List of experience

Project Flora: We assisted our client to successfully navigate key supplier risk through developing scenario-based playbooks and contingency planning to manage delivery of an energy infrastructure project facing working capital constraints. We advised on developing a plan for project delivery should distressed circumstances arise, including establishing roles and responsibilities and collaborating with legal advisors to understand project risks. We assisted to minimise client risk through establishing, implementing and monitoring compliance against contractual arrangements.
Project Shaquille: We were engaged to conduct a forensic investigation following discovery of suspected fraudulent payments disguised as supplier and payroll payments made by an employee to their own bank account. Our work involved covert investigation and quantification of the suspected payments, review of email data and supporting documentation, analysis of bank statements and forensic imaging of the employee’s work devices. We identified payments made to other bank accounts using data analytics. Our multi-disciplinary team worked with the client, their legal advisors and police throughout the investigation.
Project Goldfish: As a potential purchaser of a rural supplies business, our client engaged us to conduct due diligence on the payroll compliance. This identified potential underpayment due to the incorrect interpretation and application of the modern award provisions, which enabled the client to estimate the exposure and adjust their terms of offer accordingly.
Project Aristotle: As the vendor of a manufacturing business, our client engaged us to conduct a due diligence of their payroll compliance compared to approximately 30 Enterprise Agreements and six Awards. We enabled the client to estimate any potential underpayment exposure (if any), negotiate with insurance providers and address queries from potential purchasers.
Project Mira: Engaged by a syndicate of US Private Placement noteholders exposed to a major casino gaming and hospitality group. The group had been subject to multiple regulatory reviews resulting in operating restrictions and financial penalties. We advised our clients during a capital raising that delivered a substantial debt repayment in return for a restructure of covenants.
Project Toorak: McGrathNicol provided dispute consultant services to a large franchise company who was facing a class action. Our analysis involved an assessment of the lead applicants claim, an assessment of potential class members specific circumstances and calculation of likely exposure should liability be awarded.
Project Sherwood: Our Forensic team provided consulting expert advice regarding the value of a claim connected with a lithium offtake agreement. Our financial model of historical and projected lithium sales, freight costs and related fees that were allegedly payable assisted a defendant to settle the claim at mediation.
Project Banquo: An Australian corporate client engaged us to provide post cyber incident threat intelligence services. The client had recently fallen victim of a ransomware attack and we conducted a cyber threat intelligence collection and analysis exercise to identify potential threats and risks associated with the threat actor and their execution of the attack.
Project Gasly: We were engaged to undertake an incident response exercise with a client in conjunction with their preferred legal advisor. As part of this process, our team performed continuous dark web monitoring of cybercrime intelligence sources, such as market places, forums and known threat actor information sharing platforms.
Gympie Regional Council: We provided a range of technology and advisory services to improve operational and cyber risk posture. We identified key risks and developed strategic plans to reduce their exposure to cyber threats. We also undertook a procurement review, governance review, and a fit-for-purpose assessment of their ERP system.
Project Tornado: We were engaged to assist a client that had suffered significant property damage and business disruption following a weather event. Our team prepared an assessment of the business interruption loss for submission to its insurers to facilitate efficient and timely resolution of the claim.
Project Soda: Engaged by a financier providing a corporate facility to an ASX-listed provider of personal loans. The group needed to repay debt that had funded the acquisition of a complimentary business, but the changing interest rate impacted its net interest margin, and it experienced a higher level of non-performing loans impacting its ability to refinance. The group raised capital via an ASX placement using the proceeds to reduce debt.
Project Cooper: We were engaged by a prospective financier to undertake a pre-lending due diligence review of an international business supplying equipment on hire to the construction industry. We reviewed the recent and forecast financial performance in all of its key markets to consider the likely range of earnings and conversion of earnings to cashflow. We could then advise our client on the level of sustainable debt the group could support.
Project Toolkit: Our Forensic team built a model that calculated the amounts due to the employees who had been underpaid. We also assisted the client with employee communications and in determining the cause of the systems and processes that had led to the underpayments.
Liquor King: Lion sought our assistance to sell their New Zealand liquor retail network, Liquor King, over multiple transactions. Our role included drafting marketing documents and an information memorandum, preparing and coordinating due diligence and managing hundreds of bidders through the process. The result was a successful sale of the stores individually to multiple bidders, maximising value from the sale to Lion.
Project Network: Our assistance was sought by a client whose employees had been paid in accordance with the correct legal instrument for the last 10 years. The team created a model that calculated over 5000 past and present employee entitlements and back pay due to employees. We worked closely with the client, the board and advisors over an 18 month period.
Project Greenlight: A global renewables client engaged us to assess their Australian operations' cybersecurity using the Australian Energy Sector Cyber Security Framework. We visited regional solar and wind farms, reviewed their local and global policies, procedures, IT and operational technology systems. We assessed their maturity and identified initiatives to uplift their cybersecurity maturity to that required by the Foreign Investment Review Board.
Project Docklands: A large Australian-based critical infrastructure client sought our assistance to respond and remediate a privacy incident. Working closely with our client and their legal advisors, we identified and collected potentially affected information. We analysed information to identify the extent to which sensitive information was at risk, and to whom this information related to, allowing the breach reporting to be planned and executed.
Project Panther: Working for a well-known sports apparel retailer, we conducted a review of the company's architecture, provided recommendations and executed both external and internal vulnerability assessments and objective-based penetration testing. Our review included technical findings, a collaboratively developed uplift roadmap and strategy for management.
ALS: McGrathNicol was engaged to undertake both internal and external penetration testing for ALS as part of its annual internal audit program. Working with the ALS team, we conducted a series of tests designed to ensure geographic regions and systems were included in the testing. Analysis was provided that included technical findings and management and risk reporting.
Toll: Reviewed Toll IPEC’s financial and operating metrics for their national workshop. We developed a tool to benchmark between sites and compared current maintenance servicing intervals against OEM recommendations, compliance reporting, asset lifecycle assumptions and warranty obligations. We modelled fleet dwell time, opportunity cost of idle capacity and slow moving inventory, and made working capital recommendations.
Project Data: Provided independent expert witness services in a matter where a technology provider was sued by a client who alleged the provider's system was not fit-for-purpose and therefore impacted the claimant’s ability to fulfil contracts, resulting in lost revenue. We assessed financial and non-financial information put forward by the claimant and the matter was resolved through settlement discussions.
Project Smelter: We acted as a consulting expert with the special purpose liquidator in connection with a resumption by a public authority of a former lead smelter site. Our expert coordinated the work of property experts and a professor of finance. The outcome found that the liquidator was able to assert material value of the property and they resolved the matter with a settlement sum for the special situations lending fund.
Project Domain: Our team was engaged to perform a digital asset investigation to trace stolen Bitcoin from a privately owned cryptocurrency wallet. Our client inadvertently exposed their private key to an unknown party, which subsequently led to $650,000 stolen from their wallet. Our investigation identified the Bitcoin location for the purpose of digital asset seizure and recovery, and assisted in compiling transactional information that can be used in a potential class action.
Project Federal: We were appointed as receivers and managers of an Australian entity by the Federal Court on the basis of suspected fraud. Investors advanced around $8 million in funds to the company, which were converted to cryptocurrency and used for purposes inconsistent for which they were invested. The investigations included tracing a significant volume of cryptocurrency transactions and considering potential recovery action.
Project Balmain: A high net-worth client engaged us to create an Origin of Funds expert report to release a significant amount of Bitcoin from an international digital currency exchange. Our work included the complex recreation of over 10 years' worth of transactions, a flow of funds diagram, and an accompanying report to be provided to the exchange as proof of ownership over deposits.
Project Europa: We were engaged to assist our client who was facing a class action alleging work agreements were sub-contracting arrangements rather than employment. We assisted the client by analysing the lead applicants' claims, conducting scenario analysis around potential exposure and avenues for resolution.
