Overview

Deal closed: November 2016
Oasis M&A mandate: Sell-side
Sectors: Engineering
Sub-sectors: Electrical Contracting

Background & motivation

Fusion Industries is a full-service electrical contractor and consulting firm that specialises in commercial electrical installations and maintenance. The company offers commercial fit outs and service, air conditioning installation, mechanical services controls and programmed maintenance in both the government and private sectors.

The owner of Fusion Industries was approached by a private equity investor looking to strengthen their position in electrical contracting following a previous acquisition in the same space. The owner recognized his lack of experience in M&A, and therefore looked for professional representation.

Challenge

When the owner of Fusion Industries approached Oasis M&A to assist in negotiating a deal, they had already been approached by a genuine acquirer.

Because the acquirer, Tau Investments, was looking for an 80% controlling interest in the company, part of Oasis M&A’s mandate was to ensure that Fusion Industries’ interest as a minority stakeholder was protected post-sale.

Approach

During negotiations with the acquirer, Oasis M&A addressed crucial issues around deal structure and the owner’s future involvement in the business. Knowing these issues were important to the owner, Oasis M&A ensured that they were a high priority.

Results

As a result of this approach, Oasis M&A was able to negotiate a deal structure that included an earn-out as well as a contracted employment period, which ensured the owner was well-compensated for their business.

Testimonial

“I was approached by a private equity investor in 2016 looking to strengthen his position in electrical contracting following a previous acquisition in the same space.

Negotiating the sale of my business was uncharted territory for me, so I knew I needed professional representation to ensure I didn’t sell myself short.

I was referred to Oasis M&A by a mutual acquaintance and could not have been more impressed with the outcome. They got the deal over the line smoothly, negotiating firmly on my behalf to secure a price and terms I know would not have been possible without them.

I would absolutely use them if I had the chance again – they were professional, trustworthy and great to work with.”

Mark Maxwell
Owner, Fusion Industries