Fortin

"Inflation, bankruptcy, the closing of factories, unemployment and poverty were painful realities across Canada, and the banks were becoming increasingly cautious. How could the economy be revived when entrepreneurs couldn’t borrow money to carry out their projects? To solve the problem, the Canadian government adopted a program to guarantee loans for small businesses, up to a maximum of $250,000. In effect, the government would act as guarantor in case of default. The project provided concrete support for small businesses as well as a colossal gift for the big Canadian banks. Fortin discovered that the program offered a solution to the financing dilemma faced by the four shareholders. No problem, he told Bouchard: We’ll split the company into separate units and apply for small business loans. The loans would be guaranteed by the government, so the banks would have no cause to refuse them. Following the advice of the Banque Canadienne Nationale, the group chose a different institution to finance its growth: the Bank of Montreal."

"Facing the several dozen people present, he began to speak. He thanked the employees for their continued efforts. Then he went on to deliver a prediction that left his audience stunned. Their company, he told them, would become the largest convenience store chain in Quebec. “The other partners and I just stared at each other,” says D’Amours. “We definitely had a long way to go to catch up with Provi-Soir, which had 200 stores, or Perrette, which had 125. We only had 12!” Fortin was also in shock. “Bouchard hadn’t told us about his announcement beforehand. Réal Plourde and I agreed that it was a very nice goal—but could we actually achieve it?”"

"On the evening of Saturday, August 24, the four Couche-Tard founders found themselves at Bouchard’s home, sharing a nice meal to celebrate the start of the pan-Canadian adventure that was opening up before them. Now they had to plan their implementation schedule. In the middle of dinner, Fortin’s telephone rang. It was his contact at the Caisse de Dépôt. There was good news and bad news. The institution’s credit committee had agreed to finance the operation, but on the condition that it would raise Couche-Tard’s interest rates. Fortin swiftly took a hard stance, even though it risked scuttling the deal. There would be no question of renegotiating the agreement in principle that had been reached. If the Caisse didn’t stand by it, their word meant nothing. When the call ended, the mood at the gathering had lost its sparkle. If the financiers didn’t back down, they would have to abandon the project. Bouchard and Fortin would be flying to Toronto the following day. They had hoped they would be presenting their surprise offer to Silcorp’s president—who still knew nothing of their plan—on Monday. It was good that he was unaware, given the new circumstances. Would the meeting even come to pass? Fortin spent Sunday morning pacing at home, waiting for the telephone to ring. Had his refusal to allow the Caisse to change the deal at the last minute pushed the powerful financial institution into backing down, or made them dig in their heels? The answer came before noon: The initial agreement would be respected. They had the green light to start the acquisition process. It had been a close call, but their plan was still on track."

"the four men had come to a conclusion: They should stay the course. The main reason, in Fortin’s view as a former banker, was that no bank would dare cut off funding for a company with a cash flow of $3 million. “We should continue operating,” he said. But they should also roll up their sleeves, he added, and strive to improve performance."