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.