Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for February 2012

Now might be the time to sell

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http://www.nytimes.com/2011/12/22/business/smallbusiness/why-some-business-owners-think-now-is-the-time-to-sell.html?_r=2&ref=smallbusiness

Interesting article in the NY Times about small business owners thinking about selling now, for two reasons.  Ignore the first (tax), as the discussion about capital gains tax rising in 2013 only applies to the US.

But the second is something I am also seeing in Canada, i.e. some businesses had tough years in the later half of 2008 and in 2009 and have now rebounded with a year or more of ‘good’ results.  This ‘pause’ in results caused some owners to put off their exit plans in 2009-2011, but now they are 2-3 years closer to retirement age (and you still can’t take it with you!).  We’ve already seen the increase in sell-side activity in 2011 and it is expected to continue in 2012.

If you plan on grabbing some subcontract work from the Halifax shipyard project, think about selling this year or next because the ‘promise’ of the shipyard boom may turn out to be more valuable in the perceived worth of your business, while waiting for the actual contracts will take years.  See my earlier post on this latter topic.

Written by Dan Jennings

February 9, 2012 at 5:38 pm

Posted in CF Musings

I-3 Technology Start-up Winner

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http://innovacorp.ca/news/i-3-competition-provincial-winner-2012

Congrats to Halifax biomedical company DeNovaMed on winning the provincial round of Innovacorp’s I-3 Technology Start-Up competition.

Based at the IWK childrens hospital in Halifax, DeNovaMed’s founders used computer-aided drug design to develop a new class of compounds with the potential to treat infections caused by drug-resistant bacteria, or superbugs.

Written by Dan Jennings

February 9, 2012 at 12:47 pm

Posted in CF Musings

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Consolidation in the locksmith industry

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http://www.nb.dailybusinessbuzz.ca/Provincial-News/2012-02-07/article-2888114/NB-%26amp-NS%3A-Capital-Safe-%26amp-Lock-acquires-Halifax-firm/1

Fredericton, NB’s Capital Safe & Lock Service has acquired the assets of Halifax’s Accurate Security Services.  Capital is one of the region’s largest locksmith companies, and also distributes door hardware and supplies security equipment and services.

Written by Dan Jennings

February 7, 2012 at 1:15 pm

Whether you’ll be working for the buyer after the transaction

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http://www.capitalmagazine.ca/business-sale/to-work-or-not-to-work-819

Canadian Capital magazine has an interesting article on whether you’ll be working for the buyer post-transaction.

Obviously, you have to decide what you want to do, but the article points out a truism …. sometimes that decision will be made for you by the purchaser.  For some businesses, particularly small ones without non-owner management, a purchaser may only be enticed to buy if the vendor staying on for a significant amount of time is a condition of closing … or alternatively, the desire of a vendor to retire immediately may have a large downward impact on the price.

Written by Dan Jennings

February 2, 2012 at 12:42 pm

Posted in CF Musings

Liteco sells to Rexel

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http://www.rttnews.com/1810469/rexel-announces-acquisition-of-liteco.aspx?type=qf 

http://www.rexel.com/en/finance/press-releases/rexel-reinforces-its-presence-in-canada-through-the-acquisition-of-liteco.php?id=120

Fredericton, NB-based Liteco has been acquired by Rexel.  Liteco is the largest independent electrical supplies distributor in the Maritimes, while Rexel is a worldwide giant in the industry, based in Paris.

Written by Dan Jennings

February 1, 2012 at 3:33 pm

More engineering consolidation

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http://www.dessau.com/en/news-and-media/headlines

Halifax’s Maritime Testing has been sold to Montreal-based Dessau Engineering, which is a privately owned engineering/construction firm that says it is among the top 60 such firms in the world (and the 5th largest in Canada).  Maritime Testing specializes in geotechnical, materials and environmental engineering.

This continues the well-developed trend of consolidation in the engineering industry, including recent deals throughout Atlantic Canada (see earlier posts).

Written by Dan Jennings

February 1, 2012 at 9:28 am

Posted in Announced Transactions

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Survival Systems internal succession

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http://thechronicleherald.ca/business/57583-owner-sells-survival-systems-friend

Albert Bohemier has sold majority interest in his Dartmouth, NS-based company, Survival Systems, to his President, Paul Douglas.  Survival is a safety training and technology company, specializing in helicopter and airplane crash survival training solutions for the military and the offshore.  Douglas has been President since 2009, and was formerly a VP of M&A with E&Y.

Written by Dan Jennings

February 1, 2012 at 9:14 am