Strategic Acquisition of a Major Building Products Importer and Wholesaler

Background

Our client, a major Australian building products importer and wholesaler was a leader in its market segment in New South Wales and Victoria. 

Management at our client held long term ambitions to expand their operations into Queensland in order to gain a larger geographic footprint, to grow revenues, and to increase operating efficiencies. 

Our client was approached by a major Queensland-based building products importer operating within their market segment, with shareholders of the Queensland-based company interested in offering their company to our clients for sale.

How We Helped

Director at Groves & Partners, Stephen Groves engaged in discussions with management of the Queensland company, together with their professional advisors. As part of these discussions, we sought out background, operational and financial information from our client in order to better understand the nature of their company, and to provide advice to our client on how best to approach a potential acquisition.

Following the provision of preliminary due diligence advice to our clients, we prepared proposed acquisition terms on our client’s behalf and presented these to the shareholders and advisors of the Queensland company. Thereafter, following a period of negotiation, we agreed in principal with the shareholders of the Queensland company on terms of a transaction.

Following the agreement to terms in principal, we travelled with our clients to visit the Queensland company, and undertook final, confirmatory due diligence on the Queensland company on our client’s behalf, culminating in our presentation of a detailed due diligence advice report to the management and board of our Client.

Completing a Successful Acquisition

Following their review of our detailed due diligence advice, our client’s chose to proceed with an acquisition of the Queensland company. 

We partnered closely with our client’s legal counsel to ensure the terms of the transaction were appropriately reflected in legal contracts. Shortly after final contract preparation, the transaction was completed by our clients.

Following this transaction, our clients are now the leader in their market segment across the Eastern Seaboard of Australia, and ready to initiate further growth into new markets.

Find Out More

Groves & Partners are experts in due diligence and have significant experience in advising clients on completing business acquisitions that make commercial and strategic sense. Contact one of our team today to find out how we can partner with your company and assist you to grow through acquisition.