Exit your business with confidence.
Your business likely represents the largest component of your net worth, the one you care about the most. Your expertise is in your business. Ours is in the sale process: guiding you to an outcome that achieves and exceeds your objectives.
The best way to sell is to stay focused on running your business, cementing its value while letting deal professionals run the process.
What to Expect When Working with FirePower
We have sold dozens of businesses since 2013 and have refined a bespoke process specifically built for private, owner-operated businesses in Canada. We help you navigate towards an exit to private equity firms, your own management team or strategic players, and conclude a transaction at a compelling value and terms. Our approach is structured, technology-driven, outcomes-driven, yet customized, creative and transparent.
(1) Get ready
We review your corporate and personal position (as a shareholder) from all angles (strategic, tax, accounting, reporting, legal, financial, operations, human resources, leadership, etc.) and recommend changes that will improve your attractiveness to potential buyers. We also prepare you emotionally, as selling a company can take its toll.
(2) Develop deal collateral
We prepare a “no-names” one-page teaser that provides a powerful snapshot of the business. We also develop a comprehensive Confidential Information Memorandum (CIM) that covers all aspects of the business. It highlights the positive features of the business and addresses the troublesome ones, earning the trust of potential buyers and setting an honest and productive tone for the negotiations that follow.
(3) Identify prospective buyers
Our analysts sift through our proprietary database of strategic and financial buyers. We also search limited-access M&A marketplaces, connect with buy-side advisors in our network, cross-check with recent buy-side mandates we track, and catalogue relevant industry participants. Prospective buyers are grouped into tiers in order to prioritize our outreach efforts. Every potential buyer we identify is reviewed and approved by you before contact is initiated.
(4) Build or reinforce connections
Dedicated specialists on our deal team reach out to decision makers at the identified prospects and deliver a compelling “deal brief”. On average, these specialists will make approximately 90 connections per week. Our specialists leverage our proprietary deal-management software platform to facilitate quality connections and continued follow-ups.
(5) Create an auction environment
All buyers who show interest are required to sign a Non-Disclosure Agreement (NDA) in order to know the name of the company, receive the CIM and ask questions. After shepherding the most interested buyers in the right direction, we set a deadline for offer submissions, which creates a competitive environment. We then review all offers with respect to price, fit, terms, and conditions, and pit the proposals against each other to negotiate the most favourable Letter of Intent (LOI).
(6) Conduct due diligence
After the seller signs the preferred LOI, the parties typically enter into an exclusivity period where the buyer is granted access to a secure Virtual Data Room (VDR) that we host. We actively manage a buyer’s due diligence process and curate communication between all stakeholders to ensure nothing jeopardizes the deal. This VDR allows for realtime tracking, user management, and security controls.
(7) Finalize purchase agreement
With due diligence moving along, our deal team leads and negotiates the definitive agreements, with support from legal counsel, tax specialists and accountants. We comb through every clause, while keeping all parties focused on the big picture.
(8) Close the sale
Our close rate is more than 2 times our competitors’ average (Firmex, 2019). While there are so many ways a deal can fail, we remain unfazed, working until we reach a satisfactory outcome for our client.
From the archives: October 2020
A Comparative Data Maturity Score for the Mid-Market: How do you stack up?
"Data is the new oil." By now, most have heard this quote dating back to 2006 and credited to British mathematician Clive Humby, who…
CSR Cosmetic Solutions
The owner of CSR had taken over the business out of bankruptcy. After successfully building it into one of the largest cosmetic contract manufacturers in North America, he was ready for a well-deserved retirement. A previous sale attempt (by a top-tier accounting firm) was unsuccessful in 2015.
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.
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.