Closing the deal when others couldn't
Versature is a rapidly growing Canadian VoIP service provider. The company acknowledges it plays in a very competitive space, albeit one that is ripe for a shake-up of the large, slow-moving incumbents. Versature had positioned itself well to be that disruptor, but needed more resources and sought a strategic partner. Previously, the company had been through an unsuccessful sale process with another corporate finance firm. A decision was made to work with FirePower after receiving assurances that the firm would be undaunting in casting a wide buyers’ net and additionally, would run a carefully considered sale process.
FirePower’s M&A Advisory team crafted a story highlighting Versature’s strong growth story, brand, people and processes, then approached more than 200 prospective buyers, and received bids from 4 strategics. The most compelling offer came from net2phone, a subsidiary of US public company, IDT.
Our team played a critical role throughout the letter of intent (LOI) negotiations, bridging differences in terminology and formulas. As Paul Emond, CEO of Versature explains: “The team's execution was impressive, guiding us through the final stage of the process to a successful close within 90 days of signing the LOI.”
Under new ownership, and with expanded access to capital, Versature is well-positioned to accelerate its growth trajectory in the Canadian market, and collaborate on initiatives within IDT abroad.
Pita Pit Canada
Pita Pit Canada ("PPC") is the franchisor to 228 Pita Pit locations across Canada. FirePower's M&A Advisory team was engaged to arrange its acquisition of a majority interest in Pita Pit International ("PPI"). FirePower generated multiple proposals from prospective institutional lenders, negotiating and structuring favourable terms and pricing to support PPC's future expansion plans.
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.