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 […]
It’s been a challenging few years for Consumer Goods and Retail companies. The pandemic, supply chain disruptions, rising interest rates and cost of living pressures have all had an impact on profits in the sector. Of course, some companies did quite well during the pandemic. Think online shopping, home delivery meal boxes and camping […]
We’re thrilled to announce the promotion of Michael Kakanis to Director at InterFinancial and his recent appointment as Co-Chair of Healthcare at Clairfield International. Michael’s journey is nothing short of inspiring. Working as a lecturer in Physiology and Biochemistry while completing his PhD in Immunology, Michael was all set for a long career in Academia. […]
Properly understanding the potential financial returns of an investment in the context of operations in the Australian Energy market Renewable energy generation projects utilising solar, wind and battery technology find revenue sources from offtake agreements, arbitrage of wholesale electricity prices, providing grid stabilization services via mechanisms such as FCAS and by accessing green trading certificates […]
At InterFinancial, our strength lies in the passion and expertise of our talented team. Today, we’re shining the spotlight on Nasia Christodoulou, who joined us as a Research Assistant in January 2023 and has since progressed to Analyst. In this Q&A, Nasia gives us a glimpse into her daily routine, the challenges she overcomes, and […]
When it comes to selling your business, it’s easy to get excited about the headline price offered by potential buyers. But before you pop the champagne, you will need to look beyond that big number and consider the finer details that can significantly impact how much money ends up in your pocket. In this blog […]
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 […]
A few years ago, we ran some analysis on Public to Private (P2P) transactions to see what we could distil from the data. You can read the article here. P2P or Take-Private simply means the takeover of a listed (public) company so that it then becomes a private company, either independently (typically with the […]
Another year has flown by, and what a year it was! From strategic partnerships to international expansions, 2024 saw InterFinancial at the heart of some truly transformative partnerships. 13 transactions. Numerous opportunities created. As we look back on FY24, we’re excited to share the stories behind the numbers – stories of businesses taking bold steps, […]
