Speaking the bank’s language.
One of three equal shareholders of a infrastructure services company approached FirePower seeking advice on how buy out the other two shareholders.
The shareholders were in disagreement about the company's growth strategy, with the operating shareholder wanting to reinvest in the company’s growth, and the other two exclusively interested in their share of dividends.
FirePower's M&A Advisory team worked in confidence with the operating shareholder, structuring a deal to buy out the shares of the other two shareholders, and ensure the company’s growth. Confidentiality was critical throughout this transaction. FirePower put the deal in place through a discreet process and was able to navigate the process without the other two shareholders' knowledge.
The operating shareholder was able to exercise the “shotgun clause”, which gave the other two partners 30 days to reverse the deal.
Unable to put together a counter offer before the term expired, they were bought out. The infrastructure services business is now growing at a much quicker pace, with strong leadership and a clear vision.
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Our client was searching for new sources of revenue as it faced increased competition in its core business. FirePower's VMX team identified an attractive new sector, and our client entered it. Largely due to its efforts in that new sector, our client was subsequently acquired at an extremely compelling valuation.
Decisive Technologies is a value-added reseller of IT hardware, and BriteSky Technologies is a Canadian, managed cloud services provider (collectively “Decisive”). Decisive needed additional capital to accelerate its expansion plans. The shareholders were adamant that a new institutional partner should share their values and vision for the company, and FirePower was engaged to find an acquirer for a majority stake and negotiate a deal structure that met all of the shareholders’ objectives.