grant_single_labels|summary

grant_single|eligibleFinancing
  • grant_single|noCondition
grant_single|deadlines
  • grant_single|openingDateJune 27, 2022
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
  • grant_single|allIndustries
grant_single|grantors
  • Business Development Bank of Canada (BDC)
  • Government of Canada
grant_single|status
grant_card_status|open

grant_single_labels|preview

Get repayable financial support of up to $35 million to increase your working capital to buy a competitor's or supplier's business. You can also obtain guidance and support from a team of experienced professionals to help you find the optimal financing st

grant_single_labels|projects

grant_single|admissibleProjectsExample

$5,000,000

Montreal
Acquisition of healthcare provider facilities

$3,000,000

Toronto
Purchase and integration of a key supplier's operations

$2,500,000

Calgary
Merger with a financial cooperative

$3,500,000

Ottawa
Purchase of a tech startup business

$3,000,000

Winnipeg
Acquisition of an agricultural supplier business

grant_single_labels|admissibility

Eligibility for accessing Growth & Transition Capital for business acquisitions is determined by certain criteria related to the business and proposed financing model.
  • The business involved in the acquisition project must be established or in a high-growth phase.
  • The business must possess a strong management team.
  • There must be a demonstration of quality financial reporting.
  • The company targeted in the acquisition must have a consistent track record of positive and strong cash flow.

grant_eligibility_criteria|who_can_apply

Eligible companies for this grant are typically established or high-growth businesses with a strong management team and quality financial reporting.
  • Established or high-growth businesses
  • Strong management team
  • Quality financial reporting

grant_eligibility_criteria|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.

grant_eligibility_criteria|zone

The grant covers expenses related to business acquisitions and growth, with a focus on customizing financing solutions to meet specific needs.
  • Financing the goodwill component of the business acquisition transaction.
  • Repayment structuring tailored to cash inflows to protect cash flow.
  • Bridge financing between other financing sources like senior debt and equity.
  • Capital for business acquisition with stable terms and conditions.

grant_single_labels|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

grant_single_labels|register

Here are the steps to submit an application for the Venture Capital and Growth & Transition Capital financing solutions:
  • Step 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.
  • Step 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.
  • Step 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.
  • Step 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.
  • Step 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.

grant_single_labels|otherInfo

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.

grant_single_labels|documents

BDC Capital — Growth & Transition Capital — Buying a business

Apply to this program