Kimberly Stevenson Chow
Chief Financial Officer, Labstat International ULC
"Labstat had a history of capitalizing its business with funds secured through the Canadian and U.S private equity markets. In 2011, when its majority shareholder indicated that its investment fund would be closing, Labstat once again found itself in the market for a recapitalization transaction. In this transaction the founding shareholder, Dr. William Rickert, along with the management shareholders were looking for an investment partner whose interests, including investment timeline, would be aligned with a view to supporting the long-term growth of the Company.
Labstat’s founder and management shareholder’s considered other financing options but were seeking an investment partner that would allow management to control the strategic direction of the Company. While private equity investors expressed interest in Labstat’s cash flow and long-term prospects, such investments would require a control position for the private equity investor. Further, the private equity market was unappealing to the founding and management shareholders as the Company wished to stabilize its capital structure rather than facing the potential of having to return to the private equity market every three to five years when timing of future transactions may or may not be favorable.
The Alaris proposal to create a partnership with Labstat was ideal as the financial contribution made by Alaris together with financing provided by Labstat’s senior lender allowed the Company’s Founder to acquire control of the common equity of the Company. Further attractive deal points included: Alaris’ long term investment strategy, lower than private equity return expectations, and distributions which increase or decrease based on revenue performance.
After careful consideration, it was with pleasure that Labstat’s founder and management team selected Alaris as its long-term capital partner."
Co-Owner, SCR Mining & Tunnelling L.P.
"We joined forces with the Alaris group in May, 2013 with no regrets, issues or complaints. Our original intent was to have a financial partner that would offer us flexibility, assist in accelerating our future growth and that would allow us to keep operating as we have done in the last 20 years. We are happy to have the Alaris group as partners as we find them to be friendly, easy to deal with and down to earth."
Co-Founder and Chairman, Sequel Youth & Family Services
"We were seeking a new financial partner to take out our existing equity sponsor and some other equity holders and to provide capital to continue growing our company.
We were not thrilled with the terms and conditions of traditional private equity capital providers because they wanted to exit in a certain number of years and did not provide a significant economic incentive for us to continue growing.
The financial architecture with Alaris provides a wonderful solution because it 1) provides for an increasing share of the enterprise value of the company to common shareholders as we grow, 2) is permanent capital since it does not require us to sell or refinance at any point in the future, and 3) allows us to retain control over the operations of the company.
Plus the folks at Alaris are great people and fantastic to work with."
President, SM Group International
"Financing was required to support our rapid national and international growth and strengthen the company’s asset base.
Other sources of financing offered had very restrictive covenants and were looking at SMi from a purely financial standpoint and not taking the time to understand SMi’s key success factors and growth potential. We felt uneasy working with a financial partner that did not understand our company.
Alaris took the time to understand the core of our business, our philosophy and all aspects related to our growth and evolution. Alaris’ good business sense and high level of efficiency and professionalism, put us at ease from the start of the process.
SMi feels that Alaris is a true business partner."