BDC: Blatant Deficiency of Cash flow

Crown Corporations, Ian Madsen, Valuation

The Frontier Centre for Public Policy has just released Public Choice Alternative: The Business Development Bank of Canada- Blatant Deficiency of Cashflow by Ian Madsen, a senior policy analyst with the Frontier Centre for Public Policy. The paper conducts an in depth valuation of the alternative choices for Canadian taxpayers if the Business Development Bank of Canada (BDC) were divested.

The BDC is a major lender and investor in new and growing companies across Canada. BDC is a private equity partner and lender, and provides merchant capital and venture capital. BDC is not as profitable as it may appear; the Crown corporation is unable to convert it’s reported profits into actual cash, leaving taxpayers on the hook. The venture capital aspect of the company’s operations is not the only reason revenues are not being converted to cash. Madsen’s valuation explores the alternative choices to Canadians if BDC were divested.

To read this critical valuation of BDC, click here: VS05_BDC-Valuation_AG1918_F1