Being approached by an interested buyer is an exciting prospect for most businesses. When an offer does come through, it’s important that owners take control of the process to ensure it’s competitive and the deal structure makes sense for their business – a process that can be complex and time consuming. If, like Canberra-based ICT Consultancy Axsym, your team is completely dedicated to billable client work, an M&A Advisor can become an invaluable asset.
With a particular focus on Federal Government contracts, AxSym had heard of our experience in the defence sector in particular. So, with an offer already on the table, they asked us to help them progress discussions. At the same time, we began exploring other potential acquirers who might offer a higher valuation and provide a strategic platform for the founders to continue to grow the business.
Additional party at the table drives competition
We introduced several parties to Axsym, including SOCO who met the shareholder and management objectives. The process immediately became more competitive, driving up the sale price. It also began to move much more quickly. A listed Australian ICT Consultancy and Microsoft Gold Partner, SOCO was interested in expanding its footprint in Canberra, making AxSym a compelling acquisition target. We continued to assist the AxSym team with their response to initial requests for information and questions from parties. But, after SOCO made an initial offer, AxSym’s shareholders decided to proceed with them alone.
Balancing act – five shareholders, multiple objectives
Selling a business can be an emotional process for owners. One of the most important roles of an advisor is taking the time to understand the objectives of each shareholder and structuring a path forward that balances these as best as possible. We worked closely with each of Axsym’s five shareholders throughout the process, to understand these objectives and continually revisit them, ensuring the outcome we were working towards was aligned.
A sprint to the finish line
From the initial SOCO offer in mid-September, the deal was completed on the 31st of October, a very tight six-week timeframe. Because SOCO is a listed company, they were required to announce the acquisition pending Due Diligence. Once this information was in the public domain, it added additional pressure to get the deal done quickly. Being a listed entity, SOCO also had a greater level of questioning and structure which we were able to manage on Axsym’s behalf.
“We’re thrilled to have been able to support Axsym’s shareholders with their 100% sale to SOCO. With multiple stakeholder objectives to consider and a short timeline, we applied creative solutions and achieved an outstanding outcome.”
Australia and Japan’s trade and investment partnership traces back to the mid-19th century. From the initial exchange of coal to today’s intricate network of investments spanning various sectors, the ties between these two nations have evolved significantly. The bilateral relationship between Australia and Japan has not only endured but flourished. In 2023 alone, the two […]
Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]
Derek Thomson, Director of our dedicated Clean Energy and ESG division, gives us a wrap up of some of the recent trends affecting Clean Energy companies based on his conversations with clients.
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Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]
Running an M&A process is similar to ultrarunning according to Mark Steinhardt, InterFinancial Executive Director. He’s done a fair bit of both so, after slogging it out over 80kms in Noosa recently, he decided to pen his thoughts on the similarities between M&A and ultrarunning. Originally shared as an article on Mark’s LinkedIn here: ________________ […]
Established in 1981, DDH Graham offers a wide range of investment products and services including cash management accounts, a variety of managed funds as well as super and non-super administration capabilities. With the leader of its administration business transitioning into retirement and increased regulation and market consolidation, DDH sought to explore options for potential partners […]
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Our monthly dashboards cover seven key sectors of focus, with each sector built up by several subsectors that cover similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the Australian Stock Exchange that are actively traded and covered by research analysts, and hence have […]
