Views From the Market

Sid Nair, senior VP in EY Canada’s corporate finance group, joins Mario Nigro to explore the state of midmarket tech sector M&A in Canada. Sid has developed his EY team into one of the country’s leading advisors to founder-led tech businesses. He and Mario discuss how M&A in the tech space is rebounding from its post-pandemic lull, as buyers focus on quality assets with mission-critical software, significant intellectual property, and a history of customer retention. Sid notes that sellers in the tech space can be younger than in other areas, reflecting a culture of serial entrepreneurship. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

Our guest, Sumit Aneja of Gulmohar Capital Partners, shares his journey from the New York financial industry to his current home of Montréal, where as a searcher, he acquired Voxco, a software and tech-enabled services business. After successfully growing Voxco’s business, Sumit negotiated a successful exit and, together with several U.S. and Canada based colleagues, founded Gulmohar Capital Partners. Gulmohar aims to acquire and professionalize lower middle-market tech businesses on both sides of the border. Sumit’s view is that, although overall acquisition activity in the tech industry has softened, the lower midmarket continues to offer significant opportunities. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

This episode highlights the growing role of competition and foreign investment law in Canadian midmarket transactions. Special guest Michael Kilby, head of the Competition and Foreign Investment Group at Stikeman Elliott, highlights the increasing regulatory scrutiny of small and medium-sized transactions in the wake of recent amendments to the Competition Act. Scenarios that are attracting regulatory attention, include private equity roll-up strategies in sectors such as veterinary services, dentistry, and software (particularly AI). Also discussed are changes to the foreign investment review process in Canada and their impact on transaction timing and risk allocation. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

In this conversation, Rob Luck, a former engineer turned successful entrepreneur, shares his journey in the world of search funds, specifically highlighting his acquisition of Hawthorne Corp. He talks about the challenges of running a legacy business and implementing transformative changes during his leadership. Rob also emphasizes the importance of innovative sales strategies and operational efficiencies for driving growth. With reflections on the evolving search fund landscape, he provides valuable insights for aspiring business owners.

This podcast features Tom Stevenson, the former owner of Hub Equipment, a GTA-based heavy equipment rental company. Tom discusses the experience of selling the business, which was founded by his grandfather in 1946. He and host Mario Nigro focus on the importance of finding a strategic partner that shared Hub’s values and offered growth opportunities for key employees, while retaining Hub’s historic brand. Tom also reflects on the more personal aspects of the process that led to the sale to Cooper Equipment and on the positive experience of staying on with the company post-sale. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

Special guests Nick Rotundo and Claudio Martellacci from Grewal Guyatt LLP join Mario for this edition of the podcast. Claudio and Nick discuss the unique aspects of working with mid-market companies, emphasizing their valuation specialization, one aspect of Grewal’s comprehensive advisory services in this space. They highlight the differences between low/mid-market deals and big Bay Street deals, noting that the former can often be more challenging because of owner-operators’ deep financial and emotional stakes in their businesses. The guests also share insights into current trends, such as a growing pool of ex-tech industry employees with cash to buy existing businesses that are ripe for technological upgrades. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

In this episode, Mario Nigro and special guest Tiara Letourneau of Rewrite Capital Advisors discuss employee ownership trusts (EOTs) – both their history in the U.S. and U.K. and the work that Tiara and others have put into a successful push for similar, but even more flexible and innovative, legislation in Canada. The new Canadian EOT model allows employees to become owners without financial contributions, with the trust buying the shares and employees benefiting from the profit and equity, while also affording exiting owners a significant capital gains exemption. While Canada’s new EOT structure is a great exit option for a wide range of owners, Tiara is especially enthusiastic about its potential positive impact on small communities. Thank you for tuning in to Views from the Market. 🔗 To stay connected and receive the latest updates, subscribe to our podcast on SoundCloud, Spotify, and Apple Podcasts 🔗 Follow Stikeman Elliott on LinkedIn: linkedin.com/company/stikeman-elliott-llp 🔗 For more information and resources, visit: stikeman.com/viewsfromthemarket

Peter Stefanovich, president of Left Lane Associates, specializes in M&A strategies for the transportation and logistics sectors. He shares insights on the market's volatility during the pandemic and the potential for a strong recovery, driven by lower interest rates and AI advancements. The conversation highlights the shift towards nearshoring and the increasing demand for supply chain services. Peter also discusses the fragmented nature of the Canadian market, the profiles of buyers and sellers, and the evolving landscape for M&A in the industry leading up to 2025.

Jim Friesen, a sell-side advisor from Portage M&A Advisory, shares insights into guiding Canadian owner-operators through successful business exits. He discusses the shifting dynamics post-pandemic, especially among baby boomers, and the growing complexity of sales processes. Jim emphasizes the importance of realistic expectations and the benefits of working with professional advisors to navigate valuation challenges. He highlights the rise of sophisticated buyers and presents an optimistic outlook for the middle market M&A landscape.

Don Hilton, founder of Distinct Capital Partners, brings 40 years of M&A experience to the conversation. He shares insights into the growing trend of baby boomers selling businesses and how their firm supports owner-operated companies. Don discusses the shift towards tailored M&A services for small and mid-sized businesses, emphasizing the importance of thorough valuations and documentation. He also highlights the evolving landscape of lower middle market advisory, as private equity interest surges amid economic challenges.