Debt and Capital Advisory in British Columbia and Alberta
Independent corporate finance advice for owner-managed businesses navigating complex financing decisions across Western Canada.
KitsWest Capital advises small to mid-market privately held businesses across British Columbia and Alberta on debt and capital matters. Our practice covers senior debt and working capital, commercial real estate financing strategy, equipment and asset-based financing, acquisition and growth capital, private credit and mezzanine, and corporate debt restructuring. We work exclusively on the client’s side of the table, sourcing and structuring capital from the lender universe best matched to your business and stage. Sector experience reflects the diversity of Western Canada’s private business economy: manufacturing and construction, resources and energy, real estate and transportation, distribution and trade, food and beverage, technology, and professional and business services. Whether refinancing, acquiring, funding growth, or working through a restructuring, we run a disciplined process that secures the right capital on the right terms.
What is debt and capital advisory
Debt and capital advisory is independent advisory work that helps a business owner answer one question: what is the right way to fund this decision? An advisor sits between the borrower and the lender market, runs a structured process to identify the appropriate capital and lenders, negotiates the terms, and supports execution through closing.
A debt and capital advisor does three things a lender does not. First, the advisor is independent. A bank or private credit fund sells its own product. An advisor evaluates the full universe of lenders and recommends the one that fits the situation. Second, the advisor brings process. Most owner-managed businesses negotiate one or two financings in their lifetime. Lenders negotiate thousands. The advisor closes that experience gap. Third, the advisor frames the structural decision before the product decision. Whether to fund growth with senior debt, subordinated debt, equity, or some combination is a strategy question that precedes the question of which lender provides each tranche.
Privately held businesses, including both small businesses and mid-market companies, benefit from advisor engagement when the financing is consequential enough that the cost of advice is repaid through better terms, structure, and execution. The trigger is usually situation-driven: any acquisition financing, any refinancing of complex capital structures, any situation involving covenants or distressed positions, or any financing where the right capital structure decision affects long-term value.
Services we provide
01 / Senior debt, working capital, and operating lines of credit
Senior debt and working capital facilities are the foundation of most private company capital structures. KitsWest advises on commercial bank term loans, operating lines of credit, business loans for general corporate purposes, and other working capital structures that match the cash conversion cycle of the underlying business.
Most owner-managed businesses in British Columbia and Alberta finance ongoing operations through a primary commercial banking relationship with one of the Canadian chartered banks, a regional credit union, or in some cases a non-bank lender. We help clients evaluate whether the current banking relationship is delivering the right structure and pricing, whether to expand the existing facility, or whether to switch lenders. Working capital needs typically intensify when seasonality strains liquidity, when growth pulls cash faster than collections can fund it, or when the existing operating line is no longer sized to the business.
The work includes sizing facilities correctly, negotiating advance rates and covenants on operating lines, structuring term loans for capital expenditures or shareholder transactions, comparing offers across commercial banks and specialty lenders, and structuring credit facilities that preserve flexibility as the business grows.
02 / Commercial mortgages and real estate financing
Many of our clients own the property their business operates from, are considering acquiring commercial real estate, or operate in the broader real estate sector as investors, developers, or property managers. Commercial mortgage and real estate financing decisions affect both the cost of operations and the long-term shareholder value of the underlying real estate.
We advise on the strategic side of these decisions: whether the business should own its real estate at all, how a property purchase or development fits the broader capital structure, how much leverage the business can responsibly carry against real property, and how an existing commercial mortgage compares to current market terms. The Canadian commercial mortgage market includes commercial banks, credit unions, life insurance companies, and a growing private debt market, each with different risk appetites and pricing.
Where a mandate calls for placing or refinancing a commercial mortgage, our principals include registered mortgage professionals who execute through partner brokerage firms, so clients get regulated mortgage execution alongside independent capital structure advice in a single engagement.
For businesses in British Columbia and Alberta, we have experience with the specific dynamics of Western Canadian commercial real estate markets in Vancouver, Victoria, Kelowna, Prince George, Calgary, and Edmonton.
03 / Equipment and asset-based financing
Equipment and asset-based financing fund the productive capacity of a business. KitsWest advises on equipment loans, equipment leasing structures, sale-leaseback transactions, and asset-based lending facilities collateralized against equipment, inventory, and accounts receivable.
