- Succession planning led to successful hand-off of family firm to two sons
- Strategic structuring managed tax liability and protected assets
- Financial management led to a 10-fold increase in the business from 2007-2014
- BLG helped negotiate sale of firm without brokerage fees
Allen & Newton is a construction company that provides building services to the insurance industry. As a recommended builder, they assist with everything from disaster abatement to leaking roofs. What started as a small family business owned by Wayne Newton’s father, Peter, grew to a large construction firm serving multiple areas, including Canberra, Wollongong, Newcastle, Port Macquarie, Coffs Harbour, and Brisbane.
Family Succession Plan Leads to Long-Term Relationship with BLG Business Advisers
In 2006, Peter Newton, owner of Allen & Newton, decided that it was time to step down as director of the company and hand it off to his children. On a recommendation from a colleague, Peter reached out to Scott Brodie from BLG Business Advisers for a meeting.
“Scott looked at our financials prior the meeting and had a lot of considerations about how we could set up the company better,” says Wayne Newton, Peter’s son and eventual director of Allen & Newton. “He helped negotiate a succession plan between five siblings. Something that could have been very tricky resulted in a plan that everyone was very happy with.”
Business Advising Leads to 10-Fold Growth and Profitable Exit Strategy
Wayne and his brother, Lance, took over Allen & Newton in 2007. For seven years, BLG was an integral part of the team, providing financial and business advice that created exponential growth in the company.
“BLG helped us understand our business better,” Wayne says. “From numbers, balance sheets, and profit/loss statements, they gave us the tools that allowed us to make decisions that benefited us. As a result, we had a 10-fold increase from 2007 to 2014.”
But that wasn’t the only way that BLG proved invaluable. “In 2014, we decided it was time to move on,” Wayne says. “We turned to BLG and their extensive network of business contacts. BLG introduced us to a prospective buyer and acted on our behalf during the negotiations and due diligence period. They were able to negotiate a significantly better deal than was first proposed to us.”
Not only that, BLG didn’t charge any brokerage fees: “The sale was complete and the money was in our bank accounts within three months of our initial meeting with the purchasers,” Wayne says. “BLG didn’t even charge us for the sale, just for the time they worked on it. They went above and beyond what I expected.”
Benefits and Results
- Created succession plan for a family of five siblings that met everyone’s needs
- Provided tax advice to minimize liability and protect assets for the family
- Provided business advice that resulted in a 10-fold increase in net profit
- Facilitated the sale of the business, including due diligence and negotiations, without charging brokerage fees
“We’ve been very happy with BLG,” Wayne says. “They’re always available and they know what they’re doing. When you work with BLG, you know your business is in good shape. You get to a point where you just trust them and know that they’re doing the right thing by you. We’re very thankful for what they’ve done for us—I recommend them highly.”