By Colleen Swifte

Catchfire, a company based in Winnipeg provides invaluable services creating successful exit strategies for mid-market business owners while also orchestrating seamless business acquisitions for buyers. 

Catchfire founder, Gary Brownstone, says he saw a need emerge to fill a crucial gap in the market for comprehensive merger and acquisition (“M&A”) services because so many business owners are at or nearing retirement age.

“There are strong companies with long histories of success, whose owners are at a stage in their careers where they are looking at exiting their business,” says Brownstone. “Think of baby boomers who are roughly 60 to 80 years old. Seventy-six percent indicate their intention to exit their business in the next ten years, (Canada) with a combined value estimated at $2 trillion.”

“Our mission is to provide a high level of professional services to mid-market businesses,” says Brownstone. “Most owners have had limited, or no, experience in selling a business; because it’s a process that could have a huge impact on their quality of life in retirement, many want to access someone who has the knowledge and experience.”

“I had a call one day in 2015 from someone I had worked with years before who wanted to sell his business. I had been involved in many sales and acquisitions of businesses throughout my career, so was comfortable to take on that challenge. That’s how it began. We started reaching out to owner-operators that were at a later stage of their career, and their other professional advisors, and offering our services. We uncovered a gap in the market and pursued the opportunity it presented. Sell-side representation
comprises 75% of what we do.”

The demand for its services is strong and growing. Last year, Derek Penner, with a strong record of success in both the corporate
and the entrepreneurial worlds, formalized his longstanding relationship with Gary to become a partner in Catchfire - allowing the company to expand both its range of services and its geographic reach.

Brownstone says mid-market M & A activity is robust and success in selling a business is often achieved by good planning and starting well ahead of a planned retirement date.

“We like to get involved with clients well ahead of the sale of their business,” he explains. “It’s never too early to start to plan. We can help ensure that the business is attractive to buyers – like staging a home for sale (though it takes longer with a business). Many businesses are connected to the current owner because of the relationships they have developed over the years. We can help in putting processes in place so that there is continuity after the transaction.”

“To ensure a strong alignment of interest with our clients, our sell-side fees are success-based. We get paid when the client gets paid.”

Catchfire also provides fractional management services where you can contract services on an as needed basis. If require handson assistance in implementing change and improvements, Catchfire can make C-Level talent available on a variable-cost as needed basis.

Catchfire, now approaching its 10th year in business, has been expanding across Canada and into the US, including several cross-border and international transactions.