BDC Capital — Growth & Transition Capital — Buying a Business ### 📋 Eligible Entities - Canadian-controlled private corporations (CCPCs) operating in eligible industries - Established businesses with a proven track record of profitability - Business owners/entrepreneurs seeking to acquire competitor or supplier businesses - Companies with minimum revenue thresholds (typically $2M+ annual revenue) - Businesses located in Canada with operations primarily in Canada - Not eligible: Startups without operating history, non-profits, government entities, or real estate investment companies ### 💰 Funding Details - Maximum funding: Up to $35 million in repayable capital - Funding structure: Combination of debt financing and quasi-equity instruments - Repayment terms: Typically 5-10 years depending on deal structure - Interest rates: Competitive rates based on creditworthiness and risk profile - Equity consideration: May include equity co-investment from BDC (typically minority stake) - No matching requirement: BDC can be sole or primary funder - Drawdown: Funds released upon deal completion and milestone achievement ### 🛠️ Approved Expenses - Acquisition purchase price for target business - Working capital to support post-acquisition operations - Integration costs related to merging operations - Debt repayment of target company (seller financing/assumed liabilities) - Professional fees (legal, accounting, valuation services) - Equipment or technology transfers as part of acquisition - Inventory and receivables purchase - Transaction costs and due diligence expenses ### ⚠️ Conditions & Milestones - Deal structure approval: BDC must approve the target business and acquisition terms - Financial performance: Strong EBITDA and cash flow projections required - Management team: Experienced management team in place to execute acquisition - Business plan: Comprehensive integration and growth plan must be submitted - Personal guarantee: Owner(s) typically required to personally guarantee debt - Security: First or second charge on business assets as collateral - Reporting requirements: