Beyond the balance sheet: A model deal
From Left: Scott Atkins (Acumon), Andrew Pearce (Collins SBA), Christian Tapp (Acumon) and Jono Elliot (Collins SBA).
Article by: Chris Sheedy OF The Hard Word
When two geographically distant accounting firms combined, the resulting organisation was far greater than the sum of its parts. Success had a lot to do with excellent advice that ensured mutual growth in culture and capability.
Deep in discussion during a few days away from the office, the two partners in accounting firm Acumon, based in Newcastle, realised things weren’t going according to plan. They had a good business, great clients and excellent staff. But the workload was overwhelming and the thing they were most passionate about – providing outstanding service to clients – often came second to admin tasks.
At the same time, at Collins SBA in Hobart, Andrew Pearce was thinking about growth. But he wasn’t simply after a purchase to boost the books. Andrew was looking for a strategic expansion opportunity that would introduce new talent, bring new energy and extend the firm’s footprint.
Both businesses had conversations with Kev Ryan, of accounting firm transaction advisory KevRyan. Kev has a powerful reputation for knowing when the right people need to be brought together in the right place. He proved this reputation correct when he organised a meeting between the two firms.
Culture and due diligence
“What really stood out for us, during the due diligence process, was that the team at Collins SBA was the only real fit for us,” says Christian Tapp, Partner at Acumon. “Kev was very good in identifying that, and once he brought us together he was hands-off and hands-on at the same time. He came in when he knew he was needed.”
The Collins SBA team took the cultural and change-management challenge very seriously, Andrew says. During the six-month process of coming together, drawing from lessons they had learnt during previous acquisitions, communication was the key focus.
A dedicated internal website was built for staff, one that included FAQs, weekly updates and newsletters, and Q&A functions enabling people to ask any additional questions.
“We have capability sets within our executive around technology and marketing and that helps us with strong messaging,” Andrew says. “But we also spent some time in Newcastle, and people from Acumon spent time with us in Hobart. That face-to-face time is very important.”
Christian agrees, saying that when members of the Collins SBA team spent time in Acumon’s Newcastle office, it went a long way toward reassuring staff that it’s business as usual.
“There would be some process changes, particularly connected to better software options, but they made it clear that they’re not coming in to change everything,’ Christian says. “They liked the business as it is, which is why they wanted to partner with us.”
Joint venture, not buyout
The merger was settled in October 2024, structured as a 50/50 joint venture. That specific structure was chosen to ensure an equitable outcome for all, including a future focus that served to add value for all stakeholders.
It was a relationship of respect, Andrew says, one that began with a due diligence process that ventured well beyond the balance sheet and delved deeply into values, culture and a shared set of future goals.
“Previously, we had completed several acquisitions that had been tucked in to our business,” Andrew says. “In this case, when we understood the objectives of the partners in Newcastle and what they wanted to achieve, we wanted to develop a win/win outcome for all parties.”
“It’s very difficult to properly control an acquired business, and to turn the existing principles into employees with ease, particularly when the risk is uneven. We felt that a joint venture was a better way. It seemed to take away a lot of the risk from both sides and produce some good wins at the same time.”
A merger can be a win for everyone
In a deal that Andrew says was as much about an acquisition of talent as it was about anything else, the benefits for all involved have been enormous.
In the past, he says, acquisitions may have come as a result of a retiring business owner selling their high-performing business. In other instances, Collins SBA already had particular skills within their building and didn’t need to bring specific talent on board. When senior talent was brought on board, they were often offered equity.
But this agreement, which expanded the geographical footprint of the business, required excellent business leaders in the new territory, in Newcastle, to ensure success.
And what was in it for Christian and his business partner Scott? As well as having administrative burden relieved by the Hobart head office, their business would also enjoy a significant technology upgrade. That upgrade would have a highly positive effect, much of which is only now being fully appreciated.
“One of the things we really liked about Collins was their technology,” Christian says. “That included how they had implemented platforms like Salesforce and Employment Hero. It has all made our jobs a lot easier from a practice management workflow perspective.”
“These better systems have streamlined things for us – they’re exciting but not overwhelming. They have tightened things up and removed a lot of the clunkiness. And in doing so, they have made us quite excited about what we’re doing and how we can move forward to do the things we’re really passionate about.”
Kev: The quiet catalyst
This merger, Kev says, is an excellent example of a unique and powerful type of business deal.
In creating a joint venture after exploring common and individual motivators and goals, both businesses are able to grow without losing their sense of purpose or identity and without taking a hit to their culture.
Sometimes, Kev says, all it takes is a conversation with the right connector at the right time.
“I’ve known Kev from various events and conferences, and in this case he was engaged by Acumon, but he clearly saw something in both of us,” Andrew says.
“When you’re in a busy role and have lots of things going on, sometimes that initial introduction can be missed. But when someone who can see a connection makes it happen, that’s when great deals are made.”
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