News

News

Year: 2020

Links' List of Multiples and Buyers | December 2020

Links’ List of Multiples and Buyers | December 2020

In private equity transactions under $250 million, EBITDA enterprise valuation multiples fell to 6.7x from 7.4x EBITDA (-9.5%) last quarter. Total Debt to EBITDA multiples moved up to 3.7x (12%) compared to the previous quarter at 3.3x EBITDA, why and how this happened is worth discussing. Even though debt multiples increased quarter over quarter, senior debt multiples decreased slightly in the quarter by 0.1x while subordinated and mezzanine debt doubled from 0.5x to 1.0x EBITDA (GF Data).

Links Capital's Perspectives | Communicating with your Bank | October 2020

Links Capital’s Perspectives | Communicating with your Bank | October 2020

Almost every business at one time or another enters into a banking relationship where they have a line of credit or some kind of term financing with banks. From a cost of capital perspective, debt is the least expensive capital that one can attain and should use appropriate amounts of leverage in running their business. Banks are an important partner in the growth of any successful business and must be treated that way.

Links' List of Multiples and Buyers | September 2020

Links’ List of Multiples and Buyers | September 2020

In transactions under $250 million, EBITDA valuation multiples remain unchanged at 7.4x EBITDA, as the average Total Debt to EBITDA ratio decreased from 3.9x to 3.3x in the quarter. With valuation multiples not changing, private equity buyers increased their equity participation to complete deals from 3.5x to 4.1x EBITDA, resulting in equity investment increasing over 56% of the transaction value (GF Data).

Links' List of Multiples and Buyers | June 2020

Links’ List of Multiples and Buyers | June 2020

In the first two months of Q1, 2020, deal activity was comparable to the previous quarter with TEV/EBITDA multiples maintaining values above the long-term historical average bolstered by higher than average Debt to EBITDA multiples. In March, when the COVID-19 pandemic began to impact the North American Market, all deal activity came to a screeching halt. Deals that were near being closed mayhave been completed, most other deals have hit the pause button waiting for more certainty.

Links Capital's Perspectives | Raising Capital During the COVID-19 Crisis | March 2020

Raising Capital During the COVID-19 Crisis | March 2020

Living in this unprecedented time, many businesses are experiencing challenges with their capital resources. Whether you are a business with established cash flows or a growth company, it appears that revenues are going to be negatively impacted in the near term. It is important for those companies having capital requirements in the near future, that they react and start preparing for a capital raise. One can’t overemphasize, those who don’t begin engaging with capital providers for future required capital may likely be left standing in line.

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.