Somewhere in Metro Vancouver, a 61-year-old runs a light manufacturing shop that nets $280,000 a year. She has no succession plan, no business broker on retainer, and no children interested in taking over. She is not in distress—her order book is full and her staff have been with her for years. She simply hasn't figured out what comes next. Multiply her by tens of thousands, and you begin to understand the scale of what economists and business brokers are calling BC's succession gap.

According to BDC's 2025 Business Succession Survey, roughly 40 per cent of Canadian small business owners plan to exit their businesses within the next decade. In BC, where the small business sector employs over one million people and accounts for more than half of private-sector employment, the transition is already underway.

CFIB research consistently finds that a majority of small business owners approaching retirement have no documented succession plan. This is often because the process of valuing, marketing, and transferring a business in the $1M–$5M enterprise value range is poorly served by the existing advisory ecosystem. Traditional M&A firms set their minimum engagement thresholds well above this band, and business brokers vary in quality and reach.

That gap between supply and sophisticated buyer demand is, for the right operator, a genuine market inefficiency.

What this means for Vancouver

The $1M–$5M enterprise value segment is the backbone of Metro Vancouver's commercial fabric: the HVAC contractor in Burnaby, the specialty food distributor in Richmond, or the precision machining shop in Coquitlam. These are not glamorous assets, but they are often profitable, durable, and deeply embedded in their local markets.

BDC acquisition financing data suggests that EBITDA multiples in this segment have remained relatively stable, typically ranging from three to five times earnings depending on sector, owner-dependence, and revenue concentration. Professional services firms with recurring client contracts and transferable relationships often command a premium.

The advisory gap is the opportunity

For buyers, the structural underservice of this market segment creates unusual access. A qualified operator who understands how to run a business can acquire a cash-flowing asset at a price that a private equity firm would consider too small to bother with, financed through a combination of BDC acquisition lending, vendor take-back financing, and conventional bank debt.

Vendor take-back arrangements—where the selling owner finances a portion of the purchase price—are common in this segment. They reduce the buyer's upfront capital requirement and provide the seller with confidence that the buyer is capable, as the seller retains financial exposure through the transition.

Statistics Canada's Survey on Financing and Growth of Small and Medium Enterprises has documented a steady increase in the number of businesses seeking buyers, while the pool of qualified operators remains comparatively small. That imbalance is the definition of a buyer's market.

The 18-month window

Some succession advisors in BC project a narrowing window of opportunity. The demographic bulge of boomer-era owners is peaking; within 18 months to three years, the volume of listings is expected to increase as health and family pressures accelerate timelines. At that point, increased inventory may be offset by rising buyer competition as more investors and search funds recognize the opportunity.

The practical implication for buyers is that the current moment rewards preparation. This includes building relationships with business brokers who specialize in the sub-$5M segment, establishing financing pre-approval, and developing a clear thesis about which sectors match your skills. The businesses that represent the best value are often found through direct outreach and industry networks before a formal sale process begins.