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.

Case Studies

Last Call Analytics
Last Call Analytics has developed a frontline sales analytics and visualization platform for the beverage and alcohol industry. We invested Gap Debt as a way to bridge them to a Series-A financing.

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Rhyno Equity Group
Rhyno is a private equity firm that acquires mid-market manufacturing companies in the GTA. Their partners engaged us to structure the debt component of a buy-out of a kitchen cabinet maker.

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Edmonton IT Company
We are engaged to find, negotiate and due diligence suitable acquisition targets for an Edmonton-based managed IT service provider executing on a nationwide roll-up of the industry.

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Market Insights
MAY 2017

The Ownership Advantage: Delaying a Series A with Venture Debt
You’re out of early-stage start-up territory (i.e. with revenues…

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As this was the first time we went outside our founders’ circle of family and friends to raise non-dilutive capital, I wanted to make sure I knew all my options. FirePower proposed to do a survey of likely lenders, on a no-name basis; their survey would give me concrete feedback on the likelihood of our raise, while LOT retained the flexibility of anonymity. After positive responses from lenders, the Board decided to formally task FirePower with raising the necessary capital. FirePower proved to be very creative and relentless in their pursuit of the right deal for LOT.
George Achilleos, President of Live Out There