Conflicts Management Review: A ‘Big 4’ bank asked us review and assess the financial markets’ current and ongoing compliance with conflicts management obligations, both within Australia and globally. We assessed internal policies and procedures against ASIC RG181 and industry best practice, and provided recommendations for improvements to address weaknesses identified.
Western Roads Upgrade Project: The Victoria State Government sought us as advisors on the Western Roads Upgrade project. The project was at risk of default which had implications for future capital contributions and the project’s ability to refinance. We reviewed the project model and undertook scenario analysis to understand the impact on project economics and liquidity of enforcing contractual rights in the event of a default or dispute.
Project Zeiss: We assisted a secured lender to undertake an independent business review of an e-commerce retailer, wholesaler and importer of homewares operating in the Australian market after a period of COVID-induced growth and an increase in debt. Our review focussed on the financial position and forecasts, in particular its cash flow and ability to service debt. This extended into monitoring execution of the company’s capital raising strategy.
Project Snowflake: Senior and mezzanine lenders of a tourist attraction based in northern Queensland engaged us to conduct an Independent Business Review. The review included reviewing the company’s historical performance which had been heavily impacted by COVID, and its forecast performance to determine its ability to repay its loans. The report also considered options to restructure the company’s debt and equity.
Project Textile: We acted as an expert in response to another expert's report, which estimated a loss of a commercial opportunity from the development of industrial properties. The other expert estimated c.$100 million in losses, where we determined a benefit or no loss. The judgment was in favour of our expert, which was significant as the litigation was an issue for a national legal firm contemplated an initial public offering.
Project Yacht: McGrathNicol prepared expert reports valuing a private hospital in the context of litigation of a post-transaction dispute, where the purchaser alleged negligence against professional services firms that provided valuation and due diligence services at the time of the transaction.
Australian Competition and Consumer Commission: We provided the Australian Competition and Consumer Commission with an independent assessment of the Consumer Data Right's (CDR) implementation against the Information Security Manual (ISM), and a benchmarking analysis of key program metrics against industry averages.
National Faster Rail Agency: We assisted the National Faster Rail Agency (NFRA) to undertake a strategic risk assessment, a fraud risk assessment, a review of their fraud control and corruption plan and their risk management policy and framework. This involved multiple workshops with stakeholders to develop a practical and fit-for-purpose recommendation to further enhance the NFRA's risk management approach.
Aged Care Quality and Safety Commission: We assisted the Aged Care Quality and Safety Commission (ACQSC) develop new frameworks to embed the internal audit function. As the ACQSC's appointed Internal Auditor, we have assisted with audits focusing on compliance, performance, HR, IT and operations. We work collaboratively with the ACQSC staff and Audit Committee to make practical recommendations to further strengthen the organisation's governance and control environment.
Department of Defence: We assisted the Department of Defence to meet PGPA Act requirements in relation to its Annual Performance Statement. We consulted broadly across the department and assisted in building frameworks for their performance measures, including identifying data sources, building methodology and developing reporting templates.
Project Oldenburger: Following a Request For Information (RFI) from a regulatory authority, a not-for-profit entity engaged us to undertake a limited scope governance and financial review and facilitate the provision of information in response to the RFI. Our involvement simplified the information provision process and helped the client to identify governance and compliance issues to be addressed with the regulatory authority.
Ziera Shoes: As appointed administrators of the Ziera Shoes wholesale and retail businesses, which owned around 50 stores across New Zealand and Australia, we implemented a trading strategy that increased turnover five fold, whilst securing a sale of the IP to Munro Group. Negotiating stock releases from suppliers reduced creditor claims and increased recoveries further, resulting in secured creditors being repaid in full and the majority of unsecured creditors receiving almost 90% of their claims.
Project Fjord: We were appointed to assist an infrastructure company facing insolvency due to a single large onerous contract. Our role involved assessing the restructuring options, considering the impact of various options on different stakeholders, and executing the preferred plan. We negotiated an exit from the contract for the company, providing the client with the means to continue with the project, rescuing the business from potential insolvency, and consequently avoiding any losses for creditors.
Hawkins Construction: Appointed receivers of the legacy Hawkins Construction business in New Zealand following a sale of the majority of the business and assets to Downer Engineering. We undertook detailed reviews of remaining construction disputes, managed the engagement of experts and lawyers, and negotiated resolutions to the long-running disputes to generate recoveries.
Max Fashions: The Board of New Zealand women’s fashion retailer, Max Fashions, engaged us to explore options to avoid insolvency due to COVID-19. We developed a restructuring plan that reduced payments to suppliers, closed unprofitable stores and reduced rent on remaining stores, using a Creditors Compromise to compel minority dissenting creditors to comply with the restructuring. The restructure saved over 200 jobs and more than half of the retail network.
Project PIC: We were engaged by a financier to provide independent analysis of an airline food catering business, that was seeking funding for a nationwide expansion. We assessed key operational initiatives, management roadmap, investment opportunities, compliance to food service and HAACP standards. Additionally, we assessed market sensitivities and potential competitive response, proposed resourcing, and commercial opportunities to critique the scalability and identify potential execution risks.
Project Market : We acted as an independent expert to provide data analytics and consulting services to assess potential contraventions of the General Retail Industry Award (GRIA) by a large supermarket group. This involved the calculation of the value of employee underpayments for over 7,500 employees of the supermarket group.
Greater Western Water: We advised City West Water and Western Water on their integration to form Greater Western Water. Greater Western Water delivers water services to customers across metropolitan Melbourne, northern and western regions. We supported the planning and execution phases of the integration, focusing on project management, risk management, governance, stakeholder engagement and reporting. Greater Western Water launched on 1 July 2021, with no disruption to operations or customers.
Project Ballroom: Within a complex dispute involving transactions and offshore assets, our client faced allegations relating to the keeping of books, records and accounts under the terms of a Trust Deed. McGrathNicol acted as a consulting expert to provide advice on an interpretation of the accounting requirements, enabling the client’s lawyers to formulate its legal response.
Project Oberon: A large, privately owned zinc mine with east coast operations that had suffered sustained losses due to production delays, rising all-in sustaining costs (AISC) and a falling commodity price. The directors sought our assistance for safe harbour protection while taking steps to implement a turnaround plan and attempt a sale and recapitalisation process that would maximise the return to creditors.
Life Trading: McGrathNicol was appointed as the Independent Expert by Life Trading, a technology-focused proprietary trading firm, regarding an ASIC Enforceable Undertaking to determine the appropriateness of its supervisory policies and procedures. We reviewed governance and supervisory policies, control systems, trade surveillance and monitoring, incident reporting and training procedures taking into consideration ASIC’s market integrity rules and ASX24 operating rules.
Mediacloud Pty Ltd: Appointed Administrators to Mediacloud Australia, a cloud-based broadcast platform for the delivery of media content to a select number of customers, including the Special Broadcasting Service Corporation (SBS), TVSN Channel Pty Ltd and Indigenous Community Television Limited. As Voluntary Administrators, we successfully traded and sold the core business and assets to a blue-chip Australian Telecommunications provider.
Home Australia Group : We were appointed Liquidators of Home Australia, a residential building Group with separately branded and operated businesses in each major state of Australia. The Group had a number of partially completed display homes, approximately 200 customer homes under construction and undeveloped land. We sold the land, implemented a realisation strategy for the display homes, communicated frequently with creditors and home building insurers, and assisted affected customers with new builders to complete their homes.
Project Hue: We provided an incident response and sensitive data assessment following a data breach within a large NSW Government entity. Using a combination of analytics, machine learning and data manipulation techniques, we performed a comprehensive data assessment across millions of unstructured documents, ultimately identifying affected persons and their exposed identifiable information. This engagement also involved providing extensive reporting to the NSW entity.
