AI Issue 6 2017

14 Acquisition International - June 2017 Scancorp is an Australian boutique advisory firm with a 30-year history. Scancorp comprises Scan Capital, Scancorp Medical and Scancorp Logistics Advisers. The advisory arm of the business, Scan Capital operates under an Australian Financial Services License and specialises in corporate finance, strategic consulting, divestment, mergers and acquisitions. Scan Capital’s Director, Marcus Salouk articulates the company’s mission: “while larger corporates are well serviced by top-tier advisory firms, there is a lack of qualified support for the small to mid-market in Australia. We are therefore focused on building a team who have led very large transactions and dealt at the top-end of town, but who now wish to service the mid-market.” Scancorp’s team provided examples of both transactions completed over the past 12 months and current mandates. ecently Completed Transactions Case Study #1 – ASX listing of a Lithium technology company Reverse takeovers can provide growing companies with a platform to access capital, trade scrip and accelerate growth. Lepidico Ltd was an Australian public unlisted company which had developed a disruptive technology to recover lithium from certain minerals. Lepidico engaged Scancorp to assist the company to structure for growth. Scancorp recommended an ASX listing to deliver greater access to capital to fund growth, provide tradeable scrip to make acquisitions of lithium mining assets, and deliver liquidity for seed investors. After completing a valuation of Lepidico against other ASX listed lithium companies, Scancorp identified a target ASX listed shell and managed the transaction to completion. As a result of its listing, Lepidico was able to secure several lithium projects. The value of Lepidico’s shares increased substantially and has provided liquidity to its shareholders. Importantly, Lepidico was provided a platform fromwhich it can accelerate the development of its disruptive technology. Case Study #2 – Sale of industrial property into a single purpose fund With cash and bonds offering low returns; high volatility associated with equities - commercial and industrial property with secure leases has become an attractive asset class in Australia. Company: Scancorp Email: scancorp@ scancorp.com.au Web: www.scancorp.com.au Address: Suite 22, 76 Doggett Street, Newstead QLD 4006 Phone: +61 7 3902 2400 Leading Advisor 2017 - Australia R 1705AI39 In an advisory capacity, Scancorp was engaged to assist its client, a plastics development entrepreneur to acquire a privately held injection moulding company, including freehold factory. To enable its client to direct additional funds into the manufacturing business, Scancorp approached a specialist property fund to structure a sale transaction. Scancorp assisted the single-purpose fund by structuring the transaction and facilitating due- diligence. The off-market transaction, enabled Scancorp’s client to take a long-term lease on the factory, achieve a discrete sale and obtain funds to reinvest in its business. The fund in-turn delivers a high yield return to its investors, secured by a long-term lease. Case Study #3 – Acquisition of a specialist day hospital With substantial M&A activity in the health sector, the demand has increased the multiples sought by sellers and generated substantial competition for quality assets. Scancorp was engaged by an aggregator of day hospitals to assist its expansion. Despite substantial competition for assets within the health sector, Scancorp managed a campaign that generated a substantial pipeline of candidates. Scancorp leveraged the strengths of its client, including ability to complete quickly, reputation of integrity and willingness to allow acquired hospitals to operate without excessive intervention.