Two business founders and owners in their late 50s had accumulated a business in the industrial contracting space with EBITDA of A$12m. Over the last few years the Company had several opportunities to expand their footprint and acquire smaller businesses however never had the required capital. The husband and wife shareholders were ready to cash in years of hard-work and were looking to take a significant amount of money off the table. However, they were willing to continue to work in the business for 2 to 3 years and stay on the board.
Working with us and a tier advisory partner, a two-stage exit process was actioned involving the introduction of a private equity partner who assumed a 50% stake in the company. The PE partner and the Company jointly developed a three-year plan to grow the business through acquisition, develop a stand-alone management team and appoint an ASX ready board of directors. By the end of year two, the previous owners stepped back from day to day responsibilities and played more of a strategic oversight role. With the funds from the exit, the previous owners pursued a variety of investment opportunities and developed a portfolio of business interests across a range of industries. More importantly they took a long awaited extended European holiday.