As Québec faces challenges in productivity and entrepreneurial succession, business acquisition—also known as “repreneuriat”—is emerging as a winning, yet still underutilized, strategy.
Acquiring an existing business means gaining immediate access to an established structure, revenue stream, skilled team, and loyal customer base. Unlike starting a business from scratch, which is often lengthy and risky, business succession builds on solid foundations while allowing for a fresh vision. The numbers speak for themselves: transferred businesses have a five-year survival rate of 80%, compared to 57% for startups, according to recent data from Repreneuriat Québec (formerly the Centre de transfert d’entreprise du Québec – CTEQ). When supported by their experts, this rate rises to 87.5%.
In today’s uncertain economic climate, where competitiveness depends on the ability to innovate quickly, this strategy offers a real lever for recovery. It not only helps preserve thousands of jobs but also ensures a smooth transition to a new generation of leaders while honoring the legacy of previous ones.
A Transformation Underway, But Lacking Preparation
Since 2021, the number of business transfers in Québec has surpassed that of new business creations. In 2022, 9,365 SMEs changed hands—an 11.8% increase over the previous year. This wave preserved 144,000 jobs in businesses generating $43 billion in revenue and holding $37 billion in assets. And the trend is accelerating: over 12,000 business owners are planning to sell or transfer their business in 2025.
Despite this momentum, 61% of current owners have no succession plan, and only four in ten have identified a potential successor. According to Alexandre Ollive, President and CEO of Repreneuriat Québec, this lack of foresight poses a serious risk to the sustainability of Québec’s economic fabric:
“We teach how to start a business, but very little about how to pass one on. Yet, successful transfers require time, support, and thorough preparation,” he said in episode 45 of our podcast on the challenges and opportunities of business succession.
He also emphasized the need to shift perceptions:
“Selling a business is not a sign of decline or failure. On the contrary, it’s often a sign of responsibility and vision—to ensure the business continues beyond its founder.”
These insights echo those of Lucien Bouchard, former Premier of Québec, in an open letter co-signed with two partners from the law firm Davies Ward Phillips & Vineberg. He described business succession as a unique opportunity for economic renewal, especially as Québec faces a chronic productivity gap and a massive generational shift:
“At a pivotal moment in Québec’s development, business succession offers companies a second wind,” he wrote.
Diversifying Successor Profiles for Long-Term Sustainability
According to Repreneuriat Québec, the diversity of successor profiles is improving, but imbalances remain. In 2022, 34.9% of business successors were aged 55 or older, while only 6.1% were under 29.
“This is often due to access to capital, which typically comes later in one’s career,” explains Alexandre Ollive.
This creates a paradox: successors nearing retirement are acquiring businesses they will soon need to transfer again.
There are encouraging signs: women now represent 26.4% of successors, and immigrants 14.4%. Still, more efforts are needed to broaden the base of future entrepreneurs.
High-Potential Sectors
The most active sectors in business transfers include manufacturing (7.1%), hospitality and food services, and businesses with 20 to 99 employees, which show a transfer rate of 8.7%.
These well-established businesses offer concrete opportunities for successful acquisitions, especially for young leaders seeking rapid business growth.
Essential Support
Buying or selling a business is not something to improvise. From strategic planning and asset valuation to negotiation and integration, each step of the transfer process comes with financial, legal, and human challenges. To navigate them successfully, specialized support is essential.
At EC2, our experts work closely with key players in the ecosystem to guide both sellers and buyers through the process. With our expertise and network, we can support you at every stage to ensure a successful transaction.
