Beacon Advises Toronto-based Automotive Equipment Distributor in a Sale to Strategic Buyer
TORONTO, ON, CANADA, November 6, 2020 — Beacon Mergers & Acquisitions is pleased to announce the successful completion of an exclusive sell-side mandate of a specialized Toronto-based distributor of industrial, fleet, and automotive equipment products. The business, which has excellent long-term relationships with multiple national and international suppliers, was a great strategic fit for the purchaser building on their line of products in the Light Automotive & Industrial Products areas.
Going to market in the middle of March 2020, in the midst of a pandemic outbreak, presented an initial challenge to Beacon transaction team. Despite attracting a large amount of potentially interested parties, with over 50 signed NDA’s within the first two months of listing the business, it took Beacon until the end of June 2020 to negotiate a win-win LOI with a strong strategic buyer. Having worked with the buyer on a previous strategic transaction, the Beacon team and client had confidence in the high integrity and reputation of the acquirer which ultimately helped with the timely execution of the deal.
While the existing economic environment and uncertainty in the market place presented certain challenges, the great strategic fit of the acquisition untimely prevailed over any short-term market concerns. “Sometimes, as counter-intuitive as it may sound, adverse macro-economic conditions make strategic acquisition decisions more clear and easier to make. When the economy and businesses are facing adversity, it is easier to spot areas of concern but also growth and further development. If a strategic acquisition makes sense in a challenging macro-economic environment, it is a testament that it presents a true fit for the business”, noted Alex Shteriev, Partner at Beacon Mergers & Acquisitions.
The professional approach of the parties and their advisors navigated the transaction to a successful completion with the deal being consummated in early October 2020. The Beacon team would like to acknowledge the professional and timely work being done on this transaction by Aird & Berlis LLP and HSBC Banking and congratulate both parties on reaching their desired outcomes.
With this deal completion Beacon and its transaction team add yet another successful sell-side mandate to its portfolio of Automotive-related business transactions.
Beacon Mergers & Acquisitions is a full-service M&A advisory firm with offices across Ontario, Canada and in Washington, D.C, U.S.A. Beacon also has a strategic partnership in the Asian subcontinent with Prime Bank Investment Limited. 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 Best Business Brokerage Firm in the Greater Toronto Area, and a member of several international M&A organizations.