Home' InDaily : September 23rd 2011 Contents PARTNERS
FRIDAY 23RD SEPTEMBER 2011
In this short series of articles the
Deloitte Corporate Finance team
outlines practical examples for
achieving the best outcome when
selling your business.
Sellers of businesses often leave a lot of
money on the table by not effectively
identifying the best ‘strategic’ buyers
for their business.
For example, an Australian-based
software developer that generated all
of its sales domestically was seeking
a buyer for its business. The owners
assumed the most logical buyer
would be a similar Australian business
and the value of the company would
be around a multiple of approximately
five times earnings.
Having analysed the business in
detail, our observation was that
the business possessed a range of
factors that would make it highly
attractive to international buyers.
These factors included the business’s
unique products and its long-standing
relationships with key customers. Also
very important was that the business
was very scalable – it just required
an owner that had the appropriate
resources and business infrastructure.
Our observations and subsequent
approach resulted in a successful
transaction with an international
buyer who was seeking a ‘beachhead’
investment in the Australian market.
The purchaser also identified a
significant opportunity to cross-sell
the vendor’s products to its global
The final purchase price more than
tripled the initial expectations of the
vendors and provided them with
the financial resources to enjoy a
retirement lifestyle that substantially
exceeded their expectations.
The moral of the story? Think broadly
and ‘outside the square’ as to who
may wish to purchase your business
and seek advice from an experienced
Mergers and Acquisitions practitioner
who has an extensive network of both
domestic and international buyers.
Next week, we look at how to
effectively get on buyers’‘radars’.
For further information contact
David Egan, Partner at Deloitte
Professional services firm Deloitte has won the
prestigious 2011 Australian Mobile Award for EzyReg,
an iPhone application for renewing vehicle registrations
in South Australia.
The inaugural 2011 Australian Mobile Awards recognise the
best of the Australian Mobile Industry. The awards celebrate
outstanding achievement across all aspects of the Australian
mobile landscape and reward the creativity and insight of both
individuals and business at the cutting edge of the industry.
SA EzyReg, which was a 2011 Mobile Award Winner in the
Government Services category, was designed by Deloitte for
the South Australian Government to make it simple for South
Australians to register their vehicles anywhere and anytime.
It is an innovative app which makes registrations easier and
faster using mobile technology to deliver convenient services.
“We worked closely with the South Australian
Government to produce this simple, easy and convenient
iPhone app which will make people’s lives easier when
registering their car, motorbike or any other light vehicle.
Winning this award may be an incentive for other State
Governments to follow,” said Martin Read, Partner.
Road pricing, or the concept of charging directly for the use
of road space, is not a new idea.
Road congestion costs the Australian economy $13 billion each
year and this figure is expected to grow to $20 billion by 2020.
Road pricing could help manage demand and raise revenue for
reinvesting in roads and public transport - but is Australia ready?
Read this report by Deloitte into the concept of charging
for road usage
Information sourced from Deloitte
Follow Deloitte on Twitter @DeloitteAdel
Click here to
Road pricing -
Deloitte wins Australian Mobile
award for car registration renewals
Selling your business –
Identifying the ‘right’ buyer
CLICK HERE TO READ THE FULL REPORT
David Egan, Partner, Corporate Finance
SPONSOR OF THE DAY
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