For businesses in capital-intensive sectors including manufacturing, transportation, energy services, oilfield services, forestry, and food and beverage, equipment is often the single largest balance sheet item. Financing decisions on equipment affect cash flow, tax position, and operational flexibility. The right structure depends on the useful life of the equipment, the tax position of the business, and the broader capital structure.
Asset-based lending uses the value of business assets as the primary credit basis rather than the cash flows of the business. ABL facilities are particularly useful for businesses with strong balance sheet assets but variable or uncertain cash flows, businesses going through transition periods, and businesses requiring more flexible covenants than traditional cash-flow lending offers.
We work with commercial banks, equipment finance specialists, asset-based lenders, and equipment lessors to structure the right financing for the situation.
04 / Acquisition financing and growth capital
Acquisition financing is one of the most consequential capital decisions a private company makes. The structure determines how much risk the buyer takes, how much equity they preserve, and how the business performs through the integration period.
KitsWest advises on the full acquisition financing stack: senior debt from commercial banks or BDC, subordinated debt from private credit funds, vendor financing structured into the transaction, and where appropriate, minority equity from outside investors. We work the financing process in parallel with the M&A process so that the buyer has firm financing commitments in hand before closing. We typically run acquisition financing in parallel with our business brokerage engagements. [Read about our business brokerage services.]
Growth capital follows the same logic. When a business needs capital to expand capacity, enter a new market, scale a proven model, or fund a recapitalization that returns capital to existing shareholders, the structure of that capital shapes the future flexibility of the business and the dilution of the existing owners.
Recapitalizations are a particular focus. Founder-led businesses often reach a point where shareholders want to take some chips off the table without selling the business outright. The right recapitalization structure can return meaningful capital to shareholders while preserving control, supporting future growth, and creating optionality for a future sale.
05 / Private credit, mezzanine, and subordinated debt
Private credit has grown faster in Canada over the past three years than any other segment of business financing. Canadian businesses are increasingly using private credit as an alternative or complement to bank lending, particularly for acquisitions, recapitalizations, and growth financings where traditional bank credit boxes are too restrictive. KitsWest advises owner-managed borrowers on private credit transactions including direct senior loans, mezzanine financing, subordinated debt, and unitranche facilities. Each instrument fits a different purpose. Senior private credit replaces or sits alongside bank senior debt at typically higher cost but with materially more flexible terms. Mezzanine financing fills the gap between senior debt and equity, allowing a buyer to lever up an acquisition without giving away ownership. Subordinated debt provides patient capital for growth or recapitalization at structures that look more like equity than traditional debt. We work with the Canadian private credit market including BDC’s Growth and Transition Capital group, dedicated private debt funds, family office credit providers, and specialty asset-based lenders. Our role is to evaluate which structure fits the situation, run a competitive process across the lender universe, and negotiate terms that preserve flexibility for the business.
06 / Debt restructuring and refinancing
Not every financing situation is a fresh capital raise. Some are refinancings where the goal is better terms, a different lender, or a different structure. Some are restructurings where covenants have been breached or are at risk, where the existing lender has signaled a change in appetite, or where the business needs runway to execute a turnaround. KitsWest advises on commercial debt refinancings, on covenant amendments and waivers, on lender substitutions, and on more complex corporate debt restructuring situations including troubled debt restructuring and forbearance arrangements. The earlier a business engages an advisor in a restructuring situation, the more options remain available. Restructurings handled in advance of covenant breach are materially less expensive than restructurings handled afterward. We work alongside legal counsel and other advisors in restructuring situations and bring particular focus to capital structure analysis, lender negotiation strategy, and the financial and operational adjustments that make a restructuring successful.
