Living up to its Name

Paragon Partners

Paragon Partners defines the word paragon as “an ideal instance; a perfect embodiment of a concept.” The Western Canadian boutique firm strives to live up to this definition…

“To optimize the execution of your business strategy, Paragon Partners create an ideal instance or perfect embodiment of a concept,” the company brochure explains. The team does this “by providing practical solutions to complex situations involving business structuring, creative financing structures and intelligent negotiations.” In short, Paragon Partners provides valuable financing advice and mergers and acquisitions and advisory services for companies seeking growth capital.

Paragon Partners typically works with small and mid-sized companies with annual revenues ranging from $5 million to $50 million. “For a small to mid-size Canadian company to obtain $5 to $15 million, while maintaining most or all of their ownership, requires creative and unique financing structures,” the company points outs. “Paragon has established practical solutions to these complex situations.” Indeed, the typical Paragon structure is designed to inject $5 million to $15 million in capital into a company, “so an opportunity can be seized or their business expanded while creating an opening for investors to participate in this exciting growth stage of a business.”

Paragon Partners is a Product Manufacturer operating within the Exempt Market industry. The team creates capital raising structures to provide growth capital for companies that are unable to obtain these funds from banks or venture-capital sources. The initial goal is to pump funds into the company quickly so that growth opportunities can be taken full advantage of and the financed company can stay focused on their business. Paragon Partners also creates the long term financing structure for the investment market, which is designed to complement the company’s current and future growth.

Financing structures typically include private equity, subordinated debt, asset-based financing, senior debt, private placements through offering memorandums, and non-traditional forms of capital. After the ideal – and often one of a kind – structure is created, the team takes an active role in promoting the structure to a variety of investors including wholesalers, investment funds, third party dealers, and high net worth investors. The team stays on board to administrate and manage the capital raising structure for the duration of the investment.

Paragon Partners looks for several key factors when considering a company. The ideal business will already be growing, have a positive cash flow, and be within the manufacturing, service, distribution, or technology sectors.

Of any growth strategy, mergers and acquisitions will arguably have the greatest impact on a company. Because mergers and acquisitions will have such a significant effect, the team is particularly focused on carrying out those processes in a way that will maximise a company’s value.

Paragon Partners’ advisory services are also a key aspect of the business. The team will advise a company on corporate structures, examine recapitalization options, explore growth opportunities, and develop effective business plans. The team will also analyze, recommend, and implement financial and management information systems. Performing business valuations is another important service, as well as helping a business manage its transition to either a public or private company.

Growing companies aren’t the only ones who stand to benefit from Paragon Partners, and the team is always ready to work with the right investors. “We focus on creating, promoting and managing investment opportunities for Accredited Investors and the Exempt Market industry with attractive terms and creative features for many investor types,” the company website insists. Indeed, the investment opportunities that Paragon Partners creates are often quite attractive. The team strives to create situations in which the investor is treated like an owner – with a chance to participate in the success and top line profit of a business – without being subjected to the hassle of disposing of shares in the private market.

Investment opportunities are usually available for Canadian residents of every province. Before long term financing begins, the team will organize a Bridge Loan as the first injection of capital. Bridge loans are short term, provide high returns, and are ideal for accredited high net worth investors. A key advantage is that the financed company can continue moving forward with its business throughout the process. Long term financing is obtained through limited partnership or offering memorandum. The former is often a good match for accredited high net worth investors or funds looking for high returns through profit participation. The latter is designed for both large and small investors and often involves monthly cash returns. It may also be RRSP and TFSA eligible. Whatever the structure, it will typically involve an annual return that is paid monthly. Perhaps best of all, Paragon Partners stays closely involved as administrator throughout the investment term, providing peace of mind for all parties.

Paragon Partners is working hard to live up to its name. “Creating the ideal structure for an investment opportunity or business transaction is the strength of our team,” the company website boasts. “Creativity is a specialty and our dedication is to find a solution that makes sense for your business as well as the purchaser or investor.” The team manages the project every step of the way – from the earliest analysis to the final closing – with the intention of always protecting and serving the client’s best interests. The end result? A win-win situation for the financed companies, the investors, and Paragon Partners.

July 16, 2018, 6:50 AM EDT

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