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Negotiate funding agreements : the key to a successful transaction, according to Yan Charbonneau

by

Hubert Roy

October 19, 2018 07:00

For Yan Charbonneau, a lot of transaction in insurance with a finance sloppy.

“Buyers say that the banks will cooperate. They think that it works on the blow of the emotion and say that is going to work. But the banks want more than a earnings before interest, taxes, depreciation and amortization (EBITDA) or return on their investment. It is necessary to talk about the numbers. It should be included in a good story. Up to now, the results are in line with what I present to the banks, ” he says.

How will he look for his financing when the time comes to make a transaction ? Mr. Charbonneau said shop each time. Otherwise, for the acquisition of Deslauriers + associates, its financial sector was BMO. For Couture Rochette, it was gone with the National Bank. Then, for the acquisition of Renaud Insurance, its financial were the Laurentian Bank and the Groupe Promutuel.

“There are limits everywhere, whether in a bank or in an insurer. It is necessary to understand these limits, but also the capabilities and objectives of the financier. It is necessary to understand what it is looking for. “

So he goes to knock at the door of the three banks present in the market at every opportunity that presents itself. “You must not think that we can only make agreements with insurers. “

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