Ottawa (Rajeev Sharma): As Canada braces for a generational shift in business ownership, the Business Development Bank of Canada (BDC) is stepping in with a $50 million initiative aimed at helping women entrepreneurs acquire established companies from retiring owners.
The newly launched Thrive Entrepreneurship Through Acquisition (ETA) Fund, managed by BDC Capital, is designed to provide both capital and strategic support to women looking to purchase and scale existing small and medium-sized enterprises (SMEs). The move comes in response to what experts are calling a “succession tsunami” — the anticipated exit of tens of thousands of business owners over the next decade.
Addressing the Ownership Gap
Speaking on the initiative, Sévrine Labelle, Managing Director of BDC’s Thrive Lab for Women, called it a “once-in-a-generation opportunity” to rebalance business ownership in Canada. Currently, fewer than 20% of private companies in the country are majority women-owned, according to recent Statistics Canada data.
“This fund is about leveling the playing field — giving more women the tools and capital to step into leadership and ownership roles as a wave of businesses prepare for transition,” said Labelle.
The Thrive ETA Fund includes:
- $10 million earmarked for indirect investment into private equity funds supporting women-led acquisition efforts;
- $40 million allocated for direct equity investment in management buyouts, self-funded acquisitions, or search fund deals.
Crucially, the fund also includes an accelerator program offering mentorship, training, and deal-structuring support — resources often cited as major barriers for new entrants, particularly women.
A Critical Time for Business Transitions
The fund’s launch coincides with alarming findings from the Canadian Federation of Independent Business (CFIB), which reported in 2023 that three out of four small business owners plan to exit within the next 10 years, mostly due to retirement. Yet, only 10% have a clear succession plan, and finding qualified buyers remains a major hurdle.
Labelle sees this as fertile ground for growing the ETA space in Canada, which she notes is still in its early stages compared to the U.S. and Europe. “There’s increasing interest globally in entrepreneurship through acquisition, but Canada’s ecosystem is underdeveloped. That’s exactly where we need to play,” she said.
Lowering Barriers for Women Entrepreneurs
Traditionally, ETA deals require entrepreneurs to contribute capital of their own, which has often excluded women due to historic wealth gaps. Labelle emphasized that the Thrive ETA Fund will not require coinvestment, calling this a “game-changer” that opens doors for first-time women buyers without large personal funds.
The fund will primarily target profitable, mid-sized companies with annual earnings between $1 million and $5 million (EBITDA), especially in sectors like manufacturing, services, and legacy businesses in need of modernization.
While tech firms aren’t excluded, the focus will lean toward stable, cash-flow-generating operations that offer long-term growth potential.
Support Beyond Capital
Beyond financial backing, the Thrive ETA Fund will offer support through:
- Deal sourcing assistance
- Due diligence guidance
- Post-acquisition leadership training
- Business transition planning
The program aims to assist at least 60 women entrepreneurs across Canada as they take on ownership roles in the next few years.
Looking Ahead
Labelle hinted at future opportunities for BDC to use its network to match sellers and buyers within its own portfolio. She also noted that Amanda Kattan, a seasoned finance executive with experience in private equity and tech, has joined as a partner to help lead the fund.
Earlier this year, BDC also launched a $100 million joint initiative with First Nations Bank of Canada, focusing on enabling Indigenous-led ETA deals — part of a broader push by BDC to support underrepresented entrepreneurs.
“We want to help create a more inclusive ownership landscape in Canada,” Labelle added. “And ETA is going to be a cornerstone of that mission.”
