^[redacted]‌ - In addition to the comments you receive here you can always find Searchers by geography under the Directory tab at the top of this page. Here is the direct link: https://www.searchfunder.com/user/map/searcher.

Tagging a few Searchfunders in Ontario who may be in a position to help answer this question: ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌ , ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌,^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, (To our friends in Ontario, THANK YOU in advance for helping to make Searchfunder a collaborative community. Too few of you are taking advantage of our recent integration with IBISWorld Canada. You can now download up to 50 reports a month under the Industries tab at the top of this screen. Here is the direct link: www.searchfunder.com/ibisworld?country=124. With Best Wishes, ^[redacted]‌).

Hi ^[redacted]‌, I’m also early in the process but from having spoken to a few investors, the big banks are willing to lend against cash flow (2-3x) and at least as per investors, they’ve been able to do away with PGs. I’m not aware of what BDC offers in practice.

^[redacted]‌ - We won't consider a bank term sheet if there are personal guarantees. Most Canadian banks are okay with no personal guarantees from what we've seen, but it likely depends on which industry and financial profile of the business. Happy to introduce you to a few of our banking contacts.

^^[redacted]‌ and ^[redacted]‌ - Thanks for your insights. I would definitely take you up on the contacts Sheret! I will call you for that chat soon.

Hi ^Shobhit Shanker‌, - I've recently completed a search fund exit in Ontario and have lots of experience dealing with the Canadian lending environment. Happy to chat further if helpful. Send me a message with your email and we can follow up.

It depends who provides your equity but typically you’d just say “no”.

If you’re looking to go alone, the size you’re looking at is in business banking so they’ll almost always require a PG, try the team at BDC Growth and Transition Capital to finance the acquisition (generally no PG) and a bank for an operating line. If you’re going to get equity from a fund that invests in searchers such as yourself, they’ll probably have banking relationships that wouldn’t require PGs because of the GP’s track record.

Its pretty straightforward in Canada. No institutional investors in cap table = Personal guarantee needed.

Hi Shobhit, I've done an Ontario search deal. My suggestion would be to approach the commercial bank groups of the big five banks for senior debt, as your starting point. Provided you've raised a search fund and have reputable investors behind you, I would not entertain any form of personal guarantee. The structure and logic of a search deal is the same as a traditional private equity fund - who the banks would never consider asking for a PG. Ultimately, you should be able to avoid this with proper planning and investor backing. Good luck! Bruce

shobhit