Successful Sale of Transportation and Logistics Company – Ryans Group

Established more than 70 years ago, Ryans Group is one of Australia's leading multigenerational transportation and logistics company with operations spanning contract logistics, freight, supply chain logistics and container operations. In 2022, the management team had built a successful business generating substantial cash flows and decided to canvass the market for a 100% sell down. The ideal buyer needed to be one that would assist in taking the business through the next phase while continuing the legacy that had been built over decades. The challenge was finding the right strategic buyer and navigating the complex M&A process to maximize shareholder value while ensuring the business's legacy would be preserved.

Moore Australia's Corporate Finance team provided comprehensive lead advisory services tailored to the M&A mid-market. The process began in July 2022 with a thorough analysis of the transportation and logistics market, including detailed understanding of the business's operations, financial performance, and key shareholder objectives. Moore Australia prepared a Pricing Paper to give management a clear estimate of value and set expectations from the beginning.

In August 2022, crucial sale materials were prepared including a Financial Model and Information Memorandum that painted a picture for potential buyers, highlighting the growth story, company culture, industry position and expansion plans. Moore Australia utilized an extensive proprietary network of trade and financial buyers to present a highly targeted list of parties most likely to show interest.

After refining the list with management, Ryans Group was introduced to the market in September 2022 using a teaser/flyer on a no-names basis to maintain confidentiality. Interested parties were asked to sign NDAs. In November 2022, Non-Binding Indicative Offers (NBIOs) were requested, allowing management to review headline offer terms and decide which party to take into exclusivity. Tasman Logistics Services was selected for exclusivity.

Due diligence commenced with Tasman Logistics utilizing external professional services for financial and tax due diligence, involving thorough analysis of all components of the business – financial, tax and operational. Lawyers then drafted key legal documents including new company constitutions, shareholders agreements, employment agreements and share and asset sale agreements. Completion occurred in July 2023.

Completion was the culmination of 9 months' work. The client walked away with not only what he thought was the appropriate value of the business but also a strategic buyer that would take the business to the next level and continue the decades-old legacy while building on the goodwill. The transaction successfully matched Ryans Group with Tasman Logistics Services, a buyer capable of taking the business forward while preserving its heritage and market position.