Our Investment Strategy
Ironhedge Management Inc. acquires Canadian lower-mid-market businesses with enterprise values between $5–25 million. We focus on companies with durable earnings, strong cash flow, and limited institutional attention, typically owner-operated firms navigating succession or scale challenges. These businesses often lack digital or operational optimization, creating clear opportunities for hands-on value creation.
Why This Strategy Wins
High deal volume, low competition
Canada has over 1 million employer-owned SMEs, many of them led by retiring founders. This creates a surge of sellable companies under $25M, a space large PE firms mostly ignore.
Fast payback, built-in downside protection
We acquire at 4 – 6× EBITDA, enabling capital recovery within 3 to 4 years even before optimisation. Asset-heavy businesses provide extra downside protection for investors.
Rapid value creation
Simple operational upgrades, like digitized invoicing, route optimization, or pro sales, can boost EBITDA by 15–30% and raise exit multiples. Roll-up potential further enhances long-term value.
Debt-ready sectors, falling interest
Many of our targets qualify for favorable senior-debt terms. With interest rates trending lower, leveraged returns improve, accelerating investor yield.
