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1 Performing For Sellers

There comes a point in time when even the most successful business owner considers selling their business. We would like to talk with you when that time approaches.

Mergers & Acquisitions have advised many clients on alternative strategies for exiting a business. In some cases, this has involved a gradual exit or equity retention in the business, often resulting in a greater financial benefit to the seller. Most people, however, wish only to sell their business and move on. In this case the secret to selling a business is as simple as applying the tried and tested techniques Mergers & Acquisitions have perfected over many years of business sales.

Many creative strategies are used to locate and negotiate with potential buyers, often in ways that others are not aware of, or do not have the capabilities to implement. Mergers & Acquisitions have the expertise to achieve exceptional results for our clients. Testimony to this fact is our impressive list of successful transactions. From our successes we have composed a comprehensive database of business sales information. This valuable data is available only through Mergers & Acquisitions and provides factual evidence supporting business values.

The reason many leading companies deal exclusively with Mergers & Acquisitions is a combination of our ability, experience and professionalism. Coupled to this is our unconditional respect for confidentiality and fairness in all business dealings. Without doubt, many business sales would simply not have been concluded without our involvement. Our purchasers are exclusively comprised of investors who have the financial capacity and ability to complete large transactions in a professional manner. Projects have been undertaken with parties located in many parts of the world.

Timing is crucial if you are to take advantage of every opportunity. Our contact database and professional relationships ensure a fast transition from mandate to deal presentation stage. Full resources are devoted to each transaction on the basis that lost time may translate into lost opportunity.

 



2 Performing For Buyers

Mergers & Acquisitions can assist private and public companies wishing to grow through strategic or bolt-on acquisitions by our creative approach to identifying and researching potential targets. Our unique methods avoid time intensive and distracting activities.

Often, the best results are achieved when we match a business to the specific requirements of a purchaser. The strategic and financial opportunities arising from combining the businesses may create synergies, which maximises benefits to both parties.

With an enviable record of successful business transactions to our name, we are able to objectively assess business values based upon a comprehensive bank of reliable sales evidence and factual results. The preparation of an Information Memorandum assists the purchaser to assess the benefits of the business and provides the basis of price expectations and contract conditions.

Mergers & Acquisitions have access to information on more than 20,000 businesses throughout Australia and we have successfully undertaken projects for parties located in many parts of the world.

 


3 Testimonials

A harmonious result for all players

"Mergers & Acquisitions have played a pivotal role in the expansionary stage of our company's development. Their diverse client base, attention to detail and the highest degree of professionalism ensure that Mergers & Acquisitions are the pre-eminent corporate brokers in Western Australia. We will continue to use their services".

Peter Hutchinson
Managing Director
Vysarn Pty Ltd

"Mergers & Acquisitions have been involved in selling a number of business units within our group. They have always acted with integrity and have managed our confidential requirements. Most importantly they have succeeded in matching the right buyers for the business units within our time frame".

Haydn L Chrystal
Managing Director
Chrystal & Co Pty Ltd

"Our experience with Mergers & Acquisitions is that they provide a professional and service oriented product and they are focused on providing a result in all circumstances".

Andrew Saker
Partner
Ferrier Hodgson


4 Successful Transactions

Successful transactions ranging in value from around $1 million to over $40 million have been concluded with the following Companies.

Al Engineering Corporation Limited
Atkins Carlyle Limited
AMP Capital Investors
Austoil Technology Ltd (NZ)
Australian Records Management

Bovells Bakery
Brambles Ltd
Bulkwest
Bunnings Limited

Canon Foods Services Pty Ltd
Centurion Powder Coaters Pty Ltd
Chrystal & Co Pty Ltd
Croissant Gourmet
Crystal Softdrinks
CTI Logistics Ltd

Downer Edi Limited

Electro Acoustic Co
Enzed Pilbara
Expro Group Australia Pty Ltd

G.A.Perry
Grinnell Australia Pty Ltd

Hills Industries Ltd
Hospital Television Rentals
Howard Porter
Hydraulink

Inteltec Communications

JFK Engineering Pty Ltd
John Honey Hydraulics
Joyce Corporation Limited
JR Engineering Pty Ltd

KDB Engineering Pty Ltd
Kerry Equipment (Aust) Pty Ltd
KL Drilling Services (Aust) Pty Ltd

Landscape Development
Lionel Samson & Son Pty Ltd

Micro Control Engineering Pty Ltd
Mitchell Corp
Morley Glass
Murchison Pet Meats

Oilserve Limited
Omni Manufacturing

Parrys Frozen Foods
Pioneer Water Tanks (Australia) Pty Ltd
Pipefab Pty Ltd
Polystyrene Industries
Powerwest
Pro-Dental Pty Ltd
Protectomat Pty Ltd

