Whether you’re an entrepreneur who’s thinking of handing over the reins or a successor, you both share the same objective – transferring the business smoothly to make sure it continues to develop and grow.
With the extensive experience we’ve gained over the years involving the transfers of over 200 companies, our support strategy doesn’t merely stop with the economic nuts and bolts of a transfer… it also factors in the human side of a transaction. We know we have to meet the expectations of both the entrepreneur who’s leaving and the buyer who’s coming in.
Buying a business
You’re an entrepreneur to the core. And you want to buy a business. Should it be a business that’s your employer? Are you looking to keep the dream alive and move into the family business? That means you’re one of the business successors our economy so urgently needs to grow sustainable wealth.
Handing over the reins
You developed your business and built it from the ground up. You have every right to be proud of your accomplishments. But your vision and horizons have changed and now you’re ready to hand over the reins. And there are some very serious concerns that go with that – the future of the business, the well-being of the employees, the impacts on your community and financial security for you and your loved ones.
Contrary to popular belief, there is no one-size-fits-all or standard financial product that works for all business transfers. Based on the financial package that looks like the right fit, several types of financing from a number of different sources can be an option.
As we analyze financing needs, CRCD can supplement traditional financing with development capital in the form of subordinated debt or equity interests. For the buyer, the financial structure is designed to facilitate acquisition of a company of choice and ensure continuity of operations. For the seller, the transaction aims to optimize proceeds from the sale, without incurring tax penalties.
The amounts we invest range from $100,000 to $50 million depending on the financial package needed to carry out your project.
Equity interest in the business
Rather than relying only on borrowing and in order to optimize your financial leverage, CRCD offers financial packages that include an equity interest. Through patient capital, CRCD can maintain a partnership for periods that generally range from 5 to 15 years. A well-capitalized SME can more easily navigate tough spots such as the loss of a contract, decreases in profitability, increases in raw materials costs, etc.
This type of investment supports your business plan and gives you the advantage of strategic guidance from seasoned directors twinned with your SME. Drawn from a pool of over 200 external directors, all recognized for their expertise and business network, twins actively take part in defining strategic directions for your business and establishing a sound governance process.
Opting for a loan might be a good fit for your business if you don’t want to dilute your share capital or haven’t yet reached the stage where you want to welcome a new shareholder aboard. Subordinate loans are generally for a term of 5 to 8 years, with repayment terms that are flexible and linked to your business forecasts.
But a financial package can also combine elements of both types of financing.
CRCD also offers the possibility of financing entrepreneurs themselves through a range of partnerships that include Fonds Relève Québec, the Prêt à Entreprendre program and, for the agricultural market, the Fonds d’investissement pour la relève agricole. That means we can be there to support you, whatever your needs. To learn more