Selling a Business in Calgary: Legal Steps and Considerations

Selling a business in Calgary is a significant step, one that brings both opportunities and challenges. Whether you’re transitioning due to retirement, health reasons, or simply pursuing new ventures, understanding the legal, financial, and emotional aspects of the sale is essential. Here’s an in-depth guide to navigating the sale of your business in Calgary, with a focus on the legal steps involved and how SK Legal can assist you throughout the process.

Why Sell Your Business?

There are many reasons why a business owner might choose to sell. These are some of the most common:

  • Retirement or Health Concerns: You may wish to retire or deal with health issues that make running your business challenging.
  • Capital Liquidity: You might be seeking funds for a significant life change, such as relocation, a divorce, or another major transition.
  • New Opportunities: If you’re ready to explore a different venture or business opportunity, selling your current business could be the right move.

No matter the reason, selling a business in Calgary requires careful planning and clear decision-making. Working with a lawyer ensures you have the proper guidance to make informed decisions and protect your interests throughout the process.

Determining the Value of Your Business

Before putting your business on the market, it’s essential to determine its true value. Pricing your business too high or too low can significantly affect the outcome of the sale. A lawyer can assist by ensuring the value is realistically established and protects your interests.

Factors affecting business valuation include:

  • Financial Records: Buyers will need to review your financial history to assess profitability. Ensuring that your books are in order is critical.
  • Assets: Tangible and intangible assets like property, inventory, intellectual property, and equipment add value.
  • Market Conditions: Economic and industry conditions will also influence the selling price.

SK Legal works with valuation professionals to ensure that you have a complete understanding of your business’s worth and help you arrive at a fair asking price.

Preparing Your Business for Sale

Selling a business in Calgary involves more than simply listing it on the market. To attract serious buyers, your business must be presented in the best possible light. Preparation steps may include:

Legal Documentation: Ensure that all business contracts, leases, and corporate documents are well-organised. SK Legal can assist in reviewing these documents to avoid potential legal pitfalls.

Organising Financial Records: Ensure all financial statements and tax filings are accurate and up to date.

Physical Appearance: Whether it’s office space or retail premises, improving the overall aesthetic can make a big difference in attracting buyers.

SK Legal can help you audit and review all contracts and legal documents related to your business, from leases to franchise agreements, ensuring everything is in order before the sale proceeds.

Finding the Right Buyer

One of the most important steps in selling a business in Calgary is finding the right buyer. The buyer must have the financial capacity to purchase the business and the intention to continue operations successfully.

  • Qualifying Buyers: Not all buyers are prepared to meet the terms of a business sale. A lawyer helps ensure the buyer’s financial stability and intent.
  • Negotiating Terms: From purchase price to the structure of the deal, a lawyer helps negotiate terms that protect your interests.

SK Legal works alongside business brokers to ensure that the right buyers are found, and we handle all the legal aspects of the transaction, ensuring both parties fulfil their commitments.

The sale of a business involves several legal considerations. Below are key areas where a lawyer’s involvement is essential:

Business Sale Agreement

The business sale agreement is the most crucial legal document in the transaction. It outlines the terms and conditions of the sale, including the sale price, payment terms, and any liabilities. A lawyer’s role is to draft and review this agreement to ensure that it is comprehensive and protects your interests.

Due Diligence

Buyers often conduct a due diligence process to assess the health of the business before finalising the sale. This involves reviewing your financial documents, contracts, and other records. As a seller, it’s important to be prepared for this stage. SK Legal can help you organise your documents and ensure that everything is in order, reducing the likelihood of issues arising during the due diligence phase.

Tax Implications

Selling a business in Calgary has tax consequences that must be carefully considered. The structure of the sale can significantly impact your tax obligations. SK Legal works closely with your accountant to structure the sale in a way that minimises taxes and maximises your financial return.

Employee Issues

If your business has employees, it’s essential to address how their employment will be handled post-sale. Should the buyer retain employees? What about severance or benefits? These are complex issues that need to be addressed legally. SK Legal ensures that any employment agreements or liabilities are clearly outlined and addressed in the sale agreement.

Regulatory Compliance

Depending on the nature of the business, certain regulatory requirements may apply when selling a business in Calgary. For example, businesses in industries like healthcare, hospitality, or finance may have specific licensing or compliance standards that need to be considered. SK Legal will assist in ensuring your business adheres to all applicable regulations during the sale.

The Emotional Aspects of Selling a Business

While selling a business in Calgary is primarily a financial and legal transaction, there are also emotional aspects involved. After years of building your business, it can be difficult to let go. Having a lawyer handle the technical and legal aspects of the sale allows you to focus on the emotional transition and ensures that the sale process doesn’t add unnecessary stress.

Closing the Sale

Once all terms have been agreed upon, it’s time to finalise the sale. The closing process involves:

  • Finalising Financials: Ensuring all payments are made as per the sale agreement.
  • Transferring Ownership: Legal documents will be signed, and ownership of the business will officially transfer.
  • Tax Filings and Insurance Adjustments: SK Legal helps ensure that any remaining obligations are met.

SK Legal is there to handle the closing process, ensuring that all legal paperwork is completed correctly and that you comply with all regulatory requirements.

Selling a business in Calgary requires careful planning, expert negotiation, and thorough legal oversight. SK Legal brings extensive experience in business law to guide you through every step of the sale. Our team works alongside financial professionals, brokers, and other advisors to ensure a seamless transaction. We protect your interests, minimise risks, and help you achieve the best possible outcome.

selling a business in calgary

Selling a business in Calgary, what type of documents are needed?

Key documents include financial statements, inventory lists, lease agreements, and franchise or supplier contracts. SK Legal can help compile and review these.

Selling a business in Calgary, Asset share or Share sale?

This depends on your tax situation and business structure. SK Legal provides guidance to choose the best option for your needs.

How do I prepare my business for due diligence?

Maintain updated records and address any potential operational issues. SK Legal assists in ensuring you are ready for buyer inspections.

What is a business valuation?

A valuation assesses your business’s market worth, considering assets, revenue, and industry trends.

How can I minimise taxes during a business sale?

Working with a lawyer and financial planner helps identify strategies to reduce your tax obligations.

What if the buyer requests changes after due diligence?

SK Legal helps review and negotiate any new terms to protect your interests.

Selling a business in Calgary, are lawyers needed?

While not mandatory, having legal counsel ensures a smooth transaction and reduces risks.

Selling a business in Calgary, how long does it actually take?

Depending on the business size and market demand, it may take several months to a year.

What is a purchase and sale agreement?

It is a legal document detailing the terms of the business sale, including price, assets, and liabilities.

Can I sell only part of my business?

Yes, you can sell shares or bring in investors. SK Legal helps structure partial sales to meet your goals.

Areas We Serve


At SK Legal, we are proud to offer top-tier legal services to clients across a broad range of locations. Whether you are buying or selling a business, our team is dedicated to providing specialised legal guidance tailored to your specific needs. We serve clients in the following regions:

  • Alberta
    • Calgary
    • Edmonton
    • Lethbridge
    • Red Deer
    • St. Albert
  • Texas
    • Houston
    • Dallas
    • Austin
    • San Antonio
    • El Paso
    • Grand Prairie

Wherever your business is located, SK Legal is committed to delivering exceptional legal support, ensuring that your business transactions are handled efficiently and effectively from start to finish.

Franchise and Trademark Lawyers in Grande Prairie
Sam Khajeei / BA /JD