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Canadian business succession in 2026: the numbers

By Colton Doan, founder of Sellvara · Updated October 30, 2026

Canada is heading into one of the largest handovers of small businesses in its history. Most owners expect to leave their business within a decade, but very few have a plan for how. Here are the latest numbers, in plain language, with a link to every source.

63%of small business owners plan to exit within the next 10 years

6%have a formal written succession plan

$2 trillion+in business assets held by owners planning to exit

47%say finding a buyer is their biggest obstacle

Source: CFIB, Passing the Torch (October 2026).

Most owners plan to leave, few have a plan

According to the Canadian Federation of Independent Business (CFIB), nearly two-thirds of small business owners (63%) plan to leave their business in the next ten years, but only 6% have a formal succession plan in place. CFIB estimates that this leaves over $2 trillion in business assets at risk.

For context, Canada had about 1.08 million small employer businesses (1 to 99 employees) in December 2024, according to Innovation, Science and Economic Development Canada. Small businesses employed 5.8 million people, or 46.6% of the private sector workforce.

Why owners are leaving

Main reasons for exiting

Retirement78%
Burnout or stress21%
High operating costs20%

Retirement is by far the main reason. But a meaningful share of owners are leaving because of burnout or rising costs, which can mean selling sooner than planned.

How owners plan to exit

Planned exit routes

Sell to an unrelated buyer54%
Sell to employees28%
Sell to a family member21%
Transfer to a family member19%
Close the business13%

Some owners named more than one route, so the figures add up to more than 100%.

Selling to an outside buyer is the most common plan. One in eight owners expects to close altogether, rising to 17% among retailers. Closing usually means the business's value is lost, along with jobs and service to the community.

Who the business goes to matters to owners: 72% say keeping their business Canadian-owned is important, and most put protecting their employees (87%) and supporting their community (79%) among their priorities.

The biggest obstacles

Most common succession challenges

Finding a buyer or suitable successor47%
Too busy to plan37%
Working out what the business is worth37%

Nearly half of owners say the hardest part is finding a buyer or a suitable successor. The next most common barriers are being too busy to plan, and working out what the business is worth.

What this means if you own a business

Start early. A sale typically takes many months, and preparing a business to sell can take a year or more. See how long it takes to sell a business.
Know what it's worth. Try our free valuation calculator, or read what is my business worth?
Consider every route. An outside buyer, your employees or your family each have different tax and practical effects. See selling to employees or family.
Involve your advisors. Your accountant, lawyer and financial planner can help with timing, structure and tax. See planning retirement around selling your business.

Sources

Canadian Federation of Independent Business, Passing the Torch: How Canada's Small Business Owners Are Planning Their Exit and Why the Next Generation of Ownership Matters, October 2026, and the accompanying news release (October 22, 2026).
Innovation, Science and Economic Development Canada, Key Small Business Statistics 2025 (business counts as of December 2024).

This page summarizes research published by others; Sellvara did not conduct these surveys. You're welcome to quote or link to this page; please credit the original sources for the figures.

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