Business Transition

CIBC employee explains business transition processes

At CIBC, we have worked on business transitions and planning with many companies in different stages of growth and development. We have seen and helped business owners and executives successfully navigate their company’s evolution. Whether you want to grow your business through acquisition, realize capital by divesting all or a portion of the business or are thinking of selling your share of the business to pursue the next stage of your life or career, we can help.

Our team will work with your existing advisors to provide you with comprehensive advice to help make the transition even smoother for ongoing success.

We understand that running a successful company doesn’t leave you a lot of time to develop a succession plan or exit strategy. In fact, our research shows that only a small number of shareholders and CEOs have developed formal succession plans or other exit strategies. We can help you create a cohesive plan to transition your business to new owners or realize the maximum value of its assets. 

It’s never too early to think about your succession plan or exit strategy. Proper business transition planning may allow you to:

  • Maximize the value of the business upon sale
  • Reduce the risk of loss to your retirement and/or estate capital
  • Take advantage of tax-planning opportunities by coordinating your business and estate planning
  • Create a smooth, secure transition that helps ensure the ongoing success and continued good reputation of your business under new leadership
  • Develop future plans regarding the ownership of your business (that is, sale to third party, family or management)

We are able to provide you with solutions to help maximize your business and personal wealth by bringing together a team of financial experts including a Relationship Manager, an estate planning specialist, mid-market investment banker, and wealth/ investment advisor.
 

Divestment

As a business owner, you may consider divestment of your company outright to a third party if you are faced with one or more of the following situations:

  • You wish to retire and unlock the value in your business
  • You have received an unsolicited, but nevertheless attractive, offer for your business
  • You wish to transition the business to a younger management team or to your next generation of family members
  • You have a business unit which no longer fits within company strategy and/or has become non-core

Every divestiture is unique. When planning a divestment strategy, the specific needs of your shareholders must be understood and addressed. Some of the objectives you will likely need to meet include:

  • Achieving the highest possible selling price
  • Obtaining the best available terms and conditions
  • Maintaining confidentiality
  • Ensuring minimal disruption to the ongoing business

Your CIBC Mid-Market Investment Banking advisor will work with you to develop a strategic understanding of your business and shareholders’ needs when going through a controlled, competitive sale process. From providing an analysis to determine the market value of your business, creating marketing materials and identifying/qualifying industry and private equity buyers in North America and around the world, our team of experts will work with you every step of the way. We will provide you with tactical and strategic advice and coordinate due diligence, legal and other aspects of the transaction towards a successful completion.

Open our most recent Divestitures (PDF, 840 KB) Opens a new window in your browser


Acquisitions and Management Buyouts

Continued growth is key for successful businesses. An acquisition may be the right strategy for your company if:

  • You are seeking to consolidate a fragmented market and achieve economies of scale
  • You are seeking business growth with new products, technology, markets or geographic reach

We have a strong track record of successful acquisitions and dedicated advisors who will work with you to ensure a successful transaction. From identifying potential acquisition targets and approaching them on your behalf to determine their interest, conducting market and financial analysis to determine the potential target value and its impact on your financial performance and advising on tactics during the process, on the structure, terms and pricing of the acquisition - our team will work with you every step of the way. 

We will lead or assist negotiations with the target and their advisors and determine the optimal funding structure to finance the transaction. Finally, thanks to our extensive relationships with private equity groups across North America, we will secure the necessary debt and/or equity financing and ensure all the legal and due diligence of the transaction is completed successfully.

Management Buyouts

If senior management has the opportunity to buy out or acquire the company or subsidiary they currently run, the existing owner or parent company may be willing to sell the business to the management team under certain circumstances, including:

  • The transaction would be discreet and not involve disclosing confidential information to competitors that a wider sale of the business would entail 
  • Current management understands the values and culture of the company and the change in ownership is less likely to be disruptive to employees and customer relationships
  • Closing in a shorter timeframe, as due diligence will be limited to the requirements of the finance providers

We recognize the sensitivity of transactions involving management buyouts. We work on behalf of management to assist you throughout the process, evaluate the business, negotiate the price and structure of the transaction, determine the appropriate capital structure and raise the required financing.

Given that management-led buyouts may require equity financing, our extensive relationships with private equity groups across North America enable us to find the best possible partner on the right terms for you.

Open our most recent Acquisitions and Management Buyout Deal Announcements (PDF, 215 KB) Opens a new window in your browser

At CIBC, we offer a wide range of loans and financing options to meet the needs of incoming owners. In addition to traditional bank financing and mezzanine debt, we can also suggest solutions around third party mezzanine debt and vendor take-back financing to help ensure you have the right financing package for your transaction

Your relationship manager will work with you and the incoming owner to structure the solution that’s best for you and the business.

Raising Capital

Raising financing from third party capital providers and investors may be the right choice for your business if:

  • You need to finance the buyout of fellow shareholders who wish to retire, or perhaps due to a buy-sell clause in the shareholders agreement (sometimes referred to as a "shotgun clause")
  • Your company needs capital to fund an acquisition, shareholder distribution, management buyout, or a transaction to take the company private
  • Your company requires financing to support internal growth opportunities such as working capital or a plant expansion
  • Internally generated profits together with senior debt are insufficient to meet the needs of the company.

Our team's extensive knowledge of Canadian and U.S. capital markets and strong relationships with capital providers positions us as your advisor of choice to arrange and secure private financing in the form of common and preferred equity, mezzanine debt, subordinated debt and senior debt.

We will work with you to perform a detailed financial analysis of your objectives and growth opportunities and determine the optimal funding structure while balancing the blended cost of funds with the acceptable levels of financial risk to provide sufficient flexibility. We will identify and review potential investors and their investment criteria and create a marketing plan that will position your company as an attractive investment opportunity to create a competitive bidding environment of prospective investors. Finally, our team will secure the best possible terms and arrange for the due diligence, legal and other aspects of the transaction to be completed successfully.

View our most recent Capital Raising and Financing Deals (PDF, 75 KB) Opens a new window in your browser

Mid-Market Investment Banking

As a leading mergers & acquisitions advisor, we provide transaction services to private companies valued over $10 million.

We help business owners and shareholders:

  • Sell their business
  • Grow through acquisition
  • Raise equity capital and secure debt financing

As one of the largest mid-market advisory teams of any Canadian bank and a track record of success that includes over 100 transactions totaling more than $3 billion, we successfully combine the resources of CIBC’s global franchise with a level of service normally associated with smaller specialty firms. Our team of seasoned professionals has offices in Toronto, Montreal, Vancouver, Calgary, Edmonton and Halifax to provide clients service across all regions of Canada.

Business owners and management work with us because we offer our clients:

  • A proven track record of successful deal closings
  • A dedicated focus on mid-market companies
  • Access to CIBC's global resources and industry expertise
  • Significant cross-border and international experience
  • Extensive access to corporate and financial buyers
  • Capital structuring expertise
  • Quality service, advice and execution

Team

Our team has a wealth of experience to assist you, with a substantial track record of success in helping owners buy, grow and ultimately sell their businesses.

Meet the senior members of our team:

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