Preserving our clients’ legacy and achieving the best outcome for all stakeholders
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.
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.”
Our client, a software distributor, sought to optimize the pricing of its products and the incentives of its salesforce . Within the 3-month duration of the VMX exercise, EBITDA run-rate increased by 15%, with visibility into more increases down the road.
Applied Comfort is a designer and manufacturer of non-standard HVAC systems for commercial, industrial and institutional facilities. FirePower guided the company in its search for a strategic partner, concluding a transaction with a UK-based strategic, with a complementary product portfolio and distribution capabilities.