
{"id":14025,"date":"2026-04-03T11:41:10","date_gmt":"2026-04-03T15:41:10","guid":{"rendered":"https:\/\/www.sabbagh.ca\/articles\/uncategorized\/advice-from-a-business-lawyer-for-your-business-acquisition\/"},"modified":"2026-04-03T11:42:52","modified_gmt":"2026-04-03T15:42:52","slug":"advice-from-a-business-lawyer-for-your-business-acquisition","status":"publish","type":"post","link":"https:\/\/www.sabbagh.ca\/en\/articles\/business-law\/advice-from-a-business-lawyer-for-your-business-acquisition\/","title":{"rendered":"Advice from a Business Lawyer for Your Business Acquisition"},"content":{"rendered":"<p>The start of 2026 is proving to be economically challenging. Global economic disruptions are affecting production costs, declining consumer purchasing power, and a volatile stock market\u2026 amid this chaos, some companies have the capital and internal talent to pivot and adapt, while others are reaching the end of their rope. Moreover, in a context of an aging population, we are currently facing a generation of entrepreneurs and owners of small family-run businesses who are retiring and must prepare to hand over their businesses to a new generation.<\/p>\n<p>During economic shocks, some companies have no choice but to close, but this situation also presents potential opportunities. For businesses with capital, there is instead potential to create new partnerships. In this article, we discuss what businesses need to know before proceeding with such a collaboration.<\/p>\n<p>&nbsp;<\/p>\n<h2>Why Acquire a Business?<\/h2>\n<p>Whether you are a business with capital to invest or an owner heading toward retirement, the option to acquire a business should not be taken lightly. A business acquisition should always begin with serious discussions about the company\u2019s long-term goals.<\/p>\n<p>Acquiring another company\u2019s tangible and intangible assets fundamentally changes a business\u2019s DNA. This typically involves adding new teams of employees, established methods and approaches that are difficult to change, and numerous new costs. For the acquired company, this typically results in a loss of autonomy, which can affect both internal production methods and the company\u2019s objectives.<\/p>\n<p>Despite this, the benefits of an acquisition are clear. A company can use an acquisition to enter a new field or to enhance its service offering through the expertise of an established company. An acquisition also allows companies to combine their strengths while centralizing management, leading to increased long-term efficiency.<\/p>\n<p>&nbsp;<\/p>\n<h2>Our List of Questions for You<\/h2>\n<p>Our business law attorneys have worked with numerous companies (typically SMEs and family-owned businesses) to facilitate their acquisitions. When clients approach us early in their acquisition process, we have several questions for them to help them make the best strategic and financial decisions regarding their acquisition.<\/p>\n<ul>\n<li>Why do you want to acquire a company? Why this one in particular?<\/li>\n<li>What are the expectations and objectives following the acquisition? Do you have a well-thought-out plan to achieve your expectations and objectives?<\/li>\n<li>Do you have the internal resources to carry out a business acquisition? Do you have employees with experience in company valuation, negotiation, due diligence, or financial analysis? Do you have employees to oversee the integration of the new company once the acquisition is complete?<\/li>\n<li>Is the acquisition \u201creally\u201d necessary? Is the acquisition vital to your survival, or an opportunity you cannot pass up?<\/li>\n<li>Why do you want to buy this company? Is it to gain access to its employees, customers, technology, or intellectual property? Is it a good trade-off for the cost?<\/li>\n<li>Will the <a href=\"https:\/\/educaloi.qc.ca\/capsules\/achat-entreprise-contrats\/\">existing contracts of the acquired company<\/a> be modified or maintained?<\/li>\n<li>Is this a vertical or horizontal integration of the new company?<\/li>\n<li>Who will be your team of external experts to support you throughout the process? (Business lawyer? Accountants? Brokers? Bankers? Etc.)<\/li>\n<\/ul>\n<p>Acquiring a company is a long and complex process that fundamentally changes the \u201cfoundations\u201d of your business. You must allocate time and resources\u2014both internal and from external experts\u2014to plan and manage the acquisition. A poorly planned acquisition can ruin a company just as easily as it can help it reach new heights.<\/p>\n<p>As external advisors, our business lawyers cannot make these decisions for you. However, a specialized lawyer provides you with a careful outside perspective, helps you avoid issues regarding the other company\u2019s shortcomings, and ensures you complete the process with a solid contract that benefits everyone.