THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
TWO Social is a niche online media & communications business formed in 2009 to work with Corporate Clients to help them to use and manage Social Media channels. The Business, one of the first agencies to specialise purely in Social Media, helps clients to adopt a strategic approach – to understand why, how and when they should engage through Social Media. Its owners were founder, Richard Spencer, and an institutional investor Causeway Asset Management.TWO Social’s customer-base comprised high-profile corporate clients representing a range of industry sectors including insurance, technology, engineering, professional services, food, state government and consumer goods. TWO Social assisted them not only with their Social Media strategy formulation but also with implementation to include content creation, managing communication flows, measuring results and reporting against pre-agreed campaign objectives.
By 2013, the Business had reached a stage where it would benefit from being acquired by a larger organisation in order to better leverage its core skills, gain access to a support network, and broaden its client base. This would facilitate faster growth within the rapidly expanding and profitable market segment of Social Media. The Directors engaged Johnsons Corporate as specialised mid-market business brokers with experience in selling to international markets.
The Business Sales Strategy
TWO Social presented an opportunity for an acquirer to secure an established and award-winning Social Media business offering specialist capabilities, a loyal customer base and a solid performance history. At the time of sale, the Business was achieving solid revenue growth and strong margins. It was operated by a small, passionate team, of loyal staff.
Johnsons Corporate’s custom research & marketing focused on leading global Social Media, Digital Media & Digital Consulting Agencies, while also incorporating related / secondary markets including PR Firms, Advertising Agencies and larger Marketing Consulting Firms. Johnsons ran a proactive direct marketing campaign that uncovered +25 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as several backup buyers, with Offer and Acceptance secured within 7 weeks of 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 ASX-Listed Trade Buyer
The Purchaser, iSentia, is Asia-Pacific’s leading business intelligence company servicing over 6,000 clients globally. It employs more than 1,200 employees across 15 countries and is private equity backed. The acquisition assisted iSentia to broaden its service offering and strengthen its position within the emerging market of online communications prior to going public on the ASX.
What Our Client Had to Say
"Prior to appointing Johnsons Corporate we spoke with three other firms. Fees varied from "success fee only" approach to monthly retainers plus success fees. Our decision to appoint Johnsons was driven by their experience in the mid market and their proactive approach to researching and contacting multiple strategic buyers via various direct marketing channels. During the course of their engagement Johnsons actively managed the whole process. Within 7 weeks of going to market Johnsons had secured several written Offers all from strategic acquirers. The Purchaser... the leading business intelligence company in Asia-Pacific was a great fit for TWO Social, providing a fundamental platform for future growth.
Thanks to the help of Johnsons Corporate both shareholders accomplished a great outcome. I have no hesitation in recommending the services of Johnsons Corporate to other business owners that may be considering selling their business. "
Richard Spencer, Director - TWO Social