Exit your business with confidence.

It’s too large an undertaking to do it alone. At stake is the largest store of your net worth, and likely the one you care about the most. No one performs heart surgery on themselves; they go to a cardiac surgeon. Same with your business.

The best way to sell is to stay focused on running your business (and 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. You will navigate the pitfalls of 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 be a wild ride.

(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 4,236 strategic and financial buyers (as of Sep 20, 2019). 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”, either by phone or email. On average, these specialists will make approximately 90 connections per week. Our specialists leverage our proprietary deal-management software platform, built on Salesforce and HockeyStick, to facilitate quality connections and continued follow-ups.

(5) Create an auction environment
All buyers who show interest are required to sign an NDA in order to know the name of the company, receive the CIM and to 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) 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—it’s too easy for experts to not see the forest for the trees.

(8) Close the sale
Our close rate is nearly 3 times our competitors’ average (Firmex, 2017). There are so many ways a deal can fail, and nearly every deal will die at least once. We are unfazed: we hustle and never quit until we reach a satisfactory outcome for our client. Only then is our job done.

 

Additional reading

Market Insights
From the archives: September 2019

The Path to Exit and Beyond: Entrepreneurs' Stories, Part II
“The sale of a company can mark the beginning of a major time of reinvention and renewal...but It can potentially lead to a difficult…

Read Full Report
Case Studies

Printfleet
FirePower was engaged to prepare PrintFleet for a a sale, and guide the company through to closing. Weeks before closing, the buyer with whom PrintFleet signed an LOI following a competitive auction, a Japanese Fortune 500 company, terminated the deal because of an internal reorganization. FirePower re-ignited conversations with a US strategic who had done well in the auction, and closed without any major challenges at an attractive price, terms and conditions.

Read Full Case Study

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 investor should share their values and vision for the company, and FirePower was engaged to find an investor and negotiate a deal structure that met all of the shareholders’ objectives.

Read Full Case Study

Beverage & Alcohol
Our client was searching for new sources of revenue as it faced increased competition in its core business. After the VMX team identified an attractive new sector, our client entered it; it quickly led to an exit at an extremely compelling valuation largely due to its efforts in that new sector.

Read Full Case Study
We engaged FirePower after an unsuccessful process with another firm. They cast their net worldwide for strategic and financial buyers, 102 in total. We had 8 offers to consider, the one we preferred from Kolmar. FirePower then helped us overcome the challenges of closing a deal across the Pacific, setting both parties up for success post-closing. We sincerely thank the team for their hard work.
Steve Blanchet, CEO, CSR Cosmetics