FAQ
Frequently Asked Questions
Here are answers to some of the most common questions about the Québec Manufacturing Fund.
1. Why should I choose the Québec Manufacturing Fund over another source of financing?
The Québec Manufacturing Fund provides more than financial assistance. We give our partners an opportunity to benefit from our expertise and advisory services to boost performance and bottom line. The QMF team is made up of seasoned managers who have held leadership and executive positions with world-class companies operating in the manufacturing industry. Our goal is to work with your business’s management team to optimize your financial results and put you on track for long-term success.
2. What are the advantages of equity financing over debt financing?
Depending on the company’s financial situation, equity financing is often an excellent solution for many reasons (no additional debt accrued, no interest fees, no impact on financial results and ratios, etc.). What’s more, when we invest in a company’s capital, we are actually sharing in the financial risk, which gives us added incentive to work toward your prosperity. It’s our way of becoming a true “partner in your growth”!
3. How much does a company have to make in annual sales to be eligible for consideration?
As a rule of thumb, we invest in businesses that generate annual revenues of between $20 million and $200 million. But if your sales are shy of the $20-million mark, we may still consider your application if you show potential.
4. How much do you invest per transaction?
Our transactions generally range in size between $5 million and $15 million. But if you need more, we’re happy to look into the available possibilities. We have close ties with the Caisse de dépôt et placement du Québec and several other financial partners, which enables us to play an active role in projects as big as $100 million or more. Tell us what you need, and we will do our utmost to find a solution.
5. What is the investment horizon?
Most of our investments have a five- to ten-year term.
6. I’m a distributor. Can I apply for QMF financing?
No, we invest solely in manufacturing companies. To be eligible for our programs, your operations must comprise at least one manufacturing component (production, processing, addition, etc.).
7. What kind of influence would QMF exercise over the business?
You keep full control of your organization at all times. The Québec Manufacturing Fund is a minority shareholder. What’s more, you can buy back your interest at a later date. We do have some rules for you to follow, but under no circumstances will you lose control of your company. You are and will remain at the helm. We are there to act in a support capacity so you can take your performance to new heights.
8. How can the Québec Manufacturing Fund facilitate the transfer of my business to a new management team?
If you are passing the ownership torch to a family member or your current management team, we can provide the financing to ease the transition, along with support and coaching services to help prepare the new leadership. Click here to see how succession financing works.
9. Can I talk to some of the companies QMF has done business with and ask them about their experience?
Of course! We would be happy to put you in contact with one of our partners before we go ahead and finalize a deal. Write us at info@fondsmanufacturier.com or ask one of our associates to put you in touch.
10. How long does it take to put a partnership agreement deal together?
It is usually a matter of two to four months, depending on how much time the people involved have to spare and the volume of information required.
11. Can I take advantage of QMF’s investment to sell some of my shares and enjoy life?
Yes. For an example of how this would work, click here.
12. We are eyeing the possibility of acquiring another company. Can the Québec Manufacturing Fund help us with this?
Absolutely. We have concluded a number of acquisition deals and can provide financial support throughout the process. Click here for a concrete example.