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Partner with Ohana Capital.

2014 transactions

Industry:

Food & Beverage – distributor of frozen desserts and other gourmet products

Location:

Saint-Charles-Borromée, Quebec

Context:

  • Founded in 2012 and known mainly as a distributor of frozen desserts made in Québec.
  • This company also sells other high-end grocery & bakery products and recently signed an exclusivity agreement with Saint-Jérôme (Québec) based «Brickstone Fine Foods».
  • Client base includes well-known large supermarkets in Québec including Metro, Loblaws and Sobeys.
  • Sales are growing at a rapid pace and company expects to turn a profit for the first time in fiscal year end («FYE») 2014.
  • Despite quick payment terms with clients, at less than 30 days on average, additional working capital is required to support growing levels of receivables and inventory.

Financing obtained:

  • First ever line of credit providing much needed support for this young and growing business.
  • Line of credit guarantee obtained from a financial institution, owned by the government of Canada, facilitating the transaction.

Lender:

  • Canadian chartered bank with the support of a crown corporation.

Industry:

Manufacturer – high quality natural supplements

Location:

Châteauguay, Quebec

Context:

  • In business since 2000, sales have been gaining momentum over the last 3 years with the introduction of new products in the market.
  • The machinery in place enables the company to produce the following types of products: Blends, encapsulations, bottling & liquids.
  • Client also acts as a consultant for various R&D projects and «Health Canada Regulatory Affairs».
  • Business is on track to reach an all time high in terms of sales and extra working capital is needed to support the growing levels of receivables & inventory.
  • Company’s balance sheet does not carry and bank debt for the moment.

Financing obtained:

  • First ever line of credit providing much required extra cash flow to the business.

Lender:

  • Canadian chartered bank.

Industry:

Wholesaler & Distributor – upholstery fabrics & accessories

Location:

Westmount & Mont-Saint-Hilaire, Quebec

Context:

  • Created in 2001, company distributes the following products: Fabrics, leatherettes, faux leathers, canvas, hides, foams, polyester & cotton.
  • Products are imported from European countries and the firm caters mainly to the following industries: Marine (boats & yachts), automotive, motor sports, aviation, medical and industrial.
  • Sales have been on a decline following two distinctive floods causing consecutive business interruption periods.
  • The resulting operating losses have washed up the equity base of the company and the balance sheet is not bankable at this point.
  • Nevertheless, the owner remains very confident in his business and his enthusiasm is supported by strong purchase orders («P/Os») for the coming year.
  • An influx of funds is needed to surmount this tougher period and fund the P/Os on hand.
Financing obtained:
  • Short-term bridge loan, including interest-only monthly payments, providing the necessary capital.

Lender:

  • Private Lender.

Industry:

Service & Construction – snow removal, paving & excavation services

Location:

Piedmont, Quebec

Context:

  • Since 2006, company mainly services businesses & municipalities in the Laurentians, located in the North Shore of Montreal.
  • Existing machinery & equipment required much maintenance & upgrade during the year which affected the company’s working capital.
  • Moreover, some municipalities are now taking up to 90 days to pay their bills which has tightened the company’s cash flow even more.
  • The current term debt of the business is pricy and doesn’t provide for maximum leverage.
  • Sales are on the rise but leverage ratio remains too high to qualify for a convention line of credit.

Financing obtained:

  • Refinancing of the existing long term loan, at a lower interest rate & higher loan-to-value («LTV»), providing relief to the cash flow of the business.

Lender:

  • Private Lender.

Industry:

Retail – shoe, clothing & accessories

Location:

Greater Montreal Area, Quebec

Context:

  • Store chain, primarily focusing on the shoe space, in business for over 20 years.
  • Client has started a very aggressive growth plan a couple of years ago.
  • Acting as a retailer of branded goods, business is in the process of introducing its own private label brand in hopes of boosting overall company margins & profitability.
  • Number of stores is up to 12 locations situated in the greater Montreal area including downtown Montreal, Laval & Rosemère.
  • Cash injection is required to support the increased inventory level, private label program and much unfinanced capital expenditures («CAPEX») including store renovations & openings the last few years.

Financing obtained:

  • Refinancing of the existing line of credit at a higheramount.
  • Refinancing of the existing long term debt at a higheramount.
  • Working capital loan, including an initial 6-month interest only period, providing further support.

Lender:

  • Canadian chartered bank.
  • Private investment fund.

