Industrial Research Assistance Program (IRAP)

A technology company’s financials may show money or support from NRC IRAP. The National Research Council describes it as Canada’s leading innovation assistance program for small and medium-sized businesses. A buyer or seller reads this entry to understand what that support is, and what it is not.

How the program works

The National Research Council says NRC IRAP provides customized advice, connections and, in some cases, funding. It also says that meeting its minimum requirements is the first step but does not guarantee NRC IRAP support or funding. Support is therefore not automatic, so ask a company that received it for the written terms.

What to ask in a deal

• Which agreements exist with the program, and what do they require of the company?
• Was any funding received, and was it reported correctly in the statements?
• Do any terms depend on who owns or runs the company after a sale?
• Is further support expected, or only past support recorded?

Related credits are covered in SR&ED credits. Ownership of the technology itself is covered in intellectual property due diligence.