Unitywater and InterFinancial Deal celebration

Landing deal for Unitywater against the odds  

26.9.2023

Longstanding partnership builds solid foundations 

Since 2010, InterFinancial has worked alongside Unitywater to develop their growth strategy and a process that enables their Corporate Development team to successfully identify strategic investment opportunities. So, when they came to us with the opportunity to acquire a minority stake in their existing pipeline technology partner, Detection Services, we knew we had the knowledge and foundations to move ahead quickly.  

Twenty-four hours a day, seven days a week, Unitywater provides more than 800,000 customers in Moreton Bay, Sunshine Coast and Noosa with quality, safe and reliable water and wastewater services. 

Driven to be both economically and environmentally sustainable, their partnership with Detection Services to roll out smart sensors and testing and maintenance regimes across their networks, has saved 11 billion litres of water and $35 million over the past decade.   

The Unitywater team could see that a strategic investment in Detection Services would strengthen their partnership, driving an increase in the availability and adoption of advanced technology to manage their pipeline networks.  

Unitywater sewage treatment plant. Source: unitywater.com

Agile problem solving keeps door open 

Seeking a structured path to retirement, Detection Services’ majority shareholder was ready to progress a deal with Private Equity for a majority stake. They requested an offer from Unitywater within a week and, working around the clock and over a weekend, InterFinancial was able to deliver a valuation paper and draft an indicative offer four days later. At this point, whilst they could see the strength of their strategic partnership with Unitywater, Detection Services’ shareholders were still focused on landing a majority investment.  

Brainstorming novel solutions to the problem, our team proposed a co-investment with another InterFinancial client who had a strong strategic fit with both Unitywater and Detection Services. Very quickly, we were able to bring all three parties together for a meeting which allowed the new party to interrogate the opportunity and for Detection Services to understand the value they could bring as a shareholder.  

Despite keen interest from the proposed co-investor, as well as competing offers on the table, Detection Services ultimately decided to move ahead with Unitywater as a preferred partner.  Our collaborative approach and creative methods to meet the vendor’s objectives built trust and demonstrated Unitywater’s commitment to a long-term strategic partnership. Through the process we maintained strong relationships, retaining optionality for a future partnership with the third party.  

Finding hidden value to drive a win-win outcome 

During Due Diligence, InterFinancial’s role was to coordinate the process, and we also stepped in to carry out Commercial Due Diligence and parts of the Financial Due Diligence. The trust that we had built across all teams involved in the transaction meant that Detection Services and their advisors were receptive to our methodology and recommendations. Through a strong but collaborative negotiation process, and going over and above during due diligence, we were also able to drive a win-win outcome for Unitywater and Detection Services.

A five-month process from start to finish, the deal was completed at the end of August 2023 with both sides excited about the opportunities ahead.  

“On behalf of Unitywater, I would like to say a big thank you for your advice and assistance with this transaction and for providing a very professional and smooth process. Since learning we were late to the table 6 months ago, your contributions have been nothing but innovative, insightful and valuable.  Through the process, I believe we have secured a great investment for Unitywater.”

Paul Mitchell, Head of Corporate Development, Unitywater

“We’re thrilled to have brought this deal to a successful completion for Unitywater. Our long-term partnership, experience in the water and environmental services industry, and mid-market transaction expertise, meant that we deeply understood their needs and objectives and were able to move quickly despite the obstacles along the way.”

Anuk Manchanda, InterFinancial deal lead and specialist in mid-market M&A transactions in the general industrials and business services industries.
29.9.2024

Sector dashboards September 2024

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 […]

Read more
29.9.2024

Investing in Consumer Goods and Retail: is it time to go shopping?

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 […]

Read more
17.9.2024

From lab coat to deal sheet: celebrating Michael Kakanis’ journey to Director

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. […]

Read more
03.9.2024

7 key challenges to overcome when investing in Australian renewable energy

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 […]

Read more
27.8.2024

Employee Q&A: Nasia Christodoulou

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 […]

Read more
27.8.2024

Beyond the headline price: evaluating offers in M&A

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 […]

Read more
27.8.2024

Sector dashboards August 2024

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 […]

Read more
27.8.2024

Everyone’s going private: current status of the P2P landscape

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 […]

Read more
12.8.2024

EOFY2024: a year in review

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, […]

Read more