July 12, 2024

Mergers & Acquisitions

Montfort Acquires Langhaus Inc- Is It The Right Move?

Montfort Capital Corporation has acquired a significant insurance company, bringing its assets to $475 million. The company is pleased to announce that it has closed on the acquisition of about 78% of Langhaus Financial Partners Inc., Canada’s largest independent lender of loans backed by insurance policies to business owners and people with a high net worth. This is the third acquisition that Montfort has made in the past year.

The acquisition of Langhaus Financial Corporation was completed by paying $7.02 million in cash to the vendors and $2.34 million in contingent payments if specific financial goals were met. Langhaus and Montfort have locked up some LFC shareholders who make up 53% of LFC’s outstanding preferential shares, which cost 6.57 million USD as per the terms and conditions of the appurtenant Lock-Up Agreement, which provides holders of LFC’s existing preferred shares six months after the acquisition to exchange their shares.

In 2021, Langhaus lost $954,000 in 6.5 million USD in terms of revenue. The company broke even and made $14,000 in the first quarter of 2022. Montfort reports that the assets of the merged company are worth $475 million. The company may grow and make more money for shareholders in the fiscal year 2024, and the acquisition was financed without any payments to deal finders.

Montfort Capital manages a variety of privately owned credit brands, each with a specific focus. This experienced management and new technology make it easier for investors to see results with public reports. Montfort’s business is full of risks and uncertainties, so even though management thinks their optimism is reasonable, there is no guarantee that the actual results will be as expected. The company may not have enough money to reach its goals, may not be able to find more investments that are right for it on terms it likes at all, and may not be able to get out of assets on terms that make a profit when none is expected and may face a lot of competition in all areas.

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