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Sukhi Hansra October 12, 2026
Buying an existing business is the fastest route to owning cash flow that already works. The customers exist, the staff know their jobs, and the revenue starts on day one.
It is also the fastest route to inheriting someone else’s problems. Structure the purchase wrong and the seller’s tax exposure, lawsuits, and employee obligations can transfer to you along with the keys. Overpay because nobody normalized the financials, and you will spend years working to earn back money that left on closing day. Almost everything that separates a good acquisition from an expensive mistake happens before you sign, in how the deal is structured, what due diligence actually uncovers, and whether the purchase agreement protects you after closing.
Our business acquisition lawyers in Toronto guide buyers through every stage of a purchase, from the first letter of intent through closing, so you understand exactly what you are buying, what risk you are taking on, and how to negotiate from a position of strength.
We are not cookie-cutter lawyers who draft basic paperwork and send a bill. Our principal lawyer has owned four businesses himself, and that experience changes the advice, because we know what makes a business work or fail, where the real risks sit in its industry, and how to tell a genuine problem from a theoretical one. We get involved in your deal as business advisors first and document drafters second, because the documents only protect you if the deal behind them makes sense.
Buyers come to us in four situations, and each one changes how the deal should run:
Want a free due diligence checklist?
We've put together the same checklist we work from on real acquisitions. It covers the eight categories that matter, including the Ontario searches most checklists leave off. Free, no obligation.
Every acquisition at our firm starts with a written quote, itemized by stage, with the tasks that could increase fees named in advance. That is our no surprise billing policy. You will have your number after a free consultation with a lawyer, before you commit to anything. Learn how our fees work.
Based on our own transaction history, most acquisitions close in 3 to 6 months from letter of intent to closing. A straightforward deal can move faster, and a complex one, particularly a franchise acquisition requiring franchisor approval, can run well past that.
An asset purchase lets a buyer choose specific assets and liabilities to acquire; a share purchase transfers ownership of the entire corporate entity, liabilities included. The right structure depends on tax treatment and risk allocation, and our Asset Purchase vs. Share Purchase guide walks through the full breakdown.
Many of our clients do, and it is frequently the right call for tax planning and asset protection. Whether it is right for your deal depends on your financing, your other assets, and your accountant’s plan, and we routinely incorporate the holding company as part of the purchase itself.
You need both, doing different jobs. An accountant validates the numbers. A lawyer protects you from what the numbers do not show, such as undisclosed liabilities, weak indemnities, and contracts that do not survive the transfer of ownership.
Price, structure (asset or share), key conditions, exclusivity period, and confidentiality. If you set these terms correctly here, they shape every negotiation that follows. See our Letter of Intent guide.
Some deals genuinely take longer. We have seen a purchase run from first letter of intent to closing over two years. A slow deal is not automatically a bad deal, but it does need managing through conditions with real deadlines, an exclusivity clause that does not trap you, and periodic honest conversations about whether the transaction still makes sense.
Reviewed by Sukhi Hansra, Business and Franchise Lawyer at Hansra Law.
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See What Others Say
★★★★★
“Sukhi and his team have been my go to business lawyers for buying a business in Toronto and they've helped us with a few transactions now. They're thorough, don't leave a stone unturned and will really fight for you when it comes to negotiations.”
— Payman A., Google review
★★★★★
“I had an outstanding experience with this law firm during my first business purchase. Their communication was exceptional, ensuring a smooth process and providing the support I needed. Highly recommended!”
— Justin T., Google review
★★★★★
“Sukhi is a great person to be representing you. He is highly mindful of client's success. Consulted him for a company acquisition, he's been an incredible advisor.”
— Pneumatics-pro, Google review
Most owners deal with the legal side only after something goes wrong. By that time, you could spend tens of thousands of dollars unwinding what a quick conversation could have prevented. It doesn’t have to be that way if you have the right lawyer in your corner!