Project Finch : We acted as an independent expert in relation to an investigation of the self-disclosure of employee underpayments by a large financial organisation and its related entities. Our team performed extensive testing on sample employee data to complete remuneration recalculations, and documented and quantified any errors in respect of the organisation's entitlement calculation model, including any issues with code logic.
Project Heart : We were engaged by a law firm to undertake a limited assurance engagement on an employee underpayments calculations performed by a charity organisation. We conducted our engagement in accordance with the Australian Standard on Assurance ASAE-3000 - Assurance Engagements other than Audits or Reviews of Historical Information, issued by the Audit and Assurance Standards Board.
Project Solar: Our Forensic team provided independent expert witness services in a matter where a solar installation contractor sued a manufacturer and distributor due to an alleged breach of contract. We conducted analysis of the Claimants financial position before and after the alleged breach to test the reasonableness of the claim, subsequently the matter was settled between the parties.
Project Andre: Our Deals team provided financial due diligence services on a national healthcare network providing GP, dental, pharmacy and other healthcare services. Our work focused on revenue recognition and the key assumptions underpinning forecast performance including the rollout of new centres and services, doctor recruitment and patient volumes.
Project County: A leading Australian beverage manufacturer sought our assistance to review their distribution network efficiency across B2B and B2C channels. We conducted detailed analysis on asset utilisation, sales efficiency, true cost and supply chain partner performance, leading to the development of a sophisticated dashboard to allow a single view of the outcomes. Alternative partnering options were also developed to both reduce the cost to serve, remove idle capacity and increase revenue through extended reach.
Project Agility: A global engineering services business engaged us to assist with critical working capital and cost optimisation projects. As part of the cost optimisation work, we identified a number of overheads and organisational processes that were contributing to an inefficient cost base. The team then developed and helped administer a cost out plan following an urgent diagnostic phase of work, that covered several offices globally.
Project Eleven: We assisted a regulator in its investigation of a listed entity following a significant profit downgrade. We collated source information for use in witness interviews and provided advice on relevant accounting treatment. Our analysis and reports assisted the client formulate and target its investigation strategy.
Monde Nissin Corporation: We were engaged to perform a review of both the current and proposed warehousing and distribution operations of Monde Nissin Australia. We provided detailed analysis and forward modelling on automation options, ROI, labour productivity, throughput, and other capital expenditure options. We presented our review to the executive committee to assist in their business case development and subsequent investment decisions.
Project Wollongong: We investigated allegations relating to the falsification of contractual documentation that resulted in a financial benefit to counterparties. Our team interviewed employees, examined emails and mobile phones and identified versions of critical documents with changes that were able to be attributed to employees. We reported our findings and assisted in referring the matter to regulators and law enforcement.
Project Alice: We conducted an investigation into alleged nepotism in a recruitment process, which was also the subject of an Industrial Relations Commission hearing and statutory declarations. This involved a detailed review of email correspondence and statutory declarations, conducting an interview with the complainant and interviewing six subject officers.
Australian Pesticides and Veterinary Medicines Authority: McGrathNicol undertook an assessment and provided recommendations to uplift cybersecurity controls to align to the Essential Eight and the Information Security Manual requirements. Additionally, the team also assisted with IRAP preparation work across various capabilities.
Department of Agriculture, Water and the Environment: We designed a risk compliance strategy for a new Commonwealth program which involved designing, drafting and assisting to implement a risk policy and comprehensive risk framework. The engagements deliverables were used to drive compliance with policy and legislative requirements, for both internal departmental purposes and for external stakeholders.
Regional Investment Corporation: McGrathNicol worked collaboratively with Regional Investment Corporation (RIC) leadership to design a strategic risk management framework. This included development of detailed risk policies and processes and a tailored risk management plan. In addition to developing the framework, the team worked with management to implement the risk management approach, educate staff and monitor compliance.
Department of Health and Aged Care: McGrathNicol conducted more than 100 financial viability and solvency assessments of higher risk residential aged care providers. Our analysis involved working with aged care providers to develop a forecast model to highlight cash needs and the risk of involvency. For a number of higher risk providers, we worked together with the organisation and the department to identify and implement solutions.
Services Australia: We partnered with Services Australia to develop a new framework for reporting performance within the Annual Performance Statement. Our work included extensive consultation across the business, building out new performance measures, developing calculation methodologies and producing reporting templates to aid the quarterly and annual processes.
Project Phegan: McGrathNicol assisted private equity owners and management of a diversified electrical products and industrial solutions business to identify and assess cost out opportunities. Key deliverables included advising on the ‘normalised’ cost base for the business, and assessing and stress-testing the cost efficiencies and synergies able to be delivered following recent acquisitions. Additionally, we also developed a ‘roadmap’, timetable and cost reduction implementation plan.
MedAdvisor: Engaged by MedAdvisor, a world class medication platform, to assist with their c.USD34.5 million acquisition of Adheris Health, a US leader in tailored opt-out direct-to-patient medication adherence programs. We assisted with financial due diligence, financial modelling, integration and acquisition accounting advice. Our global alliance partner, Alvarez and Marsal, performed tax due diligence and structuring advice out of its New York office.
Project Coastal: We were engaged by a law firm to conduct a digital forensics investigation into the suspected unauthorised access of sensitive information stored on a State Government entity’s servers. Our forensic technology experts conducted a thorough analysis of electronic records and evidence collected from the client’s computer systems. We produced a detailed history of user activity in relation to sensitive files and folders and identified multiple instances of potentially unauthorised access.
Project Wivenhoe: We were engaged to prepare and provide risk management training for a statutory authorities' senior operations staff. Our engagement also included a business continuity test exercise for the organisation’s executive, to help the organisation respond appropriately in a range of business interruption scenarios. The organisation was subsequently able to refine its business continuity polices and procedures to align with better practice guidelines.
SEGC Cyber Audit 2020: We were engaged by the Securities Exchange Guarantee Corporation (SEGC) to conduct a cyber audit and identify cybersecurity risks relevant to the organisation. Our team assessed SEGC’s cyber resilience against the Australian Cyber Security Centre’s Essential Eight framework in addition to performing a phishing simulation for SEGC staff. Our final report was presented and endorsed by SEGC’s Board of Directors.
SunSuper: We operate under an ongoing Master Services Agreement with Sunsuper and support them to deliver cyber education and awareness initiatives. We also provide additional cyber incident response support as required and advise the business on digital forensics matters. We have assisted Sunsuper with their ongoing and regular Business Continuity Plans and Disaster Recovery testing.
Curtin University: We sit on Curtin University’s professional security services panel and provide them with support for a number of specialised services, including digital forensics and technology-based investigations, information governance, risk and compliance services, cyber security and security awareness training. Our team is currently working with Curtin to identify early warning and risk insights using human behavioural data science.
Curtin University: Our Forensic team sits on Curtin University’s professional security services panel and provides them with support for a number of specialised services. These services include digital forensics and technology-based investigations, information governance, risk and compliance services, cyber security and security awareness training. Our team is currently working with Curtin to identify early warning and risk insights using human behavioural data science.
Project Moon: As a potential investor for a child care centre, our client engaged us to conduct a due diligence of the payroll practices and identified systematic underpayment due to the incorrect interpretation of overtime provisions. We enabled the client to estimate the exposure and adjust their terms of offer accordingly.
Queensland Performing Arts Centre: We were engaged as the advisor to design, lead and effect a Queensland Performing Arts Centre (QPAC) procurement transformation program. The program centred around ensuring the procurement function was a strategic business partner for operational management; and that those involved in procurement not only had a “functional” role but also a key supporting role in progressing QPAC’s strategy, governance and financial management initiatives.
ASX: We were invited by the ASX to participate in the Cyber Health Check Working Group, a cyber awareness initiative created by the ASX in 2016 after the launch of the updated National Cyber Strategy. The initiative's objective is to raise cyber at the highest levels of business within Australia's Top 100 listed companies.
