Q: "As reported by the Canadian Federation of Independent Business, approximately 76% of business owners are anticipated to transition out of their businesses in the next decade. This could result in over $2 trillion in business assets changing hands, presenting a substantial opportunity for growth and yield in the sector."
Do you have any suggestions of companies that may benefit if this in fact is an upcoming trend?
Do you have any suggestions of companies that may benefit if this in fact is an upcoming trend?
5i Research Answer:
Private equity companies such as BN, ONEX, FFH could be active buyers. Royalty companies such as AD.UN, EIF, DE and DIV may also be buyers. In terms of targets, as we would expect most targets to be private companies, it is very difficult to predict. There are public companies that could be targets one day (GSY, LNF, FSZ, DRX, RUS, DCM) but we are sure the federation is mostly referencing private companies held by founders and their families.