FREQUENTLY ASKED
QUESTIONS

 

How long has Quadra Global Capital Corp been in business?

Quadra was founded in 2002. All of the partners come from ‘blue chip’ M&A and investment banking backgrounds. Each has considerable business pedigree with significant investment experience across different sectors and countries. Collectively, Quadra has over 150 years of operational and investment experience. 

Quadra’s partners and associates include leading strategic investors and deal-makers across multiple countries.  They are also influential investors who can provide capital, contacts and (most importantly) operational expertise to our portfolio investments. All of these factors combine to make Quadra Global Capital Corp a firm with a wealth of experience and know-how at its disposal.  We are an ‘old’ new firm.

Where are you located and where do you focus your investment activity?

Quadra is headquartered in Vancouver, BC, Canada with an office in London, England.  We are focused on M&A opportunities in the lower mid-market (sub $20M in revenues) and consider investment opportunities in the United States, United Kingdom and Canada.

How long does Quadra take to close a transaction?

Depending on the complexity of the opportunity, Quadra prides itself on being able to close a transaction quite quickly. Seeing that we are not a fund, we have the ability to make rapid decisions. That said, we often build relationships with entrepreneurs for many years and will close an investment when the time is right. Once we have agreed terms in place with a business and move into an exclusivity period, we can close a transaction in approximately 45-60 days. It is during this time that Quadra will raise funds on a ‘deal by deal’ basis from its network, conduct due diligence and then proceed to final documentation in order to close the transaction. 

It is important to stress that we do not wish to disrupt a company's regular activities and as we seek to become partners with our target companies, we believe that partnerships should not be taken lightly. We prefer discussions to be thorough and not rushed.

What makes Quadra different than other firms?

We have an ‘Entrepreneurs for Entrepreneurs’ ethos approach to business. Given that all deals are slightly different, we endeavour to find ‘win-win’ scenarios when partnering with companies - as opposed to forcing a certain investment structure to work. 

Unlike a majority of private equity groups, Quadra is unique in that it will not:

  • Put forward ‘low-ball’ or insulting offers. We are comfortable making offers that reflect ‘fair market value’ 

  • Take your sign down and fold you into a division. You are proud of your business and we want to ensure that your legacy will always continue - we consider ourselves as a ‘safe pair of hands’ 

  • Fire your staff. You staff has become like your family - or perhaps they even are your family. We acknowledge that your staff is your greatest asset and we endeavour to keep them retained and motivated

  • Take a dictatorial approach to deal-making. We are very collaborative and wish to arrive at deal structures that are fair to all parties 

What is the typical duration of a Quadra investment?

This depends on the long term goals of the portfolio company.  It may very from as little as 2 years to 10 years, but we feel that 5 years is a general rule of thumb and appropriate time for any investment to mature. It is really about what is right for the company and what the management team envision to be the right time period for a Quadra investment. Given that we are not a fund, we have the ability to be flexible and to act in the best interest of the business. 

Who are your investors?

In addition to our own proprietary capital, we access the capital markets and raise capital on a ‘deal by deal’ basis to close. Our investors range from institutional debt providers to Family Offices and High Net Worth and Ultra-High Net Worth individuals who are dis-satisfied with Private Equity in its current form (namely ‘blind pool’ funds). We typically use debt instruments to close on target transactions. Our investors are located across the western world and have a stated desire for ‘deal by deal’ M&A opportunities, managed by Quadra on their behalf.

What industries do you target?

Quadra is willing to consider M&A investment opportunities across various industry categories and demographics (US, UK and Canada).  

A suitable investment for us would meet many of the following criteria:

  • Consistent revenues in the $2,000,000 - $20,000,000 range

  • Consistently profitable with EBITDA of at least $200,000

  • A business owner who is seeking a succession plan

  • A well established business with a long operating history (5 years minimum)

  • A business in a market with secular growth, independent of the economy

  • Little or no long-term debt in the business

  • A strong customer pipeline

  • Fragmented competition 

  • Strong barriers to entry (through IP, strong distribution networks, customer contract length, etc.)

  • A business owner that has made up their own mind and identified that now is the time to transact

What is your investment range?

Quadra is flexible on financing terms and is dependent on the type of investment we are making. From an M&A perspective, the key for us is to make certain that management, new investor capital and current shareholder interests are all aligned.  We would consider companies with at least $200,000 in EBITDA and revenues between $2,000,000 - $20,000,000, as a general guideline.  

What is Quadra’s role after investing?

We view ourselves as an ’smart capital’ partner that provides strategic and operational guidance to help proven, existing management teams reach their companies full growth potential. 

We have in-house talent that is able to assist our portfolio companies with both organic growth capabilities, sales and demand generation as well as bolt-on M&A growth. Thus, we take a 360 degree holistic view of partnership and integration. 

In addition, we can tap a deep network spanning numerous industries and global contacts to assist with recruiting key management and board directors, establishing strategic partnerships and executing acquisitions.

How do you typically exit investments?

Quadra works with management teams to determine an exit strategy that not only makes sense for the business, but also maximize the value of the business for all parties involved. We are very flexible in this regard: it could be an acquisition, a strategic merger, an IPO, a sale to another investor or simply a sale back to the management team.

How do I introduce an investment opportunity to you?

Kindly get in touch at: info@quadracapital.com.

Once an NDA has been executed, we would require the following:

  • Past 3 years of accountant prepared financials

  • Current Balance Sheet (within 30 days)

  • Current Profit & Loss Statement (within 30 days)

  • Information Memorandum on the business

We are happy to work with all brokers and intermediaries and will ensure all earned commissions are rightfully protected.