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Part 3 in a series on the business-capital provider relationship. Click here for part 1 and part 2.
The deal is done and the loan is approved and funded so that must mean your work is done, right? Wrong! Funding the loan is just the beginning (the wedding so to speak) that signals the start of a marriage....
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Q & A Q: When you first arrived in Canada, what was your initial goal, career-wise? A: What I really wanted to do was become an investor. Warren Buffett was my idol. Q...
Part 2 in a series on the business-capital provider relationship Negotiating the actual financing is important when funding a business’ trajectory, but like a marriage, the deal itself only represents the beginning of the relationship. That's why striking a balance is at the foundation of how deal terms are established when a business seeks financing. What are the business’ needs and ability to repay debt, and how is this balanced with the...
When assessing its upcoming financing needs, Port Coquitlam-based Westcan Industries Ltd realized that its existing sub-debt loans were set to mature within the next few months. Rather than simply renewing its relationship with its current lender, Westcan, one of the largest suppliers of pumps and after-market pump repair and maintenance services in Western Canada, took the opportunity to look into alternative financing options. The company had first borrowed from the BDC...
When an opportunity arose to acquire Harmony Concepts, a manufacturing company specializing in blending powders for nutritional and dietary supplements and health drinks, Coquitlam-based The Rhema Group leapt at the prospect. Having already looked into purchasing a facility in the United States, the acquisition gives Rhema a great opportunity to further expand its business in the US and increase capacity. The company first began working with Utah-based Harmony Concepts last year and...
----- I’m often asked the tough question: “What do you think this business is worth?” I’m going out on a limb here, because while I am a CA and spent four years in the valuations practice of PwC, I am not a qualified chartered business valuator. However, having financed many mergers, acquisitions and buyouts, I have a perspective to offer here. I will limit my comments to what I know most about: mature, small and medium-sized businesses that have...
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