Successful Sale of Ute Accessories Business – T.C Boxes

T.C Boxes, established in 2017, is one of Australia's most popular B2C utility accessories businesses, offering trays, canopies, trailers and other ute accessories. By 2021, the founders had built a successful business generating handsome cash flows. The challenge was finding the right strategic equity partner who would not only allow them to reap the rewards of building a successful business but assist them in taking the business through the next growth phase. The founders needed to navigate the complex M&A process to maximize shareholder value while identifying a buyer capable of supporting the business's continued growth and market expansion.

Moore Australia's Corporate Finance team provided comprehensive lead advisory services beginning in December 2021. The process started with a thorough analysis of the automobile accessories market, with concentrated focus on utility accessories. Moore Australia gained detailed understanding of the business's operations, financial performance, and key shareholder objectives.

A Pricing Paper was prepared in December 2021 to give management a clear estimate of value and set expectations from the beginning. In January 2022, with hindsight of half year financials, crucial sale materials were prepared including a Financial Model and Information Memorandum that painted a picture for potential investors, highlighting the growth story, company culture, industry position and expansion plans.

In February 2022, Moore Australia utilized an extensive proprietary network of trade and financial buyers to present a targeted list of parties most likely to show interest. T.C Boxes was introduced to the market on a no-names basis to maintain confidentiality, with interested parties asked to sign NDAs. In March 2022, Non-Binding Indicative Offers (NBIOs) were requested, and Gresham Capital Partners was selected for exclusivity.

Due diligence commenced from April to June 2022, with Gresham utilizing the services of EY. Due diligence involved thorough analysis of all financial and operational aspects. Lawyers began drafting key legal documents including new company constitutions, shareholders agreements, employment agreements and share sale agreements. Gresham engaged Clifford Chance while T.C Boxes engaged Becketts Lawyers. Completion occurred in August 2022.

Completion was the culmination of 8 months' work. The client walked away with not only a strategic partner to help grow the business, but a reward for building a business loved by trades and adventurers Australia wide. The transaction successfully matched T.C Boxes with Gresham Capital Partners, a buyer capable of supporting the business's continued growth and market expansion while preserving the brand's reputation and customer loyalty.