Equity capital is often required when more traditional debt financing is unavailable or inappropriate for a company’s needs. Welch Capital Partners Corporate Finance (WCPCF) help investors find attractive investment opportunities, while helping companies raise capital to reach their business goals (e.g., market expansion, acquisitions, or injecting new capital into their existing shareholder structure). The team’s rigorous approach ensures that you’re well prepared for investor discussions and diligence.
WCPCF is a wholly owned subsidiary of Welch Capital Partners and is affiliated with Welch LLP, one of Canada’s oldest and most trusted accounting firms.
Our capital team helps clients raise the equity they need to take their company to the next level, clean up their capitalization table, or help investors exit their investment through the secondary market.
We pride ourselves on being able to source capital quickly. We will find the right mix to suit your needs. Please visit Welch Capital Partners Corporate Finance, a wholly owned subsidiary of Welch Capital and registered exempt market dealer, for more details on how our capital team can help you raise equity.
We can source competitive rates from a wide range of lenders.
We have strong relationships with both traditional and non-traditional (alternative) lenders. We use these relationships to ensure that you get a strong competitive offer and the right type of debt financing to fit your company’s current and future operating needs.
In addition to working with alternative lenders, we work with all the chartered banks across Canada. We work with these lenders on refinancings and transaction financing.
Refinancings often happen when the borrower is in a position to replace the alternative lender with a chartered bank. In our experience, companies usually work with the alternative lender for 12 to 18 months before they are in a position to make a change. This period is usually required to ensure the borrower can meet the covenants that chartered banks require.
A refinancing can also happen if a company believes they can obtain more or similar financing on better terms than their chartered bank is providing them. In cases like this, we run a competitive process to obtain the best facility for our client. This process entails helping prepare a financial package and business pitch deck for the banks to use during their underwriting process. We then take this package to multiple banks. When we are involved, banks know their competitors are also looking at the financing, so they put their best offers forward to win the opportunity.
Transaction financing often comes up with our buy-side mergers and acquisitions services. Most companies use some leverage (debt) to complete a transaction.
While assessing a buy-side mergers and acquisitions opportunity, we help our clients determine the best mix of debt and equity (capital structure) to make the purchase. Once we have determined this mix, we will help them secure the necessary capital. The equity is obtained via Welch Capital Partners Corporate Finance Inc.
The process for obtaining the debt is similar to the process on a refinancing. In some cases, we will offer the opportunity to both chartered banks and alternative lenders. Although chartered banks have lower interest rates, there could be benefits from using an alternative lender. These include larger loans, longer repayment periods (e.g., interest-only payments until the maturity of the loan) and less restrictive covenants.
Alternative lending is any lending for businesses or individuals from non-chartered banks.
This type of lending can work well in various scenarios. For example, alternative lending might be the best solution for a company that is offside of its covenant obligations with its chartered bank, has a very long accounts receivables collection cycle or complicated payment terms, or operates in an industry that chartered banks are not comfortable lending to, such as cannabis.
Alternative lending is not lending from loan sharks. There are many sophisticated alternative lenders in Canada that have pools of capital from successful individual investors, high net worth investors and institutional investors. Some chartered banks even have separate groups specializing in alternative lending.
Alternative lenders are quick, flexible and specialized. Unlike a traditional bank that provides a broad financing solution, alternative lenders use their deep expertise in either an industry or financing product, such as factoring, to tailor the financing to the company’s specific situation.
Like a traditional bank, alternative lenders look for returns adjusted to the risk they take. They provide loans to companies they trust and have confidence in to repay the loans.
It is a misconception that alternative lending is always more expensive. For example, the cost of financing for specialized equipment from an alternative lender can often be lower than borrowing from a bank. Some companies may also prefer to pursue alternative lending rather than give up equity to finance growth, which can be very costly.
Types of alternative lending
The following, non-exhaustive, types of alternative lending can help your business survive, grow and prosper:
What our clients are saying:
“I would like to extend a special thank you to Welch Capital Partners and their team, and to Connor McGarry for his 24/7 support, and for their expertise, dedication and contribution throughout the entire process every step of the way in the finalization and completion of this transaction.”
Commissionaires Ottawa (the “Company” or the “Commissionaires”) is a not-for-profit organization with a mandate to provide meaningful employment to veterans. Traditionally, the Company’s services focused on physical security for buildings. This type of employment is not meaningful for all of today’s veterans. As such, the Commissionaires is continually looking to acquire companies that will provide said meaningful employment.
Based in Ottawa, our client, North House Foods (the “Company”) offers foods brands, food services and retailers a single source for their food manufacturing needs. The Company’s services include food formulation, production, packaging, and fulfillment.
Our client, an aftermarket auto parts distributor headquartered in Ottawa with operations across the US, had an opportunity to purchase one of North America’s largest aftermarket auto parts distributors based out of Texas. The target was in financial distress, so the deal needed to close quickly, and our client required financing to purchase and operate the target.