Orchard International

Preserving our clients’ legacy and achieving the best outcome for all stakeholders

Background

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 owners were a husband and wife team who, after starting the business in their kitchen, had built and run the company for 22 years and were ready for retirement.  FirePower’s independence, personalized approach, and track record appealed to the owners, and they engaged the M&A Advisory team to sell their company, stipulating that a buyer would need to embrace Orchard’s culture and values, and support the current management team.

Solution

With the owners’ objectives at top of mind, the FirePower team compiled a global list of potential buyers.  It became clear through the process that a strategic buyer would better understand the value Orchard offered. After extensive outreach, the team identified a French strategic focused on driving growth in North America.  The French firm presented an initial offer, and FirePower’s team subsequently guided negotiations and discussions addressing price, structure and terms, while also ensuring the buyer’s go-forward plan matched with the owners’ vision for Orchard.

FirePower’s team managed a complex due diligence process (as Orchard owned two Chinese subsidiaries), that involved educating the buyer on Orchard's dozens of global suppliers and stakeholders.  When the transaction subsequently closed, it was on terms and at a price that were clearly aligned with the owners’ expectations and delivered the Company to a buyer with plans to continue to engage and challenge the Orchard management and employee group.  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.  This was no easy feat, given the firm parameters we'd set out defining the right buyer…At all times, we were well supported by Alan and his team, which made the process much easier than anticipated.”

M&A Advisory Consumer Products & Retail
Case Studies

Mass Spectrometry – Confidential
FirePower's M&A Advisory team advised on the sale of an analytical chemistry instrumentation maker, with a strong commercially validated IP portfolio, to one of the most respected names in the sector.

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F12.net
F12.net, a leading Canadian Managed Service Provider (MSP), was executing on a roll-up acquisition strategy. The FirePower team built a comprehensive target list and crafted a story emphasizing F12’s corporate culture, growth and financial strength.  Of the potential targets, Apps on Tap represented an exciting synergistic addition for F12. With FirePower’s support, F12 acquired Apps on Tap in May 2018.

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Market Insights
From the archives: July 2020

The Case for M&A During COVID
The COVID-19 pandemic has thrown the world into unprecedented crisis. The IMF predicts that real GDP will contract by 7.6% in 2020 globally1. This…

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