Dear BTF Community,
In this interview, Jeffrey McCain, Founder and President of Woodward Capital, discusses:
- Focus on Succession Challenges: Woodward Capital specializes in helping founder-owned and family-owned businesses in Canada transition to the next generation of leadership, addressing critical succession issues, particularly among retiring baby boomers.
- Nationwide Investment Approach: The firm operates across Canada, with a primary focus on opportunities in Atlantic Canada and Ontario, while also exploring businesses in diverse regions like British Columbia and Newfoundland.
- Active Engagement with Business Transition Forum (BTF): McCain is deeply involved with BTF, participating as an attendee, panelist, and upcoming chair for the Atlantic chapter in 2025, fostering collaboration among advisors, investors, and business owners.
Enjoy,
Mark
Woodward Capital, a holding company focused on investing in small to medium-sized founder-owned and family-owned businesses, has quickly made its mark since launching two and a half years ago. Based in Ontario, the firm is carving out a niche by addressing succession challenges facing Canadian businesses.
“Woodward Capital is a relatively new fund,” says Jeffrey McCain, President of Woodward Capital. “We launched it about two and a half years ago. It’s essentially a holding company that invests in small to medium-sized, founder-owned and family-owned businesses in Canada and the U.S.” Although the company operates in both countries, McCain emphasized its primary focus remains on Canadian enterprises.
A Nationwide Approach
The firm has examined opportunities across the country. “We’re genuinely looking from coast to coast,” McCain explains. “We spend a lot of time looking at companies in Atlantic Canada, which is where I’m originally from, and in Ontario, where I’m based.” He added that the team has explored businesses from the Northwest Territories to Victoria, British Columbia, and even Newfoundland. This nationwide approach is fueled by McCain’s connections and the ability to navigate these regions effectively.
Addressing Succession Challenges
Much of Woodward Capital’s focus is on helping business owners transition to the next generation of leadership. “Most of our time is spent with owners, helping them transition around moving to the next generation of leadership and succession management,” McCain notes.
This is particularly timely as a significant number of Canadian businesses face succession issues. “We’re right in that cross-section of retiring baby boomers,” he says. “There’s a massive amount of wealth in Canada transitioning over the next 10 years, with many great businesses that have a succession problem.”
McCain highlights a common scenario: “Imagine a business owner who built a successful plumbing company from scratch, ran it for 30 or 40 years, and now their children have careers as a doctor or firefighter. There’s no plan, and the only options are to sell it to other managers in the business or give it a new chapter with fresh leadership.”
Woodward Capital’s approach involves majority acquisitions, but it also entertains minority deals. “The predominant focus is majority acquisitions, but we have done minority deals where we see great businesses and want to support entrepreneurs as a minority owner,” McCain shares.
Engaging with the Business Transition Forum (BTF)
McCain’s involvement with the Business Transitions Forum (BTF) underscores his commitment to supporting business owners. He’s Chair of this year’s Atlantic Business Transitions Forum in Halifax on April 29. “I started attending BTF events when I moved back to Canada,” McCain recalls, adding he was in the United States for seven and a half years and the UK for two and a half years. “There aren’t enough associations or conferences focused on business owners looking to grow or sell their businesses.”
BTF events bring together key stakeholders. “You’ve got advisors, lawyers, investors, service providers, and, of course, business owners all in the same room. These partnerships are crucial for achieving the desired outcomes for business owners,” McCain explains. Having attended as a participant, McCain’s role at BTF has grown. “I’ve been an attendee, a panelist,” he says. “Being part of the organizational and steering committee is a great way to give back to the ecosystem.”
A Bright Future for Canadian Entrepreneurs
With its strategic approach to succession planning and its active role in fostering collaboration within the business community, Woodward Capital is poised to be a key player in the transition and growth of Canadian businesses. “It’s about providing capital, supporting transitions, and ensuring these businesses thrive into the future,” McCain concludes.
Mario Toneguzzi is a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and only Canadian. He also made the RETHINK’s global list as a Top Retail Expert 2024.