UBTA has successfully completed the sale of a client’s business – the first such M&A transaction for the UBTA team.
The Client
The client, Shepelec Instrumentation, is an innovative leader in the provision of real time data applications. Shepelec devices can be applied across many industries, including water companies to assist them with water consumption monitoring and alert them to leaks in their pipelines. Shepelec also works with the agricultural sector, where its devices can be installed to help farmers detect low levels of water on their farm. Instead of the farmer having to travel great distances to check on water levels for their stock, they are simply alerted via Shepelec’s technology that there is a problem which they can then respond to, saving them time and money.
The UBTA team worked closely with Shepelec’s founder and innovator Mr Henk Buchner.
Approach
Sergiu Lisnic, Senior Account Manager at UBTA, headed up the team that assisted with the sale of Henk Buchner’s business. “Working with Shepelec, a Community business was both challenging and rewarding” said Sergiu Lisnic. “We worked very closely with Henk to ensure that he understood the process every step of the way”.
Challenges
There were a number of challenges faced by the team in terms of attracting a potential purchaser. The universe of buyers is quite small and the instruments, although advanced, required a specific type of purchaser. The UBTA Team developed the mergers & acquisitions documentation, including an investment brief and an Info Memo, to attract suitors and create a meaningful deal flow.
Outcome
The process took just under a year and the company finally sold to Madison Technologies, one of Australia’s leading product manufacturers and distributors of communication technology. All parties realised the benefits of working closely with each other.
Final Say
Mr Buchner and the Shepelec team were delighted with the result. “UBTA drew up a prospectus and advised us on every step of the journey, including handling all meetings and accompanying us to negotiations around price.”
“The UBTA team prepared us mentally and emotionally through what was a significant due diligence process which took about 12 months. Without UBT, I would have given up. They guided me, clearly explained issues, pointed out risks and helped me recognise when to push further and when to compromise.
“In September 2017, after 1,400 emails, we sold the business and are more than satisfied with the outcome. I would certainly recommend UBTA to a friend or a business partner”.
Sergiu Lisnic from UBTA said: “We’re very pleased that our first M&A transaction for a Community business ended up with such a great result. Everyone felt that it was a win win outcome.”
“At UBTA, our team understands how Community businesses work. Our care factor is high and our knowledge of the SME market is extensive. We really do know that we can add value”.