How to sell a small business in Alberta without a broker

Many Alberta owners sell to someone they already know, or find a buyer on their own. Here is how a private sale usually works, step by step.

Why some Alberta owners sell without a broker

Brokers can help find buyers, but most charge a commission when the business sells. ExitNavigator, an Alberta resource run by Community Futures, reports minimum broker commissions of about $10,000 to $25,000. If you already have a likely buyer, such as a manager, a competitor, a supplier or a long-time customer, you may not need that help. See our broker fee guide for the usual ranges.

The steps, in order

1. Decide when you want to be out. Most sales take many months. Starting a year or two ahead gives you time to tidy things up.
2. Gather your records. Three years of financial statements and tax returns, your lease, key contracts, an equipment list, and any permits or licences.
3. Get a rough value. Try our free estimate, and read what an Alberta business may be worth. Ask your accountant for a firmer figure.
4. Write things down. Buyers relax when the business can run without you. A simple list of suppliers, recurring jobs and key contacts goes a long way.
5. List privately. List free without showing your name or exact town, and tell the people you trust.
6. Ask for a confidentiality agreement before you share your numbers.
7. Check the buyer can pay. Ask for proof of funds or a letter from their lender. Read how to spot serious buyers.
8. Agree the main terms in writing, usually in a letter of intent your lawyer reviews.
9. Due diligence. The buyer checks your records, lease and equipment.
10. Your Alberta lawyer prepares or reviews the purchase agreement, then you close and help with the handover.

Things that are a little different in Alberta

• No provincial sales tax. In BC, PST can apply to equipment in an asset sale. Alberta has no PST, so only GST needs thinking about. See GST and PST when selling a business.
• Property. If you own the building or land, the transfer is registered through Alberta Land Titles. Let the lawyers on both sides handle that part.
• Your lease. Most leases need the landlord's consent to assign them to a buyer. Ask early, because it can hold up a sale.
• Staff. If you have employees, think about when and how to tell them. Our guide on what to tell your staff may help. The buyer will usually need their own WCB-Alberta account.
• Local buyers. In smaller Alberta towns, the best buyer is often already nearby: an employee, a neighbour in the same trade, or a family that knows your customers. Selling to an employee? Read how to sell to an employee or manager.

Free help in Alberta

Business Link Alberta offers free one-on-one guidance for Alberta small businesses, by appointment. ExitNavigator has free articles and tools for owners planning an exit. Your accountant can explain the tax side, which is covered in plain words in taxes when you sell a small business.

Selling in British Columbia instead? Read how to sell without a broker in BC.