Control Solutions Ltd.
The founder of the company wanted to retire and we needed a viable financial plan to buy his shares. It was a fairly large amount of money for us and BDC provided us with the best solution.
Chad Thomas
President
Making buildings smarter
About the company
Founded in 1994 the 100-employee independent company designs and installs control systems in all types of buildings.
Location: Coquitlam, British Columbia
Industry: Construction
Entrepreneur challenge
Longtime employees Eddie McCool and Chad Thomas wanted to buy out the company’s owner. They knew the business was at risk of being bought out by a larger firm if they didn’t act. The new partners were looking to not just meet the seller’s price, but also to have enough liquidity to run and grow the business.
BDC expertise
BDC offered the new partners a mezzanine loan through its Growth & Transition Capital financing. The loan’s terms with interest-only structure provided the partners with the added flexibility to use their available capital at year end, to make a lump sum principal salaries payment. The partners found these flexible terms helped maintain cash flow short term, keeping equipment humming and salaries paid, while also helping the company, which was now theirs, really thrive.
Results
- Revenues increased by 50%
- Employee numbers grew by 35%
- Investment planning, market expansion and equipment upgrades all improved thanks to healthy cash flows