Summary
A rural Ontario entrepreneur spent two decades building one of the region’s most dominant commercial tire operations. When a competitor came up for sale, the opportunity to expand was clear. Unfortunately, their existing bank refused to fund the acquisition. The client came to us, and we found a bank that saw their vision. By presenting the client’s story to a banking partner, we managed to secure a comprehensive multi-entity financing package. Beyond funding the acquisition, the deal also provided property financing and working capital across three locations.
The Challenge
The client has built something rare: a commercial tire business that serves clients in construction, mining and farming across a wide rural corridor. With a warehouse distribution arm and a growing transport fleet, they maintained a loyal customer base that competitors struggled to match. When a neighbouring shop came up for sale, the client knew that they could not let the opportunity slip by. The acquisition would provide a new facility, a licensed safety operation for commercial transport trucks, and room to consolidate services already being provided elsewhere. Unfortunately, the client’s existing bank saw a complicated request and declined; the bank was too uncomfortable with the scope of what was being built.
The Solution
To us, we did not see a complicated request. We saw a strong Ontario commercial tire company who was ready to scale. So, we stepped in to map a complete picture of the company: three operating entities, three owner-occupied properties, a multi-province footprint, and a vendor who was willing to stay on and support the transition. We demonstrated the combined cash flow across the group, the strength of the real estate security, and the acquisition as a natural extension of a business that has been growing consistently for years. We packaged it cleanly and brought it to a banking partner that understood regional business and saw the deal for what it was.
The Results
We successfully secured a comprehensive financing package. Not only did the client acquire acquisition financing, but our banking partner agreed to provide commercial mortgages for three properties, an equipment loan, and dedicated operating lines for each location, all at competitive rates. With the acquisition closed and the previous lender paid out in full, the client transitioned into a new partnership with a financial partner who understood their business’ trajectory.
