Stucturing debt terms that work for a rapidly growing business
GrowthGenius (“GG”) is an AI-assisted sales prospecting service provider for B2B businesses, headquartered at the OneEleven accelerator in Toronto. The company needed financing to fund its rapid expansion. Raising equity seemed like the obvious choice, but GG's exceptional growth prospects made an equity investment unappealing because of the high cost of dilution. GG sought out a debt solution, and was well into discussions with other lenders when FirePower was introduced. Despite this, GG picked FirePower. FirePower’s efforts to get to know the partners, understand the business, and tailor a loan structure that worked for the company and its owners proved to be the difference.
FirePower’s Private Debt team invested time and effort to gain a deep understanding of GG’s business. In initial due diligence, GG commented that the team’s investigation “gave us confidence FirePower would come through”. The team worked to build a relationship with the GG’s partners, and in the process, developed a high degree of confidence in their abilities as strong operators despite the early stage of the company’s growth. With this in hand, FirePower presented GG with two deal structures, thus providing choice for the partners to select a structure that would best fit with the company’s growth plans and their objectives as shareholders.
Despite being well down the path with other lenders, GG picked FirePower. FirePower’s efforts to get to know the partners, understand the business, and tailor a loan structure that worked for the company and its owners proved to be the difference.
With this new loan in place, GG is now well-positioned to fund its rapid growth without the heavy cost of dilution.
TFI is the largest distributor of specialty food preparation equipment and training programs in Canada, supplying over 10,000 locations. FirePower's investment banking team advised management on financing the buy-out of existing shareholders.
FirePower was engaged to prepare PrintFleet for a a sale, and guide the company through to closing. Weeks before closing, the buyer with whom PrintFleet signed an LOI following a competitive auction, a Japanese Fortune 500 company, terminated the deal because of an internal reorganization. FirePower re-ignited conversations with a US strategic who had done well in the auction, and closed without any major challenges at an attractive price, terms and conditions.