Industry:

Broadcasting – radio station

Location:

Montreal, Quebec

Context:

  • French speaking radio station, operating as a non-profit organization for the last 20 years.
  • Radio station offers programming and podcasts with a focus of human, social, cultural and spiritual values & subjects.
  • Comprised of five (5) sister radio stations, station can reach an audience not only in the greater Montreal area but also in Victoriaville, Trois-Rivière, Sherbrooke, Rimouski and Ottawa / Gatineau.
  • Station relies heavily on an impressive list of 4,000 donors and 60 off-air volunteers.
  • New management in place since 2012 has been working very hard to completely revamp the image of the radio station & eliminate year-end deficits.
  • Funds are needed to finance the following 4 important investment projectsNew 2.0 transactional web site,purchase of new more powerful transmitter / antenna,relocation of the studios which will greatly reduce operating costs and other internal development initiatives.

Financing obtained:

  • Line of credit negotiated in order to bridge collection of donations.
  • Equipment leasing facility secured and used to refinance100% of the purchase price of the new transmitter.
  • Tenant’s improvements & equipment leasing facilityobtained to finance 100% of upcoming leasehold improvements to the new studios / offices.

Lender:

  • Canadian chartered bank.

Industry:

Food & Beverage – bakery and pastry business

Location:

Montreal, Quebec

Context:

  • Serving a very loyal customer base for 15+ years and known for its cold pizzas, wedding cakes, delicious fresh breads and full deli counter.
  • Shareholder was recently the subject of a tax reassessment by «Revenu Québec» which resulted in an unexpected tax bill.
  • Client working hard to grow its wholesale business with these type of clients often requiring payment terms up to 30-45 days.
  • Financing is needed to get up to date with the government and support the growing payment terms.

Financing obtained:

  • Refinancing of the existing long term debt at a higher amount providing the required capital.

Lender:

  • Federally regulated Schedule I bank.

Industry:

Agricultural – tomato producer

Location:

Mirabel, Quebec

Context:

  • Sizeable expansion project.
  • In operation since 1990 and specializes in the production of pink tomatoes.
  • Client also produces red, cluster & pink cherry tomatoes as well as blueberries and cucumbers.
  • Customer base includes the major supermarkets (Loblaws, Metro, Provigo and Sobeys) and about 60 independent convenience stores across Quebec.
  • Facing strong demand for its products, owner/founder has decided to go ahead with a sizeable expansion project which will almost triple the production capacity.
  • This development plan will allow for year-round production which will counter Mexican «dumping» of their products during certain months of the year.
  • As a result of its environmentally friendly energy usage,client was awarded a substantial non-refundable grant from the «Ministère de l’Énergie et des Ressources Naturelles» which greatly reduces the total cost of this multi-million dollar expansion project.
  • A new financing structure needs to be implemented to fund this sizeable growth plan which includes the purchase of new production and heating equipment as well as the construction of new greenhouses.
  • The existing financial institution is interested in financing this significant project in partnership with other financial partners, but the proposed conditions are not to the client’s satisfaction.

Financing obtained:

  • Line of credit twice the amount currently in place with the existing chartered bank, at a much lower rate and withNO margining conditions as it would typically be the case for such a 7- figure facility.
  • Two (2) distinctive term facilities used to finance 95% of the cost (net of the government grant) of Phase 1 & 2 of this expansion project.
  • Term loan facility used to repay all existing term loans with the current chartered bank at a much lower interest rate.
  • Pre-approved equipment term loan facility to finance other expected new equipment needs during the next 12 months.
  • Government grant as allowed for capital expenditures projects of manufacturing business.

Lender:

  • Canadian cooperative financial group.

Industry:

Retail & Wholesale – equestrian / horse products

Location:

Montreal-East, Quebec
 

Context:

  • Founded over 50 years ago with the current owner in place for the past 15 years.
  • Well know in the horse & racing industry, business does most of its sales (70%) through its retail operation with the balance (30%) stemming through its wholesale clients which includes other specialized shops, horse mills & stables and cooperatives across Quebec, Ontario, Maritimes and the USA.
  • Client’s cash flow has taken a hit recently as a result of outside investments that haven’t pan out as expected and the latter also negatively affecting client’s focus on his business.
  • Nevertheless, the owner remains confident in the future of his business and the recent closing of his main competitor is expected to drive sales upward.
  • Extra working capital would be helpful as it would increase client’s buying power, reduce cost of goods and increase overall margins & profitability.

Financing obtained:

  • Line of credit four (4) times as high compared to the one currently in place with the existing chartered bank.
  • Refinancing of the existing long term debt at a higheramount with the surplus generated injected in the client’s working capital.

Lender:

  • Canadian cooperative financial group.

Industry:

Service & Construction – snow removal, paving, excavation & earthwork services

Location:

Prévost & Saint-Jérôme, Quebec

Context:

  • Incorporated in 2007, firm caters to a client base that includes «Bombardier», municipalities, residential customers & general contractors.
  • Once a very seasonal business, owner recently added / diversified its’ service offering in order to remain busy during both the hotter & colder months / seasons.
  • Client maintains an impressive fleet of machinery & equipment, the latter too big compared to the actual sales level.
  • Profitability remains thin as equipment related expenses (rental, financing and maintenance expenses) eats up much of the profits generated.
  • Additional working capital is required to fund the growth of the company.