Optus: Supporting Optus' Retail and Customer Experience (CX) division, we established a business-centric privacy and information security risk review. We have also assisted Optus with building an overall approach to effectively identify and manage ongoing information, security and privacy risks and issues across the CX business.
Dr Roebuck’s Australia: As appointed Administrators and subsequently Deed Administrators of the Australian operations of Dr Roebuck's, an Australian based global “clean beauty” skincare brand, we negotiated and effected a trade sale of the physical and IP assets to a well-known spa operator which allowed for employee, secured and participating unsecured creditors to be repaid in full.
My Wealth Adviser Pty Ltd: The financial services provider had ceased trading with a number of determinations outstanding from the Australian Financial Complaints Authority in response to complaints raised by former clients. We were appointed Liquidators by the court at the application of ASIC. Our investigations included a reconstruction of the general ledger account to assess events leading up to the liquidation. We also assisted claimants with unpaid determinations to seek claims against a government established compensation scheme.
Virgin Australia: Cyrus Capital Partners L.P. engaged us to provide acquisition due diligence, offer structuring advice and stakeholder engagement assistance as it considered acquiring Virgin Australia via a sale process conducted by Virgin Australia’s Administrators. Our analysis focused on key business drivers, forecast assumptions and cash flow requirements of the business post COVID-19. We also provided assistance in drafting Cyrus’ offer for the business and liaised with key stakeholders.
PresCare: We acted as PresCare’s lead advisor on the sale of three Residential Aged Care Facilities to Apollo Care. Our role included extensive strategic and governance assistance prior to sale, followed by leading the divestment campaign, including attracting and advising on non-binding offers, management of the due diligence process and negotiation of key commercial terms. We also played an integral role in liaising with the Department of Health to ensure a smooth transition of care.
Collection House: McGrathNicol was engaged by financiers of an ASX-listed financial services business to undertake an independent review. It became clear that a significant transaction was required in order to reduce debt and we considered the impacts of a proposed major asset sale. Following completion of the transaction, we assisted the financiers to restructure residual debt facilities to ensure the business had a stable capital structure to implement a proposed operational turnaround.
Project Watson: We conducted an independent investigation into an alleged fraud by two employees using customer credit card details. The investigation examined mailboxes and laptops to identify that an employee had recorded the credit card information of customers and had made personal purchases using them. Additionally, we identified a number of procedural and control weaknesses regarding the way customer information was being handled and communicated.
Holding Redlich Affinity Expert Report: We acted as an independent expert in relation to the forensic analysis of an electronic document being brought before a court. We were engaged by Holding Redlich to identify the metadata properties of the document and provide our findings in a report to the engaging party. As a requirement of the engagement, we were to be retained as the digital forensic expert in the event that evidence was to be presented in the Supreme Court of Queensland.
West Gate Tunnel Project: We assisted the chief negotiators appointed to represent the Victoria State Government in its negotiations with major counterparties regarding the West Gate Tunnel project. There were a series of disputes and cost overruns with claims in excess of $5bn. We reviewed key documentation, financial models and estimates to identify the economic consequences facing stakeholders. We used our analysis of the impact of commercial, contractual and legislative options to advise our client.
Project Paint: We conducted an independent investigation into an Australian subsidiary of a US Parent company due to concerns of inappropriate accounting practices. Our investigation involved analysing the accounting system, reviewing policies and examining electronic data to identify whether any inappropriate accounting and authorisations took place. Our report provided management with detailed findings and assisted them with making a decision on further action.
Project Zulu: We conducted an investigation into the government funding provided to a Registered Training Organisation (RTO), specifically relating to concerns funding had been obtained dishonestly. Our investigation involved a site inspection, staff interviews and the examination of financials and student records to determine whether they had complied with standards and funding agreements. We identified $2m had been claimed by the RTO dishonestly through the falsification of qualifications and student records.
Winc New Zealand: We acted as Divestment Manager for the sale of Winc New Zealand (Winc NZ) by Platinum Equity, as part of their conditions with the Commerce Commission to acquire OfficeMax. We monitored the governance, management and performance of Winc NZ during the divestment process, reporting to the Commerce Commission on the independence of operations.
Sydney Airport: We acted as advisors to Sydney Airport Ltd as it navigated its response to the Voluntary Administration of Virgin Australia. We assisted the management team to understand the impact of the Voluntary Administration on Sydney Airport (a key stakeholder and creditor) and negotiate its position with the Voluntary Administrator.
Cirrus Group: Our Deals team performed a purchase price allocation valuation engagement in relation to Cirrus’ acquisition of Comscentre, a specialised provider of enterprise-grade cloud networking solutions and services. The purchase price allocation was required for accounting and tax purposes. The intangible assets valued as part of the engagement included the Comscentre brand, “One Touch Control” software, customer contracts and relations and goodwill.
MyLife Insurance : We provided a vendor due diligence datapack and sell side assistance for MyLifeMyMoney (formerly Catholic Super and Equip Super) in relation to the divestment of MyLifeMyFinance, an Australian based customers savings and loans bank, to Challenger Limited for $35m. Our work included analysis of historical and forecast earnings, loan book and net tangible assets.
Protect Tote: We performed a review and quantification of employee payroll entitlements for a multi-national retailer. Our review involved recalculating employee entitlements under the General Retail Award over the period since business acquisition and comparing these to actual payments made to employees. We identified discrepancies and prepared a report for the client’s legal advisors which formed the basis of self-reporting to the Fair Work Ombudsman.
Project Matador: We delivered an independent review and calculation of salary entitlements for a water service provider between 2006-2019. Our extensive model produced fortnightly calculations for more than 400 employees for the 14-year period. This was beneficial to facilitate the necessary discussions and remediation.
Project Elastic: We prepared expert reports for litigation of an oil and gas sector dispute, quantifying a c. AUD 200 million loss of profits from the alleged wrongful termination of an FPSO (floating production, storage and offloading) services agreement. Our expert’s evidence on quantum was largely preferred by the Court.
Project Cycle: Our Working Capital Centre of Excellence team analysed the cash and working capital performance of a global consulting, engineering and project delivery company providing services to the minerals and metals, oil and gas and industrial sectors. We identified multiple areas of opportunity for improvement in days sale outstanding (DSO). We were subsequently engaged to assess, develop and implement process and reporting improvements to improve DSO. The result was a material improvement in DSO, resulting in our client reporting market-leading metrics for its locations around the world.
Department of Health and Aged Care: We reviewed an organisation funded by the Commonwealth to investigate the alleged misuse of funds and to determine whether there were multiple sets of financial records being maintained. The financial statements, source documents and uses of funds were analysed to identify significant misuse of Commonwealth funds, which prompted the investigation into the organisation's lax governance arrangements.
Senex Vulnerability Assessment 2020: We conducted a comprehensive vulnerability assessment of the IT systems and networks of Senex Energy. This involved working closely with the organisation’s IT team, and following a systematic approach to identify, test and document any cybersecurity shortcomings in their environment. Our resulting report and recommendations have supported Senex in driving initiatives to further enhance their cybersecurity posture.
Wesley Mission Queensland - CAP 2020: We were engaged by Wesley Mission Queensland to assess their cyber resilience, provide enhancement recommendations, and to plan and deploy a cybersecurity awareness program. This includes conducting phishing email campaigns, developing cyber alerts and information packs, providing cyber eLearning content and tailoring content to staff. We also provided regular reporting, to ensure the program continued to raise awareness among management and staff and enhance capability.
AusNet: McGrathNicol provided due diligence to AusNet Services on their acquisition of Geomatic Technologies a provider of mobile and special technology solutions to solve asset management challenges. Our scope included normalised earnings, profit and loss, balance sheet, and working capital, and also included advice around net debt position and input into the working capital completion account mechanism.
