owners aren’t quitting because the business is weak, they’re quitting because they’re exhausted.
Exhaustion lowers valuation because buyers fear stepping into chaos.
Most Businesses Are Too “Owner-Dependent” to Sell
Over 70% of Ontario businesses rely directly on the owner for:
decision-making
customer relationships
daily operations
pricing and quotes
financial control
staffing and HR
vendor negotiation
Buyers don’t want to purchase a job.
They want a business.
The more the business depends on you, the less valuable it is, often by 30–70%.
Multiples Are Rising but Only for Prepared Companies
Well-run businesses are selling at:
5–8× SDE for strong service companies
6–12× EBITDA for recurring-revenue firms
4–6× SDE for stable trades and construction
premium multiples for roll-up-ready industries
But only if:
the owner can step back
systems exist
financials are clean
management is documented
operations run independently
Prepared businesses are getting bidding wars.
Unprepared ones are getting discounts.
The Coming Buyer Shortage
As tens of thousands of owners retire, Ontario will have:
more businesses for sale
fewer qualified buyers
stricter financing
lower valuations for unprepared companies
The owners who win will be the ones who prepare early, not the ones who wait until they’re “finally ready.”
How Ontario Owners Can Protect Their Value Now
Step 1: Reduce Owner-Dependence
Create processes, build a decision framework, delegate operations.
Step 2: Professionalize Your Reporting
Buyers want visibility — financials, KPIs, margins, contracts.
Step 3: Build a Management Structure
A business with leadership sells faster and for more.
Step 4: Plan Your Exit 6 Months – 10 Years Out
Most owners wait too long.
The ones who prepare early always get the best price.
Final Takeaway
Ontario is entering a historic transition in business ownership.
Whether you plan to exit in 6 months or 10 years, now is the moment to strengthen your company, improve its independence, and position it for maximum value.
Owners who prepare will thrive.
Owners who don’t will be competing in a crowded market with buyers who have lots of options.
Start With a Confidential Advisory Call
If you’re thinking about selling, stepping back, or preparing your business for the next chapter — now is the time to start planning.
We offer a discreet, no-obligation discussion to understand your goals and show you where hidden value can be unlocked.
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