How This Entrepreneur Built and Sold a Canning Company in 3 Years | Business Exit Case Study with Breakwater M&A
“The biggest value to me was it’s really hard to value a private company, especially when it’s so small and boutique like mine was... Having access to those metrics are really great for a small business... And the other piece that really set it apart was the communication... it really felt like because I was running a small business and trying to sell it, that they were on my side to make sure that I wasn’t wasting my time.”
Client Overview
As Vancouver Island's exclusive mobile canning provider for breweries and kombucha providers, Valkyrian Canning presented a highly marketable business opportunity. The company's comprehensive mobile canning and supply services created strong repeatable revenue from the growing craft beverage sector, with minimal capital requirements and high barriers to entry. Their asset-light business model and established client relationships made them an attractive acquisition target.
Within a year, the business grew 198% generating over $500,000 in revenue. Unlike most businesses of this size, owner Zac Roff maintained minimal involvement in day-to-day operations—reducing the owner dependency risk for potential buyers. This made the company an ideal candidate for Breakwater’s seller advisory services.
Breakwater's Approach
Initial Assessment
Valkyrian presented a growth opportunity for buyers, given it’s relatively short operational history. As a result, Breakwater valued the business based on it’s trailing twelve month (TTM) earnings.
Strategy Development
Given its rapid growth trajectory, Valkyrian presented the perfect opportunity for an entrepreneurial buyer ready to continue scaling the business.
Using its buyer list, Breakwater crafted a targeted email to reach qualified buyers. This drove over 50 signed and submitted Non-Disclosure Agreements (NDAs) within a few days of emailing the list.
Execution Process
Given the strong interest, we worked with Zac to shortlist candidates for buyer-seller meetings. Several buyers submitted competing Letters of Intent (LOIs), and one was accepted, moving the business into due diligence.
The process hit a snag when the buyer withdrew during due diligence, citing concerns about rising supplier costs. However, because we had kept other interested buyers engaged throughout the process, another buyer quickly submitted a competitive offer with an expedited closing timeline. This deal ended up closing within the standard 6-week due diligence period.
Value Creation
Pre-Sale Preparation
Developed a Confidential Information Memorandum (CIM) that showed the growth story of the business and opportunities to scale.
Process Optimization
Breakwater drafted a detailed LOI - cutting down on the time spent by the buyer and seller’s lawyers on the purchase agreement
Deal Structuring
Cash offer with a small 12-month promissory note paid in monthly instalments
Results and Impact
The buyer grew revenues another 89% after the sale closed
Business has increased EBITDA margins
New owner is not full-time and has grown the overall valuation of the business
Key Takeaways
This seller had extremely organized books and records - making the sale and diligence process smooth
Developing a competitive process led to multiple offers, creating a backup buyer in case the first buyer withdrew.
Building a strong relationship between buyer and seller is crucial for closing deals successfully—a critical step that many entrepreneurs overlook.
As a buyer, you can leverage existing growth momentum post-acquisition—making your purchase price appear much more attractive within 12 months.
This case study demonstrates Breakwater's ability to execute a successful sell-side M&A process, maximizing value for founders while ensuring a smooth transition and continued growth for the business.