In a constantly evolving economic context, business succession is positioning itself as a strategic and often underestimated pathway to entrepreneurship. In Quebec, more and more entrepreneurs are choosing to take over an existing business, benefiting from an established customer base, an operational structure already in place, and tangible financial records.
Christian De Stoop | Business Transfer Advisor for the Montréal region at Repreneuriat Québec
Christian De Stoop | Business Transfer Advisor for the Montréal region at Repreneuriat Québec, and a member of both the Investment Committee and the Board of Directors of Microcrédit Montréal.
Christian De Stoop | Business Transfer Advisor for the Montréal region at Repreneuriat Québec, and a member of both the Investment Committee and the Board of Directors of Microcrédit Montréal, talks to us about this pathway to entrepreneurship in this interview.
What is business succession, and why is it an attractive option for becoming an entrepreneur?
Business succession refers to the act of taking over an existing business rather than creating a new one. This involves an individual purchasing all or part of an already active business with the goal of managing, developing, or transforming it.
While we still need emerging businesses, starting one can be challenging for many. The alternative is to purchase an existing business, which already has a customer base and a team in place, as well as a product or service refined over the years. Such a business enjoys a solid reputation and has a proven business model. All of this makes taking over a business less risky and often easier in terms of financing.
Is business succession growing in Quebec?
Since 2021, business succession has surpassed the creation of new businesses in Quebec. Although business succession has always existed, it now offers increasing opportunities, particularly due to an aging population, which results in more businesses seeking new ownership. At the same time, a significant portion of the population aged 30 to 50 possesses solid professional experience and financial means and aspires to start their own business.
The goal is to create a bridge between these two groups to make the opportunities offered by business succession known to both.
How does business succession contribute to Quebec’s economy?
Business succession plays a key role in Quebec’s economy by ensuring the sustainability of existing SMEs and promoting the retention of their ownership within the province. By facilitating the transfer of businesses to new owners—often younger and more innovative—it helps preserve jobs, local expertise, and economic assets, while injecting a new entrepreneurial drive. This process also supports regional vitality, stimulates investment, and promotes economic growth by preventing the closure of thousands of viable businesses due to a lack of succession.
How can microcredit help in acquiring a business?
Microcredit can play a crucial role in business acquisition by providing accessible financing to entrepreneurs who may not have access to traditional bank loans, often due to insufficient collateral or limited credit history.
This type of financing helps cover immediate needs related to the takeover, such as purchasing equipment, initial inventory, or legal fees, and is often accompanied by personalized support and business development advice.
If someone wants to explore business succession to develop their entrepreneurial project, what should they do?
Do your research before taking the plunge! Taking over a business cannot be improvised—it is a true learning process. It is essential to carefully reflect on your project, ask yourself the right questions, and determine if you have what it takes to be a successor. If the answer is yes, the next steps are to identify the types of businesses that suit you and clarify what you are looking for.
Don’t hesitate to discuss your plans with family, friends, or professionals with relevant experience. Guidance is the key to success. Business succession is not just a simple transfer of a company—it’s about giving a business new life by bringing your own vision to it!
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