EnergyAustralia: Provided strategic implementation services to EnergyAustralia as part of a major transformation program. We advised on key performance improvement strategies and drove action plan implementation across several key workstreams. Additionally, we developed and implemented standard models to quantify the costs and benefits of many initiatives and assisted the Transformation Office develop and deliver regular reporting on the portfolio of initiatives to the Steering Committee and Board.
Project Ebbing: Our client, an Australian University, was considering entering a memorandum of understanding with a University based in China. We provided enhanced due diligence services to assist our client in evaluating and mitigating any foreign interference risks. Our work involved research on open source platforms and provision of a report, which was carried out in accordance with the guidelines to Counter Foreign Interference in the Australian University Sector.
Metro Tunnel Project: We acted as financial advisors to the chief negotiators appointed to represent the interests of the Victoria State Government in its negotiations with major counterparties to the Melbourne Metro Tunnel project. We reviewed the project agreements and project financial models to identify the economic impact of alternative courses of action, as well as ensuring the Government understood and was able to act upon its enforcement rights if required.
Oxley Homecare: Provided sell side assistance to Oxley Home Care, a premium provider of in-home care services in Sydney on its successful sale to MyHomeCare. Our work included advice on non-binding offers, management of the due diligence process and assisting our client and its legal advisor to negotiate key commercial terms for inclusion in the sale and purchase agreement.
Canaccord Genuity: We were engaged to run the Project Management Office for the integration of wealth management firms Canaccord Genuity and Patersons. We managed the initial phase of the integration of this project focused on key short term deliverables (Day 1 and Day 14 focus), including development of project plans, workshop facilitation, identifying key risks and issues and workstream dependencies, chairing SteerCo meetings and establishing reporting protocols.
Project Gutter: Our team performed an investigation into allegations of bribery and kickback payments being made to an employee who had been ‘groomed’ by personnel from a network of related service providers. The employee received payments for assisting the providers to submit the most competitive price. Our analysis utilised services of private surveillance contractors, liaising with whistleblowers and the interrogation of electronic data held by our client. Subsequently, the employee’s employment was terminated.
McMillan Shakespeare: McMillan Shakespeare Limited engaged McGrathNicol to lead its acquisition due diligence in respect of its potential merger with Eclipx Group Limited (ECX). Against the backdrop of ECX’s unexpected disclosure of underperformance in certain business units, we were specifically chosen for our unique ‘hard edged’ investigative skills.
Fuchs Lubricants: Acquisition advisory and due diligence for Fuchs Lubricants (Australasia) Pty Ltd regarding its acquisition of Nulon Products Australia (& NZ subsidiary). This acquisition provides Fuchs with a national footprint in the retail lubricants and coolants segment.
University of Sydney: We assisted the University of Sydney in an independent review of the reporting and communication framework operating in the university’s Internal Audit and Investigations team. This involved a detailed review of key policies and functions, interviews with staff, executives and the university’s Finance and Audit committee. We provided recommendations for streamlining reporting whilst also aligning the university’s charter to its future demand and requirements.
Clear View: We were seconded to act as remediation manager and to project manage the second phase of an ASIC approved consumer remediation program for ClearView’s direct life insurance business. The project involved communicating with over 15,000 customers, assessing calls, reviewing sales practices, and determining appropriate remediation. Outcomes included enhancements to the remediation assessment framework, program processes, the capture and recording of data and reporting.
Project Etude: We were appointed as an independent expert in a class action litigation matter concerning the accounting and disclosure of losses on a troubled construction project. Our expert was engaged by the defendant’s legal counsel to provide an opinion on the operation of the Australian Accounting Standards and a response to the expert report submitted by the Plaintiffs. The matter reached a successful settlement prior to trial.
CF Asia Pacific: We were engaged by a US-owned business that leased locomotives and wagons to rail operators and mining companies across Australia. The business had maturing senior and subordinated debt facilities that needed to be managed while a sale process was undertaken. We assisted the company and its shareholders to manage key financier and stakeholder relationships, including consideration of refinancing contingency plans, until the sale completed.
Project Pop: McGrathNicol were engaged by a fast-growing beverage business involved in the brewing, packaging and sale of Kombucha (a sugar free, fermented and effervescent tea) to provide independent valuation services. The valuation of 100% of the equity in the company was required to assist shareholders assess their strategic options.
HOYTS Group: We were engaged by HOYTS Group to provide independent valuation services to assist with goodwill impairment analysis for testing in line with China Securities Regulatory Commission guidelines.
EBI Australia: We provided financial due diligence and advisory services to Eternal Best Industries on the acquisition of Spendless Shoes, a 220+ store business. Our scope spanned the full transaction lifecycle including term sheet negotiation, financial due diligence, price negotiation, day 1 planning, the net asset adjustment mechanism and drafting aspects of the share sale agreement. Our analysis identified material issues which were ultimately resolved.
Huka Lodge - New Zealand: Court appointed Receivers over the shares in Worldwide Leisure, the owner of Huka Lodge, New Zealand's world renowned luxury resort. The appointment was following a 20+ year dispute between former business partners and resulted in a successful sale releasing funds to be paid into Court.
National Disability Insurance Agency: We undertook an evaluation of the 'Partners in the Community' program for the National Disability Insurance Agency and assisted in identifying a solution to aid reporting from funded partners. We worked closely with the agency and broader stakeholders to provide a strategy to capture and manage reporting data to assist in demonstrating program outcomes.
Project Berry: Our team gave operational improvement and financial turnaround advice for our client in the food & beverage industry to drive substantial operational performance and financial control. The review provided process improvement recommendations for staffing, shift patterns, equipment layout and storage configuration. The finance team developed a new cash flow model, implemented financial control recommendations and a new ERP system, built production BOMs and delivered an MRP and MPS model.
Project Tasman: McGrathNicol were engaged to undertake a strategic review, determine recapitalisation requirements, and provide advisory and financial modelling services to a dairy manufacturing and distribution business. Our team member leading the project, subsequently acted as the interim General Manager to drive the rationalisation and turnaround of the operations, processing plants and broader supply chain.
Club Plus Superannuation: McGrathNicol assisted Club Plus Superannuation (CPS), a superannuation fund with over $2.9 billion under management, in developing a modern and robust Cyber Incident Response Plan and several scenario-based Incident Playbooks. By reviewing CPS documentation and a series of stakeholder discussions, we helped produce a robust response plan to not only reflect CPS’ current response practices, but also ensure the requirements set out by APRA’s prudential standard CPS 234 are met.
Project Fatigue: Our Cyber team performed an independent Cyber Forensic Review for a mid-sized superannuation fund following an incident reported to Australian Prudential Regulation Authority (APRA). We assisted in determining the likelihood of an actual cybersecurity incident based on existing Indicators of Compromise. Additionally, we determined the appropriateness of incident remediation activities performed by the client and their supporting service providers.
Project Greengrove: McGrathNicol conducted an independent investigation into complaints of sexual harassment and bullying in the catering arm of an integrated services client. We interviewed nine witnesses and persons of interest with respect to these allegations. Our analysis identified potential breaches of legislation and policies within the organisation, and our findings were given to senior HR personnel as part of their considerations on whether to implement disciplinary action.
Precision Group: We supported Precision Group in developing a revised, fit-for-purpose Information Security Policy to reflect their current cybersecurity practices as well as their current gaps against industry best practices. Using NIST as the guiding framework, McGrathNicol produced a revised Information Security Policy for Precision Group’s adoption. We also undertook a gap analysis to highlight the existing gaps between Precision Group’s current policies and procedures and what is reflected in the newly revised policy.
Project Eaves: Engaged by an ASX listed livestock and shipping business that had breached numerous facility agreements due to financial underperformance. The directors sought safe harbour protection whilst a turnaround plan was designed and implemented which included negotiation of standstill arrangements, sale and lease back of key assets and a potential sale transaction. The turnaround plan was successfully completed.
