Capital-Advantage
TSX:AD  $ 19.49 -0.16 -0.81% Volume: 8,304 Quotes delayed 20 minutes May 18, 2012
Capital Advantage

Why do private companies choose to partner with Alaris?

  • Growth from acquisitions and new locations remains entirely with the existing owners of the private companies. Changes to our distributions are restricted to a mutually agreed upon "performance" metric such as same store sales or gross revenues that is based only on organic growth or organic decline.
  • We do not require principal repayments on our financing, and as such, free cash flow is significantly enhanced when compared to typical debt financings.
  • Alaris purchases non-voting preferred equity, not voting common equity. Private company owners do not relinquish voting equity or control.
  • Monthly cash distributions are less risky than the 5 to 7 year exit strategy custom to traditional private equity.
  • Alaris preferred cash distributions are based on "top-line" results. Items such as salaries, marketing expenses, option programs or capital expenditures have no impact on our returns. This ensures a stable return for Alaris and enables us to monitor our distributions as a silent partner, while also allowing the Private Company Partners to have control over their own expenses