We invest in growing companies operating in high potential industries:
- Sustainable transportation
- Consumer products
- Energy
- Health, lifestyle and wellness
- Technology, media and entertainment
Our Mission
To help build the next generation of large successful companies in Quebec, by bringing strategic capital and expertise and collaborating with entrepreneurs in their growth phase.
As a growth equity investor, we seek out exceptional companies and talented entrepreneurs looking to accelerate their development in new markets or new geographies through internal growth and acquisitions.
Our approach: buy, hold and grow
Our value creation model
Invest in high potential companies
- We seek out companies that are established businesses with strong potential for growth and profitability operating in our target industries, following a thorough due diligence process
- We look for opportunities where XPND’s team can act as catalysts within the framework of a value creation plan developed in collaboration with entrepreneurs and their management teams
Design and implement an organic growth strategy
- In collaboration with entrepreneurs and their management team, we design, implement and help execute a business strategy with the objective of accelerating growth and maximize market, revenue and profit potential
- XPND’s partners and in-residence executives are made available as required to help management and board of directors in all aspects of operations from finance, marketing, business development and market intelligence
Develop a platform approach for industry consolidation
- Platform companies have the potential to act as industry consolidators with a clear M&A and integration plan
- XPND’s partners have a long history of M&A transactions and integrations in various industries
What we provide
Growth equity
- Equity injection to support growth and long term development
- Capital management
- Optimization of capital structure and financing
Strategic and operational expertise
- Development and implementation of companies’ global business strategy
- Management coaching and monitoring
- Development of sales structure and strategic customer relationships
- Sales and marketing planning and review
Financial expertise
- Optimization of companies financial strategy
- Implementation of financial controls and overall financial discipline
- Merger and acquisition process and integration, strategic partnerships and JVs
Corporate governance advisory
- Organizational structure and recruiting
- Attraction of key managers and Board members / build-up of a strong board of directors
- Strategic planning and corporate development
- Succession planning
Our investment guidelines
We invest in fast-growing companies operating in high potential industries, preferably based in Quebec with a focus on Montreal, with the potential to become growth platforms.
Industry focus
General Criteria
- Strong potential for organic growth and potential consolidation play
- Companies with an edge or competitive advantage in terms of technology, market positioning, or business modelling
- Potential to enhance or transform traditional business models into innovative models
Financial Guidelines
- Revenues between $10 and $50 million
- Targeted EBITDA between $1 and 10 million, with exceptions made for companies with a clear path to profitability
- Preference for enterprise values between $10 and $50 million (with little or no debt)
- Strong preference for sustainable cash-flow and profitability
Type of Invesment
- $5 M to $15 M average tickets
- Minority investments with a significant or influential capital position (minimum 20% stakes)
- Open to buy-outs or majority positions
We focus on high potential industries
Our expertise lies in our experience in managing innovative and technology-focused companies operating in fast growth environments. We invest mainly in the fields of sustainable transportation, consumer products, energy, health and wellness as well as technology, entertainment and media.
- Sustainable transportation
- Energy
Advances in technology are improving how energy is produced, distributed and consumed. New technologies and business models are making cleaner energy alternatives more affordable. Smarter energy management systems are improving energy distribution and reducing consumption. Not only are these advancements in technology crucial to the long term sustainability of many end user sectors (such as transportation, a sub-sector of strong interest to XPND), they are providing significant competitive advantages to early adopters and innovators.
- Internet and communications
- Mobility and connectivity
- eCommerce
- Online and offline entertainment
- Digital media
Any content, anywhere, on any platform. The convergence of the three Cs (computing, communication and content) has dramatically changed our world. It has changed the way we learn, the way we entertain, the way we socialize, the way we consume, buy and exchange, the way we work, etc. Whole new industries have been created with few barriers to entry and a colossal potential for significant growth. This results in unlimited new innovative products, new groundbreaking technologies, new business models, and countless high-potential investment opportunities.
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- Health
- Lifestyle & wellness
- Education
- Fitness and nutrition
New technologies are also changing the health and wellness industries. The use of remote monitoring technologies is helping insurers and healthcare providers improve their services while better managing risk. By helping to prevent illness or accidents, improving diagnostics or better managing costs, many new technologies have the potential to improve consumer’s lives and save the healthcare industry billions of dollars. New business models are emerging and XPND is closely monitoring this industry to find new investment opportunities.
New technologies are also changing the health and wellness industries. The use of remote monitoring technologies is helping insurers and healthcare providers improve their services while better managing risk. By helping to prevent illness or accidents, improving diagnostics or better managing costs, many new technologies have the potential to improve consumer’s lives and save the healthcare industry billions of dollars.
With its large amount of data, the education industry is just starting to leverage the power of new information technologies. New software and the use of connected devices are entering classrooms, helping educators teach, students learn and improving accessibility.
New technologies are also changing the health and wellness industries. The use of remote monitoring technologies is helping insurers and healthcare providers improve their services while better managing risk. By helping to prevent illness or accidents, improving diagnostics or better managing costs, many new technologies have the potential to improve consumer’s lives and save the healthcare industry billions of dollars.
With its large amount of data, the education industry is just starting to leverage the power of new information technologies. New software and the use of connected devices are entering classrooms, helping educators teach, students learn and improving accessibility.
- Internet of Things
- Electronics and digital goods
- Innovative consumer products
The advanced web-based wireless connectivity of various devices and systems, known as the “internet of things” is already having a significant impact on many industries. From living rooms to wearables, computers are being embedded everywhere. Technology and demographics are changing how consumers connect, purchase, educate and entertain themselves. To succeed, companies need to innovate and quickly adapt their business models to find new ways of delivering value to an increasingly sophisticated and resourceful consumer base.