Case #3 Helping a TSX company completed US$12 million

                      private equity financing

　

	The Challenge
	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 overhead costs.

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.

Copyright (C) DoubleOcean . All Rights Reserved.