Jag Capital is pleased to bring to market this Australian company, a leading provider of Occupational Health, Safety, Environment and Noise Consultancy to Australian governments, councils and business for over 30 years
Since 2008, revenue has grown from $1.7M in FY07 to $3.8M in FY2019, a CAGR of 8%, delivering an average EBITDA (Normalised) of $ 743K over the last two financial years. The company has invested heavily in its systems, certifications and has a soon to be accredited NATA accredited asbestos laboratory for fibre counting, which will significantly underpin the company’s growth and future potential.
The following summarises the key attributes of the Company. These items are discussed in greater detail throughout the information memorandum.
- Clients: Blue Chip corporate and government clients. Most clients are repeat clients, and some have been partnering with the company for over 2 decades.
- Services: A diversified range of OHS&E consulting and training services, with the ability to cross-sell services to clients.
- Team: A senior leadership team with a combined industry experience of over 100 years, and a multi-skilled consulting team comprised of experienced OHS&E experts.
- Certifications: Integrated management system global certifications in quality (AS/NZS ISO 9001:2015), safety (AS/NZS 4801:2001) and environmental (AS/NZS ISO 14001:2004).
- Technology: An electronic client portal enabling clients secure, 24/7 access to reports produced by the company. Ability for clients to subscribe to the Company’s OHS&E asset management system via a QR code system.
- Locations and facilities: A recently established NATA accredited asbestos laboratory for fibre counting to vertically integrate the company’s largest revenue earning service, being asbestos auditing. In addition, geographical diversity with headquarters located in Victoria and offices in the Australian Capital Territory, New South Wales, Queensland, South Australia, Tasmania and Western Australia.
- Market and industry: A large range of the services offered are mandated under State and Territory legislation and include the requirement for regular updates, providing a recurring income stream from clients.
The key opportunities for growth available to the buyer to explore include, but not limited to:
- OHS&E Asset Management System (JAMS): THE Company sees QR codes as the future of OHS&E asset management and there is an opportunity to increase client uptake of JAMS and the use of QR codes.
- CRM: A CRM has been developed by the Company’s in-house IT team specifically for the requirements of the Company. An opportunity may exist to offer this CRM to the market as a stand-alone product.
- Client Portal: A Client has developed a client portal that provides clients with 24/7 access to their current reports via a security password accessed via the Company’s website. At this stage, access to the client portal is an unpaid service, however, there is potential to monetise this service through the introduction of subscription fees.
- Application Programming Interface (API’s) – The Company is working with a number of clients on the development of API’s to connect with and push data to their systems and applications. This will allow up to date reports to be viewed by clients’ employees and Contractors through their own internal systems and apps making the Company’s services more appealing and increasing switching costs to competitors.
- NATA Certified Laboratory: The company has recently built and equipped a laboratory for asbestos fibre counting and is currently well advanced in the process of NATA certification with documentation and training completed. The lab will provide an additional revenue stream and enable expansion of their largest revenue earner, asbestos related assessments.
- Training: Training, an area that the Company has not pursued energetically, remains a significant expansion opportunity. The Company has compiled a vast resource of training content and programmes across OHS&E compliance competencies which remain their intellectual property. The Company has prepared and presented training courses on asbestos awareness, asbestos removal, dangerous goods, ergonomics, hazardous chemicals, manual handling, noise awareness, respirator use, screening audiometry, ergonomics and working at heights and many more for many organisations including WorkSafe NSW and the military.
- Growth of OHS&E: The OHS&E services industry in Australia is a $1.5 billion industry with average annual growth between 2012 and 2017 of 3.8% and forecast average annual growth for 2017 to 2022 of 2.6%. Unprecedented spending on infrastructure combined with rising concern with OHSE issues such as noise and silica is driving new opportunities for which The Company has invested in state-of-the-art equipment and training. This investment has proved wise, the Company having already carried out dust, silica, noise and vibration monitoring associated with major infrastructure projects. The latest reduction in the exposure standard for respirable silica will potentially increase demand in this area.
- Locations: The Company currently services clients nationally from its headquarters in Victoria and virtual offices in the other States and Territories. There are potential growth opportunities by formally expanding outside of Victoria.
Asking Price: Expression of Interest
To execute a confidentiality agreement to receive an information memorandum, please contact the undersigned directly:
Graham Van Damme, Managing Director & OIEC
Jag Capital Pty Ltd: email@example.com
 IBIS World Industry Report OD4162 Occupational Health and Safety Services in Australia (May 2017)