Executing acquisition to support national expansion
F12.net, a leading Canadian Managed Service Provider (MSP), was executing on a roll-up acquisition strategy. Most of their prior acquisitions had been in Western Canada, and the company wanted to add to its presence in Ontario, specifically, the GTA area. FirePower's M&A Advisory team was engaged to find suitable targets.
FirePower’s M&A Advisory team worked with F12 to understand their acquisition strategy, then built a list of 240+ targets and crafted a go-to-market strategy that emphasized F12’s corporate culture, growth and financial strength. Culture was a key selling point in the MSP space, which is dominated by younger business owners.
Amongst a number of high quality prospects, FirePower identified Apps on Tap, a provider of fully managed IT solutions using both traditional MSP and next-generation cloud services delivery model. This company was of particular interest as it was a straightforward, synergistic addition to F12’s Ontario operations.
Apps on Tap was ultimately convinced of the benefits of joining the F12 family versus trying to grow alone. F12 acquired Apps on Tap in May,2018, thus taking a significant step forward in developing its Ontario presence.
FirePower was engaged to prepare PrintFleet for 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.
GrowthGenius is an AI-assisted sales prospecting service provider for B2B businesses, based in Toronto. The company needed financing to fund its rapid expansion. Raising equity was unappealing because of the high cost of dilution, so the founders sought out a debt solution. After meeting with multiple lenders, they selected FirePower, whose efforts to get to know the founders, understand the business, and tailor a loan structure that worked for the company and its owners proved to be the difference.