Corporate Buy Out

It’s not the size of the dog in the fight. It’s the fight in the dog that really counts.

Recently BridgePoint Group assisted client Potential(x) in their merger with ASX listed Beamtree Holdings


“Around four years ago, I met Duane Attree over a meal at the Union Hotel in North Sydney. I can’t remember if we had a beer or not, but since I was there, we probably did.” 

Neil Parker, Managing Director – BridgePoint Group

In the weeks that followed, we discussed corporate structure and governance whilst Duane raced around to his network to raise capital for a management buyout of Chappell Dean. 

He succeeded, Potential(x) was born and we had ourselves a new client.

Bloody hard work

Chappell Dean was a business with “good bones”. Due credit to the founders. But it definitely needed renovation and Duane and the team got straight to work and never stopped. Vision, drive and determination transformed the business to be what it is today. Often there were highs, sometimes there were lows. There was always lots and lots of bloody hard work.

An impressive business emerges

As professionals, we are really privileged to get to observe the emergence of our clients’ businesses. It’s fascinating to see how different folks go about building their business and when the opportunity arises, to play some small part in their success. 

So, what impressed us the most about Potential(x) these past 4 years?

It was a laser-like focus on:

  • The end game;
  • Enjoyment of the journey; 
  • The importance of the customer;
  • Continual enhancement of the customer value proposition;
  • The development of a superb corporate culture; 
  • Openness to learning; and
  • Addressing value-inhibitors whilst realising value-accretive opportunities.

You know you’ve done well when the big boys come knocking. And in recent months, there was a lot of interest in Potential(x) from a range of brand name suitors.

A whirlwind process 

It was a very quick acquisition process by Beamtree, especially considering how these matters can be drawn out and perhaps get bogged down in the legals. In fact, the timeframe was so ambitious that perhaps even the acquirer didn’t believe it could happen. Yet, it was critical to expedite the deal so that market opportunities could be maximised. 

That meant that BridgePoint Group had to be at the top of their game to ensure that Potential(x) didn’t miss the boat as the Beamtree share price climbed, making the deal ever more attractive. As Neil Parker stated in his memo to the wider BridgePoint Group team:

“The manner in which the BridgePoint Group team pulled together to help get the deal done reflects very well on our capability and our business model. It has drawn great praise from all parties. It also franks the work we did over the past 4 years, helping Duane to address legacy issues that were fundamental to value, while taking the market opportunities that existed.”

One of the enablers helping the deal to move at pace was the logic and common sense that BridgePoint group was able to bring to the table. The hard technical knowledge of tax implications, wrapped in commercial acumen paved the way for a deal that proceeded with alacrity. 

Generally, deals of this type are dominated by the acquirer. The “Golden Rule” states that the man (or woman) with the gold makes the rules. Teams of professionals are in play to see that that rule holds. 

While not fronting up with a bank of lawyers, BridgePoint Group’s Russell Debney more than held his own in the negotiations. Facing a bevy of lawyers from the other side, Russell powered into his work with rare stamina and impressive attention to detail. 

He never took a backward step. Quite the opposite in fact. None of that should imply aggression. Russell’s even manner, experience and logic was compelling, as he led an awesome team supplemented by John Perry of Conquest Capital, the amazing Potential(x) Board member Tania Fryer and of course, Duane himself.  

Timely and expert advice 

BridgePoint Group’s ability to advise with authority across accounting, tax and legal issues, and help to negotiate the final terms of the deal played a leading role in what is a true win-win. The clarity and practicality the team afforded the deal was a key element in developing a respectful, productive and ultimately successful relationship between the two deal teams. 

The deal emerges!

After unanimous support for the deal was given at a hastily convened Extraordinary General Meeting of shareholders on Thursday evening, the 26th of August, a very long and exhausting weekend of “legal tennis” saw final documentation emerge on the Monday. The deal was executed electronically, late Monday afternoon as the two teams popped champagne corks from whence they sat, at home in lockdown! 

The deal was announced to the market the next morning, Tuesday the 31st of August. That the Beamtree share price jumped sharply on the back of the announcement was evidence of the market’s excitement. How appropriate then, that Spring – the season of new beginnings – kicked off just 24 hours later!

What they said…

“We will be bringing our brilliant teams together, who have complementary skills, expertise and a collective vision to put data and technology to best use for improving the quality and value of global health and human services,” said Duane Attree, CEO of Potential(x).

Tim Kelsey, CEO of Beamtree, “This agreement marks a major milestone in the growth opportunity for Beamtree – it doubles the size of the company by revenue and employee numbers and makes it one of the largest health analytics and decision support platforms in Australia. The new company already serves health services in more than 24 countries across four continents – we look forward to accelerating our global growth together with the Potential(x) team.”

The end game?

It was one of BridgePoint Group’s most satisfying and significant pieces of work so far. Our business model is to help clients grow their business and ultimately crystallise their success. 

At the core of what we do is to try to give some peace of mind to business owners. To lean in with our experience, expertise and networks to help drive positive outcomes.

That can be during the day to day running of the businesses (BridgePoint Group provides a remote CFO service), or simply ensuring that all regulatory obligations are met. 

The Group’s corporate advisory services cover everything from tax incentives (we have a R&D Tax incentive expert on the team), through to board room advice, systems and process evaluation amongst other expertise. This is to ensure each business runs at or near its potential. When it’s time to sell, the company’s books and records must be clear, complete and accurate. Those little deposits of dotted i’s and crossed t’s are suddenly worth their weight in gold. 

No losers in this 

At the end of the day, BridgePoint Group may well have lost a client. But it truly is a good news story! 

The amount of hard work that went into getting this deal across the line in such a very short space of time – the depth and breadth of experience and capability – so that our client Duane could realise this life-changing moment for him and his family…..well, those are the moments. The moments that explain why we do what we do. The moments that justify our business model and make it all worthwhile. The moments that make us proud.

If you need any advice or are looking at progressing your business, please reach out to BridgePoint Group – or call us on 1300 656 141. Follow us on LinkedIn and subscribe to our newsletter here.

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