Davidson Group on the hunt for financial partner to drive growth

Davidson Group, a professional services group specialised in enhancing workplace performance, is on the hunt for a financial sponsor. 

The Queensland-headquartered company, which has around 300 employees according to its LinkedIn account, helps clients with an end-to-end offering for workplace performance. The firm’s business advisory arm advises clients on workplace strategies and performance management, and supports with the execution of these plans. 

Davidson Group’s search and recruitment business provides executive search services for senior and medior positions across mainly back-office functions (finance, human resources, sales & marketing, supply chain, procurement), while the technology wing helps clients with designing and building solutions for data, cloud, analytics and more. 

With the help of Ord Minnett, Davidson Group has launched a search process for a private equity backer. According to reports from AFR, Ord Minnett last week mailed out flyers promoting the business to potential parties. The auction process is understood to be in the indicative bids round, with offers expected to be received in the coming fortnight. 

The flyer highlights Davidson Group’s healthy status – for the 2022 financial year, the group expects revenues to hit $207 million and EBIT to hit $10.4 million. The company also forecasts strong gross margins at around 50% per cent for its technology division, 32 per cent for the search and advisory unit and 20 per cent for recruitment solutions.

In the last financial year, Davidson Group welcomed more than 200 new clients, and looking ahead, the firm is expected to ride a bullish market for workplace performance services as organisations transition to new ways of working in the post-Covid-era. 

Davidson Group was founded in 1991 and is majority owned by Bruce and Rob Davidson, who are still heavily involved in leading the business.