Tyrrell Advisory

Divestments

Selling a business is not just about a transaction but about a journey that commences with us learning about our client’s business and then ensuring the business is appropriately prepared to maximise the outcome. If you are considering a sale of all or part of your business, we would be pleased to discuss with you the various stages involved in undertaking a sale process, including:

Assessment of value

Preferred sale strategy and approach to minimise completion risk

Preparation of sale materials such as Information Memorandum and flyer

Researching potential interested parties

Contacting agreed parties

Releasing information and arranging meetings

Obtaining offers

Managing the due diligence process

Liaising and negotiating with short-listed parties

Co-ordinating with our client’s other advisors

Closing the transaction

It may be that the business requires additional time and preparation before it is ready to be taken to market – if so, Tyrrell Advisory will work with the owner to develop a program to prepare the business for sale.

Examples of matters to consider in advance of a divestment include having financial statements audited, undertaking accounting policy and other compliance exercises, formalising contractual arrangements, diversifying customer bases, identifying and implementing profit improvement initiatives, locking in key executives and staff, and performing tax planning exercises. By completing such exercises, owners are far better placed to articulate the key strategies for success and develop plans to address any perceived weaknesses and threats to their business model.

Through its established networks, Tyrrell Advisory has a strong knowledge of corporate acquirers and investors (be they high net worth families, private equity firms, retail brokerages or institutional investors). We are able to identify and approach potential partners and buyers (including overseas parties) that strategically align with the objectives of our clients.

Relevant Divestments

Divestment of Toperformance

As an example of our divestment services, we recently worked with and successfully advised the two owners of Toperformance on the sale of their shock absorber distribution business to Bapcor Limited, the major ASX-listed leading Australasian provider of aftermarket parts, accessories, equipment and services.

Our role here included identifying and approaching potential acquirers (domestic and international), preparing an Information Memorandum (including normalising financial results), negotiating with all interested parties, co-ordinating the due diligence phase and liaising with our client’s legal and accounting advisers to complete the transaction.

Regarding our role in the transaction, Barry Brookes (one of the owners of Toperformance) stated “Thank you very much for your work and persistence, with our business sale. Your effort and attention to detail brought the sale process to a good conclusion, for which I am grateful. We also appreciate the manner in which you worked with us. Your advice and expertise being valuable and reassuring.”

Divestment of Nylex Limited

We led the sales team in relation to the divestment of 12 businesses comprising Nylex Limited (which included sales to ASX-listed and global organisations such as Transpacific Industries, ITW and Coleman).

Sale of non-core activities for ASX listed companies

We advised listed companies PaperlinX Limited, Austrim Group Limited, McPherson’s Limited and IAMA Limited on the divestment of a number of non-core businesses.

Divestments of Privately-Owned Businesses

Advised approximately 35 plus private vendors on the divestment of their respective businesses (with values up to $100m) including James Cranes, Australian Sports Tours, Neat n’ Trim, Solid Service and Ranger Truck Rental & Leasing

Divestments of Businesses in Receivership

Advised Receivers and Managers on the divestment of businesses including Nylex Limited (listed industrial company), Ruskin Industries Limited (listed plastics company), Brashs, Dimmeys and Forges, Colac Stockfeeds and 21 Pizza Hut franchises

Divestments

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