In this project, the current interim manager led a sensitive transaction in Australia. A globally active German manufacturer of power tools intended to sell its Australian distribution company to an Australian distributor. The interim manager led the negotiations at the time as CFO of the German company.
Distributor wants to acquire exclusive distribution rights for power tools
A partner in the Australian distribution subsidiary wanted to retire in 2013. The German company therefore bought out his shares in two stages and became 100 percent owner itself. A new managing director was appointed. However, he was unable to build on the success of the former owner and led the sales company into the red within two years. While the company was unsuccessfully searching for a new managing director, a request came from an Australian distribution partner. The distributor from Melbourne successfully marketed competing products from the German company in Australia. It now wanted to expand its portfolio to include the exclusive distribution rights to the German power tools.
Share deal negotiated with a transfer of distribution rights for 12 years
The management of the German company then decided to sell the sales subsidiary to the distributor as a share deal. However, the distributor was initially not interested in this. In lengthy negotiations, the current interim manager made it clear that a share deal was the only way to obtain the distribution rights. In the end, the buyer agreed. During the negotiations, the interim manager also succeeded in limiting the term of 15 years originally sought by the buyer for the distribution rights to 12 years.
Sale of a property removed further obstacles before closing
Another obstacle to the sale was a property in Sydney belonging to the distribution subsidiary, for which the prospective buyer had no use. The current interim manager resolved this conflict by selling the property at book value.
Good solutions for the transfer of employees
The German company attached great importance to finding good solutions for the company's long-standing employees. The distributor, on the other hand, was only interested in the sales team and their expertise. It had no use for the employees in logistics and administration. In complex negotiations, the current interim manager managed to establish good solutions for employees who were not taken on, which the buyer also implemented.
Sale designed as a win-win situation | profitability established for both sides
The result of the sale was ultimately a win-win situation for both parties. The German company sold the sales company to the distributor at a profit. As it now had no structural costs in Australia, the distribution of power tools in Australia became profitable again. The distributor received the exclusive distribution rights for the power tools for a term of 12 years.
