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 0 strategic and financial buyers (as of Nov 13, 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”. 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 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 2.5 times our competitors’ average (Firmex, 2019). 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: October 2019

Will Canadian M&A Activity Peak in 2020/21?
M&A is thriving in North America. It’s a seller’s market, but how long will that last? While 2019 got off to a slower start…

Read Full Report
Case Studies

Versature
Versature is a rapidly growing Canadian VoIP service provider that had been through an unsuccessful sale process with another corporate finance firm. FirePower’s M&A Advisory team crafted a story highlighting Versature’s strong growth, brand, people and processes. The most compelling offer came from net2phone, a subsidiary of US public company, IDT. Under this new ownership, Versature is well-positioned to accelerate its growth trajectory.

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Orchard International
Orchard is an Ontario-based developer and distributor of cosmetics and personal care products with clients including brands such as Sephora and Macy’s. The founders engaged FirePower's M&A Advisory team to sell their company. As Shelley Wishart, co-founder and President said about the process and final result: "The Firepower Team found us a strategic buyer that fit with our objectives, which was no easy feat.…At all times, we were well supported by Alan and his team, which made the process much easier than anticipated.”

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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.

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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.