Case Study · Supply Chain
Supply Chain — RGPM 70% Stake Acquisition
Lifesong for Orphans
The challenge
Lifesong for Orphans sought to acquire a majority stake in RGPM Engineering, a key supplier to the mining sector. The transaction presented challenges due to RGPM's inadequate accounting practices, limited financial systems, and inconsistent financial records.
Our approach
We conducted a comprehensive review of the company's management and financial records, visited the business's operations, and normalised earnings so that the buyer could enter negotiations from an evidence-based position.
The outcome
Successful transaction — RGPM Engineering was valued at slightly over US$1 million, with significant cost savings identified during the due diligence process. The transaction was successfully completed in four weeks following receipt of all required documentation.