Project Rotana: A national independent grocery delivery business sought our assistance in seeking safe harbour protection. The business comprised of over 100 franchisees with a turnover exceeding $100 million. The unsustainable business model resulted in continued losses, leading the directors to seek safe harbour protection whilst a formal sale process was attempted as an alternate to the immediate appointment of a voluntary administrator.
WhistleOut: Vendor due diligence and sell side assistance on behalf of WhistleOut, a consumer comparison platform focused on mobile, broadband and pay TV services principally across Australia and the US. The business was successfully sold to Clear Link Technologies, a subsidiary of Sykes Enterprises (Nasdaq:SYKE).
Project Ewok: We were engaged as Supervisors and Forensic Auditors over a real estate business with concerns regarding the Principal’s competency. Due to illness the Principal had not been recording daily transactions accurately and significant work was required to reconcile the agency’s Trust Account in order to identify creditors. Our engagement involved management of the affairs of the agency, reviewing existing property contracts and ensuring tenancy matters were transferred accordingly.
Retail Food Group: We were engaged by financiers to undertake an independent business review of Retail Food Group, an ASX-listed food retail franchise. After completing our initial review of the Group’s forecasts, we monitored its progress as it undertook a dual-track process to explore a sale of non-core businesses, alongside a recapitalisation, in order to reduce debt. We assisted our clients to negotiate a restructure that generate a significant return.
Tribe Breweries: Provided vendor due diligence services to Tribe Breweries on its successful minority stake sale to Advent Private Equity. The capital raised from the transaction was utilised to significantly expand Tribe's brewing capacity through the construction of a new brewery in Goulburn.
The Coomboona Group: We were appointed Receivers of The Coomboona Group by the primary secured creditor on the back of a shareholder dispute. Together with our dairy industry alliance partner, we quickly stabilised cash flow and rationalised operations (herd size, management structure, feed regime) to facilitate the going concern sale of the business. Our client’s mortgage was acquired by the 2nd ranking charge holder with our client making a full recovery including costs.
Victorian Fisheries Authority: We were engaged by Victorian Fisheries Authority (VFA) to work with the Board and senior leadership team to undertake a strategic review of the finance operations including internal controls and review processes, budget and forecasting, statutory reporting and structures. Following our review, we assisted VFA to implement improvement initiatives aimed to increase its regulatory and compliance framework including month-end processes, financial reporting structures, and development of dashboard reporting.
Victorian Fisheries Authority: We were seconded to Victorian Fisheries Authority (VFA) to assist the finance team to undertake key financial and operational roles following its establishment as an independent statutory authority. We acted in senior finance roles on behalf of the authority to undertake key regulatory and compliance work such as month-end and year-end financial management and reporting, asset management, revenue recognition, management and statutory reporting, and budgeting and forecasting to the Department of Treasury and Finance.
Project Berowra: We worked with the CEO and senior management of a large private food and beverage company to set the medium to long-term business strategy. After facilitating the Argenti process, we conducted SWOT and strategy workshops, identifying the strategic 'elephants' facing the business. We also assisted with the development and assessment of strategic initiatives in the context of the business' objectives and earnings targets.
Red Lea Group: Conducted the wind down of the Red Lea Group’s farm, logistics, processing and retail operations. We proactively engaged with stakeholders including employees, farmers and franchisees to minimise the impact. Our investigations identified the transfer of assets and potential claims against related parties. We negotiated a Deed of Company Arrangement, as an alternative to liquidation. It is expected that full payment will be made to secured and priority creditors.
Project Picture - New Zealand: McGrathNicol assisted the Board of a large New Zealand print and media business with a review of its strategic options. Our review included valuing the business units on a standalone and group basis. During our review, we identified a number of operational improvement opportunities, and were subsequently engaged to assist with implementing these.
VCS Civil and Mining: As Receiver and Manager, appointed by a private investment and advisory firm, we managed a controlled wind down of the business and developed and implemented comprehensive realisation strategies across a portfolio of assets, including a fleet of equipment, various downstream equity interests and a portfolio of residential and commercial property.
Steinhoff: We were engaged by a syndicate of lenders to review various Australian furniture, apparel and homeware retailers within the Steinhoff International group to facilitate a local debt restructure and ring-fence the Australian group from challenges elsewhere in the global Steinhoff business. We worked collaboratively with the company and its advisors and brought an independent perspective to negotiations. Our debt restructure recommendations were successfully implemented without disruption to businesses.
Pumpkin Patch - New Zealand: As Administrators of Pumpkin Patch, we investigated and reported on the key causes of the failure of this ASX/NZX listed children’s clothing retailer, which were set out in our public report to creditors and shareholders. Key causes were an inefficient store network, failed international expansion, poor systems, and excessive dividends.
Project Build - New Zealand: We undertook an independent business review of a large New Zealand residential home builder for the board and its financier, to highlight strategic risks and steps the company could take to mitigate these risks. Our review covered the businesses' stock (land and buildings), management systems, impacts of market forces, cash flow and capital structure.
Tandem Group: The Tandem Group provided workforce management services to the telecommunications, utilities and insurance sectors throughout Australia. Profitability had been declining for a number of years due to material reductions in customer volumes which led to our appointment as Administrators. Despite only being appointed administrators to certain entities within the group, we stabilised operations across the whole group and accelerated, managed and completed a going concern sale process.
Toys R Us: Appointed Administrators to Toys R US, Australia's largest speciality toy retailer, with 44 stores, over 2500 employees during peak times and annual turnover of c.$300m. We traded the business to realise over $100m in stock while running a dual track sales process for the business and intellectual property, including websites, customer lists and licences. We returned to the secured creditor 4-5 times the funds they were willing to accept in respect of a going concern sale.
Unlockd: Appointed as Voluntary Administrators over this mobile advertising technology start-up following a legal dispute with Google. Notwithstanding significant constraints, we realised Unlockd’s technology and IP assets via a multi-jurisdictional sale campaign, in parallel to pursuing litigation funding for claims against Google.
RCR Limited: We were appointed as Voluntary Administrators to the RCR Group following a high level review of cash flow forecasts and a capital raising process. RCR had operations across Australia, New Zealand and Asia and expanded into building solar farms, with 15 solar farm construction projects in progress upon our appointment. We traded and sold the majority of RCR’s businesses, are settling disputes with solar farm counterparties and planning for the distribution of funds to secured and priority creditors.
Bluewaters: We were engaged by the syndicate of lenders to Bluewaters Power Station, a 400MW coal-fired electricity generator in WA. The syndicate had maturing facilities of c.$360m, while the power station was facing near-term uncertainty in its coal supply arrangements and medium term exposure to market pricing. We negotiated a number of restructuring proposals with the project sponsors, while facilitating an exit for our clients via the secondary debt market.
Quintis: We were engaged by the secured noteholders initially as Restructuring advisors and subsequently Receivers and Managers of Quintis Limited. We restructured the operations, removing cost and improving the financial recovery from institutional and high net worth clients. After conducting a public sale process we concluded a loan to own transaction with the bondholders. The transaction was novel and utilised a DOCA and Scheme of Arrangement mechanism, as well as an application under Chapter 15 of the Bankruptcy Code in the US.
Nylex Group: As Receivers and Managers we stabilised the business, curtailed trading losses and marketed the various businesses for sale. We negotiated and concluded 12 sale agreements over a six month period while trading each of the business divisions. Full repayment to priority creditors was achieved in addition to a greater than expected return to the secured lender.
Limes Group: Receivership and controllership appointments over the entities that owned and operated the ‘Alfred and Constance’ (pub/restaurant) and ‘Limes Hotel’ (21 rooms) in Brisbane. We implemented a turnaround trading strategy and reopened each venue. The assets were marketed for sale as going concerns through a hospitality industry specialist agent.
Evans & Tate: Receivership of major wine producer Evans & Tate, as the business had suffered poor financial performance due to inadequate management, unviable contracts, under capitalisation and market over supply. We negotiated and implemented a new third party national distribution agreement to replace the existing sales force which was costly and ineffective. The business and brands were successfully sold to McWilliams Wines.
