Services Mergers & Acquisitions
Mergers
Private companies almost always monetize their value through the sale of their company to a strategic buyer. Q1 has worked with technology companies across Canada to identify, evaluate, and approach prospective buyers, establish valuation parameters, and to negotiate on behalf of our clients the price as well as the terms and conditions of the sale.
Acquisitions
Making critical and timely acquisitions adds significant shareholder value and provides growing firms with key competitive advantages. Q1 works closely with its clients to ensure that they are able to buy the right assets at the right price while implementing an optimum capital structure. We also help to evaluate the soft issues of “fit” and market perception to ensure that each acquisition completely addresses the company’s needs and expectations.
Mike Middleton and his firm, Q1 Capital, were retained by the founding shareholders and management team of DSPA Software Inc. (“DSPA”) to spearhead the process of divestiture of the company. DSPA is a Toronto based provider of compensation software to the insurance industry on an international basis. At the time of the divestiture DSPA had approximately 80 staff and had seen its revenue grow by over 70% in the most recent fiscal year. The utilization of Mike allowed the management team to continue to focus on the business and not get caught up in the complex negotiations which were being handled by Mike. Mike, after reviewing the interest expressed by dozens of firms, brought four serious parties to the table in a competitive bidding process that resulted in a very favourable valuation and conditions of sale. The divestiture was completed in November 2007 with Mike arranging the acquisition of the company by a large US-based multinational. The compensation paid to Mike was small in comparison to his contribution to the increase in the overall value received by the shareholders. I would strongly encourage anyone contemplating a divestiture to use a professional and have no hesitation in recommending Mike for the role.
Scott Peart, former president and shareholder DSPA Software