Growth can be fueled in many different ways

Truly game-changing growth strategies require significant capital and out-of-the-box thinking.

We see your entrepreneurial spark and are moved to ignite your potential through our direct investing and transactional advice.

Need growth financing, but your bank cannot provide (any or enough) capital?

Ambitious growth plans typically need fresh capital to support them, to make new hires, buy equipment, support channel partners, etc. Traditional lenders can only provide so much fuel, and only the account managers who know what they’re doing can truly make a difference. Our Investment Banking team has helped structure these growth transactions for years. If our Gap Debt™ fund can get involved directly, we will.

Trying to clean up your shareholder base?

It may be that differences in the vision each shareholder has for the business are arising. Or, a few shareholders are getting older and want to cash out. Whatever the reason, financing the buy-out of some shareholders can be tricky and sensitive. We can act as a buffer for difficult conversations and provide a layer of confidentiality when discussing with lenders, investors and other stakeholders.

Wanting to buy the business you operate from its existing shareholders?

You are a top executive, perhaps with a stake in the business you currently run. Existing shareholders may be retiring, or looking to move on to other endeavours. How do you buy their shares, and gain control? Our Investment Banking team has assisted management buying in to a business, with an enviable track record.

Raising equity, but want to reduce the impact of dilution?

Institutional equity in Canada is picky—if you can raise it, you have built a promising business. But it is very expensive in the long-term, because you had to give a substantial portion of the business up. Our Gap Debt™ product can be a substitute for equity, or at least complement it—either way it enables you to keep more of the business you’ve built.

Looking to acquire a competitor(s) and need capital?

You have identified an interesting target, maybe you’ve already made a verbal offer or provided a letter of intent. How you finance the acquisition is a strategically important question – done wrong, it can hamper your business for some time. Equity, debt, subdebt, seller-backed financing… It must all come together. Our Gap Debt™ fund excels at financing acquisitions, while our Investment Banking team can arrange for the remainder of the capital, as well as advise on the purchase itself.

You see an opportunity to consolidate your industry?

You have reached a meaningful size, and have become a known player in your space, which is fragmented. You have substantial financial resources, and plan to put them to good use by acquiring smaller competitors. In short, you’re rolling up your industry ahead of an exit in 5+ years. Great plan, but do you have the time to identify, connect with, negotiate and due diligence potentially hundreds of targets? Our Investment Banking team’s buy-side advisory practice has executed on such mandates for years now.

Refinancing appears to be possible, and want to get the right deal?

The light is getting brighter at the end of a turnaround, or you had to swallow a tough financing structure to consummate a critical acquisition. Whatever the situation, it may be time to consider refinancing unfavourable debt that was right at the time, but isn’t appropriate anymore given the strength of your business. If there is a growth component, our Gap Debt™ team will be happy to explore; alternatively, our Investment Banking team’s reach and experience will be put to work to structure new credit facilities that make sense.

Market Insights
From the archives: October 2018

Buyers' Perspectives in a Competitive M&A Market
“Beauty is in the eye of the beholder”. It’s an age-old saying, but if you change a couple of words – the first and…

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Case Studies

Environics
Environics Analytics (“EA”) is a leading North American provider of marketing and analytical services. The company needed financing to support its expansion plans in the US and Canadian markets, and wanted to secure capital from a senior lender that understood EA’s value drivers. FirePower surfaced numerous proposals, then negotiated and improved on the terms and conditions to the benefit of EA.

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Pita Pit Canada
Pita Pit Canada ("PPC") is the franchisor to 228 Pita Pit locations across Canada. FirePower's Investment Banking team was engaged to arrange financing for its acquisition of a majority interest in Pita Pit International ("PPI"). FirePower generated multiple proposals from prospective lenders, negotiating and structuring favourable terms and pricing with a lender interested in supporting PPC's future expansion plans.

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F12.net
F12.net (“F12”), a leading Canadian Managed Service Provider (MSP), was executing on a highly successful acquisition strategy, and FirePower was engaged as the company looked towards the GTA area for expansion. The FirePower team built a comprehensive target list and crafted a story emphasizing F12’s amazing corporate culture.  Of the potential targets, Apps on Tap represented an exciting synergistic addition for F12, and with FirePower’s support, F12 acquired Apps on Tap in May, 2018.

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As with most situations involving shareholders, I realized early on that an investment bank could play a critical role in managing this sensitive transaction. The team at FirePower provided invaluable guidance and advice.
Dean Rookes, CEO of Corrosion Service