Post the GFC many companies within the SME sector were exposed to an uncertain future due to over-leveraged balance sheets and/or a downturn in economic activity. The Australian banks reacted to the changed environment by seeking higher margins and fees as well as increased security where available. The days of easy credit have created significant problems with many companies unable to recapitalise and looking for a way forward.
M&A Partners are often mandated to deliver a solution to companies seeking to restore shareholder value.
Two such instances of this were small listed public companies – Ausmelt Ltd and KLM Ltd. In both instance the companies were not well supported by the market, had very depressed shares prices and were not providing adequate returns to its shareholders. We give a short case study on both to demonstrate the role that M&A Partners played in restoring value to shareholders.