Services

Our team are experts in a range of services. Whatever your business goals happen to be, we can help you achieve them.

See all services

Industries

We have extensive, hands-on experience in a wide variety of industries. Whichever industry you're in, we can help you.

See all industries

Case Study: Territory Surgical Supplies

How we achieved a sale to a global healthcare buyer

Overview

We helped Territory Surgical Supplies achieve a significant sale multiple, well above traditional multiples in this sector.

The owners of Territory Surgical Supplies (TSS) were looking to retire and turned to Nash Advisory to sell their business. We researched the Australian medical supplies industry and capitalised on its high-growth potential, and found a number of active, interested parties within the sector.

We sourced the right buyer using our extensive list of local and international contacts and ensured there were no earn-out issues in the final sale.

Industry

Medical consumables

Key outcomes

  • Sale to an American unlisted private company
  • Strong projected growth on 2018 numbers
  • Majority cash upfront deal

The situation

The regulatory environment in the Northern Territory differs considerably from the rest of Australia, so they were concerned about how to best position the business for sale. The owners of Territory Surgical Supplies wished to retire and were struggling to manage the business's growth.

With the business growing rapidly, deploying the relevant IT systems and financial reporting was becoming cumbersome. Likewise, existing contracts with local healthcare providers were creating novation issues.

How we got results

1

Preparing for the sale

We worked through a comprehensive list of tasks to get Territory Surgical Supplies an outstanding sale outcome. From researching the industry landscape to identifying the right buyer, we were able to get an outstanding result for TSS.

2

Identifying the value

We thoroughly researched the Australian medical supplies industry to find out where buyers' interest lay and what type of businesses attracted the most activity. We familiarised ourselves with the Northern Territory's regulatory environment and articulated its core characteristics in an Information Memorandum for prospective buyers, highlighting key findings such as that gross spending per capita in the Northern Territory is 25 per cent more than in other states.

3

Finding the buyer

Before circulating information to prospective buyers, we carefully evaluated their profiles to establish if they had the financial capacity to acquire Territory Surgical Supplies. From this research, we had 19 interested parties, but we were required to knock out 10 from the process, due to lack of funding capacity.

From here, we were able to identify four companies willing and able to submit non-binding indicative offers for the business. The outcome of our methodical process was that we were able to drive the price considerably and one of the companies presented an offer that won them exclusivity.

4

Doing the deal

Since TSS had a number of existing contracts with local hospitals and healthcare providers, we also performed due diligence on these contracts and assisted the buyer with gaining comfort around sustaining and nurturing these lucrative contracts and relationships.

At the point of settlement, all aspects of novation were resolved and the majority of contracts remained binding, despite the change in ownership.

Get in-depth insights and analysis for your industry

See your industry
"We found the right buyer through our extensive research into the healthcare industry. We identified the buyer from a list of possible targets that we developed and directly contacted. It was through this proactive approach that we were able to achieve such a strong sales result."
Territory Surgical Supplies case study image
Tom Butler
Associate Director

The people involved

Timeline of the sale

August 2017

Initial phone conversation with Territory Surgical Supplies.

September 2017

Formal proposal approved by client.

October 2017

Extensive research into the healthcare industry and regulatory environment in the Northern Territory. Term sheet, marketing documentation and Information Memorandum prepared.

November 2017

Research into potential buyers via our domestic and international contacts database, followed by the circulation of marketing materials to four eligible buyers.

December 2017

First non-binding indicative offers received from buyer pool.

January 2018

Highest offer approved and exclusivity granted to lead buyer.

February 2018

Data collation and Q&A process with lead buyer.

April 2018

Binding offer received. Completion of remaining due diligence.

April 2018

Signing of sale agreement.

Services offered

Talk to us today about selling your business

Our specialist investment and business advisory services can optimise the growth rate and sale value of businesses across a broad set of industries. Whether you are looking to buy, sell, merge or raise capital, Nash Advisory can help you reach your strategic goals.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.