How this Toronto gift-basket company got Harvard’s attention

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Baskits is a big business in Canada, it is exporting to the U.S., and it has plans to expand into Europe

As a private equity manager, Robin Kovitz was always searching for successful multimillion-dollar companies her firm could acquire that were ready for the next stage of growth. But when she decided to buy a business for herself, she wanted one with its best days yet to come.

The exchange rate is an advantage for Canadian companies in the U.S. market, as it essentially translates into a 30-per-cent discount for their American buyers, Ms. Kovitz says, but there are challenges selling south of the border. And the border controls process is ever-evolving and can be challenging, she adds. “We’ve invested a lot of time and money in the latest software to make sure that it’s seamless.”at Harvard Business School, which has helped draw interest from around the world. Still, there are many considerations when evaluating a potential market, including currency exchange, regulatory environment and local tastes and preferences, she says.

Baskits is looking into European expansion soon with its popular baby line. “We’re just moving into a huge new warehouse that we got it in and are rebuilding and once we do that, our next focus will be Europe.” BDC is essentially Canada’s bank for entrepreneurs but it’s much more than just a financing institution, says Mary Ann Wenzler-Wiebe, its vice-president of financing and consulting for the Greater Toronto Area. The organization also offers advisory services for clients at all stages of development and it has worked with Ms. Kovitz and her team at Baskits since shortly after she purchased the company.

 

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