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.”
Our monthly sector dashboards are out! Our dashboards look at the valuation multiples across seven key sectors, each made up of a number of subsectors. The data takes into account the sale prices of similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the […]
Strong geo-political, social and economic forces are influencing the pace of global investment in decarbonisation. Driven by economic factors, the Trump administration’s stance to curb action on climate change stands at one end of the decarbonisation investment approach, whereas other countries in Europe and Asia Pacific (including Australia) recognise they are behind in their quest […]
As the old saying goes, there’s no I in team. But there is an M&A! One of the most crucial factors determining the success (or otherwise) of a business sale or acquisition is selecting the right team. Transactions are hard work and typically involve a set of skills that are unfamiliar to a business owner. […]
From mining sites to boardrooms, Brad’s career has spanned various industries, continents and more air miles than he can count. As InterFinancial’s CEO, he’s led multiple businesses through growth, change, and the curveballs – always with a strategic eye on what’s next. With his 25+ years of experience, Brad has seen what works (and what […]
Working ON your business is just as important as working IN your business. For many business owners, their business is their primary asset. But like with any asset, it requires regular maintenance to ensure it remains competitive, profitable, and most importantly, investment ready. It’s important to consider the following key questions towards becoming investor ready: […]
Our monthly sector dashboards are out! Our dashboards look at the valuation multiples across seven key sectors, each made up of a number of subsectors. The data takes into account the sale prices of similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the […]
Our monthly sector dashboards are out! Our dashboards look at the valuation multiples across seven key sectors, each made up of a number of subsectors. The data takes into account the sale prices of similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the […]
Mergers and Acquisitions (M&A) are often seen as a golden ticket for businesses aiming to expand, achieve economies of scale, or diversify. Yet business history is littered with stories of failed acquisitions that have eroded value rather than enhanced it. Look no further than Catch.com, which is still in the news cycle. Why? Below are […]
We’re excited to dive into a round of Q&A with Lucy Clarke, a talented and passionate M&A Associate at InterFinancial. In this post, Lucy shares her insights on the daily grind, the rewarding aspects of her role, and the challenges she overcomes. Join us as we explore what it’s like to be an M&A professional […]
