The power of ambition.

Need help growing your business?

Are you raising new capital to fund growth? Looking to buy a competitor? Planning to buy-out existing shareholders? Turning your company around?

We launched FirePower Capital with owner-operators like you in mind. Your challenges keep us going. We’ve advised and deployed our own capital in entrepreneurial mid-market firms like yours, to transform their business.

We help companies to identify compelling acquisition targets and take advantage of inorganic growth opportunities.

Grow your business to the next level

We invest $1m to $20m directly in promising, private Canadian companies to help them grow, via our Gap Debt™ and Private Credit loans.

Learn more about these fresh sources of debt capital

Recent Transactions

BATL
Environics Analytics
Rhyno Equity Group
Eucan Distribution Inc.
FLO Partners Inc.
Caltech Surveys Ltd
InterAtlas Chemical Inc.
BATL Axe
New-Way Irrigation Ltd
Nautilus Liveaboards
Brookdale Treeland
Phybridge
New Rubber Technologies
Ionics
OMNI-MED INC.
Live Out There
Mediresource Inc.
Burdock Brewery
Distinct Technical Services
Speedo Foods & Flavours Inc

Why Choose FirePower

We either invest or advise, with the sophistication typically reserved for larger companies, and with the passion and dedication of a true and trusted fellow entrepreneur.

When deploying our own capital, we are creative and quick to respond. We don’t just look to tick boxes. We can put between $1 to $20m to work in the form of Gap Debt™ or Private Credit, in situations where very few other lenders would play.

When advising acquirers on their strategic initiatives, we provide access to our extensive networks, our deal technology, and bring to bear our deal experience to keep the transaction on track.

No M&A team in the Canadian mid-market has access to so much of its own capital to put to work in its own clients; conversely, no other lender can claim to have the capabilities to advise its borrowers to the extent we do.

Investing in Canadian Companies

Innovative, promising private companies often do not have access to sufficient financing to fuel their growth.

Gap Debt™ and Private Credit are our solutions to that problem.

Does my business qualify for Gap Debt™ financing?

With rare exceptions, we typically look for businesses that show the following to receive consideration:

  • Revenues: $2M+ and annual growth above sector average, or monthly recurring revenue of $80k
    +.
  • Visibility into cash flows: Must have excellent visibility into cash flows (even if negative); if cash flow negative, must anticipate break-even within 18 months.
  • Enterprise Value: Business value in an M&A context can be readily substantiated.
  • Forecasting: Must have deep insights into the future of the business.
  • Management: Owners must have “skin in the game”, share our values, be an impressive and cohesive team, and have financial acumen.
  • Location: Must have a headquarters in Canada.
  • Sector: Industry agnostic.
  • Use of Funds: Generally, for growth (acquisitions, working capital, etc.) and dividend recapitalizations.

Does my business qualify for Private Credit financing?

With rare exceptions, we typically look for businesses that show the following to receive consideration:

  • Revenues: Recurring, repeating, or long-term contract-based revenue model, with low customer churn.
  • Visibility into cash flows: Must have excellent visibility into cash flows (even if negative); if cash flow negative, must anticipate break-even within 18 months.
  • Enterprise Value: Business value in an M&A context or value of various asset classes to be securitized can be readily substantiated.
  • Forecasting: Must have deep insight into the future of the business.
  • Management: Owners that share our values, are an impressive and cohesive team, and have financial acumen.
  • Location: Must have a headquarters in Canada.
  • Sector: Industry agnostic.
  • Use of Funds: Generally, to support growth, refinancing, buyouts, acquisitions, recapitalizations, asset securitizations, or special situations.

How much can I borrow?

We issue Gap Debt™ loans of  to $1 million to $5 million, and Private Credit loans of $5 million to $20 million.

Why should I borrow Gap Debt™ or Private Credit?

Gap Debt™ and Private Credit unlock capital from intangible assets, helping you in areas traditional banks are afraid to go. Both debt offerings are a quicker source of capital than equity, an effective substitute for venture capital and can act as a bridge to venture capital or bank debt if those options are not available yet. Gap Debt™ and Private Credit also minimize dilution and the cost of capital relative to raising equity, while allowing borrowers to retain control of strategic direction and the board.

We’ve found through experience that these debt offerings generate a healthier management philosophy than venture capital, which can distort behaviours such as imposing more discipline to reach profitability (not growth for growth’s sake). We can structure Gap Debt™ or Private Credit to match your growth strategy and ability to make payments. Contact us today for a consultation and see if Gap Debt™ or Private Credit works for your business vision.

What makes FirePower different from similar lenders?

There are only a handful of similar lenders in the country in this space. Between us and those funds, we are truly entrepreneurial; we’ve built FirePower Capital from scratch, and so we speak the same language as our borrowers. We’re also deeply invested in your success – after all, it’s our money on the line.

Our Private Debt team collaborates closely with our M&A Advisory team, which is one of the most active in the country. Our M&A advisory activity in the current climate gives us insight into valuation multiples, strategic buyers’ appetites and tactics, and best practices for exits. Our lending team sees value where others don’t, and can call on our M&A team to advise our borrowers well ahead of an exit.

We also invite our borrowers to join our ecosystem: a powerful network of entrepreneurs we have invested in, or with.

Advising on Inorganic Growth Initiatives

Our buy-side M&A advisory team accelerates our clients’ growth through acquisitions.

We help our clients find targets, negotiate terms and close deals.

How can a buy-side advisor help? I know my industry.

Only large companies have the resources to not only track, but also act on every single one of their competitors’ exit intentions methodically. It is time-consuming. It is a long-term effort. Most of the time, it’s impossible because of confidentiality. Engaging an advisor, who will document the right information, and make moves when the time is right, makes sense.

A layer between a seller and a buyer reduces confidentiality concerns; one side can remain anonymous for a period of time, until interest becomes more tangible. This is especially true for active acquirers, with a reputation in their industry—sellers may simply refuse to talk to them directly.

Buy-side advisors expand the pool of potential targets significantly. In our experience, we add 5 to 8 times more targets to the list of companies our clients can think of.

Why engage FirePower as a buy-side advisor?

Our clients engage us because we cover the transacting intentions of over 50,000 private companies in North America; those we don’t know about yet, we have the capabilities to find out.

Our buy-side practice specializes in identifying and connecting with private business owners in Canada. Other advisors typically focus on transactional or due diligence services, which are more technical in nature. We speak the owners’ language and scope out their willingness to sell quickly and efficiently — this is not accounting work.

As an established M&A advisor, our outreach sends a strong signal to sellers that our client is a serious buyer. We have an in-house team of  deal origination specialists that lead our efforts, offering you capabilities unmatched in Canada.

Within our confidential database, we have tens of thousands of prospects whose exit intentions are well documented. Our proprietary deal platform is optimized to rapidly map out the universe of possible targets, track them and report on them.

What kinds of buyers do you work with?

We tend to work with buyers operating in a fragmented industry that has hundreds or thousands of possible targets, backed by a financial sponsor and with access to an acquisition credit facility. Our clients typically have bought at least one other business in the past, and have established a process.

Still have questions? Check out our FAQs.

Since our launch in 2012, Sprout has become a leading workplace wellbeing platform, with a vision to become a global leader in technology-driven health and wellness solutions. Achieving our next phase of international growth required financing, and we considered several possible options, including FirePower’s private debt. The FirePower team dug in and worked to structure a non-dilutive, flexible debt offering that ultimately provided the best fit with our financing objectives.
Andrew Zimakas, CEO, Sprout