Business Restructure and Sale

Background

Our clients had a number of businesses operating from single location in regional Australia and wanted to realise the businesses to best effect.

They had received a valuation on freehold property that was lower than they would have liked and they needed to achieve “top dollar” for another business unit to achieve their overall targets.

We proposed a fee arrangement with substantially discounted professional fees up front and a commission structure that would reward BPS Advisory if we obtained an outcome for the client that exceeded their base position.

Strategy and Solution

We looked at the client’s portfolio of businesses and assets that they wanted to realise and quickly identified synergies between two key elements. Within that process, we also identified that the existing management of one particular business was really “dialling it in” and was categorically failing to demonstrate any commitment to business development or growth.

We then looked at the most likely target audience for the businesses and identified those components that were in the highest demand, then used that information to develop a strategic business development program for the business (now comprised of the key assets “bundled” together) that enabled a potential purchaser to look at it as a low-risk transaction with highly stable revenues and plenty of upside if the new management team was able to successfully implement our strategy.

We also developed a “Plan B” sales strategy aimed at moderately high net worth families looking to “buy their children a job” in the financial services industry.

Outcome

We offered the business for sale to a number of identified prospects and quickly obtained a buyer who recognised the potential in our business development program.

Our client obtained a price around 11% higher than their base position and BPS Advisory was engaged by the purchaser to oversee the implementation of the business development program; a genuine win-win.