Urgent Sale of Business
Send Australia Pty Ltd – Nationwide trucking company.
This trucking company operated from premises in all capital cities across Australia and had about 50 trucks. Turnover was about $15m per year.
The company had enjoyed great growth after 5 independent trucking companies combined their resources into the one national company.
The directors attempted to sell the business for $12m during the prior 3 months; and then again for $6m during the prior month Both deals failed and the prospective purchasers walked away.
The company’s circumstances were dire. There were no funds and no written contracts with any of its clients.
The trucking industry is a highly dynamic industry, where clients and drivers generally have no fixed period contracts.
The company urgently needed $1m of capital to keep trading and the directors agreed that they would not put these funds into the company due to ongoing trading losses.
We recommended appointing voluntary administrators. As administrators, we assumed the personal exposure from all trading activities of the business and kept the trucks operating while we undertook a fresh nationwide campaign to sell the business.
The directors had previously given up hope of a sale as a going concern and were delighted when we sold the business as a going concern and ultimately realised $3.5M for creditors.
All employees were offered new employment by the purchaser.
The trucks never stopped moving.
“The administrators were honest and very hard working. They worked through the weekend, late into every night to sell our business when we thought it was not possible. They have a very difficult job and they delivered way over and above what I expected ”