Open
BDC Capital — Growth & Transition Capital — Buying a business
Customized financing for business acquisitions
Last Update: May 28, 2026
Funding available
Varies by project
Timeline
- Open Date : June 27, 2022
Location
Canada
Overview
Get repayable financing of up to $35 million to support the purchase of a competitor’s or supplier’s business. This program offers customized financing solutions for business acquisition projects, including mezzanine and cash flow financing.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Complete an acquisition or business transfer
Eligible Funding
- Varies by project
Timeline
- Open Date : June 27, 2022
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Buying a competitor’s or supplier’s business.
- Business acquisition projects.
Official resources
Eligibility
Who is eligible?
- Established businesses
- High-growth businesses
Eligible expenses
This grant is designed to support business acquisition projects by providing customized financing solutions that align with the buyer's growth strategy. Eligible activities focus on leveraging growth and transition capital to facilitate strategic acquisitions by minimizing ownership dilution.
- Financing acquisition of established or high-growth businesses with strong management and robust financial reporting.
- Utilization of mezzanine financing to cover goodwill and bridge financial gaps between various sources.
- Applying cash flow financing for acquisitions of companies demonstrating consistent positive cash flow results.
Eligible geographic areas
- Canada
Selection criteria
There are evaluation and selection criteria for this grant. The criteria include:
- The business is established or high-growth
- Has a strong management team
- Demonstrates quality of financial reporting
How to apply
1
Assess Eligibility
Review the financing solutions offered to determine if your business acquisition project is eligible based on criteria such as being an established or high-growth business, having a strong management team, and demonstrating quality financial reporting.
2
Prepare Financial Proposal
- Work with Growth & Transition Capital experts to develop a feasible and beneficial financial package suited to your needs.
- Include details on the funding amount required, which can range from $250,000 to $35M.
- Outline your preferred financing solution, either Mezzanine financing or Cash flow financing, based on your specific project requirements.
3
Detailed Financial Documentation
- Compile necessary financial documents demonstrating the business’s consistent track record of positive cash flow if opting for cash flow financing.
- Prepare any additional supporting documentation that outlines the financial health and potential of your acquisition target.
4
Online Application Submission
- Access the online application portal via the financing service provider’s website.
- Complete the application form providing all requested information related to your business and the acquisition project.
- Upload your detailed financial proposal and any supporting documentation.
- Submit the completed application ensuring all sections are filled in accurately.
5
Await Confirmation and Follow-Up
- Receive confirmation of your application submission, including any application reference number for tracking purposes.
- Follow up as needed for any additional information or documentation requested by the financing team.
Additional information
Here are additional relevant details for this grant:
- Customized mezzanine financing is available to protect working capital.
- Capital payments can be postponed for the first 12 months, aiding cash flow management.
- Repayment terms can be aligned with the company's cash inflows, including options such as balloon payments and cash flow sweeps.
- The security of loans is subordinated, providing more borrowing power.
- No involvement in business management from lenders, allowing current management to retain control.
- Financing solutions range from $250,000 to $35 million.
Frequently Asked Questions about the BDC Capital — Growth & Transition Capital — Buying a business Program
What is the BDC Capital — Growth & Transition Capital — Buying a business?
Get repayable financing of up to $35 million to support the purchase of a competitor’s or supplier’s business. This program offers customized financing solutions for business acquisition projects, including mezzanine and cash flow financing.
Who is eligible for the BDC Capital — Growth & Transition Capital — Buying a business program?
To be eligible for the BDC Capital — Growth & Transition Capital — Buying a business program, you must:
Established or high-growth business
Strong management team
Quality financial reporting
What expenses are eligible under BDC Capital — Growth & Transition Capital — Buying a business?
Buying a competitor’s or supplier’s business.
Business acquisition projects.
Who can I contact for more information about the BDC Capital — Growth & Transition Capital — Buying a business?
You can contact Business Development Bank of Canada (BDC).
Where is the BDC Capital — Growth & Transition Capital — Buying a business available?
The BDC Capital — Growth & Transition Capital — Buying a business program is available across Canada.
Is the BDC Capital — Growth & Transition Capital — Buying a business a grant, loan, or tax credit?
BDC Capital — Growth & Transition Capital — Buying a business is a Loans and Capital investments
Who are the financial supporters of the BDC Capital — Growth & Transition Capital — Buying a business?
BDC Capital — Growth & Transition Capital — Buying a business is funded by Business Development Bank of Canada (BDC)