Sale of intellectual property service provider Watermark to ASX listed Xenith IP Group.

Watermark engaged Henslow to manage a competitive sales process of the business. Henslow initially undertook a strategic review to understand the objectives of the ownership group, including working closely with Watermark senior management to identify earnings improvements. We achieved an exit multiple at the top end of the valuation range for the industry.

Australian IP services rooted in tradition, focus and expertise.

Watermark, one of Australia’s oldest service providers within the IP sector has built a legacy with over 100 personnel in offices across Melbourne, Sydney and Perth. With a rise of rapid consolidation within the industry, Henslow was engaged to conduct a strategic review of the business.

The Highlights

  • $22m

    Deal Value

  • 8.0x

    Forward Earnings Multiple

  • ASX

    Listed Acquirer

Shareholder value was maximised through strong credentials and a well-crafted storyline that created competitive tension. As a result, Henslow successfully negotiated an offer of 8.0x forward earnings which exceeded shareholder’s valuation expectations, including a one-year earnout linked to profitability.

"We believe the combination of Xenith and Watermark will bring considerable benefits and opportunities for our clients and our respective personnel. Watermark will maintain the commercially focused style of IP service delivery that has become its hallmark, while our adjacent service lines present a highly complementary offering to Xenith. We look forward to joining Xenith and combining our shared traditions of service excellence and our deep legal, technical and business expertise."

Karen Sinclair, Chair of Watermark