Closing

Closing is the final step in a business sale transaction, at which the buyer pays the purchase price, the seller transfers ownership of the business, and all required documents are executed. At closing, the buyer assumes control of the business and the seller receives their proceeds (net of any holdback or escrow amounts retained pending post-closing adjustments).

The closing process typically involves signing the purchase agreement, transferring share certificates or executing an asset bill of sale, releasing funds held in trust, satisfying any remaining conditions precedent (such as regulatory approvals or landlord consents), and filing required notices with corporate registries.

Canadian business sale closings typically occur 30–90 days after a letter of intent is signed, following completion of due diligence and purchase agreement negotiation. A closing may be delayed or terminated if conditions precedent are not met, material adverse changes occur, or either party defaults.

See also: Letter of Intent, Purchase Agreement, Conditions Precedent, Holdback, Escrow.