Rhyno Equity Group

Creating competitive tension among lenders

Background

Rhyno is a private equity firm looking to acquire mid-market manufacturing companies in the GTA. The five partners are strong operators and entrepreneurs.

Rhyno made an offer on a company (its largest acquisition to date) with a tight closing schedule. The five partners approached FirePower to generate multiple proposals from lenders, both senior and junior, so that they could select the most suitable structure to support the purchase.

Solution

With Rhyno's focus on the acquisition -  due diligence, managing the relationship with the seller, and preparing for post-closing, the partners wanted FirePower to manage the structuring process. FirePower's M&A Advisory team prepared a deal package and distributed it to institutional lenders, then ran an auction that generated 8 proposals with significant variance in terms, cost and amortization. Through the auction process and subsequent negotiation, FirePower was able to identify the best lender for RhynoThe key takeaway: while senior banks may look the same, they view risk differently, so it's essential to generate multiple proposals across banks to expose the differences, and then negotiate best pricing and terms.

 

M&A Advisory Financials & Insurance
Case Studies

Decisive Technologies
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.

Read Full Case Study

Corrosion Service
One of three equal shareholders of Corrosion Service, an infrastructure services company, approached FirePower, seeking to buy out the other two. Although this was a highly sensitive situation, we were able to structure a deal that led to a successful close.

Read Full Case Study
Market Insights
From the archives: October 2019

Will Canadian M&A Activity Peak in 2020/21?
M&A is thriving in North America. It’s a seller’s market, but how long will that last? While 2019 got off to a slower start…

Read Full Report