Case #3 Helping a TSX company completed US$12 million
private equity financing
A TSX listed company with its headquarter based in Canada and all
operations in the U.S. was strained by limited working capital and
struggling with the profitability due to the lack of scale of economy.
Solutions provided by DoubleOcean
An analysis was conducted to analyze the advantages and disadvantages of
staying as a public company or being taken private. DoubleOcean assisted
with preparing financial models, negotiating with potential investors
and coordinated the due diligence conducted by the potential investors.
More acquisitions were recommended to realize scale of economy and it
was urged to move all headquarter functions to the U.S. to minimize
Benefits to the Client
The company raised US$12 million through a private equity fund in the
U.S. which will become a partner to grow the company together with
current shareholders. One acquisition was closed together with the
private equity financing. More acquisitions are in the pipe line to
position the company as a consolidator in the industry. The headquarter
functions have been moved to the U.S. to save the company approximately
$1 million a year.