Calgary, Canada, August 06, 2013 –(PR.com)– Greg Tooth, one of the co-founders of Equicapita reports “Equicapita is producing a series of short briefings for business owners considering the sale of their business. Each briefing will deal with a common question that vendors should consider before, during or after the sale and will be posted on the Equicapita website. We believe that education resources are increasingly important as boomers retire over the next two decades and transfer of ownership of a large number of small medium businesses/enterprises (SME) via sale or succession. Estimates from the Canadian Federation of Independent Business are that this transfer could exceed $1 trillion making it one of the largest in Canadian history.” The full documents can be found on the Equicapita site in the “SME Centre” and are available free and without registration. Current areas covered are:
– What is an EBITDA Multiple
– Sell Your Business Now or Wait
– Capital Expenditures and Business Value
– Cashflow Growth and Business Value
– Succession Planning and Business Value
– Would Your Business be Worth More if You Were Never There
– 6 Critical Factors for Selling Your Business
– Preparing Your Business for Sale
– Selling Your Business Without a Broker
– Real Estate and the Value of Your Business
– Working Capital and the Value of Your Business
– Your Balance Sheet and the Value of your Business
– Benchmarking your Business
– Why Most Businesses Never Sell
– What is Goodwill
– What Can Be Done to Increase the Value of My Business
– 12 Actions to Increase the Value of my Business
– Cashflow EBITDA and Other Terms
– What are Normalisations to Cashflow”
Equicapita is a Calgary-based private equity fund focusing on acquiring western Canadian businesses that can generate strong, sustainable cash flow from their operations. Equicapita generally seeks to acquire businesses: with a demonstrated history of free cash flow greater than $1 million per annum; with a durable competitive advantage; that operate in industries that Equicapita believes have sound long-term macro prospects; with ongoing participation of senior personnel; with the ability to maintain the cash flow without disproportionate amounts of new capital; where Equicapita can partner with management and align their interest with Equicapita through tools such as earn-outs, vendor take backs and management incentive plans; to be held for the long term; where there is some potential to grow sustainable free cash flow, but where that growth is not essential to generate suitable returns.”
Equicapita believes that there are compelling reasons for making private equity investment in the Canadian small medium business/enterprise market which is experiencing one the largest generational transfers of wealth as boomer entrepreneurs retire and sell their businesses. The investment has a number of key drivers including:
– Generational opportunity to acquire baby boomer SMEs: There is a demographic opportunity to capitalise on the accelerating turnover of baby boomer owned, western Canadian SMEs. According to CIBC “An estimated $1.9 trillion in business assets are poised to change hands in five years — the biggest transfer of Canadian business control on record.”
– Attractive target market: There is a private equity funding gap in the $2 to $20M range is often referred to as the nano gap. This creates an attractive environment to acquire stable cash flow streams.
– Valuations: Current trailing cash flow valuations are artificially low, incorporating weak 2008-10 operating results post credit crisis.
This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words “anticipate,””expect,” “may,” “should” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Equicapita, if any, reflect Equicapita’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of businesses, including fluctuations in interest rates; general economic conditions; supply and demand for businesses; competition for available businesses; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Equicapita undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.