AI Issue 6 2017

Acquisition International - June 2017 15 Leading Advisor 2017- Australia The campaign ensured there was sufficient competition between candidates to enable acquisitions to be completed at “fair value”. Through this process, Scancorp’s client significantly accelerated its geographic expansion. Case Study #4 – Divestment of a privately held engineering company to an ASX listed company Listed companies are seeking to acquire high quality businesses to accelerate their growth while adding revenues that are accretive to their earnings. Shareholders of a privately held engineering company engaged Scancorp to facilitate the sale of their company. As the shareholders were of varying ages, they recognised the need to commence planning for the sale of some of the shares. All shareholders were active within the business and wished to remain so. Through Scancorp’s network, an ASX listed company specialising in an adjacent industry was introduced and successfully completed the acquisition. Scancorp managed negotiations and oversaw due diligence to enable the acquisition. While Scancorp’s client achieved a sale at an EBITDA multiple that was commensurate with the market for private businesses, the acquirer added earnings at multiple that ensured the acquisition enhanced shareholder value. Current Activity Scancorp’s focus through calendar 2017 includes a mix of divestment, advisory work and acquisitions. Examples of some of Scancorp’s current mandates include: Sale mandates: • Proprietary products within the recreational sector with global application • Privately held plumbing and prime cost goods supply business • Medical practices and a day hospital • Privately held labour hire company • IT security and access management company • Commercial and retail flooring solutions provider Acquisition and advisory mandates: • Capital raise and advisory support to a cloud based sustainable development platform • Corporate development and commercial support to a high growth distributor • Acquisition of agri-tech businesses Pedigree Asked to highlight Scancorp’s differentiators Marcus responded: “it’s unusual to find a firm that is focused on the small to mid-market that has its own financial services license, national presence, 30-year history and a team that has collectively completed over $10 billion in transactions globally. We are exceptionally proud of the fact that around 90% of our business is generated via referrals. This is testament to our commitment to achieving an outcome for each and every client we take on.”