If you’re looking to sell your business, 2011 might be the year.
Lenders and corporate finance advisers are noting private equity firms are increasingly focusing on the Pacific Northwest for potential corporate acquisitions and to add to their portfolios.
Lee Grimshaw, BMO Capital’s managing director for Western Canada, told Business In Vancouver in a recent interview private equity firms that left the market during the downturn are quickly returning to B.C. “Even though last year was a big year for us, there were more owner-operator transactions than private equity deals. That will change this year. I think we’ll see more private equity players in 2011.”
Doug Johnson, a transaction services partner at Ernst and Young in Vancouver, said, “We’re seeing interest expressed by U.S. private equity firms in this market, as well as the local firms. And we’re seeing a lot of focus from Pacific Northwest regional private equity firms on the Alberta market, with a particular emphasis on oil field services and mining services.”
He added that many private equity firms will continue to look for strong companies to build on existing portfolio companies. Some of B.C.’s private equity firms made similar deals last year. Burnaby’s Golden Boy Foods, which is owned by Tricor Pacific Capital, expanded last September with the acquisition of Markham, Ontario-based Nutco Inc., which also produces private-label peanut butter and nut butter products.
More insight from B.C.’s financial community is in this week’s issue of Business in Vancouver (See “Top 100 Money Sources” – Issue 1109; January 25-31, 2011).