Rawtek
Recom Engineering Ltd
Roofmart Pty Ltd

Scott-Boalch Pty Ltd
Shelton Partners
Sherwell Holdings WA Pty Ltd
Shoprider Pty Ltd
Siddons Ramset Limited
Skansen Limited
Snack Food Wholesalers
Steelstruct Engineering
Subsea Services Pty Ltd
Supa-Coat

Techflow Pty Ltd
Timcast Pty Ltd
Town & Country Limited
Transair Australia
Tubelok Metals
TVT Engineering Pty Ltd
Tyco Flow Control Pacific

United Paper
Uniway Transport

Vaughan Castings
Veem Engineering Group
Vysarn Pty Ltd

Weatherford (USA)
Webb Construction (WA) Pty Ltd

Yarrows Fine Foods (NZ)


5 Fee Structure

A fee structure that will be music to your ears

Mergers & Acquisitions' remuneration is predominantly success fee based. This means we only get paid once a successful transaction has been concluded.

Although we work closely with many leading professionals, including accountants, stockbrokers, solicitors, investment bankers and private equity specialists, we do not provide ancillary or competing services that could lead to conflict-of-interest issues. This enables us to stay focused on our prime objective - matching the right buyer, to the right business, for the right price.

So, for service tuned to your highest expectations, contact Mergers & Acquisitions.

 


6 Confidentiality

Confidentiality is strictly maintained in all of our dealings. We employ rigorous techniques to qualify potential purchasers and ensure only serious acquirers have access to sensitive or confidential information. This procedure works for the equal benefit of both the seller and the ultimate purchaser.

For further information on confidentiality, follow the "Confidentiality Agreements" link.

 



7 Negotiations

Structuring transactions to accommodate the specific needs, interests and concerns of each buyer and seller is paramount to a successful transaction. Both parties' objectives, while extremely diverse, can often be met through creative thinking, discussion and compromise.

The ebb and flow of the negotiation process can be tedious and emotionally challenging. It is advantageous for Mergers & Acquisitions to mediate conflict concerning price, terms and other considerations.

Our role is that of an intermediary, and we have a proven record of being able to competently negotiate difficult transactions.

The team at Mergers & Acquisitions works closely with buyers and sellers to orchestrate transactions that harmoniously meet the objectives of all parties concerned.

 



8 People Profile

Consultants at Mergers & Acquisitions have diverse corporate backgrounds including experience in management, marketing and financial services, as well as having held senior executive positions in large corporations and public listed companies.

ROSS GOLDSTEIN

Ross has been involved with Mergers & Acquisitions for 15 years. He had previously held senior positions in sales and marketing for a number of world leading companies and worked out of the UK, South Africa and Australia. Following accounting and legal studies, Ross started one of Australia’s largest business broking operations that he later sold to a public listed company. Ross has attended conferences around the world on subjects that impact upon this industry and has been a regular lecturer and trainer on the subject. Ross operates out of our Perth office.

MARTIN BOOTH

For the past 10 years Martin has been negotiating deals with Mergers and
Acquisitions valued up to $20 million.

Martin has a background in accounting and auditing and spent eight years working on Projects in South East Asia whilst at the same time maintaining interests in medium-sized businesses in Australia. Martin travels to Asia frequently matching opportunities and servicing existing clients. Martin operates out of our Perth office.

JEFF ROBERTS

Jeff is a CPA member of CPA Australia, has a Bachelor of Business Degree and a Graduate Certificate in Applied Finance and Investment, and is a director of Mergers & Acquisitions. He has a strong background in commerce including around 16 years in senior Accounting, Finance and Company Secretarial positions in a number of public listed companies. These companies were involved in various activities including mining, exploration, resources services, merchant banking, stockbroking, insurance broking, R&D, and manufacturing. Jeff has a great deal of experience in public company takeovers and medium to large business sales, acquisitions and valuations across a wide range of industries. Jeff has been with Mergers & Acquisitions for 10 years and operates out of our Perth office.

ROBIN TAYLOR

Robin has held senior positions as an Accountant, Financial Controller, Managing Director and Executive Vice President working in NZ, Australia, UK, Belgium, France the USA. These positions included frequent involvement in various other European countries as well as Japan.
His extensive management experience spans 30 years with many leading public companies including: GEC, Comeng, ANI and Evans Deakin. During that time Robin was personally involved in a considerable number of acquisitions covering a broad spread of industries including, medical, engineering, industrial, service, distribution, and manufacturing. Robin operates out of our Sydney office.

