Managing a business acquisition for a plastic injection business
Our client, a Sydney-based businessman, contacted MACHUS Solutions thanks to a local referral. The client owned a plastic injection business in Brisbane and wished to purchase a competitor’s business, also located in Brisbane. MACHUS was instructed to initiate negotiations, conduct a due diligence process and assist with the formalities of the transaction. MACHUS was required to negotiate the purchase price, transfer of staff, vacating of the premises and other sales-related issues.
The vendor was open to selling its business, which was trading in exactly the same market as MACHUS’ client.
Solutions, Strategies and Recommendations
MACHUS Solutions recommended the following strategies:
- Some senior employees of the business being purchased were deemed to be key personnel and were provided with an incentive to remain as employees in the new venture
- MACHUS identified differences in the vendor’s business culture to that of the client’s business and made specific recommendations to overcome potential conflicts
- All stages of the purchase were planned and executed in detail and proceeded without any issues
Implementation and Results
The purchase process included the standard stages – contract, due diligence, finance, inventory of stock, re-hire of employees, etc. In addition, the client instructed MACHUS to assist with moving the business into the client’s own Brisbane base as well as integration of the two businesses. MACHUS Solutions was retained on a consulting capacity and assisted with on-going matters that occurred in Brisbane and throughout Australia.