Customer Considerations When Purchasing a Business in Canada



Brooks Barristers and Solicitors

When purchasing a business in Canada, it is important to find out as much information as possible about the current and prospective customers.

  1. What are the business' customer profiles? Does the business predominantly have small or large customers in Canada or elsewhere?
  2. What is the bargaining power of the business' customers? What credit terms do customers enjoy?
  3. What is the quality of the business' receivables? Does the business suffer from a high percentage of bad debts?
  4. Does the business have consistent sales throughout the year or is it subject to seasonal sales in Canada or elsewhere?

Brooks Barristers & Solicitors is a boutique business law firm located in Toronto, Ontario specializing in serving the needs of entrepreneurs, privately-owned Canadian businesses and their principals.

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