Rhyno Equity Group

Creating competitive tension among lenders

Background

Rhyno is a private equity firm looking to acquire mid-market manufacturing companies in the GTA. The five partners are strong operators and entrepreneurs.

Rhyno made an offer on a company (its largest acquisition to date) with a tight closing schedule. The five partners approached FirePower to generate multiple proposals from lenders, both senior and junior, so that they could select the most suitable financing structure to support the purchase.

Solution

With Rhyno's focus on the acquisition -  due diligence, managing the relationship with the seller, and preparing for post-closing, the partners wanted FirePower to manage the debt financing process. FirePower's investment banking team prepared a deal package and distributed it to 23 prospective lenders, then ran an auction that generated 8 proposals with significant variance in terms, cost and amortization. Through the auction process and subsequent negotiation, FirePower was able to identify the best lender for RhynoThe key takeaway: while senior banks may look the same, they view risk differently, so it's essential to generate multiple proposals across banks to expose the differences, and then negotiate best pricing and terms.

 

Investment Banking Financials & Insurance
Case Studies

TFI
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.

Read Full Case Study

LEAP
LEAP Group was formed to acquire the assets of Metal Networks, an online quoting platform for metals procurement based in Austin, Texas. FirePower arranged a compelling deal structure for LEAP in this distressed situation.

Read Full Case Study
Market Insights
From the archives: January 2019

Flying Under the Radar: The Dividend Recapitalization
You’re an entrepreneur, and like many business owners, much of your wealth is tied up in your company. You still enjoy running the business,…

Read Full Report