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 0 strategic and financial buyers (as of Mar 29, 2020). 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, built on Salesforce, 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.

 

Additional reading

Market Insights
From the archives: January 2020

2020 Dealmaking: Insights from Global and Canadian Experts
New year, new decade. We’re entering 2020 with an air of cautious optimism for Canadian deal making. The Phase 1 China-US deal and the…

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Case Studies

Beverage & Alcohol
Our client was searching for new sources of revenue as it faced increased competition in its core business. FirePower's VMX team identified an attractive new sector, and our client entered it. Largely due to its efforts in that new sector, our client was subsequently acquired at an extremely compelling valuation.

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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.

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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.

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We had the closing call this morning, pushing us past the ever receding finish line! I wanted to thank you for your help getting this transaction done.  The Firepower M&A Advisory team delivered on all the promises.   From what I have seen of the team, great things await. In particular, I want to thank Jon and Matt who have been invaluable in every stage of the transaction and a pleasure to work with.
Vikram Varma, CFO, PrintFleet Inc.