The Forvis Mazars team played a critical role in managing and facilitating the successful sale of Trade Credit Risk to PSC Insurance Group. Throughout the entire transaction the Forvis Mazars team acted as my trusted advisor and was my “voice of reason”. The team was able to guide and keep me at ease through one of the tensest times in my career, juggling business as usual, while dealing with a major milestone for me personally and the business. It would be hard for me to see how we would have completed the deal without the support and guidance from Forvis Mazars and I am forever grateful.
Mrs Sharon Brewer, Founder and Managing Director Trade Credit Risk Pty Ltd
Trade Credit Risk Pty Ltd (“TCR") - Case study
Lead M&A advisor for divestment into ASX Listed Company PSC Insurance Group (“PSC”)
Client
Trade Credit Risk Pty Ltd (“TCR”) is a is a boutique specialist credit insurance broker in the Australian marketplace providing a suite of products including; domestic credit insurance, export credit insurance, risk management and other value added services.
Need
Our client appointed Forvis Mazars to undertake a business assessment and strategic review of TCR to outline the potential options for the business’s future following a number of key events in the business and personally.
This culminated in several strategic discussions with the Founder and an analytical deep dive into the business finances and operations to explore the options available.
Based on this analysis Forvis Mazars concluded that a trade sale would achieve both the personal requirements for the Founder and importantly provide a better platform to broaden service offerings for TCR clients and increase opportunities for growth and development for TCR's people.
As the Founder had not gone through a trade sale process before, it was important to have experienced advisors to help develop an organised and methodical approach. This entailed, meeting conduct and approaches with potential acquirers, workshopping price and impacts on price for consideration, identifying and solving for the tax consequences for the Founder.
Based on a number of factors and albeit that the business had fielded a number of suitors, it was decided to provide exclusivity to one party, PSC, as this party was identified as an ideal home for TCR to continue the Founder’s legacy.
During this exclusivity period, a number of deal mechanics were considered by both parties and Forvis Mazars provided the guidance and support requested by TCR to negotiate and eventually settle commercial terms with this PSC.
Results
From strategic review until eventual transaction, TCR divested the business assets to PSC. As part of the deal, the Founder and PSC are partnering to continue to grow the business.
This transaction achieved all and more than the Founders expectations being able to continue to serve clients, provide pathways for employees and grow the industry.