Signing at the notary feels like a finish line. In reality, it is a starting line. The next day, employees wonder if their jobs are at risk, customers wonder if service will change, suppliers wonder if invoices will be paid, and the bank awaits its first report.

The first 100 days often decide what follows. An acquirer who changes everything too quickly loses key employees and customers. An acquirer who waits too long lets doubt set in, and the team continues to look to the former owner. In a market where skilled labor is scarce and competitors do not hesitate to solicit the clients of a company in transition, these first few weeks count double.

This guide is intended for acquirers who have just bought an SME in Quebec, and for the sellers who will accompany them during the transition. It proposes a four-phase plan, preceded by preparation to be done before the closing.

Executive summary: during the first 100 days, the new owner must first reassure employees, customers, and suppliers (days 1 to 7), then handle formalities, access, and cash flow (days 8 to 30). They then listen and learn how the company really operates (days 31 to 60), before setting their priorities and plan for the first year (days 61 to 100). The golden rule: do not change anything significant before understanding why things are done that way, except in an emergency.

The calendar at a glance

Before day 1: prepare the transition

The best transitions are prepared during due diligence, not after closing. Three documents make the difference.

The communication plan

It answers four questions: who announces the sale, to whom, in what order, and with what message. The usual order is as follows: key employees the day before or the morning of, all employees on the first day, key customers and suppliers in the following days, then other partners. The seller and the buyer must agree on the text: a conflicting message between the two creates more concern than the change itself.

For the external communication strategy, see Managing marketing strategy, communication, and public relations during an acquisition.

The seller’s transition agreement

The seller's presence after closing is often provided for in a single line in the purchase agreement ("the seller will ensure a three-month transition"). This is insufficient. Specify:

• the duration and number of hours per week;

• specific tasks: introductions to clients, purchasing training, transferring supplier relationships, estimation, etc.;

• compensation, if any, and its tax treatment;

• the title and authority of the seller during this period: they advise, they no longer decide;

• how to end the transition early or extend it.

The access list

Draw up with the seller a complete list of accesses to transfer: bank accounts and credit cards, accounting and payroll software, emails, domain name, website, social media, supplier and customer portals, government portals (Revenu Québec, CRA, CNESST, Registraire), alarm systems, keys, codes, and passwords. Accounts registered in the seller's personal name must be transferred to the company. See Who owns a company's data, accounts, and creations?.

Finally, ensure that the payroll following closing will be paid without error, with the proper access and necessary funding. A first late payroll is the worst message to send to the team.

Days 1 to 7: reassure and take control

The announcement to employees

Meet with all employees on the first day, ideally with the seller. An effective announcement lasts 20 to 30 minutes and covers five points:

1. The seller speaks first: they explain why they sold and why they chose this buyer.

2. The new owner introduces themself: their background, why they bought this particular company.

3. What is not changing now: jobs, salaries, hours, benefits, and ways of doing things, for the coming weeks.

4. What will happen: the observation period, individual meetings, the seller's presence during the transition.

5. Questions: answer frankly. If you don't know yet, say so, and say when you will know.

Example message: "I bought this company because it has an excellent reputation, and you are the ones who built that reputation. Over the next few weeks, I will mostly be observing and listening. No positions are being eliminated, no salaries are being reduced. I will meet with each of you individually within a month. [Seller name] is staying with us until [month] to help me fully understand the company."

Do not promise anything you are not certain you can deliver. A broken promise in the third month costs more than the uncertainty of the first day.

Key employees

Meet individually, during the first week, with the employees whose departure would hurt: the foreman, the estimator, the purchasing manager, the head chef, the sales rep who knows the big clients. Ask them three questions: what works well here, what frustrates you, and what would you do in my place?

For the most critical positions, consider a retention bonus, paid for example after 6 and 12 months. It costs little compared to the departure of a person who holds the company's relationships or know-how.

Key customers and suppliers

Call or visit key customers with the seller in the first week. An important customer who learns of the sale through rumors asks questions; a customer who receives a call from the seller and the new owner feels respected. For other customers, a joint letter or email suffices.

Example message to customers: "After [number] years at the head of [company], I have chosen to pass the torch to [name], who becomes the owner as of [date]. The team, products, and service you know remain the same. I remain present over the coming months to ensure the transition. [Name] will be in touch with you shortly to introduce themselves. Thank you for your trust."

Do the same with essential suppliers, especially those who grant credit to the company. In an asset purchase, the new entity often has to redo its credit applications: a supplier who demands to be paid cash for a few months can weigh heavily on cash flow.

Financial control

• Change the bank account signatories and access to online banking services.

• Have access to accounting software, payroll, and supplier portals transferred or recreated.

• Cancel or transfer credit cards in the seller's name.

• Verify that insurance (property, civil liability, automotive, directors and officers, life insurance required by the lender) is in force and in the name of the correct entity.

• Confirm the schedule for the next payroll and next government remittances.

