News & Resources
A quality of earnings (“QoE”) report forms part of the due diligence process in a mergers and acquisitions (M&A) engagement. The objective of the report is to assist investors and analysts in understanding the true profitability and overall health of a company, as well as the company’s ability to generate sustainable earnings in the future.
The most common type of debt financing that many of us live with is a mortgage on our house. This provides a good example of the biggest advantage of debt financing. It allows us to make a large purchase that we would otherwise have to wait years to make by saving up. It is an investment that provides us the opportunity to enjoy living in our home without having to pay for it all upfront.
There seems to be a consensus that Canada and North America will be under tough if not recessionary times in the latter half of 2023. Having weathered the rollercoaster of the past two years, we appreciate the concern business owners are feeling as they will no doubt face yet more twists and turns in the new year.
Investments in certain private companies are inherently illiquid for shareholders. They are even more illiquid for minority shareholders who, unlike majority shareholders, are often subject to restrictive covenants that prohibit them from selling their shares without the consent of the majority shareholders.
Every entrepreneur aspires to take an idea or skillset and transform it into a highly profitable, successful business. Sometimes using external capital is necessary to achieve this goal. Although bootstrapping (i.e., using your own funds) to finance the business can work for some, many require external capital to unleash the business’ true potential.
In Canada, an accredited investor is defined under National Instrument 45-106 Prospectus and Registration Exemptions. Accredited Investors are able to purchase securities not offered under prospectus. This exemption is intended to recognize that accredited investors have the means and knowledge to protect their own interests in investment transactions.
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