THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Schamburg + Alvisse (“S+A”) is an award-winning, niche Australian designer & manufacturer of commercial eco-furniture, servicing corporate and public sector clients. For 15 years the Business has designed and produced commercial furniture that is environmentally sustainable, including various styles of conference tables, office chairs, executive lounges, designer side tables and an assortment of custom items. S+A’s designs have won multiple awards as well as attracting interest from international architectural press. Its clients comprised universities, embassies & consulates, museums, hospitals, schools, libraries, defense force facilities, airports, hotels, bars & restaurants. All product lines are manufactured using recycled materials and certified eco-wood, providing clients with modern yet environmentally friendly office furniture.
S+A was founded and owned by an Architect and an Interior Designer, who now sought to exit in order to pursue other commercial & personal interests. The Directors engaged Johnsons Corporate as a specialist mid-market business broker to undertake a divestment campaign on their behalf.
The Business Sales Strategy
At the time of sale S+A generated solid revenues with healthy profit margins and was run by a Managing Director, supported by a team of staff responsible for concept and design. S+A represented a rare opportunity for an existing business to access the growing market for environmentally sustainable commercial furniture, with various growth opportunities including online sales to corporate clients and targeted consumers.
Johnsons Corporate’s custom research & marketing focused on Australian Commercial Furniture Designers & Manufacturers as a primary target segment. Secondary target segments included Made-to-Order Furniture; Outdoor Furniture; Interior Designers &/or Decorators; Furniture Retailers; and Shop & Office Design & Fit-Out companies as well as a shortlist of prospective private equity & financial buyers. Johnsons ran a proactive direct marketing campaign that uncovered 20 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as a backup buyer, with Offer and Acceptance secured within 13 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 Related Trade Buyer
The purchaser, Zenith Interiors, was a leader in the workstation and loose furniture market. The Business was private equity backed and running a consolidation strategy within the commercial furniture industry across Australia, New Zealand and into Asia.