Canada’s silent succession crisis could unlock your most lucrative business opportunity

ScaleUP Week’s Connections Day Highlights

McLeod Law LLP’s boardroom hosted a session led by Ray DePaul of Mount Royal University’s Institute for Innovation and Entrepreneurship. The discussion moved beyond startup founders to focus on the transition of existing businesses.

Key Insight: A Gap in Succession Planning

• About 75% of Canadian SMEs plan to exit in the next decade.
• Only 10% have a formal succession strategy.
• Owners view a sale as the culmination of decades of work and the main retirement plan.
• Without clear plans, a growing pool of businesses needs new leadership.
• Buyers ready to step in face a fresh opportunity.

Entrepreneurship Through Acquisition (ETA)

ETA refers to acquiring an existing company and taking on the role of owner, leader, and growth catalyst—without becoming a founder. Even a high‑profile founder like Elon Musk at Tesla is still a successor, not a founder.

Panelist Experiences

• Lessons from failed startups and first‑time deals.
• Strategies for building portfolios of cash‑flowing businesses.
• Creative structuring and strong partnerships to sustain growth.

Takeaway for Buyers and Owners

As the succession gap widens, buyers prepared to acquire existing companies will find a rapidly expanding field of opportunities.

Photo Credit

Photo by Marc Arumi of Motiv

Buying your way in

Entrepreneurial Journeys and the Unseen Acquisitions

Defining the Path to Enterprise

For many business owners, ETA (Enterprise Transition Acquisition) was chosen deliberately. Others found it by circumstance—after setbacks, after completing law school, or when a family plan unfolded unexpectedly.

Case Studies of ETA Adoption

Marc Nzojibwami: From University Failure to Calgary Success

• Marc, a merger and acquisition advisor at SMB Deal Hunter, discovered his entrepreneurial ambition early.
• Two university‑launched startups failed, leaving him feeling trapped.
• Through a family friend, he entered the ETA framework and later acquired the Calgary print and signage business ABL Imaging with two partners.
• Marc praised the acquisition: “We went in, we acquired that business, and it’s been a great experience.”
• He added, “The business is performing better than we expected, exceeding all predictions.”

Steve Spackman: A Lawyer Turned Acquisition Specialist

• Former lawyer Steve Spackman slipped into the ETA path before knowing the term.
• Since 2014, he has bought ten companies and currently owns four.
• His flagship enterprise, Real Seal Contracting, focuses on building‑envelope repairs.
• He closed his law license a few years ago and now says, “I never practice law again.”
• Steve believes most prime acquisitions are low‑profile: “Joe’s Porta Potty pumping business is the best to buy.”
• He explained, “People overlook pumping porta potties, yet the market is lucrative.”

Liz McCrea: From Family Business Failure to a Full‑Time Franchise Owner

• When a succession plan evaporated, Liz and her husband pivoted toward franchising.
• They eventually transformed the subscription into a full‑time venture, co‑founded Village Wealth.
• Village Wealth is a platform that assists new buyers in locating, evaluating, and financing acquisition targets—most of which are private, not publicly listed.
• Liz highlighted the fragmentation in the ecosystem: “Buyers struggle to navigate the landscape, locate suitable companies, and secure financing.”
• She noted a stark knowledge gap across the board, emphasizing the need for better guidance.

Concluding Insight

The stories above illustrate how a deliberate or serendipitous path into ETA can reshape careers. Whether a former lawyer, a failed university entrepreneur, or a family‑business veteran, these individuals have found that targeted acquisitions can unlock unexpected prosperity.

Advice for buying, not building

Redefining Business Acquisitions: A Fresh Take on Financing

The Core Financing Mix

• A balanced blend of bank debt, personal equity, and seller financing.
• In Canada, lenders cover 65%‑75% of the purchase price.
• Remaining capital fills through personal equity and a vendor take‑back (VTB) loan.

Seller Financing: A Two‑Way Advantage

By deferring part of the payment, the seller stays financially invested, which:

• Lessens the buyer’s immediate capital needs.
• Provides a lever if post‑acquisition misrepresentations arise.
• Ensures the buyer has tangible stakes in the business’s future.

Insight from Spakman

“Pay the seller all upfront? It’s a quick exit. They have no incentive to support you.”

Perspective by Nzojibwami

“A genuine business purchase does demand capital.”

In scenarios where the seller note covers a large share, a buyer may only need a modest personal investment, provided:

• The business stands on solid fundamentals.
• The bank trusts the acquisition.
• The buyer demonstrates good‑faith money.

Risk‑Reward Reality from McCrea

When the buyer takes over a seller’s venture, the seller’s residual capital is at risk. This dynamic establishes a clear risk‑reward environment.

Key Practical Advice for ETA Explorers

1. Identify Key Sectors

Leverage any knowledge, connections, or interests you possess.

2. Scout Off‑Market Opportunities

Cold outreach can unveil deals that haven’t yet entered the market.

3. Engage with Direct Questions

• “What’s your succession plan?”
• “What would you do with more free time?”

4. Watch for Financial Red Flags

Beware of inflated earnings that don’t reflect the owner’s unpaid labor. Normalized financials are essential.

5. Assemble a Deal Team

A competent accountant and a reliable lawyer are must‑haves for a smooth transaction.

6. Understand Trade‑Offs

Acquiring an existing business brings complex responsibilities across departments. The buyer becomes the IT, HR, accounting, and sales department head all at once.

Closing Thought

Creative financing is achievable, but it depends on trust, structure, and a compelling case that convinces both sellers and lenders to believe in the buyer’s vision.

It’s still entrepreneurship — just not from zero

Acquiring a Business: Not a Shortcut to Passive Income

When panelists discussed the ETA route, they made it clear that buying a venture is far from a simple ticket to hands‑free cash flow. Owners still shoulder operational duties and usually plunge straight into the day‑to‑day grind.

The Messy Reality of Small‑Biz Management

Nzojibwami emphasized that running a small company is inherently chaotic and far from glamorous:

“When the internet goes down, you don’t call IT. You are IT.”

He warned against the notion that new owners can merely relax and collect revenue. Most acquisitions are anything but absentee‑run from the start.

“That doesn’t exist,” Nzojibwami said. “It can become that. You can get it to that.”

Absentee Operations Are Rarely Listed

Spakman agreed that “you don’t buy an absentee business from day one.” He further noted that the most attractive businesses—those operating smoothly with minimal owner involvement—are seldom publicly available.

“Those businesses don’t go for sale,” Spakman added. “Because the good ones get snatched up before they ever go to market.”

Spackman explained that building a company capable of running without him requires time, intention, and the right leadership. He admitted that he is still in the day‑to‑day routine:

“I’m not there yet, so I’m still in my business every single day.”

Reframing ETA as Hands‑On Ownership

The panel collectively reframed the ETA strategy not as a passive investment but as an active, often hands‑on path to ownership. It trades the uncertainty of starting from zero for the challenge of scaling a proven, operational business.

Advantages Over Starting from Scratch

Even though an acquisition may pose more immediate operational hurdles, it also offers distinct benefits:

• Product–market fit is already proven.
• Customers are already calling.
• Payroll and other obligations are already met.

With tens of thousands of Canadian business owners planning to exit in the coming decade—many without a successor—the market is brimming with opportunity. DePaul noted that many owners are retiring, but those transitions could be your next move.

Supporting Organizations

Digital Journal is the official media partner of ScaleUP Week 2025. This coverage is supported by the Calgary Innovation Coalition (CIC), a network of 95+ organizations working to accelerate innovation and entrepreneurship across the Calgary region.