THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Our client, Mobility Aids Australia (MAA), is a national distributor of powered and non-powered mobility aids and lifestyle solutions to individual and commercial customers. The Business sources products from global suppliers to provide market leading mobility solutions. Operating from state-of-the-art premises in the Melbourne suburb of Springvale and servicing most of Victoria through travelling consultants, the Business is supported by a team of highly skilled and trained consultants, offers generous product warranties and provides a specialty service department for maintenance and support.
MAA was established in 1997 by its Managing Director. The business quickly gained a strong reputation with health care professionals as a power mobility specialist. After more than 25 years in the sector and 14 years at MAA, the owner sought to exit the industry, by way of sale to a third party, to pursue unrelated investment opportunities. In 2013 he engaged Johnsons Corporate as specialised mid-market business brokers to undertake a divestment campaign on his behalf.
The Business Sales Strategy
As a strategic acquisition, MAA featured deep relationships built over many years with Health Care Professionals. The Business presented potential buyers an opportunity to leverage its strong referral sources as well as a large customer-base and long-standing supply relationships into significant growth. Immediate opportunities existed in exploiting one or more options, including: development of a commercial sales program, launching a full e-commerce capability, geographical expansion and/or extension of the service &/or hire department offers. Longer-term prospects would be underpinned by Australia’s ageing population and the Government’s commitment to providing support for ageing Australians.
Johnsons Corporate’s custom research & marketing focused on Resellers and Distributors of Mobility Equipment primarily segmented within the aged care and rehabilitation markets. Related / secondary markets comprised resellers & distributors of broader medical equipment and consumables categories within Australia. Johnsons ran a proactive direct marketing campaign that uncovered +40 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer in a secondary market, with Offer and Acceptance secured 14 weeks after going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Related Trade Buyer
The purchaser, Independence Australia, is a national distributor of aged care consumables products and was identified in a related/secondary market. Through its complementary consumer-facing product range, this acquisition furthered Independence’s diversification strategy, broadening its customer offer & market reach.
What Our Client Had to Say
"Following an evaluation and engagement process, I decided that the Johnsons Corporate approach to selling businesses was the right 'fit' for the project. I was very impressed with the robust and logical methods used by Johnsons right through the campaign. The marketing of the business was very thorough and I was kept up to date at every step. In particular there were some significant times within the final stages of negotiation with the purchaser where the skill set and 'cool heads' of the team at Johnsons Corporate were invaluable."
Andrew Gannan, Director - Mobility Aids Australia