BC Business Sale Closing Costs
When finalizing a business acquisition or sale in British Columbia, both parties must account for various closing costs beyond the purchase price. Proper budgeting ensures a smooth transition of ownership.
Common Buyer Costs
- • Legal Fees: Review of contracts, due diligence, and closing documents.
- • Accounting Fees: Financial due diligence and tax structure advice.
- • PST/GST Adjustments: Prorated taxes on assets.
- • Inventory Count: Third-party inventory valuation fees.
- • Lease Transfer Fees: Fees charged by landlords for lease assignment.
Common Seller Costs
- • Brokerage Commission: Professional fees for marketing and negotiation.
- • Legal Fees: Drafting the definitive purchase agreement.
- • Debt Payouts: Clearing any existing liens or equipment leases.
- • Staff Payouts: Accrued vacation and severance (if applicable).
Estimate Your Net Proceeds
Our team provides detailed pro-forma closing statements to help you understand exactly what you will walk away with at the end of the transaction.
Professional Advisory
Closing costs can vary significantly based on whether the deal is structured as an asset sale or a share sale. We highly recommend consulting with your CPA and lawyer early in the process.