Beacon Acts as Exclusive Advisor in Sale of Leading Specialty Cleaning Business

Beacon Acts as Exclusive Advisor in Sale of Leading Specialty Cleaning Business

TORONTO, ON, CANADA, April 12, 2021 — Beacon Mergers & Acquisitions acted as the exclusive advisor to a leading Canadian wholesale specialty cleaning business in its sale to a private equity buyer. With over 50 years of industry experience, the Company is one of Ontario’s largest specialty fabric dry cleaning businesses with a vast network of clients across Southern Ontario and the U.S.

Having worked with the Company on a previous advisory mandate, Beacon had a strong relationship with the client and was engaged as an exclusive sell-side advisor in the first quarter of 2020. Beacon’s experienced deal advisory team worked closely with management to arrive at a fairness opinion and prepare marketing materials to facilitate targeted outreach efforts. Despite headwinds stemming from the pandemic, which adversely impacted the dry-cleaning industry, Beacon was able to generate interest and secure an offer from a qualified buyer with experience in private equity and business operations. Beacon’s team provided ongoing support throughout the due diligence which included environmental assessments, as well as legal and financial reviews.

The transaction was finalized in April 2021 as a share sale allowing the owners to take advantage of the small business lifetime capital gains exemption. The deal was structured as a 100% share sale with 20% of the total value arranged as a promissory note.

Beacon’s team is delighted to have delivered for its clients once again despite facing several challenges throughout the sell-side M&A process due to the nature of the Company’s operations and the general economic environment. Due to Beacon’s strong relationships with its clients and its extensive network of corporate, strategic, and private buyers across North America, Beacon was able to garner interest and successfully negotiate a win-win deal ensuring a clean exit for its client. Given the Company’s strong industry-specific business moat and pent-up demand for specialty cleaning services, the Company is expected to continue generating strong profitability for shareholders.

Beacon Mergers & Acquisitions is a full-service M&A advisory firm with headquarters in Toronto, Ontario, and affiliate offices across Canada and partnerships in the U.S.A and South Asia. Beacon’s services include M&A advisory, debt financing advisory, and business valuations to private companies in the lower middle market. Beacon is a three-time recipient of the Consumer Choice Award for a Best Business Brokerage Firm in the Greater Toronto Area, and a member of several international M&A organizations.

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