Deals Valued between $25-50 million – In Q3 2022, valuation multiples for deals in this range stood at 7.8x EBITDA. However, a notable shift occurred, and these multiples dropped by 15.3% to 6.6x EBITDA…….
Links’ List of Multiples and Buyers | SEPTEMBER 2023 Read More »
In the first quarter of 2023, we observed an increase in valuation multiples across all deal sizes, following a decline in the fourth quarter of 2022. This trend mirrors what is happening in the stock market. When analyzing the data on completed transactions, we noticed that only a select portion of the market is experiencing gains (high quality transactions), similar to 7-10 companies driving the stock market gains.
Links’ List of Multiples and Buyers | JUNE 2023 Read More »
In Q3 2022, equity contributions in M&A transactions amounted 54.3% of the total contribution in deals, but this dropped to 41.2% in Q4 2022 while debt increased from 45.7% to 58.8%. Private equity investors are no longer paying up with equity contributions on transactions. This shift indicates that valuations have come down and are normalizing towards the mean after a period of elevated multiples.
Links’ List of Multiples and Buyers | MARCH 2023 Read More »
With several interest rate hikes in the books and more expected, the immediate impact of interest rate increases has been felt in the debt markets with the cost of senior debt increasing 190 bps in the past quarter. Senior debt pricing increased from an average of 4.7% in Q2 to 6.6% in Q3 at the same time that the overall TEV EBITDA multiples increased from 7.4x to a record 8.1x TTM Adjusted EBITDA as reported by GF Data.
Links’ List of Multiples and Buyers | DECEMBER 2022 Read More »
When businesses are sold the owners receive a multiple of EBITDA. Some business owners like to refer to the multiple as being how many years of cash flow they are giving up to divest of the business and receive consideration now. This is not a correct assumption.
EBITDA Versus Years of Cash Flow When Selling | October 2022 Read More »
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.