Australian Airport Terminal Services Pty Ltd: Receivership over a purpose built, self-storage facility from a long term leasehold interest in the Perth Airport precinct, which generated annual underlying earnings of circa $1.0 million. We stabilised and maintained operations, whilst undertaking a going concern realisation campaign. Notwithstanding the onset of COVID-19 at the critical juncture of the campaign, we secured an above market sale to a listed REIT and successfully navigated complicated Federal and State Government, Airports Act and FIRB approvals.
Project Vista: Our Investigations team conducted an independent investigation into allegations raised by whistleblowers relating to the procurement and project management of consultants engaged to work on the delivery of a highly complex IT systems transformation project. We utilised our online web review platform to examine a large volume of data and identified relevant information in relation to the allegations and the project's governance.
NRL eDiscovery: We assisted the National Rugby League (NRL) acquire and review various data sources in relation to investigations they had conducted into allegations of salary cap breaches. Data from emails, file servers and mobile devices were collected to then be processed and loaded into our review platform for access by the NRL Integrity Unit and our investigations team. The analytics was used to identify key information relevant to the matter.
Project Errand: We were engaged to provide a forensic accounting expert quantification of potential incorrect payroll payments made to employees engaged under the Road Transport Distribution Award. Our calculations formed the basis of communications with the Fair Work Ombudsman and over 300 impacted employees. Additionally, we delivered a comprehensive payroll compliance audit after the Fair Work Ombudsman required our client to conduct an annual audit on a sample basis of pay periods.
Large Australian retailer: Our Investigations team provided digital forensic expertise to complement the retailer's internal investigations capability. The team forensically imaged devices such as laptops, desktops, server based data, cloud based data and mobile or tablet devices. This potential evidence is maintained by our team in a readily available state should investigation or further inquiry be required.
Project Esplanade: A major Australian regional bank sought our assistance to prepare formal submissions prior to appearing before the Commission. We worked closely with internal and external legal advisers using our e-Discovery technology and project management expertise to identify and produce protocol compliant documents to the commission from a data set in excess of 6.5 million documents.
The Foundry: Acquisition due diligence for The Foundry, an investment firm founded by some of the former owners of Swisse Wellness. We assisted The Foundry with taking a minority stake in WelleCo, a plant based supplement business, founded by Andrea Horwood and Elle McPherson.
Remedy Kombucha: Vendor due diligence on Remedy Kombucha whose core business is the brewing, packaging and sale of kombucha. The vendor due diligence focused on the rapid historical and forecast growth of the business, including significant capex undertaken at a new brewing facility.
Project Corporation: McGrathNicol developed and assisted in the implementation of an updated integrity framework that included the rollout of an online integrity survey to all staff and contractors. We updated, and in some cases developed key policies, delivered awareness training to all staff and contractors and implemented an independent integrity reporting platform.
Department of Infrastructure, Transport, Regional Development and Communications: Our team has undertaken compliance and assurance reviews of more than 40 large infrastructure projects funded by the Commonwealth. Our work primarily focused on reviewing governance arrangements and administrative processes in place by funding recipients to ensure compliance with funding agreement and legislative obligations.
Cbus: Cbus engaged us to establish their overall Cyber strategy and to build ongoing resilience into their approach and use of technology. This included conducting a cyber resilience review and a number of cyber safety and awareness initiatives targeting the people and culture element of cybersecurity.
Cyber incident response: We worked closely with a university to identify the impact of a cybersecurity incident. CERT Australia advised that a public release of NetSarang, the server management platform used by the university, had been compromised after attackers embedded malware. The vendor removed the release from their site and patched the vulnerability.
Kypter: McGrathNicol were engaged by management to undertake a review of Kypter's transport and logistics division. Our analysis covered the business' asset management, workshop/maintenance program, raw materials procurement, trucking fleet, and related efficiencies/metrics, quality of information, systems and management and broader operating framework (including chain of responsibility).
Washington H Soul Pattinson: We performed a purchase price allocation valuation engagement in relation to Washington H. Soul Pattinson’s acquisition of Aquatic Achievers, a leading operator of five swim schools located in the Brisbane metropolitan area. The purchase price allocation was required for both tax and accounting purposes. The intangible assets valued as part of the engagement included the Aquatic Achievers’ brand, swim school curriculum and goodwill.
Project Kinder: Our services were sought by a leading Australian childcare operator. Given that confidentiality was paramount to our client we introduced them to the two most relevant global private equity groups and subsequently assisted in negotiating the sale of the business. We navigated our client through an extensive due diligence process and were able to protect our clients' interests and most importantly the value that we had originally negotiated.
Project Mozambique: Developed a cash flow forecasting framework for a national media company. Bespoke forecasts were developed for each business unit that consolidated to a Group forecast, increasing the accuracy of cash flow forecasting and improved treasury operations. The forecasts and the completion processes meant the business units took ownership of their cash flow performance helping to instil a cash culture. We also developed recommendations to improve working capital management and reduce the net working capital position.
Topshop - New Zealand: With no offers for the Topshop New Zealand business, we were appointed receivers and leveraged our retail expertise to maximise returns from stock through targeted marketing and merchandising. We also generated proceeds from assigning leases and recovering overpaid rent, resulting in preferential creditors being paid in full and a return for the secured creditor.
Associated Grain: Assisted with leading grain processing and seed sale business. We approached more than 30 parties, mostly global international players and received several offers. Ultimately, AgroCorp International provided the most attractive financial and commercial terms. Despite some adverse agricultural conditions and port-based difficulties experienced during the negotiation process, strategies adopted and perseverance protected substantial value.
AusNet: We assisted AusNet Services with the implementation of an initiative management framework used to govern a ‘cost out’ transformation program for an owner and operator of gas and electricity networks. We worked with the business to identify inefficiencies and develop initiatives using activity-based costing and value driver analysis.
Coles: Our team assisted Coles to establish frameworks for a major transformation and cost out project. Within the finance team, we advised on establishing roles and responsibilities, benefit validation processes, cost of implementation reconciliation modelling, and the broader governance frameworks that supported the transformation project.
Project Centre - New Zealand: We undertook a forensic review of payments made by a principal to an agent over a 12-month period to determine the validity of these payments. Our investigation identified a series of fraudulent payments through the use of fictitious invoices. Our work supported a High Court search order and related arbitration.
Intueri Education - New Zealand: As Administrators of this ASX/NZX listed education provider, we ensured the schools continued uninterrupted, with full support of the regulators and major stakeholders. Managing a prompt sale to a major private education provider significantly reduced contingent liabilities that would otherwise have crystallised from the loss of jobs, abandonment of leases, and cessation of teaching.
Brisconnections: We were appointed Voluntary Administrators of the ASX listed, stapled investment trusts that formed the BrisConnections group of companies, including its subsidiary companies which operated the AirportLink tunnel in Brisbane. The Group entered into Deeds of Company Arrangement and were subsequently wound up. The Group had over 100 employees and a large number of stakeholders.
Regal Funds Management: We were appointed Independent Compliance Expert in relation to an Enforceable Undertaking. We reviewed securities trading policies and procedures, reported on their adequacy and provided recommendations. A detailed trade review program was required under the Enforceable Undertaking which included a review of sample trades and related communications over specified periods.
Australian Research Council: As the Australian Research Council's appointed Internal Auditor, we have undertaken more than 25 engagements to assess and assist in strengthening governance and controls. We have worked collaboratively to undertake compliance audits, IT audits, performance audits and other assurance activities. Our audit recommendations have focused on practical and implementable solutions to further enhance the business.
Medibank: McGrathNicol worked closely with Medibank as it prepared for Initial Public Offering (IPO). Our teams involvement included assisting the management team to develop and implement a strategy to restructure an underperforming business unit, eliminating significant costs prior to Medibank’s IPO.
