Rhyno Equity Group
Creating competitive tension among lenders
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.
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 Rhyno. The 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.
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.
Environics Analytics (“EA”) is a leading North American provider of marketing and analytical services. The company needed financing to support its expansion plans in the US and Canadian markets, and wanted to secure capital from a senior lender that understood EA’s value drivers. FirePower surfaced numerous proposals, then negotiated and improved on the terms and conditions to the benefit of EA.