<\/p>\n<p>&nbsp;<\/p>\n<h2>The Steps of a Business Acquisition<\/h2>\n<p>Although we explored this topic from the seller\u2019s perspective in our article on <a href=\"https:\/\/www.sabbagh.ca\/articles\/litige-commercial\/avocat-d-affaires-vente-entreprise\/\">successfully selling your business<\/a>, acquiring a company is a complex process that requires great rigour. A business law specialist can help you properly navigate all the crucial steps of your business acquisition, secure your investment, and prevent future disputes through robust contractual structures.<\/p>\n<h3>1. Preparation and putting the business up for sale<\/h3>\n<p>Before approaching the market, the seller must \u201cget their affairs in order.\u201d The seller will typically conduct a diagnostic assessment of their business and an evaluation of its market value.<\/p>\n<h3>2. Signing a confidentiality agreement<\/h3>\n<p>When a business for sale finds a potential buyer, even before negotiations begin, the buyer is bound (as is the seller, in some cases) by confidentiality (formalized in a clause). Leaking information about the intention to sell can indeed have serious consequences for the owner.<\/p>\n<h3>3. Sales Negotiations<\/h3>\n<p>The potential buyer then enters into negotiations with the seller. The negotiations gradually take shape, as appropriate, before addressing certain sensitive issues regarding the business\u2014including price and terms of sale.<\/p>\n<h3>4. The Letter of Intent to Purchase or Purchase Offer<\/h3>\n<p>Through this document\u2014which does not constitute a formal commitment\u2014the prospective buyer affirms their intention to purchase the business from the \u201cseller.\u201d Included in this letter are the means of purchase (assets or shares), prices, terms of acquisition, the issuance of a due diligence reservation, etc.<\/p>\n<p>At this stage, the letter of intent takes the form of a purchase offer, which is formal in nature in that it establishes a contract binding both parties.<\/p>\n<h3>5. Due Diligence<\/h3>\n<p>The business being sold (or purchased) must be free of defects, and this is where due diligence comes into play. Thus, all critical details of the business will be scrutinized to verify their compliance with the information provided earlier by the selling entrepreneur. It will also involve ensuring that the business is up to date financially, legally, and <a href=\"https:\/\/www.sabbagh.ca\/en\/services\/tax-law\/\">tax-wise<\/a>.<\/p>\n<h3>6. Closing the Business Sale<\/h3>\n<p>The closing of the sale and purchase leads to the signing of the contract and brings this lengthy process to an end. This sale\/purchase agreement is highly sensitive and must be drafted as expertly as possible.<\/p>\n<p>Such a contract typically includes warranties regarding the good condition of the acquired business, price adjustment clauses, protective mechanisms where necessary, and much more. The details of each contract vary depending on the specific financial and operational circumstances of the businesses involved.<\/p>\n<p>&nbsp;<\/p>\n<h2>A Corporate Lawyer for Your Business Acquisition<\/h2>\n<p>At Sabbagh &amp; Associates, our approach is grounded in our extensive experience with previous clients. Our <a href=\"https:\/\/www.sabbagh.ca\/en\/services\/business-law\/\">corporate lawyers<\/a> assist you in financing your company\u2019s mergers and acquisitions, facilitate dialogue between the parties, and help negotiate and draft the contracts necessary to bring these major projects to a successful conclusion for all parties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The start of 2026 is proving to be economically challenging. Global economic disruptions are affecting production costs, declining consumer purchasing power, and a volatile stock market\u2026 amid this chaos, some companies have the capital and internal talent to pivot and adapt, while others are reaching the end of their rope. Moreover, in a context of [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":14018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[371],"tags":[382,383,368,381],"class_list":["post-14025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law","tag-business-acquisition","tag-business-owners","tag-shareholders","tag-sme"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Advice from a Business Lawyer for Your Business Acquisition<\/title>\n<meta name=\"description\" content=\"For businesses, acquisitions provide an opportunity to grow and forge new partnerships. 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