Inside Story
Founded in the mid-1980s from humble roots, this company grew into a sector powerhouse, occupying a first-class 60,000 square foot federally inspected facility where it employed more than 150 employees and supplied branded products to major retailers across North America.
With profitability and annual growth exceeding industry benchmarks, the shareholders conducted an in-depth search of firms that could capably manage the sale of this valuable company. Prominent groups from Canada’s largest banks, Big Four accounting firms, and boutique firms like Sequoia were brought in to make their pitches. “We knew the big brands had the expertise, but there was something about Sequoia’s entrepreneurial approach that made them stand above the others. Their understanding of our business, their empathy of our situation as founders, combined with their own skin-in-the-game drew us to their process” said the company’s CEO.
As part of Sequoia’s research, we were able to identify financially backed food companies with a strategic incentive to buy our client’s business. As a result, the shareholders received a windfall valuation and were able to choose the party they were convinced would be the best steward for the company and their loyal employees going forward.
Founded:
1986
Employees:
150
Affiliation:
Non-union
Revenue (CAD):
31.6 million
EBITDA (CAD):
6.0 million
Key Strategic Highlights
Growth Story
Sales grew at a four-year annual growth rate of +18%.
Superior Financial Metrics
Gross and EBITDA margins exceeded industry benchmarks.
Sustainable Competitive Advantages
Differentiators included proprietary recipes, superior production methodology, and exceptional R&D capabilities to develop new product lines.
State of the Art Facility
The company completed a major round of capital investment to expand the long-term operating capacity at the production facility.