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.

Book 1-Hour Strategy Meeting

tried and tested

Our Clients Say…

Peter Gromer
Peter Gromer
Competent, perfectly calibrated to our needs and on top of that very kind immigration consulting expertise. Nity is the best!
Lardjani Lardjani
Lardjani Lardjani
Good
Victor Arakaki
Victor Arakaki
We're incredibly grateful for the fantastic work done by the entire Sobirovs team!. While our work permit application had its share of challenges, Feruza, an outstanding lawyer with extensive expertise in business immigration, played a pivotal role. Her leadership and guidance were so important in getting our Work Permits approval. We must also acknowledge the exceptional contributions of Judy Lee, Nitty, Monique, Rachel and the rest of the team who supported us on this journey. It's clear that we'll continue to entrust Feruza and her team with any of our future legal needs. We have full confidence in Feruza and her team and highly recommend their services.
Juliet Eke
Juliet Eke
My family and I are indeed happy with the approach and manner of professionalism in handling their clientèle. Aside from a fee hurdles here and there..we would still be using Sobirovs Law for all our legal documentation. It is quite commendable..keep up the good work 👍 👌
Hardik Vyas
Hardik Vyas
Rating: ⭐⭐⭐⭐⭐ I cannot express enough how impressed and satisfied I am with Sobirovs Law Firm's immigration services. Their professionalism and extensive knowledge in the field of immigration are truly outstanding. We recently applied for an ICT (Intra-Company Transfer) application, and to our amazement, we received a decision within just two months from the date of application. This prompt and efficient service reflects the exceptional quality of Sobirovs' work. I would like to extend my heartfelt gratitude to Feruza, Mariam, Monique, Owen, and the entire post-submission team who guided us through every step of the application process. Their dedication, expertise, and willingness to assist were invaluable throughout the entire journey. We are now filled with excitement as we embark on our new journey, thanks to Sobirovs Law Firm's assistance. Without a doubt, we will be relying on their services for all our future matters related to permanent residency or immigration services. I wholeheartedly recommend Sobirovs Law Firm to anyone seeking top-notch immigration assistance. Their commitment to their clients and their ability to deliver results is truly commendable. Thank you, Sobirovs, for making our dreams a reality!
sunday okunbor
sunday okunbor
Our PR journey in Canada has been full of ups and downs, but Sabirovs Law Firm was there for us every step of the way. The wealth of experience that the Sabirovs team possesses has made a significant impact on the manner in which they assess the problems and the technicalities. They took care of everything for us, from getting LMIA clearance to submitting ITA documents to getting PR approval. My family and I would want to express our gratitude for the support and help that you have provided, as well as the positive experience we have had working with the Sabirovs' team.
Dinesh Soundararajan
Dinesh Soundararajan
The Professional Immigration Law firm with every member structured approach . The knowledge and how they convey the experience to customer is to the dot. I have come across many consultants but take my word Sobirov is best in the Industry ,I wish them to address other immigration clients too apart from Business Immigration. I declare the Top Lawyer in country is Feruza Djamalova based on how she approached my request and tracked me this short and successful path
Yu Chee T
Yu Chee T
Sobirovs Law Firm helped my family member greatly throughout her PR application process. A big thank you to Feruza, Yulia and the team for their professional assistance. We couldn't be more grateful of Sobirovs Law Firm's help.
Bryan Le
Bryan Le
I am absolutely thrilled to share my heartfelt appreciation for the remarkable services provided by Sobirovs Law Firm, especially Feruza and her team. From the moment I engaged with them, it became evident that I was in the hands of consummate professionals who truly care about their clients and possess an unparalleled mastery of immigration law. Navigating the complex world of immigration can be overwhelming, but Feruza and her team made the entire process seamless and stress-free. Their team of attorneys and legal experts displayed an extraordinary level of knowledge and proficiency. Their attention to detail and commitment to staying updated with the ever-evolving immigration regulations is truly commendable. One of the standout features of Sobirovs Law Firm is their dedication to personalized service. They treated my case as unique, taking the time to understand my individual circumstances and crafting a tailored strategy that best suited my needs. This personal touch not only reassured me but also demonstrated their genuine concern for my successful immigration journey. Communication is often the key to any successful partnership, and Feruza and her team excels in this regard. They maintained clear and open lines of communication throughout the entire process. My questions were always answered promptly and comprehensively, making me feel informed and empowered every step of the way. Furthermore, Feruza and her team demonstrated a remarkable track record of success. Their expertise ensured that my case was meticulously prepared, minimizing the chances of any setbacks. This level of diligence and thoroughness is a testament to their unwavering commitment to achieving positive outcomes for their clients. In conclusion, I wholeheartedly recommend Sobirovs Law Firm to anyone in need of immigration assistance. Their expertise, personalized approach, and genuine care for their clients make them an invaluable partner in what can often be a complex and challenging journey. My experience with Sobirovs Law Firm has been nothing short of exceptional, and I am truly grateful for their unwavering support.
Mohamed Faraaz Yusuf
Mohamed Faraaz Yusuf
Sobirovs got me my C11 work permit in 2021 and permanent residence August 2023 Process started in 2020 and ended now Thanks to All at the firm

insights

Our Lastest Insights

We publish helpful tips about Canadian immigration programs and are happy to share our knowledge with you.
Entrepreneur from China is Approved to Come to Canada Cover Photo November 8, 2023

Entrepreneur from China is Approved to Come to Canada to Start His Own Business

If you are an entrepreneur from China and would like to move to Canada to start your business, you should consider the multiple business immigration...
Farm Worker Visas in Canada Cover Photo November 7, 2023

Farm Worker Visas in Canada: Process and Requirements

Canada’s immigration policies aim to facilitate the entry of skilled farm workers to meet the country’s agricultural demands. The Farm Worker Visa programs are an...
From a Student to an Owner-Operator of a Business Cover Photo November 2, 2023

From a Student to an Owner-Operator of a Business: PR in Canada as an International Student

Can an international student open a business in Canada and later become a permanent resident? Our answer is yes. Read our most recent success story...