Achieving Growth and Transformation Through IPO as an Exit Strategy
Introduction
Protemus Capital, a distinguished boutique advisory
firm specializing in exit strategies for business owners in Indonesia, proudly
presents a success story highlighting the tremendous potential of utilizing an
initial public offering (IPO) as an exit strategy. We successfully guided a
founding family through the IPO process, resulting in remarkable growth and
transformation. With our expertise in the automotive, financing, and
after-sales segments, and a sole Toyota dealership in Central Java and
Yogyakarta, this success story epitomizes our unwavering commitment to
facilitating successful exit strategies.
Background
As a company founded by two families, our client faced
the challenge of one family seeking an exit due to plans for relocation abroad.
Despite offering the share portion to the remaining family, arriving at a
mutually agreeable valuation proved to be a hurdle. Efforts to involve private
equities and pursue joint IPO plans encountered obstacles due to differing
expectations. Recognizing the circumstances, an IPO emerged as the optimal exit
strategy for the family seeking an exit.
The Solution
Protemus Capital, as a boutique advisory firm,
provided comprehensive assistance throughout the IPO process, ensuring a
seamless transition for our client. Our team conducted an exhaustive analysis
of the company's business structure, financials, and operations, meticulously
determining its valuation. Collaborating closely with management, owners, and
professionals, we offered expert guidance on internal restructuring, optimizing
the business's value. Working hand in hand with the lead underwriter, we
developed robust subsidiary models and facilitated a smooth IPO process.
Understanding the Car Dealership Business
The Indonesian car dealership industry is a vibrant
and fiercely competitive landscape, characterized by exclusive dealership
arrangements and the presence of ATPM (Agen Tunggal Pemegang Merk) entities representing
renowned international car manufacturers, particularly from Japan. Protemus
Capital's profound understanding of this unique industry allowed us to maximize
the potential for our client's business.
Exclusive dealership rights are granted to dealers for
specific areas or provinces, granting them exclusivity in selling and servicing
particular car brands. This localized market presence offers a significant
competitive advantage, fostering strong brand loyalty among consumers. ATPMs,
acting as authorized agents, play a pivotal role by partnering with Japanese
manufacturers such as Toyota, Honda, Nissan, and Suzuki, facilitating
distribution, marketing, and after-sales services in Indonesia. This
collaboration ensures consistent quality standards, customer satisfaction, and
a tailored market presence that aligns with Indonesian preferences.
Conclusion
By skillfully navigating challenges, including
managing family tensions and coordinating with loyal executives tied to the
company's first generation, Protemus Capital successfully guided the IPO
process for our client. Our efforts enabled the family seeking an exit to
achieve their objective while empowering the remaining family to
professionalize the company, establish an improved shareholding structure, and
enhance business competitiveness. Consequently, achieving the significant
milestone of getting listed on the Indonesian Stock Exchange (IDX) exemplifies
our commitment to assisting clients in achieving growth and transformation in
the dynamic Indonesian automotive industry. At Protemus Capital, we remain
dedicated to leveraging our expertise to facilitate successful exit strategies
and empower businesses to thrive in an ever-evolving market.