The British Columbia Provincial Nominee Program (BC PNP) is a government program designed to help British Columbia meet its employment needs.
For many small business owners in communities outside of Vancouver or Abbotsford, the BC PNP Regional Business Succession Option provides a viable exit strategy. In order to proceed down this path as a Business Owner you must meet the following criteria:
- Be located outside of the Vancouver or Abbotsford metropolitan areas.
- Have been operated by the current owner for at least five years.
- Have at least one full-time employee other than the owner’s family members.
- Be actively in operation and not in receivership.
- Be an eligible business.
What is an eligible Business?
To be eligible for the Regional Business Succession Option the Business must:
- Be operated for the primary purpose of earning profits by providing products and/or services.
- Have strong potential for sustained commercial success.
- Have the potential to create significant economic benefits for British Columbia, such as by:
- increasing value-added manufacturing or processing, exports, destination tourism, R&D and technology commercialization,
- developing innovative approaches to traditional businesses,
- transferring technology and specialized knowledge to B.C.,
- providing products or services to an under-served local or regional market, or enabling the purchase of an existing B.C. business.
In addition, the PNP will only consider the purchase of an existing franchise as an eligible business if it includes an expansion plan that is consistent with franchisor requirements.
If you are considering this option you must be aware of the extended timelines involved. Even though this option is designed to be an expedited process, the time from initial offer to completion is approximately 16 months and there is no guarantee of success.
As the Business Owner you must be prepared to maintain the business after an offer is in place for at least 16 months and also be prepared for the possible collapse of the deal in the event that the BC PNP application is rejected by a government official.
The success rate for BC PNP Regional Business Succession Option is around 72%. Success rates can be improved by ensuring the business meets all criteria and also by ensuring that the potential purchaser is a good match for the business.
Chinook Business Brokers are experienced working with BC PNP acting for both Buyers and Sellers and our success rates are much higher than the rates reported above.