Financing obtained:

  • Refinancing of an existing equipment with the proceeds injected in the cash flow of the business.
  • Factoring line of credit allowing for instant collection of the receivables and reinforcement of the cash flow of the company.

Lender:

  • Western-based federally regulated financial institution.
  • Quebec based factoring company.

Industry:

Technology – digital communications solutions

Location:

Montreal, Quebec

Context:

  • A leader in the digital communications space, client has been serving large well-known corporations for almost 15 years.
  • Services offered include: Webcasting, video production and audiovisual services while also having its own full service recording studio for live webcasts, voice-overs, audio and video post production, simultaneous translation, digital multimedia and audio video enhancement.
  • Customer base is impressive and covers many industry sectors as follows: Desjardins, CGI, BDC, Manuvie, YellowPages, SNC-LAVALIN, SAQ, Air Canada, BMO, Telus, RBC, Saputo, Via Rail Canada, Abbott, Pfizer, Molson Coors and Danone.
  • Fast growing and top performing, client enjoys a very healthy balance sheet.
  • An equity take-out, a business acquisition and the purchase of new equipment are all possibilities in the next 12 months.
  • Self financed to date, firm is in need that a new financing structure be put into place to finance the above mentioned projects.

Financing obtained:

  • First ever operating line of credit providing borrowing power on the growing AAA receivables. Conditions negotiated included NO personal guarantee and NO monthly margining conditions.
  • Equipment leasing facility secured to finance 100% of the purchase price of new equipment with NO personal guarantee negotiated as part of the security package.

Lender:

  • Canadian chartered bank.

Industry:

Food & Beverage – independent supermarket

Location:

Mascouche, Quebec

Context:

  • Business acquisition transaction.
  • In existence for over 40 years and under current ownership since 2002, supermarket is well- known to the surrounding community and benefits from a loyal customer base.
  • Current owner is approaching the age of retirement and wishes to sell her business.
  • Existing manager, who’s been working for the company the last 4 years, feels ready to take over as an owner and realize her dream of becoming an entrepreneur.
  • A balance of sale is offered by the seller to facilitate the transaction but additional funds are required by the buyer to complete the purchase.

Financing obtained:

  • Refinancing of the existing long term debt at a higher amount generating the necessary funds needed to officialise the acquisition.

Lender:

  • Private investment fund.

Industry:

Environmental – engineering consulting firm

Location:

Montreal, Quebec

Context:

  • Founded in 2002, this firm specializes in environmental site assessments, mold & asbestos analysis and management, property condition assessments and cost consulting.
  • Initial serving the greater Montreal, Sherbrooke and Ottawa areas only, company has now offices in Toronto (Ontario), Quebec City (Quebec) and Pompano Beach. (Florida, USA)
  • Approved and recommended by all major financial institutions, constant annual sales growth the last few years is a result of the excellent value for money being offered, short turnaround times and accessibility of its team members.
  • Client base is diverse as follows: general contractors, financial institutions, hospitals, municipalities, universities, architectural firms and real estate brokerage houses.
  • Cash flow is required to finance overall company growth and new CAPEX program, the latter a result of the further diversification of the services being offered.

Financing obtained:

  • Line of credit almost three (3) times as important as the one previously in place, at a much lower rate and with NOmonthly margining conditions.
  • Equipment leasing facility obtained to finance 100% of new equipment needs.
Lender:
  • Canadian cooperative financial group.
  • Canadian chartered bank.

Industry:

Service – production house & other creative services

Location:

Montreal, Quebec

Context:

  • Young and growing business in operation since 2012.
  • Specializes in the creation and production of shows for kids and families. This division represents about 80% of total revenues. The balance of sales (20%) comes from the organization and management of events & exhibitions as well as communication strategies services.
  • Client list includes «l’Association de Villégiature Tremblant», Hydro-Québec, Saputo, Desjardins, Ivanhoé Cambridge, the «Grand Bal des Vins-Coeurs» and the «Fondation de l’Institut de Cardiologie de Montréal».
  • Company facing a cash crunch as sales are growing appreciably and business has benefited from no financing whatsoever to date.
  • Client also moving to more spacious & modern premises in order to accommodate for its growing needs.
Financing obtained:
  • Working capital loan, including an initial 12-month interest only period on a total amortization of 7 years, alleviating the pressure of the company’s cash flow.
  • Cash flow loan, including an initial 6-month interest only period on a total amortization of 5 years, providing additional comfort.
Lender:
  • Financial institution owned by the government of Canada.
  • Crown corporation.