Transactions can legitimately span multiple categories. A restructuring that involves a going-concern sale, for example, combines our debt and M&A capabilities.
| Capital type | Typical use | Position and security | Typical providers |
|---|---|---|---|
| Senior bank debt | Working capital, operating lines, and term loans for ongoing operations and capital expenditure | Senior secured, typically a general security agreement over all business assets | Schedule I banks, Schedule II banks, credit unions |
| Equipment and asset-based financing | Funding equipment purchases or unlocking liquidity against receivables, inventory, and fixed assets | Secured by specific equipment or a borrowing base of working capital assets | Equipment finance specialists, asset-based lenders, BDC |
| Commercial mortgage | Acquiring, developing, or refinancing owner-occupied or investment commercial property | First or second mortgage secured by real property | Schedule I banks, mortgage investment corporations, life insurance companies |
| Mezzanine and subordinated debt | Acquisition financing, growth capital, and recapitalizations where senior leverage is fully drawn | Subordinated to senior, often unsecured or with a second-lien position | Mezzanine funds, BDC Growth and Transition Capital, private credit funds |
| Private credit and unitranche | Larger or more complex transactions where speed, flexibility, or non-bank covenants are required | Senior or unitranche, structured to fit the specific transaction | Private credit funds, alternative lenders, family offices |
Selected transactions
Selected transactions our principals have advised on across their corporate finance careers. Comprehensive listing can be found on our transactions page.
Mike Busch, CPA, CBV · Founder & Managing Partner
Mike brings nearly a decade of experience across investment banking, corporate finance, valuations, and restructuring. Prior to founding KitsWest Capital, Mike advised businesses across Canada and the United States on transactions ranging from business sales and acquisitions to capital raises, refinancings, and corporate restructurings at Big Four firms and mid-market investment banks. Mike is a member of CPABC and the CICBV.
Why hire an independent debt and capital advisor
The Canadian mid-market debt landscape is well served by lenders. Commercial banks, BDC, credit unions, private debt funds, and family offices all compete for business. The gap is on the advisory side. Few firms in Western Canada offer dedicated independent debt and capital advisory to owner-managed businesses, and most firms that do also have other lines of business that introduce conflicts.
Independence
We are not a lender and are not tied to any capital provider. We earn no referral fees from lenders on our advisory mandates and have no balance sheet to defend. Our advice is aligned with the shareholders’ interests rather than a product to sell.
Method
We bring structure, preparation, and competitive tension to financings where outcomes matter. Running a disciplined process across the right lender universe gives the borrower meaningful leverage on pricing, covenants, and execution terms.
Negotiation experience
We look beyond headline pricing to evaluate covenant package, flexibility, amortization, fees, and execution certainty. The terms that matter most over the life of a facility are often the ones that receive the least attention in initial discussions.
Structure
The choice between senior debt, subordinated debt, and equity is a strategy question, not a product question. The decision affects flexibility, cost of capital, and downstream control, and the right structure often differs from the obvious one.
Our process
Our typical engagement follows five phases. The first is a discovery and capital structure review at no cost to the prospective client. The remaining phases are billed against a transparent fee structure agreed upfront.
01 / Assess the situation
We start by understanding the company, the financing context, the existing capital structure, and the strategic objective. This phase identifies the real problem, which is sometimes different from the problem the client first describes.
02 / Define the financing strategy
We determine the appropriate structure, leverage, lender universe, and key terms based on the business and the mandate.
03 / Prepare and position
We prepare lender-ready materials that clearly present the opportunity and address credit considerations upfront. The quality of preparation directly affects the quality of lender response.
04 / Run the process
We manage lender outreach, discussions, diligence, and information flow in a controlled and competitive manner.
05 / Negotiate and close
We evaluate proposals, negotiate economics and documentation terms, and support the process through funding.
Integrated with valuations and business brokerage
Debt and capital decisions are often closely connected to valuation, transaction planning, and shareholder outcomes.
We regularly integrate our Debt & Capital Advisory work with our Business Valuation and M&A Advisory services so that financing decisions are assessed in the broader context of value, execution, and strategic alternatives.
For some clients, the financing mandate is the engagement. For others, it forms part of a larger decision around an acquisition, recapitalization, shareholder transition, refinancing initiative, or broader strategic review.
Frequently asked questions
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Debt and capital advisory is independent corporate finance advisory work focused on helping a business decide how to fund a particular decision. The advisor evaluates the capital structure, runs a competitive lender process, negotiates terms, and supports execution through closing. A debt and capital advisor does not lend money. The advisor sits on the borrower's side of the table.
