THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Universal Technical Training Services (“UTTS”) is a technical training equipment distribution business, providing market leading solutions to an impressive list of Blue Chip customers within the Education, Military and Government sectors. The Business supplies a diverse range of equipment and systems comprising hardware, courseware and software, which it sources from leading global manufacturers. Its products are used by vocational training providers in the delivery of education and training to diverse trade disciplines and span Avionics, Automotive, Biomedical, Electronics & Telecommunications, Green Technology, Laser Technology, Mechanical Systems and Robotics.

By late 2012 UTTS had been a leader in the niche market of technical training equipment and systems for over 20 years. With the Australian government making significant investment in skills and training initiatives, the Business found itself in the position of facing rapidly growing client and market demand, while its owner had little appetite for managing additional employees or running a large business. As a specialist in selling mid-sized businesses, Johnsons Corporate was therefore engaged to divest UTTS – ideally to an organisation with an established infrastructure and capacity for growth.

The Business Sale Strategy

For such an acquirer, this Business represented a great bolt-on opportunity with the vendor prepared to stay on to ensure a successful handover. Some key attributes of the sale included UTTS’ exclusive agency agreements with 12 global suppliers; its unmatched offer in the Australasian marketplace, and; its recognised brand and proven track record. Future growth could be realised through leveraging the increases to capital expenditure by academic and vocational education institutions on technology and training systems.

Johnsons Corporate’s custom research & marketing focused on distributors of technical equipment exposed to sectors including education, defense, and industrial technology as a primary target segment. Secondarily it identified broader education and training companies within Australia. Johnsons ran a proactive direct marketing campaign that uncovered +15 qualified, interested parties. Further vetting resulted in the selection of a preferred buyer and the negotiation of a transaction structure acceptable to both acquirer and vendor.

(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 Australian Trade Buyer

The purchaser, Bestech Sensors and Instrumentation, a national distributor of sensor and testing equipment, was identified within the researched primary market.