Skip to main content

Conrad Maintenance.

Conrad Maintenance needed to look towards a merger or acquisition (M&A) to realise its ambitions and turned to Acclime’s transaction advisory.
  • Client industry:
    Cleaning services
  • Services:
    M&A advisory, business valuation, CFO

Introduction

Acclime had a long-standing relationship with Conrad Maintenance, so when the company needed to look towards a merger or acquisition (M&A) to realise its ambitions, it was natural to turn to Acclime’s expertise in transaction advisory services.

The challenge

Conrad Maintenance faced a crucial turning point when it needed to scale up its business to remain competitive in the industry. To achieve this, the company sought to merge with or be acquired by a larger strategic player. The challenge was to find a competent partner or investor who could bring in cutting-edge technology to reduce costs and automate processes, enable the firm to bid for more significant projects, and ensure job security for its employees.

Our solution

That’s when Conrad Maintenance turned to Acclime’s expertise in transaction advisory services. With a longstanding relationship with the client, Acclime was the natural choice for the job. Our experience in M&A transactions and familiarity with Conrad Maintenance made us an anchor in negotiations.

Acclime’s initial role was to support the client in preparation for finding an equity buyer, which included the M&A deal assessment, production of the information memorandum (pitch deck) and the financial modelling to arrive at the valuation. Our financial modelling helped the client to focus on high-margin customers and analyse areas of cost savings, giving them an idea of their worth and how to defend it.

In July 2022, Conrad Maintenance received a term sheet from Softbank Robotics Singapore (SBRSG). Acclime assisted in the price consideration negotiations, as well as providing support to conclude legal and financial due diligence. A sale and purchase agreement was signed in December 2022 with SBRSG for a 51% stake in Conrad Maintenance, and the actual transfer became effective on 1 January 2023.

The result

The investment by SBRSG will help Conrad Maintenance digitise their cleaning services with the use of robotics solutions, Artificial Intelligence (AI) and Internet of Things (IoT) sensors to deliver efficient cleaning services on demand. The partnership aims to transform the cleaning industry, especially in the face of the current labor shortage. With this deal, Conrad Maintenance can provide high-quality and low-cost cleaning with substantial cost savings, while employees gain new technical skills and work with new technologies.

Post-acquisition, Acclime continues to support Conrad Maintenance in the provision of monthly CFO services to assist them with the stringent requirements of SBRSG. This allows the founder to continue focusing on the business core while Acclime assists the client’s team to build its finance capabilities.

We are delighted with the result of the sale, and cannot thank Jessie Koh and her team at Acclime enough for all they have done to help bring this successful acquisition about for us. We can certainly vouch for the efficiency and efficacy of Acclime’s M&A advisory services. We are happy to continue to lean on the finance expertise of the Acclime team.

Mr Raymond Ng, Founder and CEO, Conrad Maintenance.

About Conrad Maintenance

Conrad Maintenance Services Pte. Ltd. has been a prominent name in Singapore’s cleaning industry since its establishment in 2003. The company has won multiple awards for its professional cleaning services for commercial and residential properties and is certified with ISO 9001, ISO 14001 and ISO 45001.

Other case studies.