PROJECT WHEEL
This transaction was another well-run sale process that resulted in numerous offers prior to COVID
BUSINESS OVERVIEW
A Novated Leasing business established by one of Australia’s leading finance companies to offer customers the opportunity to finance vehicles from pre-tax income. The portfolio consisted of contracts with a number of blue chip clients, diversified across various industries including several ASX100 clients. Developed through strong relationships with the customer base. The Novated Leasing portfolio of cars under management grew organically in the years prior to sale.
TITAN PARTNER’S ADVICE & SOLUTIONS
Titan Partners Corporate Finance was engaged to sell the Novated Leasing division from our clients broader Australian finance business. This transaction was another well-run sale process that resulted in numerous offers prior to COVID. Throughout COVID the Business model held and cars under management remained consistent. Titan maintained communication with the Buyer over many years in discussion with them on multiple different acquisition targets.
AT A GLANCE
Challenges
Our client’s price expectations increased significantly over the engagement period, and Titan negotiated a higher price with the buyer despite no growth in the underlying business. After due diligence the vendor restated their reported expenses, resulting in a lower earnings profile.
Result
With a strong relationship maintained with the buyer and good communication throughout the process, the Business was ultimately sold in June 2021 at the agreed (increased) price prior to divisional earnings amendment. The sale price represented a significant earnings multiple, well above market.
