Succession case studies involving strategic acquisition
Getting on the radar
Our initial conversation with Bob White Electrix was to discuss the development of a website to promote their services to heavy industry. In this initial meeting, we directed the then owners to discuss exits. Already in their 70's, the brothers had never discussed an exit strategy. Within two years of this discussion, we helped Bob White Electrix dramatically increase the value of their business and built their brand recognition to a level where they became a strategic acquisition of the world's largest engineering company, ABB. The final exit value of more than AUD 26M was well beyond the expectations of the founding family.
Intunity
In our first discussion about a new website strategy for app developers, Intunity, we pivoted the conversation to strategic exits. We discussed the importance of building their online presence to achieve more than just business growth. We talked of our success with other clients in helping them achieve higher exit valuations in less time than expected. We applied these learnings to build their online presence to a level they became a strategic acquisition target of Price Waterhouse Cooper, in less than two years, at an exit value well beyond the founders' expectations.
A good problem to have
When CSR acquired DMS in 2007 for a walkaway value of AUD 175M, its family owners were faced with the question, 'What do we do with all of this money?' When we first engaged with Don Mathieson and Sons glass five years prior, no one could have foreseen such a valuation. The journey we took them on saw a name, branding and communication strategy that would see them quickly elevated to the level of the most recognisable architecture glass provider in Australia and a natural acquisition for a global brand in the building products space. It was a valuation well beyond everyone's expectations .when we first engaged with Don Mathieson and Sons glass five years prior, no one could have foreseen such a valuation.
Star Business Solutions
With the help of the Exit By Design, team Star grew from offices in 2 states to 4 states and one territory. Star also grew to be in the top 5 % of businesses within their industry, holding 50% of the Australian market for Greentree Software. The Exit By Design team completed their Succession Plan strategies and Business Planning with regular follow up and oversight. The team also did the valuation and restructured the business to be far more tax-efficient while upgrading the business owners' Estate Planning, retirement, and superannuation investments. An essential element of this successful business exit included a rebranded and the business and building an effective communication strategy to drive a predictable sales pipeline while attracting the attention of potential purchasers. The team was then involved in negotiating the sale of the business to MYOB.
From a minnow to a whale
When we first engaged with Style Corp, they were a tiny business, with two staff in a back office, of a more significant division of the Yakka group. Our relationship reached a successful conclusion when Pacific brands acquired them as part of the Yakka group for AUD 250M. At that time, they represented 10% of the overall revenue and 20% of the profit of the Yakka group. In a short time, we built a new brand and expanded its market reach and profitability at a rate that made them the rising star in one of the most recognisable brands in Australia.
