Empire Crockery
Foodservice tableware and housewares, Montreal
Sold to its management team
Pass your company on. To your family or your team.
Prepare and structure a transfer to a family member or the management team, taking your objectives and the successor’s financing into account.
The challenge
Financing is almost always the hard part.
Employees and family members rarely have the capital to buy a company outright, especially a valuable one, and too much debt can become a burden for them.
In practice, the owner often finances a large part of the price and is paid over time. Provincially sponsored funds such as the Fonds de solidarité FTQ list business transfers to management among their priorities.
“It can be useful to begin up to 24 months in advance.”
Three steps to a successful succession.
- Step 1Prepare the transferClarify your objectives, the value of the business and what the successors can realistically take on.
- Step 2Structure the dealSet the price, the terms and the share financed by the owner.
- Step 3Find the financingBring together the lenders and funds that complete the successors’ financing.
Management buyouts.
All transactionsODS North America
Oversize load escort services, Quebec
Sold to its management team
P.H. Tech
Building products manufacturing, Lévis
Equity investment supporting a management buyout
Transactions completed by Moses Bendayan with prior employers, including National Bank Private Equity. Not presented as Tribal Capital or 1858 Capital Partners engagements.
What owners ask.
Can I sell my company to my employees?
Yes. The challenge is financing. Employees rarely have the capital to buy a company outright, especially a valuable one, and too much debt can become a burden for them. In practice, the owner often finances a large part of the price and is paid over time. The Fonds de solidarité FTQ, for example, lists business transfers to management among its priorities.
Do you help with family or employee succession?
Yes. Tribal Capital can help prepare and structure the transition while considering the owner’s objectives and the financing required.
When should I start preparing to sell?
It can be useful to begin up to 24 months in advance. That time can improve earnings quality, reduce owner dependence, strengthen the leadership team and prepare financial information.
Is the first conversation confidential?
Yes. The initial conversation is confidential and does not commit you to a process.