Sale of SC Services to Decmil
The BDO M&A team executed M&A sell side lead advisory role for the SC Services founder, John Ryall. SC Services is the Perth based telecommunications solutions provider, specialising in supporting Tier 1 telcos with their infrastructure requirements. The business was acquired by Decmil Group (ASX:DCG) with an upfront payment of $14 million plus an earn-out linked to future earnings.
SC offers a suite of design, installation and commissioning services to telecommunications network owners, manufacturers and NBN service providers. At the time of the acquisition SC employed approximately 100 nationally, and generated about $26 million in revenue, along with earnings before interest, tax, depreciation and amortisation of circa $3.5 million.
BDO’s role included:
- Providing advice on commercial and financial structuring issues
- Preparation of Information Memorandum and Financial Model
- Preparing a list of potential acquirers
- Contacting and chairing meetings with potential acquirers
- Leading pricing and structuring negotiations
- Managing the due diligence process
- Project managing the legal teams for the completion of the sale and purchase agreement
- General support of other matters required to complete the transaction.