Case Study: The Sale of Total Communications

Overview

We implemented several key strategies as part of a sale-ready program for Total Communications. We then achieved a sale to Paragon Care, a diversified Australian medical company listed on the ASX.

Total Communications engaged Nash Advisory to help them prepare their business for sale. They needed expert advice on how to best prepare for and execute a business sale.

Over the course of our 12-month sale-ready program, we created a detailed strategy to increase the value of the business. Finally, we located an ideal buyer and executed a successful sale.

Industry

Healthcare information technology

Key outcomes

Implementing a strategy to increase business value
Guidance through the sale process
Sale to a large, diversified Australian medical company

The situation

The owners of Total Communications had owned the business since 1986. They had personally invested in building and growing the business from a phone reseller in the 1990s to a successful business providing specialised telecommunications solutions to retirement villages and aged care homes.

Since they had grown the business from its early stages, the owners of Total Communications needed help to take the next steps. They needed to prepare their business for growth on a larger scale and ensure it was attractive to buyers.

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How we got results

1

Creating a plan

Together with the owners, we developed a five-year business plan for Total Communications which covered their short-term, medium-term, and long-term goals. The business plan included a range of KPIs as well as the rationale for each action area, aligning them to the goals of the business.

2

Putting the plan in action

We scheduled monthly strategy meetings and created a board with the directors of Total Communications as part of the sale-ready program. We discussed action items, established plans, and assigned responsibilities. This ensured we could implement our strategy effectively and with a high level of accountability.

3

Value-enhancing strategies

To increase the business value to a potential buyer, we performed a wholesale review of the company. We looked at financials, assisted in key executive hires and changes to personnel, and worked with the head of sales to drive new opportunities. Along with digital strategies, an office relocation and streamlined reporting, these strategies ultimately led to an additional premium paid for the business.

4

Achieving a sale

Once Total Communications had completed the 12-month sale-ready program, we were ready to begin the sales process. We prepared marketing material and presented the business to potential buyers. After receiving several bids and
following detailed discussions with Paragon Care, Total Communications were able to achieve a successful sale.

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"Our team worked with the owners over a long period of time to educate them on the sale process, help them improve the overall value of the business, and achieve a sale for them following our proven methodology. At the end of the process, we were excited to have achieved a fantastic result for our clients."

Lucas Couper

Managing Director

The people involved

Timeline of the sale

April 2017

Nash Advisory was engaged to provide a sale-ready program to Total Communications.

May 2017

Nash Advisory presented a strategy to review and address financial reporting and analysis constraints in the company. We worked with the owners to implement these strategies over the months.

October 2017

We presented a five-year business plan to the owners of Total Communications and discussed the implementation timeline.

February 2018

We prepared the business for sale; Gathering data and preparing marketing material. We then began contacting the domestic and international buyer pools.

May 2018

Paragon Care expressed interest and, over the coming months, Nash Advisory and Total Communications engaged in due diligence and negotiations to reach an agreed sale outcome.