I was recently involved in an acquisition transaction that fell apart at the altar. In this case, the seller ultimately did not honour commitments he made at the letter of interest stage. There are only two possible explanations — either he didn’t understand those commitments, or he had a change of heart. Continue Reading
Companies are like people—they can change, for better or worse. Are your financial partners growing alongside you or is the relationship stuck in a rut, with each annual review simply a roll-over of the prior year’s facilities? If you answer yes to two or more of the following questions, you may have outgrown your bank: Continue Reading
Your business plan is an important tool in your efforts to raise capital. It can be used by potential lenders and investors to evaluate your business and its prospects. Here are some tips to help you, through your business plan, make your case as effectively and compellingly as possible.
Heading into 2015, it’s safe to say that Canadian banks are open for business. According to the Bank of Canada’s Q3 2014 business lenders’ survey, bankers have once again confirmed that credit markets are robust and demand for credit among Canadian companies is high.
This is good news for commercial bankers who now have a wide range of lending tools at their disposal and the strong support of their credit rooms. Intense competition has lead to the return of high leverage and covenant light structures, but there is no substitute for good advice and sound structuring when it comes to winning business. This is particularly true in the case of quirky deals. Although required less often in this type of market, sub-debt and mezzanine financing remain useful tools in deals that feature unusual elements. Continue Reading
Admit it; some of you believe that outside capital represents a competitive threat to your business. In fact, sub-debt can help you grow existing client relationships, attract new customers, manage portfolio risk and save time. Bankers are our best referral source and there are many benefits to building a win-win-win partnership.
Here are a few compelling reasons why sub-debt is a valuable tool for bankers. Continue Reading