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The founders of ONCALL knew it was time for new shareholders to step in and steer the business into the next phase of growth. KPMG put forward a multidisciplinary team to help them through a complex go-to-market and deal process.

The challenge

The founders of staffing-solutions business ONCALL Group Australia (ONCALL) knew the company was in the perfect position for its next stage of growth. However, on a personal front, they were heading towards retirement, so they needed to find the right buyer to take their much-loved business sustainably into the future.

ONCALL, launched in 2004, helps to place staff in service industries, including child, youth and family support, and through the National Disability Insurance Scheme (NDIS). It also helps find accommodation for people who need housing tailored for disabilities.

Once the founders made the decision to sell, they were faced with a myriad of challenges and conflicting advice. They needed expert assistance to go to market, navigate negotiations and achieve a successful result.

After spending some time with the team at KPMG, the founders were confident that KPMG understood the opportunity and were best place to deliver the best outcome for them and the business.When going to market, there were lots of complexities to overcome.

These included that the NDIS was relatively new; the Health and Human Services department was undergoing a contract transition; and there was a degree of caution from private equity towards buying a business with a casual labour force.

The solutions

The complexity of the deal required a multidisciplinary yet integrated team to tackle the challenge from all angles, while still working together on the whole picture.
KPMG offered specialists from Mergers & Acquisitions, Tax, Transaction Services, Legal and Health & Human Services teams.

KPMG helped ONCALL to undertake all the necessary preparatory work to be ready to go to market. For example, the team used sophisticated data and analytics capabilities to unearth any unknown issues, and to provide buyers with transparency and confidence.

KPMG turned its attention to finding the right buyer, and offered a series of education workshops to inform prospective buyers of the value of ONCALL’s service offering. The team also educated potential private equity fund buyers on the NDIS and health services sector more broadly, so they were better positioned to understand how they could realise value.

For any founder, selling a business that they have started from scratch can be a challenging and even emotional experience. The KPMG team understood this, and ensured that they were clearly communicating every action along the way. The team explained what was normal or complex, helped the founders through tricky negotiations, and were a positive partner through the highs and lows of the process.

Working together, KPMG and ONCALL ensured the business was ready for sale, found the right buyer, and achieved a successful deal – at a higher value than the ONCALL team imagined they could achieve on their own.

The insights

The experience reiterated the benefit of having a multidisciplinary team of professionals on a deal, all focusing on their respective areas while also connecting to the big picture.

KPMG’s indepth understanding of the potential buyer universe, coupled with deep the health and disability sector knowledge was particularly valuable, as it meant the team could communicate clearly to potential buyers about ONCALL. The team could give context about the sector, the challenges and opportunities, any risks to mitigate, and ONCALL’s potential for growth. Equally, KPMG was able to match the founders with a buyer that was going to be a good cultural fit and good future custodian for the business.

KPMG’s mix of skill sets, deep understanding of the sector, clear communication, and a client relationship built on trust were appreciated by ONCALL. The business is now on its way to expanding around Australia.

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