TORONTO, ON, CANADA, March 2, 2021 — Beacon Mergers & Acquisitions acted as the exclusive buy-side advisor to IQFA Logistics Ltd. in its strategic acquisition of an Ontario-based logistics and warehousing company. Established in 1987, the acquired business provides warehousing, order fulfillment, trucking, fleet management, and last-mile delivery services in the Greater Toronto Area, and across the globe.
Beacon was engaged as the exclusive advisor to IQFA in July 2020. As a part of the mandate, Beacon’s experienced transaction advisory team worked closely with the management teams of both companies to prepare a fair value assessment of the target company’s enterprise value. Despite an environment of extreme uncertainty and volatility following the pandemic, Beacon’s team was able to leverage its experience to overcome complex forecasting challenges and arrive at an accurate assessment of the company’s market value. In addition, the team provided support throughout the due diligence process and facilitated the secure flow of information among parties, protecting confidentiality at all stages of the transaction.
As a result of Beacon’s involvement, IQFA Logistics was able to successfully complete its acquisition of the target company in just over six months at a purchase total value within 5% of Beacon’s fair price assessment. The transaction was structured as a share deal, with a token vendor take-back component.
Beacon sees strong value-creation opportunities in the transaction through revenue and cost synergies. This strategic acquisition will also allow IQFA to capitalize on the target’s existing customer base and in-house logistics capabilities to strengthen its footprint within Ontario. The acquisition is an opportunity for management to diversify its client base and target high-growth sectors including e-commerce.
The transaction further strengthens Beacon’s track-record in the Transportation and Logistics Industry. The pandemic has catalyzed demand for warehousing and freight forwarding services following a boom in e-commerce as the world adopts online operating models. Imbalances in supply and demand and logistical bottlenecks have emphasized the importance of specialized third-party logistics service providers. Consequently, Beacon remains bullish on the industry’s long-term growth prospects.
Beacon would like to congratulate all parties involved on the successful outcome of the transaction. In addition, the advisory team thanks the lawyers at Norton Rose Fulbright and Beganyi Law, as well as RBC for their professional and timely support in this transaction.
Beacon Mergers & Acquisitions is a full-service M&A advisory firm with offices headquartered in Toronto, Ontario with 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 Best Business Brokerage Firm in the Greater Toronto Area, and a member of several international M&A organizations.