Tech-link Storage – Acquisition of Dexion
PKF was approached by Tech-Link, a Singapore based provider of industrial logistics, warehousing and racking solutions, to advise on the proposed acquisition of Dexion.
Dexion was owned by GUD Holdings, which had determined that the business was no longer a core part of its investment portfolio.
Dexion was in the early stage of a turnaround program. We worked closely with Tech-Link’s management to perform a detailed assessment of the turnaround strategy and its progress. We prepared a detailed three-way financial model to stress test the turn-around, evaluate potential synergies with Tech-Link and prepare a discounted cash flow valuation.
PKF advised Tech-Link on structuring the acquisition to contain the risks arising from a number of significant actual and potential commercial and legal issues including restructuring of offshore operations, customer disputes and growth initiatives that were not delivering outcomes that would meet Tech-Link’s objectives.
We led negotiations with GUD and its adviser PWC and were able to negotiate a deal structure that was acceptable to GUD and that provided value to Tech-Link.
Tech-Link’s management team has successfully restructured the business and is achieving sales growth and financial performance that exceeds its own turnaround plan.
“Tech-Link engaged the services of PKF Australia to provide advice on the acquisition of Dexion. We were absolutely delighted with the detailed, diligent and valuable advice provided to us by the PKF Australia team. During the course of the due diligence period, we built a strong rapport with the PKF team. The PKF team advised and guided us throughout the process which culminated in a very successful acquisition of Dexion. We would like to express our sincere thanks to the team at PKF.”