IAN JENSEN

Ian is a Chartered Accountant and a fellow of the Institute of Directors. He has had broad experience in small to medium businesses over aperiod of 30 years. This experience has been in public practice and as a Public Company Executive Director.

He was a partner in the Brisbane office of Ernst & Young until 1987 and then 7 years as an Executive Director of Power Brewing Ltd, responsible for corporate finance and strategy. In both these roles he had extensive experience in the Sale and Acquisition of businesses and corporations. He subsequently spent a further 6 years in practice as a corporate advisor involving strategic advice, due diligence reviews, finance restructuring and capital formation up until joining Mergers & Acquisitions. Ian operates out of our Brisbane office.

FRANK GIUGNI

Frank is a finance professional with a chartered background and extensive manufacturing sector experience gained in several management roles with James Hardie Industries Limited.

He has held various key operational management positions with profit centre responsibility for the UK-based Rentokil-Initial plc Group, as well as head their local merger and acquisition activities. His involvement included trouble-shooting activities for poorly-performing areas of their business.

More recently, Frank headed up a business advisory firm which focussed on implementing profit growth strategies for stalled businesses, many of which used the acquisition and disposal route to develop and strengthen their trading operations.

He is a Fellow of CPA Australia and operates out of our Sydney office.

RAY PRENTICE

Ray Prentice is a Certified Practising Accountant and holds a Bachelor of Business Degree.

He has extensive experience in the management of privately owned business with more than 27 years experience, with 18 years as a partner, in public accounting practice in Perth and Sydney.

Ray's business experience includes corporate restructuring, financing, succession planning and business exit strategy, business development, business acquisitions and disposals spanning a wide range of industries including manufacturing, transport, engineering, wholesale and distribution and services.

Ray joined our Perth office in 2004.

TODD GROVER

Todd holds a Bachelor of Commerce from UWA and, during his time with
PriceWaterhouseCoopers (in the Energy and Mining division of both the Perth and Brisbane offices), qualified as a Chartered Accountant.

After a stint as a Senior Accountant with a ASX listed entity, Todd moved to London for 4 years. During this time he held key reporting positions with some of the worlds most prestigious companies including Diageo and Warner Music before moving to a merchant bank. During his time with the bank, Todd was instrumental in the sale of the bank to a competitor and post transaction was tasked with improving the performance of a key under-performing division of the combined business.

After relocating back to Western Australia and the completion of a project role with Rio Tinto, Todd joined the Mergers & Acquisitions team. Todd operates out of our Perth office.

 



9 Finding a Buyer

What are the potential types of buyers?

FINANCIAL BUYERS

These are typically individuals or companies with money to invest and are willing to consider various types of businesses or industries. They may be business migrants, business proprietors looking for a new challenge, former executives of large corporations who want to buy a business, etc.

Most financial buyers are looking for solid, well-proven businesses that can compliment their management style whilst minimising their exposure to risk. Some buyers specialise in turnaround situations and will consider businesses that are not currently profitable but require specialised turnaround skills.

STRATEGIC BUYERS

These buyers are interested in how a business could be merged with or enhance their own business growth prospects. They may be one of the businesses competitors or a company wishing to expand by acquiring a business that has synergistic qualities which can demonstrate certain economies of scale.

Whether synergistic or competitive, strategic buyers are generally the ones who will recognise immediate benefits in acquiring a suitable business.

Protecting confidentiality whilst making overtures to competitors is a difficult task and Mergers & Acquisitions have developed skills in this area to ensure that the credentials and intentions of the purchaser are genuine, the risk of divulging sensitive or confidential information to potential competitors is minimised.

PRIVATE EQUITY INVESTORS

These investors are normally keen to jointly acquire growing businesses along with the key employees. Key employees already have a personal stake in the future of the business but they often do not have the capital to fund the purchase. The seller may also be willing to recover part of the sales price via an earn-out provision, or retained equity.


Mergers & Acquisitions have the skills to manage the sales process whilst maintaining confidentiality with potential buyer candidates.




10 Information Memorandum

You only have one opportunity to make a first impression.

An Information Memorandum is an essential component to selling a business. It contains important information about a company, products, industry and markets in a format that is easy to understand. It is the "silent salesperson" that continues to inform those involved in the decision making process of the relevant benefits of the business, even though they may not have had direct access to the business or its management.

In essence, this is a selling document that Mergers & Acquisitions prepares at the start of a selling mandate and which buyers and their advisors rely on to assess the business operations and price expectations. Summarised accounts and client codes are often used to maintain confidentiality.

This information memorandum highlights the benefits of the business being sold, whilst also containing disclaimers relating to representations and warranties and directions as to how to proceed.