A couple of extra points:
Find out what the seller's true motivations for selling are. Are they going to retire, or form a competitor business that could quickly become your biggest competition?
Also find out where the revenues are coming from. Are they from multiple sources or a couple large accounts that could drop you if you become the owner?
Is there any undisclosed debt? Make sure to get confirmation from CRA about any amounts owing and have an accountant review prior year returns.
This is more on the accounting side of things but what has the owner been taking out of the company (compensation) if anything at all? Salary? Dividends? How is it structured?
As mentioned above what portion of the price relates to goodwill (customer list)?
What have the revenues been annually, trending up/down and why? What are the annual expenses? Is there an opportunity to increase revenues or decrease costs in the future (ie. opportunity for improvement) that hasn't already been addressed?
Is the company local? What are their reviews like? Not google rating - any business can easily inflate that. Have you spoken with current customers to get their honest feedback?
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