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 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 M&A Advisory team advised management on the buy-out of existing shareholders.
Orchard is an Ontario-based developer and distributor of cosmetics and personal care products with clients including brands such as Sephora and Macy’s. The founders engaged FirePower's M&A Advisory team to sell their company. As Shelley Wishart, co-founder and President said about the process and final result: "The Firepower Team found us a strategic buyer that fit with our objectives, which was no easy feat.…At all times, we were well supported by Alan and his team, which made the process much easier than anticipated.”