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- 61% of small- and medium-sized businesses (SMEs) are led by owners aged 50+; nearly one in five plan to exit within five years
- Companies that acquire other businesses earn four times the profits of non-acquirers
- For every 10 buyers, only seven are sellers—competition for strong businesses is fierce
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MONTREAL, Jan. 28, 2026 (GLOBE NEWSWIRE) — Canada’s business landscape is on the brink of a major transformation. A new study by the Business Development Bank of Canada (BDC) reveals thousands of SMEs are expected to change hands in the next five years, creating a $300-billion opportunity for entrepreneurs and investors.
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“Canada is witnessing a historic transfer of business ownership, unlocking a $300-bilion opportunity. Acquirers earn four times the profits of non-acquirers within five years. With thousands of owners preparing to exit, now is the time to act.”
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— Pierre Cléroux, Vice President, Research and Chief Economist, BDC
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Why it matters
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Small- and medium-sized businesses (SMEs) generate about 50 percent of Canada’s GDP, with medium-sized firms driving export growth and competitiveness. This wave of acquisitions will help smaller businesses scale up faster, mitigating succession risks and enhancing Canada’s productivity, boosting GDP per capita, creating high-quality jobs, and strengthening global trade performance.
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Real-world examples
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- Rhesus IT Services (Quebec): After acquiring Québécom, revenue grew 40 percent in one year. “With the acquisition, we got 12 experts all at once and were able to go after more business,” said Vicky Beaudoin, Vice President & General Manager.
- Telelink (Newfoundland and Labrador): Doubled client base and boosted profits after acquiring Big Sky Call Centers. “This is growth we couldn’t have achieved without an acquisition,” said Cindy Roma, Co-CEO.
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BDC initiatives supporting acquisitions include:
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- Growth and Transition Capital: Our team offers tailored financing solutions that help entrepreneurs acquire businesses.
- Thrive Entrepreneurship Through Acquisition Fund: A $50M investment envelope to help women acquire mid-sized Canadian businesses ready for new ownership.
- Community Banking Initiative with First Nations Bank of Canada: a $100M initiative to increase business acquisitions by Indigenous communities and economic development agencies across the country.
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About the study
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Prepared by BDC’s Economic Research and Analysis team using Statistics Canada data, the study provides independent, reliable insights into the impact of acquisitions on Canadian SMEs.
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Methodology:
Statistics Canada analyzed business performance using the National Accounts Longitudinal Microdata File (2010–2020) and tracked outcomes to 2022. Acquirers were matched with similar non-acquirers using propensity scores based on key characteristics. Differences in revenues, employment, productivity, profitability, return on assets, and exports were then assessed through regression analysis. All reported results are statistically significant. BDC converted percentages to ratios and aggregated businesses with fewer than 500 employees using weighted averages.

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