Online psychology and counselling service business.

Operating only in Australia, but fully nationwide and predominantly focusing on one-on-one peer-to-peer counselling.

Business has been in the industry for 6 years, with focus of being able to deliver its services anywhere around Australia, thus the business being 100% online.

Founded by a group of people who had other healthcare businesses wanting to add psychology counselling services.

To design and implement growth by acquisition strategies.

Address the challenge of poor service, customer retention and overall process inefficiency from the corporate client, which makes up 50% of the revenue mix of the online psychology business.

Address the risk of the contract with the corporate client, which is unlikely to continue after 2 years.

Address the risk factor of being associated with the corporate client delivering poor quality service primarily because of the decline in interest from key people of the corporate client.

Understanding the business. During valuation, the team looked at 4 main sections, (1) business specific background (operations) i.e., the people, the processes, intellectual properties (IP), structure, (2) financial assessment i.e., revenue, earnings, assets, balance sheet (3) market value of what a business goes for in this industry of this size range, and (4) assessment of where the value of the business sits in the market.

Identify the gaps, risks and issues that are causing the business to be worth less than it could be..

Look at the opportunity and the areas that can be improved to increase valuation..

Since the would-be acquired business and the acquiring business already have a long-standing relationship, negotiation was seamless compared to normal mergers and acquisition process.

The key people of the corporate client were happy to transfer the responsibility of running the business due to priority shits.

Work on the strategy based on the first three steps undertaken; understanding the business, identifying gaps and opportunities for this business..

Improve the performance of the corporate client's business by coaching and mentoring the corporate client on how to deliver successful service to their councilors.

Improve acquired business' operations which eliminated the risk factor of being associated with the corporate client delivering poor quality service .

Avoided a potential loss of 50% of the business value by securing a successful acquisition, which preserved valuable customer relationships and shifted market positioning from being a niche service provider to catering to a wider market.

Increased the number of councilors that can provide the psychology and counseling service from 70 to 120.

Follow-up valuation and revaluation of the company.

Acquired business services improved because of the successful merger.

Minimised risk for our clients.

Market repositioning proved successful.

Designing and Implementing Growth by Acquisition Strategies.