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A business should consider engaging an advisor when the situation involves an acquisition or refinancing, when the existing capital structure is complex, when covenants are at risk, when the business is evaluating private credit or another alternative to bank lending, or when the size and complexity of the financing justifies the cost of advice. The right time is usually before the financing decision is locked in.
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Many companies do. We are often engaged when management wants to understand whether terms are competitive, explore alternatives, or run a broader process rather than rely on a single lender conversation. In those situations, independent advice can help improve structure, flexibility, and execution.
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Yes. We regularly advise on processes involving traditional banks, private credit funds, and alternative lenders. The appropriate financing solution depends on the business, the transaction, the timing, and the client's objectives.
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Yes. We advise clients on acquisition financing strategy, lender process management, and financing structure for business acquisitions. Depending on the situation, that may include bank debt, private credit, subordinated debt, or a broader capital structure decision.
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Yes. We regularly advise on refinancing initiatives where a business wants to improve pricing, extend maturity, increase flexibility, or evaluate alternatives to an existing lender relationship. In these situations, our role is to help assess options, run a structured process, and negotiate terms that fit the business.
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A recapitalization is a financing transaction that changes a company's capital structure. Depending on the objectives, it may be used to support growth, improve liquidity, fund a partial liquidity event, or restructure existing debt and equity in a way that better aligns with shareholder and business needs.
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Yes. Most engagements involve owner-managed businesses and management teams, and we also advise select sponsor-backed companies where financing needs are complex, time-sensitive, or transaction-driven.
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We work with both. Our practice spans small business and mid-market owner-managed companies in British Columbia and Alberta. The decision to engage an advisor is driven by the situation and complexity of the financing, not a strict revenue threshold. Small businesses with complex financings, acquisitions, refinancings, or distressed positions benefit from advisor engagement just as larger mid-market companies do.
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Private credit is debt financing provided by non-bank lenders, including dedicated private debt funds, family offices, and institutional investors. Private credit complements traditional bank lending and is particularly valued for its flexibility in structuring around complex transactions, growth situations, and acquisitions where bank credit boxes are too restrictive.
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Senior debt sits first in the capital structure. It carries the lowest cost and the tightest covenants. Subordinated debt sits below senior debt and above equity. It carries a higher cost in exchange for ranking behind senior lenders. Mezzanine financing is a form of subordinated debt that typically includes an equity component such as warrants. The right structure depends on the situation, the cash flows of the business, and the strategic objectives of the owners.
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Corporate debt restructuring is the process of renegotiating the terms of an existing debt facility, replacing it with a new facility, or substituting a new lender, typically in response to covenant pressure, distress, or a fundamental change in the business. Restructuring can involve covenant amendments, forbearance arrangements, debt-for-equity exchanges, or full refinancing under different terms. The work requires both legal and financial advisory inputs.
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Our fee structure is transparent and agreed in advance of any engagement. The initial discovery and capital structure review carries no cost. Beyond that, fees are typically a combination of a monthly retainer and a success fee at closing. The structure varies with the size, complexity, and timeline of the mandate.
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KitsWest Capital is based in Vancouver and we focus on businesses headquartered in British Columbia and Alberta. We have advised on transactions across Western Canada and we work with clients in other Canadian provinces and in the United States where the situation fits our experience.
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KitsWest is industry agnostic with deep experience across the industries that drive Western Canada's owner-managed economy: manufacturing and construction, resources and energy (including forestry, mining, oil and gas, and energy services), real estate and transportation, distribution and trade, food and beverage and agriculture, technology, and professional and business services.
Our insights
Discuss a valuation, financing, or M&A matter
If you are evaluating a business sale, acquisition, refinancing initiative, recapitalization, financing process, unsolicited offer, or valuation assignment, we welcome a confidential discussion.
KitsWest Capital
595 Howe Street, Suite 306
Vancouver, BC V6C 2T5
Advising owner-managed and privately held businesses in British Columbia and Alberta, with experience across Canada and the United States.
Our associations
Our principals are members of the Chartered Professional Accountants of British Columbia (CPABC) and the Canadian Institute of Chartered Business Valuators (CICBV). KitsWest Capital is a member of the Richmond Chamber of Commerce, the Abbotsford Chamber of Commerce, and the Greater Vancouver Board of Trade.
