Massey Capital Helping to Build a More Dynamic Canadian SME Sector
In a recent article titled “Canada needs a ‘more than dynamic’ small-business sector,” published in The Globe and Mail, David Parkinson highlights the importance of a robust small and medium-sized enterprise (“SME”) sector for Canada’s economic growth. SMEs are the lifeblood of the Canadian economy, accounting for 80 percent of Canada’s jobs and over half of Canada’s economic output. Massey Capital, an acquirer and operator of small and medium-sized businesses, is dedicated to the development and growth of the Canadian SME sector.
At Massey Capital, our business model builds upon the legacies of Canadian entrepreneurs focusing our capital, resources and capabilities on key aspects that are essential for taking SMEs to the next level, including:
Providing Expert Shared Services
Many Canadian SMEs typically either (i) do not have dedicated skilled internal resources in key functional areas required to take their company to the next level or (ii) are not willing to spend the money to gain access to external resources. At Massey Capital, each of our portfolio company’s General Managers have full access to a shared services team of 13 experienced staff that deliver day-to-day support in a variety of functional areas that include strategic planning, project management, marketing, business development, human resources, M&A, treasury and finance.
Developing Emerging Leaders
Two critical factors that impact the growth of SMEs are strong leadership and thoughtful succession planning. Massey Capital recognizes this and invests in the development of emerging leaders. One of our quarterly programs called “Leadership Lab” aims to nurture, develop and empower emerging leaders within our SMEs. These programs include mentorship and leadership training workshops, helping to create the next generation of SME leaders.
Providing Necessary Capital
Lack of access to capital is a major hindrance to SME growth. Every year Massey Capital leverages its capital to provide our portfolio companies with the financial resources necessary to invest in manufacturing equipment, service equipment, technology systems, vehicles and “greenfield” operations.
Investing in Technology
Staying technologically competitive is a must for SMEs. Historically, SMEs have been slow to adopt new technology that is essential in keeping them competitive in the marketplace. Massey Capital helps its SMEs by providing them access to cutting-edge technology solutions. These investments in technology not only improve operational efficiency and analytics for decision making, but also improve the customer experience and enhance the ability to compete on a North American scale. To date, Massey Capital has implemented new ERP systems from SAP and Netsuite in three of its portfolio companies along with an array of industry specific best-in-class software solutions.
Expanding Business to Other Territories
To foster growth, SMEs need to put an emphasis on exploring new markets and expanding their businesses beyond Canadian borders. Massey Capital’s emphasis on organic growth and their knowledge of how to penetrate new geographic markets helps facilitate this process at their portfolio companies.
Innovation of Products & Services
SMEs require a continuous focus on innovation to remain relevant in an increasingly competitive and global marketplace. Massey portfolio companies are built on a culture of always moving forward with the continuous ongoing development and expansion of new products and services. Our employees are empowered to experiment in the areas of design, function and purpose. A criteria of high importance is the social and environmental impact the products and services we develop have on society.
Adding Financial Planning & Analyses (FP&A)
Massey Capital has a strong financial shared services team and provides its portfolio companies with comprehensive financial services, including annual budgeting, strategic planning, and monthly financial packages rich in analytics. These set of FP&A tools, typically not practiced in a disciplined manner by Canadian SMEs, are a regular cadence at each Massey Capital portfolio company.
In closing, Massey Capital’s progressive approach to empowering and growing small and medium-sized enterprises aligns with the aspirations for Canadian SMEs highlighted in David Parkinson’s article. Massey Capital recognizes that a thriving entrepreneurial sector of small to medium-sized enterprises is essential for Canada’s economic prosperity, and the company actively contributes to the development and growth of this crucial sector by continuing to acquire SMEs and the implementation of our strong operational playbook.
About Massey Capital
Massey Capital is a Toronto based firm that invests in lower mid-market companies in Canada, defined as business with annual EBITDA less than $5.0 million. Massey Capital’s vision is to work with management teams to help businesses achieve their full potential. Massey Capital currently has 15 investments in custom manufacturing, distribution and business services companies.