The Client
Tooling and General Heat Treatment (TGHT) is a South Australian business providing heat treatment services of metal components for a variety of mining, manufacturing, and tooling applications.
TGHT came together in 1987, with the amalgamation of Tooling Heat Treatment and General Heat Treatment who had been operating since 1975. The two companies joined together to pool resources and purchase a major piece of equipment – a $750,000 vacuum furnace.
The partnership was successful, and over time, newer and more advanced equipment was purchased, including a sealed quench furnace in 1991, along with a second vacuum furnace in 1994. The business has grown steadily over the years and has always provided excellent returns to their shareholders.
Today, with a team of six employees, the company offers heat treatments for a range of materials including steels, stainless steels, cast iron, aluminium and copper alloys. Customers come primarily from industries such as mining, automotive, manufacturing, hydraulics and tool making.
The Challenge: Making a Great Business Even Better
TGHT has been working with Accru Harris Orchard for over 40 years, as they were initially a client of the firm’s founding partner Dean Harris.
“We’ve been associated with the company since its beginnings,” says Director Chris Marshall.
Over the decades, Accru Harris Orchard has helped the company in numerous areas of accounting, tax and business advisory services. However, one key area addressed on several occasions has been succession planning and transfer of ownership.
Recently, Chris Marshall’s team assisted with a transition for metallurgist and current owner Andrew Jordine, who took a significant step to purchase the entire business.
Chris explains, “The business has had a history of transferring equity to employees who have demonstrated an acumen and passion for the business. Transferring ownership of a business is a complex undertaking, and it was our task to help facilitate this process.”
The Solution and Client Outcome
Accru Harris Orchard managed the process of transitioning ownership to numerous shareholders on many occasions over the decades, and this has allowed the business to prosper whilst also ensuring the selling shareholders received a fair outcome.
Chris explains, “Tooling and General Heat Treatment is an excellent example of succession planning, through the promotion of internal staff to management and eventually ownership. We have assisted the company with succession planning strategies on many occasions through negotiating share values and all matters associated with transferring ownership.”
The original owners transitioned their shareholdings to family members, and as the business increased, employee shareholders have been introduced.
“With each transition of shares, there are complexities around both valuations and finances,” explains Chris. “We have recently been involved in the sale of the shareholding of an original shareholder to new owner Andrew Jordine and assisted with what was a significant transaction.”
Andrew says, “The help from Accru Harris Orchard has been invaluable, and it begins at the fundamental level of financial advice and accounting services. Their assistance during ownership transitions – and the calm guidance of Chris Marshall – has been a benefit to both the departing and the remaining owners.”
To learn more about this client, visit the Tool and General Heat Treatment website.
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