A study from the Business Development Bank of Canada found that roughly 19 per cent of Canadian businesses plan to exit the market within five years, paving the way for what BDC called a “historic” wave of acquisitions. (The Logic)

Talking point: The report said 83 per cent of sellers expect to transition their companies to employees, partners, relatives or Canadian buyers. Small-and medium-sized businesses account for roughly half of Canada’s GDP, but they tend to be among the least productive and most exposed to economic shocks. The survey also found competition for acquisitions is intense, with only seven businesses looking to sell for every 10 seeking to buy. Pierre Cléroux, BDC’s vice-president of research and chief economist, said in a press release that “now is the time to act” on this opportunity. Cléroux has previously told The Logic that owners approaching retirement often reduce investment in their businesses, which can weigh on productivity and erode a company’s value.

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