How to Buy a Business in Canada for Immigration and Profit

In this article, we discuss 3 strategies that will help you find, negotiate, and buy a business in Canada for the price that fits your budget. If you are unsure what strategy suits you best or you have other questions about business immigration, you can always schedule a 1-hour strategy meeting with our lawyers. When buying a business in Canada for profit and immigration, be ready to explain to immigration officers the following:

How to Buy a Business in Canada for Immigration and Profit

 

Use one of the 3 strategies below to buy the right business in Canada for your personal, financial and immigration goals.

Strategy 1: Buy a Profitable Business

Buying a profitable business in your desired industry should be your first priority when looking for a business to buy in Canada. Usually, profitable businesses are the ones that have been in operations for more than 5 years, have loyal customers, run by systems, enjoy highest employee engagement and retention and systematically generate solid net profits for their owners.

Buy a Business in Canada for Immigration and Profit GraphicChallenge:

It is usually hard to find highly profitable businesses that are for sale in Canada since not many business owners are willing to sell their revenue generating businesses. In addition, such businesses are usually expensive. The price for a business is normally determined by the following formula: Price=5 x EBITA (earnings before interest, tax and amortization). Thus, a business generating  a net revenue of $100,000 per year, would cost around $500,000 (5 x $100,000) to acquire.

If you have a budget to buy a highly profitable business, then focus all your efforts on finding a good business that meets your criteria.

Solution: 

If you do not have sufficient budget to buy a highly profitable business in Canada or moderately profitable business that meets your revenue expectations, then you should focus on finding a  low-priced businesses that you understand and are excited about.

Follow the tips in Strategy 2 below to find the right business that fits your budget and can support your financial and immigration goals.

Strategy 2: Buy a Destitute Business

If you do not have sufficient budget to buy a profitable business in Canada or you do not wish to invest large amounts of capital upfront, then you can buy a struggling business and commit to its improvement. Do not buy a struggling business that generates less than $30,000 in profits for the owner! There are many struggling businesses that are for sale in Canada and the key here is to ensure that you are not taking too much liability by buying a destitute business.

Challenge:

Struggling businesses almost always require further capital investments and operational improvements from its new owners. When buying a destitute business you must have a solid business plan that focuses on improvement and additional capital to fund your improvement. You must also convenience immigration officers that you have solid growth strategy and will be able to execute it. If you have necessary skills, additional capital and clear vision on how to scale your newly acquired business, then perfect, you can buy a destitute business for your immigration and personal goals. If not, see solutions below.

Buy a Business in Canada for Immigration and Profit Graphic 2

Solution: 

Turning around a destitute business can be a challenging undertaking, especially if you lack industry knowledge and entrepreneurship experience. You can overcome this by working with professionals who can help you to improve the performance of your business or use the Strategy 3 below to buy a franchise in Canada.

Strategy 3: Buy a Franchise

If you lack necessary skills and background to buy a struggling business then consider buying a franchise so you can benefit from the experience and support of the franchisor.  Many well-established franchises might require $500,000 + of upfront investment, but there are plenty of smaller franchises that can be acquired for $80,000 – $250,000 and generate at least $50,000 (per year) in revenue for the owner. When buying a franchise, you can choose an established location or opt for a new one depending on your budget and amount of liability you want to take.

Challenge:

Keep in mind that franchisors usually charge royalty fees ranging from 5% to 20% of gross revenue depending on level of support they provide and this may affect your profitability. In addition, franchisors will limit your entrepreneurial freedom and there will be little opportunities for you to improve operations of the business or generate additional streams of revenue without the franchisor’s prior consent.

Solution:

Franchises are not for everyone. If you are a sophisticated entrepreneur who understands how to build, grow and scale businesses, then opting for a non-franchised business may be a better option for you. If you want turn-key solutions and do not mind limiting your entrepreneurial freedom, then look for established and thriving franchises that offer flexibility, marketing support and have great brand loyalty. We suggest using a franchise broker to identify the right option for you.

Need Advice on What Business to Buy? Book a Call with Our Lawyers!

If you want to buy a business for profit and immigration, consider scheduling a Strategy Call with our business immigration lawyers to discuss your goals in more detail and strategize about which business is right for you and how to obtain permanent residency in Canada as a business owner.

It all starts with a conversation.

*We guarantee to refund your consultation fee if you do not find the Strategy Meeting useful.

Buy a Business in Canada for Immigration and Profit Graphic 3

Bringing You, Your Tech Talent & Your Business To Canada

Get started and make your first step towards Canada. Book your 1-hour strategy meeting with a licensed Canadian immigration lawyer.