Days 8 to 30: handle formalities and secure cash flow

Formalities not to be forgotten

In a share purchase, the company changes control: it is deemed to have ended its tax year just before the acquisition. Tax returns will need to be filed for this shortened year. Notify your CPA as soon as closing occurs.

In an asset purchase, the new entity must obtain its own numbers (GST, QST, source deductions, CNESST) before closing, and the GST/QST election on the business acquisition must have been made, if applicable.

Law 25 deserves special attention. If you continue to use customer personal information (customer file, mailing list, loyalty program) after closing, you must notify them within a reasonable time. An email announcing the change of ownership can serve to fulfill this obligation, if it clearly mentions that you now hold their information.

Cash flow: the 13-week cash budget

Prepare a 13-week cash budget: expected receipts, payroll, suppliers, rent, acquisition debt repayments, payments to the seller, government remittances. Update it weekly, comparing actuals to forecasts. This is the tool that will save you from surprises during the period when you are still unfamiliar with the company's rhythm.

Example: a service company purchased on the 1st of the month has $120,000 in cash at closing.

Week 3 includes payroll, source deduction and tax remittances, rent, and the first acquisition loan payment. The cash balance falls below the minimum cushion the acquirer had set for themselves ($50,000). Thanks to the budget, they see it in the first week: they follow up with two big late-paying customers, negotiate an extension with a supplier, and confirm their line of credit with the bank before they need it.

Commitments to the bank and the seller

Add to the calendar:

• the financial ratios to be met and the calculation dates;

• the reports to be produced: interim financial statements, certificates of compliance, accounts receivable listing;

• the acquisition loan deadlines;

• the payments scheduled to the seller, if there is a vendor take-back, and the conditions to be met towards them (financial information, restrictions).

A first report to the bank delivered late is not serious in itself, but it sets the tone for the relationship. See Vendor take-back: definition and how it works.

Price adjustments

Most purchase agreements provide for a price adjustment after closing, particularly for working capital and inventory. Closing statements generally must be prepared within 60 to 90 days, depending on what the agreement provides. Get your CPA to work quickly: a poorly documented adjustment is difficult to defend, and a missed deadline can cause you to lose a right.

Days 31 to 60: listen and understand

Learn how the company really works

Spend time in every department: on the floor, in the warehouse, on job sites, in customer service, in shipping and receiving. Do the work yourself when possible. You will discover ways of doing things that the due diligence documents did not show: the employee who knows every customer's requirements by heart, the Excel file that replaces software, the verbal agreement with a supplier. You will also earn the team's respect.

One-on-one meetings

By day 45, meet with every employee, or every team lead in a larger company. A few useful questions:

• What makes you proud to work here?

• What wastes your time each week?

• What do customers complain about?

• What should we stop doing?

• What did the former owner do that no one else knows how to do?

Note the answers. The same themes will often recur: these are your first priorities.

Meet the customers

Meet the top 10 to 20 customers. Ask them why they do business with the company, what they appreciate, what they would like to see change, and what could make them leave. Their answers are worth more than any market study. Take the opportunity to verify that the conditions agreed upon with the seller (price, payment terms, discounts) are indeed those in the files.

Put your indicators in place

Choose five to ten indicators that you will track each week or each month. They depend on the sector:

In all cases, add cash and overdue accounts receivable. If the company does not have monthly financial statements, set them up with your CPA: you will need them for the bank, and for yourself.

Quick wins

Identify a few simple, visible, and low-risk improvements: repairing equipment that has been hindering employees for months, resolving an administrative irritant, buying the tool the team has been asking for for a long time, improving accounts receivable follow-up. These quick wins show the team that you are listening, without upsetting the organization.

Days 61 to 100: decide and plan

Establish your priorities

At this stage, you know the company, its strengths, and its weaknesses. Choose three to five priorities for the first year, not fifteen. For each: a measurable goal, a person in charge, and a deadline. For example: "Reduce accounts receivable over 60 days by 30% by March 31, under the responsibility of the controller."

Present these priorities to the team. Explain where they come from: in large part, from what employees and customers told you during meetings. This is the best way to gain their buy-in.

Make the necessary changes

Some changes can no longer wait: an employee who refuses change and is hindering the team, an unprofitable customer, a failing supplier, prices that have not been increased in three years. Make them, explaining why, and starting with those that have the team's support.

Organize the seller's departure

If the seller is still present, plan the end of their transition. Ensure that their relationships with customers, suppliers, and employees have been transferred, and that their knowledge is documented: procedures, contacts, history, tips. Announce the date of their departure in advance, and highlight it. A well-prepared departure reassures everyone and confirms your position.

If an earn-out payment based on results is provided, be particularly transparent. The seller has an interest in seeing high results; you must be able to make decisions (investments, hiring) that reduce them in the short term. Discuss this openly, and document decisions that have an effect on the calculation. See Everything you need to know about earn-outs.

