Family companies are an Insight speciality and clients are often second and third generation family members who have taken over the reins of the family business.
Stewart says Insight took on a type of very customised project management role with Newland, helping innovate its financial and inventory systems and assisting with annual compliance and ATO audit requirements, among other things.
Peter explains his father started as a sole operator and many of his decisions in growing the business were made without financial advice, so the company had evolved in a way where the assets of the company weren’t protected as well as they could be.
Stewart says: “When it comes to restructuring, we’re across the tax aspects but when you shift assets between the holding group and the trading company there’s significant transaction costs and we were able to avoid that by finding an excellent solution.
“We’ve now got a family board and a great structure”
More recently, Insight has introduced more cost-effective ways for Newland to undertake its constant research and development which it had been funding entirely on its own.
Peter explains they weren’t aware of the processes for securing grants and concession around research and development and had found it challenging competing in a cut-throat industry, against multi-national companies constantly advancing their technology and equipment.
“We manufacture underground mining equipment, specifically an underground mobile diamond drill rig that’s continuously being enhanced and developing it is an ongoing process of reviewing what’s going well, what new ‘tech’ we can incorporate, building prototypes, testing, getting feedback and incorporating that into the product range and bringing to market. That’s happening all the time.”
Stewart says mining is one of Insight’s biggest areas of expertise and understands companies like Newland who spend significant money innovating can earn major tax concession.
The expansion to establish a Perth base has helped overcome the highly competitive labour and skills market in Kalgoorlie, however he knows only too well how easy it is to outgrow systems and people.
“Part of our solution was that instead of bringing the people to the factory, we’ve bought the factory to the people with our Perth base.”
“That’s where Insight can come in to provide strategies for overcoming glitches like critical skill shortages”
Insight Advisory Group is a multi-service advisory firm with clients across multiple industries, many of them multi-generation family businesses.