Immigration to Canada can be very complicated for businesses, business owners, and foreign employees. Hiring business immigration lawyers with the skill, experience, and patience is often crucial to successfully navigating this complex process. The experienced professionals at Sobirovs Law Firm offer tailored legal services in all business and corporate immigration matters. Contact us for more information on how we can help you meet your immigration needs.

We have worked with & represented clients from all walks of life. Always just one call – or click – away, weʼre happy to help you begin your & your familyʼs journey to Canada.

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Lucia Lu
Lucia Lu
I cannot say enough good things about Sobirovs Law Firm’s exceptional team. My work permit application was quite complex and underwent numerous tests, including a rejection from the first attempt. Feruza developed a tailored strategy that contributed to the best chance of success in the resubmission, and her entire team presented my case with unparalleled expertise and genuine care. I want to express my heartfelt gratitude to Maggie, a phenomenal consultant who supported me in every step of the application, took the time to understand my unique situation and answered all my questions patiently. Her in-depth knowledge of the work permit program, proficiency in preparing my application and professional communication were reassuring and truly remarkable. Thanks to your team’s extraordinary work, I can now pursue my business goals in Canada with peace of mind. I am grateful for your hard work and the compassionate support you provided throughout this journey. You have my highest recommendation without any reservations.
Nomin Dunburee
Nomin Dunburee
I had the pleasure of collaborating with the highly skilled professionals at Sobirovs to achieve my goals. Feruza's extensive expertise was invaluable, as she guided me through the most suitable pathway for my business immigration. I am profoundly grateful for choosing Sobirovs and highly recommend their exceptional services!
Bimal Banik
Bimal Banik
I really appreciate Sovirovs professional services ,I am truly happy and satisfied with their team work .I wish them all the best
Amirov Temur
Amirov Temur
I am happy with the help I got from Sobirov Law Firm. They were always there for me : answering my questions and giving me support through the visa application process and with general immigration related questions. They made everything easier and were quick to respond whenever I needed them. I would recommend Sobirov Law Firm to anyone needing visa assistance for Canada. I trusted them, and did not regret! Thanks for all your help! I hope for further cooperation with you.
Yuri l
Yuri l
I would like to express my sincere gratitude to Ms. Feruza Djamalova, Ms. Judy Le and the entire team of Sobirovs Law Firm for their highly professional and excellent work in the complicated process of obtaining approval of our application for the business immigration program. I had several previous refusals over the course of 5 years. At that point, I contacted Sobirovs Law Firm. Their knowledge, competence, and perseverance turned my application into a success! My case was dealt by Feruza and Judy and I sincerely appreciate what an incredible job they have done and how much they have helped us. I believe they have a special gift and talent for assisting their clients. I want to particularly thank Judy for her patience and attention to detail in our case and also for thanks to her diligence, skill and attention to detail. I highly recommend Sobirovs Law Firm to anyone who wants to move to Canada using Business Immigration Programs and is looking for an immigration law firm capable of making a dream come true. They are highly professional and specialized in this field. I would like to extend my heartfelt thanks for their support.
Syed Namdaar Ali
Syed Namdaar Ali
My experience with Sobirov's was very rewarding. Starting from LMIA to Work permit it was a smooth sail. The entire team especially Yulia prepared my case painstakingly. They guided me on every little detail. Special thanks to Feroza, Farukh, Madina and the entire team for making this happen.
Bhrushank Ved
Bhrushank Ved
I had an amazing experience with the Sobirovs in applying for my C11 Work Permit. Feruza, Maggie, Judy and Yulia planned every step of the way and made the process a breeze. Benjamin was also quite knowledgeable and assisted me with the business plan for my application. I recommend Sobirovs team if you plan to expand your existing business or start a new business in Canada. Highly recommended!
Senol Ercetin
Senol Ercetin
Dear Sobirovs Team, I would like to thank you (Yulia, Faruk, Feruza, Madina) for taking care of us closely in obtaining the necessary work permits for the establishment of the Canadian branch of our company and the necessary visas for our family. You have carried out a flawless process. With sincere regards
Rakesh Shrivastava
Rakesh Shrivastava
I had a great experience working with the Sobirov Law Firm. The entire team was professional, prompt, and meticulous in their approach. We started working with them on LMIA under GTS of the Temporary Foreign Worker Program. The time it took from creation of an Incorporation to submission and approval of our application was around 8 weeks. Work Permit approval took another 2 weeks. They also helped us get shared office space since it was a new experience for us. They guided us in finding a payroll service provider and a realtor to help with the relocation of the foreign employee. My sincere thanks to Feruza Djamalova and Rakhmad Sobirov (Attorneys), and Yulia Kan (Team Lead).

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