Industry:

Service – transportation company

Location:

L’Assomption, Quebec

Context:

  • Initially established in 1992 and located in Repentigny.
  • In 2012, owner decides to move premises and build its own owner-occupied property in the city of l’Assomption.
  • Specializes in the transportation of raw material (steel, aluminum, copper) as well as machinery, equipment, tubes, excavators and pipes.
  • Client base across Canada, broken down as follows: 35% Western Provinces, 30% Quebec, 30% Ontario and 5% in the Maritimes.
  • Main clients include Lockwell (Candiac, QC), Atlas Steel (Brampton, ON), Electrolux (l’Assomption, QC), Nextrusion (Anjou, QC) and Hydro-Quebec.
  • Typical thinner margins of the transportation industry and current high financing costs are causing working capital issues to the company.

Financing obtained:

  • Short term, interest only, bridge loan strengthening the cash flow of the business.

Lender:

  • Private lender.

Industry:

Construction – general contractor

Location:

Granby, Quebec

Context:

  • In 2008 and following many years of working for the family business, owner decides that the time has come to live the entrepreneur dream and start her own business.
  • Company caters to institutional (60%), commercial (30%) and residential clients. (10%)
  • Main clients include: School boards (35%), «l’Office Municipale d’Habitation de Montréal» (35%), municipalities (10%), youth centers (10%), daycares (5%) and le «Centre Montérégien de Réadaptation». (5%)
  • The focus is on the following services: renovations and redevelopment work (75%), build-up constructions (15%) and expansion work. (10%)
  • Important operating loss incurred in 2012 negatively affected the company’s financial structure. Nevertheless, financial ratios are back at acceptable levels after 2 years of positive profits generated.
  • Sales remain on the rise despite company benefiting from no financing whatsoever.
Financing obtained:
  • First ever operating line of credit allowing much needed borrowing power on the growing receivables.
  • Working capital loan, including an initial 6-month interestonly period followed by a 5 year amortization, providing much needed support.
  • Cash flow loan, to be repaid over a 48-month period, allowing further comfort.
Lender:
 
  • Canadian chartered bank.
  • Financial institution owned by the government of Canada.
  • Crown corporation.

Industry:

Healthcare – private nursing home

Location:

Saint-Charles-Borromée, Quebec

Context:

  • Business acquisition transaction.
  • Buyer wishes to expand its operations and has its eyes on another private nursing home located in Saint-Guillaume, Quebec.
  • Both homes cater to autonomous and semi-autonomous patients that suffer from mental health problems.
  • This purchase would give the buyer a total bed capacity of about 40 beds. Exclusivity agreements are in place with the «CSSS Lanaudière» and «CSSS Drummond» guaranteeing an occupancy rate of 100% on both homes.
  • The profitability & stability of the cash flow generated by the seller makes it a very appealing acquisition for our client / the buyer.

Financing obtained:

  • Term loan enabling the buyer to refinance its existing long term debt at a lower rate and finance 100% of the acquisition of the shares of the seller.
  • Line of credit providing additional cash flow if required during the post-acquisition phase.

Lender:

  • Canadian chartered bank.

Industry:

Healthcare – private nursing home

Location:

Saint-Charles-Borromée, Quebec

Context:

  • Business acquisition transaction.
  • Buyer wishes to expand its operations and has its eyes on another private nursing home located in Saint-Guillaume, Quebec.
  • Both homes cater to autonomous and semi-autonomous patients that suffer from mental health problems.
  • This purchase would give the buyer a total bed capacity of about 40 beds. Exclusivity agreements are in place with the «CSSS Lanaudière» and «CSSS Drummond» guaranteeing an occupancy rate of 100% on both homes.
  • The profitability & stability of the cash flow generated by the seller makes it a very appealing acquisition for our client / the buyer.

Financing obtained:

  • Term loan enabling the buyer to refinance its existing long term debt at a lower rate and finance 100% of the acquisition of the shares of the seller.
  • Line of credit providing additional cash flow if required during the post-acquisition phase.

Lender:

  • Canadian chartered bank.

Industry:

Construction – roofing company

Location:

Saint-Jérôme, Quebec

Context:

  • Founded in 2012 and specializing in the repair of roofs made out of asphalt shingles.
  • Client benefits from an exclusivity agreement with a sizeable roofing business in Mirabel (Quebec) called «Toitures PME Inc». This agreement guarantees our client very good minimum referral business / sales volume annually.
  • Customer base includes general contractors, real estate companies and residential clients.
  • Company barely breaking-even the first 2 years but sales are on a constant progression and a decent profit is expected to be generated in the current year.
  • Shareholder successful in fixing certain human resources («HR») related issues and bringing on a new shareholder in hopes of bringing the focus back on building a successful, growing and profitable business.

Financing obtained:

  • First ever line of credit providing much needed additional cash flow to this growing / restructuring business.

Lender:

  • Canadian chartered bank.