Baralaba: Baralaba held a large coal tenement portfolio across the Bowen, Surat and Galilee Basins in Queensland. As Administrators, we facilitated a sale and recapitalisation of the business including negotiating how to split value between lenders and creditors. Our role required a detailed understanding of each resource and its modelling assumptions and the ability to understand the nuances of the capital structure to ensure value was allocated in accordance with creditor rights.
Royal Adelaide Hospital: McGrathNicol was engaged as advisors to the syndicate of senior lenders of the Royal Adelaide Hospital who were collectively owed $2.5bn. The project was subject to completion delay and disputes. We undertook a review of the financial model , worked with the syndicate’s legal advisors and represented the lenders’ interests in a protracted mediation involving the State Government. The project has been successfully restructured.
Group Consulting: We provided sell side services to Group 10 Consulting, an Information Communications and Technology consultancy specialising in the provision of long-term managed services and software procurement to ASG. Our work included advice on non-binding offers, management of the due diligence process and we assisted our client and their legal advisor to negotiate transaction documentation.
WICET: McGrathNicol was engaged by the syndicate of senior lenders to Wiggins Island Coal Terminal, a $4bn coal export terminal based in Queensland. The terminal had seen a number of its take-or-pay counterparties fail, and the cost of recovering the capital charge associated with construction made the facility uncompetitive. We worked with the company to successfully restructure the project. Our clients agreed an 8-year refinance to achieve a sustainable capital structure.
Arrium: We acted on behalf of a syndicate with facilities in excess of $2.8bn. The banks had been presented with an aggressive refinancing proposal by Arrium and its Investment Bank advisors, who were seeking a material write-off of principal from the syndicate. We engaged with the company and put forward an alternative strategy to enhance realisations for the syndicate via a series of insolvency appointments and tactical forbearance arrangements.
Slater and Gordon Limited: Lead advisor to an international syndicate of banks across Australia, Asia and the UK owed in excess of AUD$800m. Our in depth analysis and strategic guidance assisted our clients to evaluate and improve the restructuring options presented by the Company and ultimately exit at optimal value. We also played a central role in formulating the debt for equity recapitalisation structure which was ultimately implemented.
Dick Smith: Appointed as Voluntary Administrators of the ASX listed electronics retailer, with 390 stores under four different brands across Australia and New Zealand. After advising management and the board in relation to cash flow, solvency and options, we were appointed to then manage and sell the specialist Apple reseller business, in addition to achieving a number of legal recovery actions.
Project Cisco: We were engaged as a Commonwealth appointed cybersecurity expert to support a Federal Government agency navigate the technical specifics of a high profile cybersecurity event. We assisted with identifying and collecting relevant information in order to conduct a thorough investigation of issues surrounding the event. The matter involved tight timelines and complex third party relationships and interests.
Victorian Government department: We assisted a Victorian Government Department to respond to a live cyber incident. The situation had the potential to defraud them by infiltrating their regular payroll payment process via the use of malware and infected computer systems within their corporate IT environment. Our report outlined the sequence of events that led to the incident and recommendations to improve process and controls.
Project Ambition: Our team worked with a privately-owned transport and logistics business to determine the reasons for its 'flat' cash flow, despite recent sales and earnings growth. We facilitated staff workshops to assess key responsibilities, analysed recent working capital performance and metrics, reviewed cash forecasting and reporting practices. Our approach identified a cash 'release' of approximately $4 million.
Mountain Goat: We assisted Mountain Goat Beer on its successful sale to Asahi. Our work included extensive strategic and governance assistance prior to the decision to sell. We ran the sales process which included preparation of an information memorandum and data room, coordination of due diligence, management Q&A and transaction documentation.
NEWSAT Limted: As Receivers and Managers we successfully traded and sold the core satellite telecommunications and teleport business to a global communications provider. Concurrently, we leveraged US Bankruptcy proceedings to preserve NewSat’s interest in a satellite in the US while we explored recapitalisation options in respect of the listed entity.
UBS: We were engaged to run the Project Management Office for UBS to assist with the strategic planning for its exit from its wealth management business in Australia. We were involved in managing the wind down and closure of this business and the off-boarding and transition of its clients and assets to Crestone.
Pacific T&R - New Zealand: After selling Pacific T&R’s part-completed terpene and rosin extraction plant in New Zealand, we were engaged by the purchaser to project manage completion of the build. We identified and remedied a number of quality issues, secured the release of contractor retentions to the principal, and successfully completed a build that had run considerably over time and budget.
Westpac: We were seconded to Westpac Institutional Bank (Financial Markets) to assist with remediating domestic and offshore compliance plans and embedding this framework within the first line of defence capability. The project included designing new tools to provide management with timely and accurate end-to-end oversight of new and emerging risks, identification of gaps and weaknesses and the documentation of action plans.
Racing Queensland: We were engaged by Racing Queensland to undertake independent business reviews on a number of regional racing facilities throughout Queensland. Our reviews focused on recent financial performance, budgets and financial models and the investment in and utilisation of Racing Queensland assets. We also analysed restructuring strategies that could be used to achieve sustainable business performance during a time of a challenging racing industry environment.
WorleyParsons: Engaged across a number of assignments to evaluate cost saving opportunities and assist WorleyParsons to meet cash conversion targets. Our roles included designing and resetting cash management metrics and processes, identifying specific ‘blockages’ in the working capital cycle, conducting training for senior operational and finance staff, assessing global cash forecasting procedures and protocols, and assisting the divisions to meet pre-year end cash conversion targets. The cash released was in excess of $300m in 12 months.
Department of Education: We conducted more than 400 assessments of the governance arrangements and financial risk positions of applicants seeking to be approved as Vocational Education and Training (VET) Student Loan providers. This included a review of historical and forecast financial information, undertaking ratio analysis, analysis of corporate structures and review of key personnel. Our evaluation and analysis formed a detailed risk assessment report to assist the department moving forward.
Project Waitara: Our Business Improvement team assisted the finance function of Fletcher Building as it undertook a large corporate streamlining project across its Australian and NZ operations. Our role required regular interaction with senior finance staff and close management of the project plan implementation to ensure planned savings were achieved on time. This resulted in the removal of over 40 entities from the Group structure.
South Canterbury Finance - New Zealand: As Receivers of South Canterbury Finance, New Zealand’s largest non-bank deposit taker, we stabilised the business and operations, improved credit processes, and protected the value of assets. We managed the successful sale of key assets including Scales Corporation, Helicopters NZ, Dairy Holdings, the Business, Consumer and Rural loan books and managed the run off of Southbury Insurance.
Department of Health and Aged Care: We assisted the department with more than 30 financial and governance reviews of Aboriginal Community Controlled Health Organisations and Aboriginal Aged Care Organisations to assess governance arrangements and determine compliance with funding agreements. Following our initial reviews, we then worked as a Grant Controller to protect the Commonwealth's investment and focused on capacity building to assist the funded organisations.
Cubbie Group: We negotiated funding to continue the farming operations of Cubbie Group. Through careful stakeholder management and clear communication strategies, we were able to navigate through complex political and public relations issues to capitalise on favourable seasonal conditions. This allowed us to generate unprecedented trading profits and position Cubbie’s unique assets for a ground-breaking sale transaction.
Great Southern: Receivership of ASX listed Agribusiness company Great South Limited, which promoted managed investment schemes in forestry, horticulture and viticulture. Our role involved the management of multiple stakeholders and sale of the key forestry assets following pre-sale due diligence of financial and operational information.
Centro Properties Group: Lead financial advisor to the Australian lender group, comprising eight banks and numerous US private placement noteholders, collectively owed circa AUD$4.5 billion. We implemented a ground breaking 3 year stabilisation plan and restructured Centro Properties Group assets. The consolidated Group remains listed on the ASX and continues to trade successfully.