News

News

Year: 2019

Links List December 2019_6

Links’ List of Multiples and Buyers | Western Canadian Private Equity Market | December 2019

The most recent GF Data shows us what we expected: multiples contracted compared to last quarter in all deal sizes except deals greater than $100 million. For all deals under $50 million, the TEV/EBITDA is still slightly above the historical multiple average by 0.2x turns. Deals in the $50 to $100 million market are trending above average by 0.5x turns and deals over $100 million are well above their historical average at 2.2x turns higher.

Links' List of Multiples and Buyers | September 2019

Links’ List of Multiples and Buyers | September 2019

For the first half of 2019, private equity multiples have remained strong and continued to accelerate on most deal sizes up $250 million in tangible entity value. However, multiples in the $50-$100 million market have reverted back to the mean and we are expecting to see this reversion for other deal sizes given the impacts from the US-China trade war and earnings softness.

Links Capital's Perspectives | M&A Advisor's Changing Environment

M&A Advisor’s Changing Environment

Many articles have been written on why you should engage an investment banker or Many articles have been written on why you should engage an investment banker or M&A advisor to sell your business. If you are going to hire someone to sell your M&A advisor to sell your business. If you are going to hire someone to sell your business, make sure you fully understand how they are going to manage the process business, make sure you fully understand how they are going to manage the process before you engage them. This means knowing who is doing what for you.

Links List May 2019 _2

Links’ List of Multiples and Buyers | May 2019

The highest multiple that is recognized from a divestiture standpoint using these historical metrics at the end of Q1 2019 suggest that a private equity group is likely going to attain a higher selling multiple (8.1x) when compared to buyouts (7.2x), platform investments (7.4x) and add-ons (6.7x) even when taking into consideration companies with above-average financial characteristics (7.8x) and management staying on post transaction (7.3x) purchased by other private equity groups. Detailed analysis should be done, looking at respective deal sizes and industry to understand how it impacts each company.

Links Capital Partners Ltd. advised the shareholders of Canfer Rolling Mills Ltd. on all aspects of the structuring and the negotiation of the divestiture of 100% of the shares to Tarpon Energy Services Ltd.

Canfer Rolling Mills Ltd. founded in 1994 is one the premier suppliers of pre-engineered buildings in Western Canada, operating out of 125,000 sq ft facility in Calgary, Alberta. Canfer Rolling Mills Ltd. also provides turnkey skid and modular buildings.

Tarpon Energy Services Ltd. founded in 2003 in Calgary, Alberta manufactures electronic products and services. The Company provides electrical and instrumentation, control systems, and steel building solutions as well as offers design and engineering, project management, construction, commissioning, and maintenance. Tarpon Energy Services operates worldwide.

Links Capital Partners Ltd. advised the shareholders of Nascor Ltd. on all aspects of the structuring and the negotiation of the divestiture of 100% of the shares to Arcticor Structures, a Calgary, Alberta

Nascor Ltd. was founded in 1982 and is Alberta’s largest manufacturer and distributor of engineered wood products including; I-Joists, roof truss and fixed/modular wall systems. A 77,000 sq ft facility in Calgary, Alberta and 30,000 sq ft facility in Edmonton Alberta. Nascor Ltd. also licenses out their I-Joist technology to licensees in Canada and the US.

Arcticor Structures, is a consolidator of Western Canadian businesses focused on the modular building and engineered wood products industries, addressing a manufacturing gap in temporary and permanent structures.

Links Capital Partners Ltd. advised the shareholders of AJ Industries Ltd. on all aspects of the structuring and the negotiation of the divestiture of 100% shares to Seaboard International a portfolio investment of the private equity firm Industrial Growth Partners.

AJ Industries Ltd. was founded in 1997 with the head office in Calgary, Alberta and service/distribution centers located in Edmonton, Red Deer, Lloydminister, Bonnyville, Brooks and Grand Prairie. AJ Industries Inc. is a value-added reseller and distributor of wellhead solutions and new/used piping solutions, along with the installation and rental of these products.

Seaboard International is a leading manufacturer of surface wellhead equipment for the onshore and offshore oil & gas markets. Industrial Growth Partners is a San Francisco-based specialist private investment partnership focused exclusively on acquiring middle-market industrial manufacturing and niche services businesses.

Links Capital Partners Ltd. advised the shareholders of Tiger Calcium Services Inc. on all aspects of the structuring and the negotiation of the acquisition of 100% of the shares of Tiger Calcium Services Inc. and the divestiture of shares in Keg River Chemical Corp.

Founded in 1964 as Tiger Chemicals, Tiger Calcium Services Inc. is a full-service provider and leader of calcium chloride products with a head office and logistics located in Nisku, Alberta and a production facility in the Mitsue Industrial Park, near Slave Lake, Alberta.

Keg River Chemical Corp is a manufacturer supplier of premium bentonite sulfur fertilizers to North America’s largest line suppliers and an extensive network of independent retailers – across the Western USA, Midwest, Western Canada and Quebec.

Links Capital Partners Ltd. advised the shareholders of the Tiger Calcium Services Inc. on all aspects of the structuring and the negotiation of the divestiture resulting in a majority share sale of the company to Tricor Pacific Capital (now Parallel49 Equity).

Founded in 1964 as Tiger Chemicals, Tiger Calcium Services Inc. is a full-service provider and leader of calcium chloride products with a head office and logistics located in Nisku, Alberta and a production facility in the Mitsue Industrial Park, near Slave Lake, Alberta.

Parallel49 Equity is a leading private equity firm that invests in profitable, well-managed, lower middle-market companies in the U.S. and Canada. Since its founding in 1996, the firm and its predecessor have managed over C$1.2 billion of investor capital.

Links Capital Partners Ltd. advised the shareholders of the Tiger Calcium Services Inc. on all aspects of the structuring and the negotiation of the divestiture resulting in a majority share sale of the company to Tricor Pacific Capital (now Parallel49 Equity).

Founded in 1964 as Tiger Chemicals, Tiger Calcium Services Inc. is a full-service provider and leader of calcium chloride products with a head office and logistics located in Nisku, Alberta and a production facility in the Mitsue Industrial Park, near Slave Lake, Alberta.

Parallel49 Equity is a leading private equity firm that invests in profitable, well-managed, lower middle-market companies in the U.S. and Canada. Since its founding in 1996, the firm and its predecessor have managed over C$1.2 billion of investor capital.

Links Capital Partners Ltd. advised the shareholders of the Can-Cell Group of Companies on all aspects of the structuring and the negotiation of the divestiture resulting in a 100% share sale of the company to Soprema.

Founded in 1976, the Can-Cell Group of Companies is a vertically integrated manufacturer / distributor of cellulose-based insulation and distributor of building materials and builders’ hardware products and includes Can-Cell Industries Inc., CCI Manufacturing Inc., Allied Paper Savers Inc. and Celufibre Industries Inc. with an Edmonton-based Corporate Head Office it operates both a manufacturing and recycling facility, six distribution centres and two cross-dock partner facilities.

Soprema is an international manufacturer specializing in the production of innovative products for waterproofing, insulation, soundproofing and vegetated solutions for the roofing, building envelope and civil engineering sectors. Founded in 1908 in Strasbourg, France, SOPREMA now operates in over 90 countries.