Complete the structure

Several structural elements are resolved in this period:

• finalization of the price adjustment with the seller;

• the merger of the management company and the purchased company, if this strategy was chosen;

• tracking the earn-out payment, according to the agreement definitions;

• the first formal meeting with the bank to present the quarter's results and your plan.

For longer-term integration management, see Challenges and best practices for post-acquisition integration.

Two examples

What can go wrong: a body shop in Saguenay

An acquirer buys a body shop with 14 employees. Motivated, they announce a new management software, a reorganization of schedules, and the replacement of the paint supplier with a cheaper one as early as the second week.

Three weeks later, the workshop manager, who had been there for 18 years, hands in their resignation. They had not been consulted, and the team was unfamiliar with the new paint supplier's products, whose colors were less reliable. Two insurers, who sent a large portion of claims, worry about the delays.

The acquirer meets with the workshop manager, admits their mistake, and suspends the changes. The workshop manager stays. On day 70, after meetings with the team and the insurers, the acquirer relaunches the software project with the workshop manager in charge and keeps the paint supplier. Repair delays drop by 15% within the year.

The lesson: the changes were good, but the order and the way of making them were not.

What works: a commercial cleaning company in Laval

An acquirer buys a cleaning company with 45 employees that serves about thirty office buildings. Before closing, she agrees with the seller on a four-month transition contract and a communication plan.

On the first day, the seller and the acquirer meet with the team leads at 6 a.m., before their shift, then the evening teams on the same day. The two supervisors who manage schedules and relationships with building managers are offered a retention bonus payable at 6 and 12 months. During the first week, the seller and the acquirer call the ten largest customers together.

The cash budget shows a dip on day 25, when the biweekly payroll coincides with government remittances and the first payment to the seller. The acquirer obtains a slight postponement of the payment to the seller, as provided for in the agreement.

On day 45, one-on-one meetings reveal a major irritant: products and equipment arrive late at the buildings. The acquirer entrusts logistics to a supervisor and buys two delivery vehicles. On day 90, she presents three priorities to the team: reduce staff turnover, renew contracts nearing expiry, and increase prices to follow the minimum wage hike. One year later, no major customers have left and turnover has decreased.

Checklist: the first 100 days

☐ Communication plan agreed upon with the seller before closing

☐ Detailed seller transition contract (duration, tasks, compensation, authority)

☐ List of access established and accounts in the seller's name transferred

☐ Meeting with all employees on the first day

☐ One-on-one meetings with key employees and retention bonuses considered

☐ Calls or visits to major customers and suppliers in the first week

☐ Bank signatories, software access, credit cards, and insurance updated

☐ Updated declaration to the Registraire des entreprises filed within 30 days

☐ Powers of attorney to Revenu Québec and the CRA, CNESST file and permits updated

☐ Notice to customers provided by Law 25, if applicable

☐ 13-week cash budget in place and updated weekly

☐ Commitments to the bank and payments to the seller entered in the calendar

☐ Closing statements and price adjustment prepared within the agreement's deadlines

☐ Short-year tax returns planned (share purchase)

☐ One-on-one meetings with all employees completed

☐ Management indicators and monthly financial statements put in place

☐ Meetings with major customers completed

☐ Three to five first-year priorities established and presented to the team

☐ Seller's departure planned and knowledge documented

☐ First follow-up meeting with the bank held

Most frequent pitfalls

• Changing everything in the first week. You lose the team's trust before having earned it.

• Changing nothing for six months. The team is waiting for direction; the absence of decisions creates uncertainty.

• Promising what you cannot deliver. "Nothing will change" is a promise no acquirer can keep for long.

• Forgetting the customers. A competitor can take advantage of the transition to solicit them.

• Neglecting cash flow. Payroll, suppliers, government remittances, and debt repayment all arrive at the same time.

• Letting formalities slide. A missing bank signatory or power of attorney can block an urgent transaction.

• Missing the closing statement deadline. A price adjustment not claimed in time is often lost.

• Letting the seller leave too soon. Their network and knowledge are part of what you paid for.

• Keeping them too long. Employees will continue to turn to them rather than you.

For other common mistakes, see The 5 most frequent mistakes during a business transfer in Quebec.

Should you get help?

An acquirer can lead their own transition, and it is often preferable: the team needs to see their new owner, not a consultant. But it is in their best interest to surround themselves. A CPA will prepare the closing statements, cash budget, short-year tax returns, and merger, if applicable. A lawyer or notary will handle the formalities and follow-up of the agreement. For a first acquisition, a mentor or advisor who has already experienced a takeover can help you avoid the most costly mistakes. Several organizations, including Repreneuriat Québec, offer support to acquirers. See also The ultimate guide to buying a business.

Sources

• Government of Quebec, Filing an annual updating declaration with the business register

• Revenu Québec, MR-69 – Authorization for the communication of information or power of attorney

• Justice Canada, Income Tax Act, section 249

• LégisQuébec, Act respecting the protection of personal information in the private sector, section 18.4

This article provides general information and does not replace legal, tax, or accounting advice tailored to your situation.