Deal closed: Compass Health: May 2012, EMQnet: March 2014
Oasis M&A mandate: buy-side
Sectors: Health, Medical & Emergency
Sub-sectors: Emergency management, Business Services, Software, Mining
Background and motivation
Dynamiq provides crisis and emergency advice and aid to large mining, media, aviation, maritime, corporate and government clients.
Dynamiq wanted to grow market share through geographic expansion and increased service breadth. Their long-term objective was to position themselves as a one-stop-shop integrated emergency solution. They turned to Oasis M&A for support on the growth journey, appointing CEO Mike McGrath as a board member to provide ongoing strategic council.
Deal one: Compass Health
Oasis advised that the most efficient way of achieving desired growth was by implementing an M&A strategy in conjunction with an organic growth strategy. Oasis accepted the mandate to identify strategic acquisition targets and manage the deal negotiation process.
In 2011, Compass Health was identified as the perfect complement to grow Dynamiq’s offering, with a good cultural fit and the same commitment to quality of service for clients. Compass Health added depth and strength to Dynamiq’s existing remote staffing capabilities, positioning them as one of the largest and strongest providers in Australia.
The key challenge was to negotiate deal terms provisioning a sufficient earn-out period whereby the existing owners continue to work for the business to ensure a smooth transition.
The new deal extended both organisations’ reach domestically and globally, and the ultimate goal of the partnership is to ‘position the amalgamated organisation as the preeminent provider in the emergency response industry’. CEO Anthony Moorhouse reflected: “While there are some administrative synergies to be achieved through the acquisition, this is truly a merging of capability and intent to increase the global scope of our services.”
Soon after the deal and as a result of their merged offering, Dynamiq were able to secure a Queensland-based Emergency, Medical and Security Services Contract. The deal, valued at $10.5m over three years demonstrates the immediacy with which acquisition can facilitate growth.
Deal two: EMQnet
Following the success of their first acquisition, Dynamiq sought to further increase their product offering via another strategic acquisition.
This time they wanted to add an emergency support technology solution to their product mix.
Through extensive research, Oasis M&A identified an opportunity with EMQnet. EMQnet provided a secure, online crisis management software system empowering organisations to manage crises, issues and security incidents more effectively.
The key challenge faced for this merger to run successfully were two quite different business cultures. This risk was mitigated with a thorough post-acquisition plan detailing a unified vision of how the businesses would be integrated.
“I needed to find someone who could tailor their advice to be fit for purpose… Mike, unlike the vast majority of consultants has been there, done that and helped me avoid some of the biggest traps and pitfalls.
Over the 8 years that I have had Oasis M&A on as advisors we have gone from 4 people to 160, increased our revenue 25 fold, completed two acquisitions and recently sold the business.
Oasis M&A are pragmatic and know how to position companies for the next phase of growth. I highly recommend them.”
Founder & Director of Strategy, Dynamiq