Business Services M&A Advisory | Strategic Sell-Side Advisory for Canada’s Business Services Sector

Institutional-Grade M&A for Canadian Business Services Firms

Windsor Drake is a leading Canadian M&A advisory firm focused on delivering high-trust, high-impact sell-side advisory services to business services companies nationwide. We specialize in representing founder-led, family-owned, and private equity-backed firms through structured sale and recapitalization transactions.

Our method mirrors the discipline, discretion, and market coverage of the world’s top investment banks. We advise owners of service-based businesses across B2B and B2G segments—helping them unlock value, transition ownership, and position their firms for long-term success under new strategic or financial control.

Why Business Services M&A Activity Is Growing in Canada

The Canadian business services sector is experiencing robust M&A activity. Service-based businesses with recurring revenue, contract stability, and operational scale are increasingly attractive to both strategic consolidators and private equity firms.

Key drivers of this activity include:

Aging ownership and succession planning needs
Fragmented markets ripe for roll-up consolidation
Strong margins and cash flow stability in service models
Demand for local/regional providers with national expansion potential
Institutional capital seeking non-cyclical revenue sources

According to Statistics Canada (https://www.statcan.gc.ca/) and BDC (https://www.bdc.ca/), services now account for over 70% of Canada’s GDP—making them a central focus for buyers and investors seeking scalable, resilient businesses.

What Is Business Services M&A?

Business services M&A refers to the acquisition, sale, or recapitalization of companies providing services to commercial, industrial, or government clients. These include outsourced, contracted, or project-based services essential to operations, compliance, or infrastructure.

Transactions may involve:

Full sale to a strategic buyer or private equity firm
Majority recapitalization with equity rollover
Divisional carve-out or spin-off from a larger company
Management-led buyouts (MBOs) and succession plans

Windsor Drake runs a full process to maximize competitive tension, confidentiality, and alignment between seller and acquirer.

Who We Advise

We represent companies across a range of service sub-sectors, including:

Facilities management and maintenance services
Environmental and waste management
Commercial cleaning and janitorial services
Staffing, HR outsourcing, and professional services
Security, surveillance, and safety providers
Logistics and last-mile services
Field services, repair, and technical trades
Testing, inspection, certification, and compliance

Typical client profile:

$5M–$150M in annual revenue
$1M–$15M in EBITDA
Contract-based or recurring client relationships
Strong middle management or operational leadership
Owner seeking full or partial liquidity event

Our clients range from single-region operators to multi-location businesses with a national client base.

Windsor Drake’s M&A Process for Business Services Companies

1. Strategic Consultation

We begin with a confidential strategy session to understand your objectives, ownership structure, customer profile, and financial history. We evaluate your business’s market position and readiness for a transaction.

2. Valuation and Market Strategy

We deliver a tailored valuation based on:

Historical and normalized EBITDA
Contracted revenue and customer churn
Gross margin stability and workforce efficiency
Sector comparables and buyer activity

Our strategy includes market positioning and identification of value drivers such as recurring contracts, scale, or specialization.

3. CIM and Data Room Development

We create a high-quality Confidential Information Memorandum (CIM) highlighting:

Services, contracts, and delivery models
Client sectors, contract duration, and revenue diversity
Employee base, retention, and credentialing
Technology and compliance infrastructure
Financials, forecasts, and growth plans

We construct a secure data room to facilitate buyer due diligence.

4. Discreet Buyer Outreach

We approach a vetted group of qualified buyers under NDA. These include:

Strategic consolidators in Canada and the U.S.
Private equity groups with active service investments
Family offices and long-term capital partners

We limit outreach to preserve confidentiality and ensure alignment.

5. Deal Structuring and Negotiation

We lead the negotiation of multiple Letters of Intent (LOIs) and coordinate due diligence across financial, legal, and operational functions. We structure deals to optimize:

Purchase price and working capital adjustments
Earnouts, seller financing, and equity rollover
Founder transition, employment, and incentive plans

6. Closing and Post-Transaction Planning

We work with your legal and tax advisors to close the deal efficiently. Our team supports post-close transition strategy, including customer communication, team retention, and compliance continuity.

Key Valuation Drivers in Business Services M&A

Buyers evaluate Canadian service companies on:

Contract length and renewal history
Customer concentration and lifetime value
Margin profile and cash conversion cycle
Employee skill levels and retention
Scalable systems and geographic reach

Typical valuation ranges:

5x–8x EBITDA for recurring or contracted B2B services
4x–6x EBITDA for project-based or seasonal firms
Premiums paid for national footprint, compliance-intensive services, or tech-enabled models

Sample Transactions (Confidential Summary)

National Janitorial Services Group
$42M Revenue | $6.2M EBITDA
Sold to a U.S.-based strategic consolidator
Ontario-Based Environmental Services Firm
$31M Revenue | $4.4M EBITDA
Recapitalized by Canadian private equity firm
Professional Staffing and Workforce Management Company
$28M Revenue | $3.7M EBITDA
Majority sale with seller equity rollover

These examples reflect strong domestic and cross-border buyer appetite for high-margin, process-driven Canadian service companies.

Why Choose Windsor Drake

Windsor Drake delivers institutional-quality M&A advisory for privately held business services firms in Canada. We are:

Deeply connected to Canadian and international buyers
Trusted by founders, families, and private equity sponsors
Specialists in service businesses with recurring or contractual revenue
Led by senior professionals throughout every mandate
Structured, transparent, and focused on long-term results

We do not list businesses publicly. We protect confidentiality and execute with discipline.

Tax, Legal, and Regulatory Considerations

Selling a Canadian service business involves:

Asset vs. share sale implications
GST/HST on contracts and transition
Payroll, WSIB, and employee transition management
Lifetime Capital Gains Exemption (LCGE) eligibility

We coordinate with your advisory team or refer specialized M&A counsel and tax advisors. Visit CRA’s business transition guidance: https://www.canada.ca/en/revenue-agency/services/tax/businesses.html

Frequently Asked Questions

Can I sell a portion of my business and retain equity?
Yes. Many founders sell 60–80% and retain a minority interest post-transaction.

How long does the M&A process take?
Typically 6–9 months from engagement to close.

Do I need audited financials?
No, but accountant-reviewed statements increase buyer trust.

Is this process confidential?
Yes. All outreach is under NDA. Your identity is never disclosed without approval.

Start a Confidential Conversation

If you own or operate a business services company in Canada and are considering a sale or recapitalization, Windsor Drake offers elite, confidential M&A advisory tailored to your business.

We help:

Maximize value through a structured, buyer-driven process
Prepare your business for diligence and negotiation
Execute transactions that protect legacy and optimize terms

Windsor Drake | Strategic M&A Advisory for Canada’s Business Services Sector