Sandbox Blog

LinkedIn Learning is an online professional development series that has recently released more of their courses for free.  They also offer a 30 day free trial and cover a variety of subjects including working remotely, motivating & engaging employees, marketing, speaking and creating a culture of high performance amongst other titles available to you and your team.

In your more recent moments, you may be finding (or will find) yourself in a potential state of flux due to the 'rapidly evolving situation' that is the COVID-19 pandemic. Are you scrambling?  Are you looking forward to a prolonged indefinite break?  Were you already prepared with a 'continuity plan' for large scale events that may unfold?  We wonder; did you look beyond to - what's next for your business? 

Newton's cradle is a device that demonstrates the conservation of momentum and energy. Colliding in a fast paced exchange of energy, entrepreneurs are constantly faced with issues that either propel them to success or set them back to the start. This poses the question, are entrepreneurs born or made? Researchers, sociologists, economic theorists, and entrepreneurs themselves have all speculated answers to this ongoing debate. 

 

In another contribution to international climate change objectives, Canada's export credit agency has issued a CAD$500 million Green Bond. The bond will attract capital for green investment and grow Export Development Canada's (EDC) climate-friendly financing portfolio.

"Issuing more than $2 billion in Green Bonds over a half-decade demonstrates EDC's commitment to supporting green projects and initiatives and, perhaps more importantly, the increasing demand for sustainable investment products within the Canadian market," said Ken Kember, Senior Vice President, Finance, and Chief Financial Officer, EDC.

This is EDC's second Green Bond in Canadian dollars and its fifth Green Bond in recent years. Previous bonds issued include: CAD$500 million in August 2017, USD$500 million in May 2017, USD$300 million in December 2015, and USD$300 million in January 2014. Each bond received strong support from the investor community.

Proceeds of all EDC's Green Bond offerings go toward EDC's portfolio of green assets, including loans made to companies active in fields of preservation, protection or remediation of air, water and or soil, creation of renewable energy, and mitigation of climate change. These proceeds have so far helped finance approximately 30 transactions in support of environmentally-beneficial companies or projects. Among other potential benefits, it's estimated these efforts have helped to avoid more than four million tonnes of greenhouse gas emissions.

"EDC was the first Canadian institution to issue a Green Bond back in 2014 and our experience since has shown that there's a real appetite for these sustainable investment vehicles," Kember said.

"Green Bonds are a fantastic way to mobilize funds that can have a real impact on advancing clean tech development and responding to the climate change challenge."

With the issuance of this latest bond, EDC is hoping to bring more domestic and international investors to the table to further stimulate the growth of the Green Bond market in Canada.

#SBXConnected #EDC #GreenBond #SBXSocialImpactors #Sustainability #SBX2019

Acquiring more than one business increases chances of higher revenue growth by 66%

Key findings:

• Entrepreneurs who undertake a well-structured acquisition are 94% more likely to become high-growth businesses three years after an acquisition.
• Entrepreneurs who acquire additional businesses do so to grow, with 41% aiming to increase market share and 24% wanting to add a new business line.
• Buying a business can drive a company's growth. Firms that acquired more than one business were 66% more likely to have generated annual revenue growth of 10% or more in the last three years.
• Acquiring another business is good for revenue growth. Forty-six percent of small and mid-sized enterprises (SMEs) who acquired one or more businesses in the past 10 years said revenue growth was outpacing their industry average, compared to 38% of SMEs without an acquisition.

Entrepreneurs who acquire other businesses do so to grow, according to a new BDC study titled "Buying a Business: A Winning Strategy to Purchase Another Company in Canada". In fact, firms that acquired more than one business were 66% more likely to have generated annual revenue growth of 10% or more in the last three years.

The study finds that the key to a successful business acquisition is a well-structured process and good planning. Entrepreneurs who undertook a well-structured acquisition were 94% more likely to become high-growth businesses three years after an acquisition than firms that did not follow such a process.

"Acquiring another business is a great way for companies to grow, but good planning is vital to ensure the project is successful; following a well-structured process is a winning strategy," says Pierre Cléroux, Vice President, Research and Chief Economist at BDC. "Unfortunately, many Canadian businesses are leaving benefits on the table due to poor preparation. They often fail to take important steps, such as appointing a dedicated team to manage the project or preparing a strategic growth plan. Our research clearly shows that business owners can take specific steps to significantly improve their success in an acquisition."

Entrepreneurs identified securing financing and negotiating price and commercial terms amongst the most challenging aspects of an acquisition. Interestingly, 29% of entrepreneurs found retaining key employees difficult, which is higher than the 18% that mentioned negotiating purchase price was a challenge. The study covers the importance of a post-merger integration plan to overcome the challenges that follow an acquisition, with tips on how to deal with these issues.

The study, conducted for BDC by BPI Research, polled 1,038 entrepreneurs at SMEs involved in a completed or attempted acquisition in the past 10 years.

#SBXConnected #BDC #BDCCanada #SBX2019 #sandboxcentre #ChiefEconomist #PierreCléroux