Overview
Deal closed: July 2011
Oasis M&A mandate: sell-side
Sectors: Defence, Business services, Information Technology
Sub-sectors: Business Consulting, Professional Technical Services, Software Development, Software as a Service (SaaS), IT Consulting
Background and motivation
KoBold Group provides business consultancy, professional technical services, software development, software as a service (SaaS) and maintenance services to Australia’s prominent government, defence and private sector organisations.
In 2010 the owner of KoBold approached Oasis M&A seeking to sell a majority stake in his business based in Ipswich QLD, just outside of Brisbane. His goal was to financially de-risk while staying on to expand the business further.
Challenges
In the heart of the GFC there was little appetite for acquisitions amongst Defence Technology acquirers.
Approach
We broadened our search beyond mainstream Defence acquirers exploring options in Europe and Asia, identifying a Swiss-based, Indian construction business who had previously invested in defence technology within NSW.
The deal was completed within 20 months, with 129 targets approached. Our client recognised that our creativity and persistence were key to a successful deal in such a challenging market.
Testimonial
“KoBold Group was formed in 2003 to provide managers of complex programs and systems in Defence, Government and Industry with high quality Professional Business and Technical Services to support their business. As owners of the business we had all previously worked in commercial and government organisations and understood from day one the need for an exit strategy. What we did not understand from day one was the process of attracting an investor or selling the business and the importance of an independent facilitator and broker to allow buyer and seller to reach a mutually agreed outcome.
In late 2010 we set out to attract a majority investor with a view to transitioning the business at a future date. We met with a number of organisations to select one to help manage the process. Oasis was selected on the basis of their well-defined approach, track record and openness. Mike and the Oasis team’s professional approach and level of effort in identifying gating and meeting potential buyers was impressive. Five years on the business is still growing, the original owners have reduced their exposure to a manageable level and our majority shareholder is major factor in the ongoing success of the business. My thanks to Oasis and a lesson learned for the original owners was to stay focused on your business and engage independent professionals to manage the process of attracting an investor or selling the business.”
Jeff Bugden, Managing Director
KoBold Group Ltd