A-Star Testing & Inspection, a well-regarded provider of specialist testing and inspection services, became part of Phenna Group following a carefully considered acquisition process.
With a reputation for technical expertise and high-quality service delivery, A-Star was an ideal fit for Phenna Group's portfolio of companies. This strategic partnership was built on shared values, including a strong commitment to excellence, customer service, and long-term growth.
This case study explores the motivations behind the acquisition, the journey leading up to it, and the transformative impact of becoming part of Phenna Group.
About A-Star Testing & Inspection
A-Star Testing & Inspection is a leading global UTM, Non-Destructive Testing (NDT), and third-party inspection company with a corporate head office in Singapore and branches in Malaysia, Indonesia, India, and beyond.
They have a team of technical professionals certified in Advanced NDT Methods, Conventional NDT methods, and combinations of NDT with rope access qualifications and NDT with underwater divers.
The company is equipped to carry out Advanced NDT, Hull Thickness Surveys, and Conventional NDT to various sectors such as Oil and Gas, Offshore Industries, Refineries and Petro Chemicals, Power Plants, Construction, Shipyard Industries, and other Engineering Industries.
These services are also performed by Rope Access, Rafting, and underwater, all in accordance with quality safety standards. Their services are endorsed by classification societies, certification bodies, and accreditation counsels worldwide.
The Acquisition Journey
In 2019, A-Star Testing & Inspection, a respected name in the testing and inspection industry, was approached by Paul Barry, Phenna Group's Founder and Executive Chairman, to discuss the possibility of joining their growing network of companies. Right from the outset, Bala Krishnan, the Managing Director of A-Star Testing, was struck by Paul's enthusiasm, his transparent communication, and the genuine comfort and support they felt during these initial conversations. His approach set the tone for a promising relationship.
As discussions were gaining momentum, the world faced an unprecedented challenge with the outbreak of Covid-19. The acquisition process was understandably paused during this time, though both parties maintained regular communication and ensured the connection remained strong.
In mid-2021, talks resumed in earnest, and the process progressed quickly. Phenna Group presented an attractive, well-structured offer, reaffirming A-Star Testing's confidence in their potential partnership. During negotiations, Paul worked closely with Bala, addressing minor areas that required swift action without disrupting the acquisition timeline or straining the relationship. This collaborative and solution-oriented approach highlighted Phenna Group's commitment to creating win-win scenarios.
One of the most compelling factors for Bala and his team was Phenna Group's "Buy and Build" concept. This approach allows companies to retain operational independence while leveraging the group's expertise and resources to scale their business. This was a significant factor for Bala in moving forward with the acquisition.
Post-Acquisition Benefits and Changes
Since becoming part of Phenna Group, A-Star Testing & Inspection has experienced many positive changes that have strengthened the business and validated the decision to join the group.
Access to Expertise
One of the standout benefits has been the ease of access to Phenna Group's key management team. Their support has been invaluable, providing expert guidance across various aspects of the business. This collaborative environment has bolstered Bala's confidence in navigating future opportunities and challenges.
Collaboration Within the Group
One of the most exciting developments has been the opportunity to collaborate with other companies within the Phenna Group. By sharing knowledge and best practices, A-Star Testing has benefited from new insights and efficiencies that have helped them strengthen their operations. This spirit of collaboration underpins Phenna Group's philosophy of mutual growth and collective success.
Preserved Independence
Despite these enhancements, A-Star Testing continues to remain operationally independent. This balance of support and autonomy has been a significant advantage for the team, allowing them to maintain their established identity and approach to business while benefiting from the broader resources of Phenna Group. The lack of pretentious hierarchy within the group has further reinforced a sense of mutual respect and alignment.
Supportive Leadership
Brett Coleman, Divisional Managing Director, Asia within Phenna Group, has played a key role in supporting the team. His approachable and proactive leadership style has ensured that A-Star Testing feels well-supported while maintaining its internal management structure.
Looking to the Future
Bala's vision for A-Star Testing & Inspection has only grown stronger since the acquisition. He is excited about the possibilities and has ambitious plans for geographic expansion. This aspiration aligns seamlessly with Phenna Group's overarching strategy to foster growth and innovation across its portfolio of companies.
With the backing of Phenna Group, Bala is confident in creating a robust expansion plan alongside his management team. The combination of Phenna Group's resources, expertise, and collaborative culture provides the ideal foundation for A-Star Testing to explore new markets and achieve sustainable growth.
Why Others Should Consider Joining Phenna Group
The story of A-Star Testing & Inspection's acquisition by Phenna showcases the many benefits of becoming part of this dynamic and supportive network. Bala shared his takeaways for other businesses considering a similar path.
- A collaborative and transparent approach. From the first conversation, Bala shared that Phenna Group prioritised open and honest communication, ensuring he and the team felt comfortable and valued.
- Bala commented that operational independence was another significant benefit of joining Phenna Group. Phenna's "Buy and Build" approach respects each company's unique identity while offering tailored support to help them achieve their goals.
- Access to resources was another reason Bala would recommend joining Phenna Group. They provide access to a wealth of expertise, financial tools, and collaborative opportunities that can significantly enhance business operations and drive growth.
- Bala feels that Phenna Group leadership structure is designed to be approachable and supportive, ensuring businesses feel empowered rather than overshadowed.
- Finally, Bala said that potential growth opportunities are a key reason companies should consider joining Phenna. With the backing of a larger group, businesses like A-Star Testing have the confidence to pursue bold aspirations, including geographic expansion and new service offerings.
Bala Krishnan
Managing Director
A-Star's journey is a testament to the value Phenna Group brings to its partner companies. For businesses seeking a partnership that respects their independence while providing the tools and support to thrive, Phenna Group stands out as an ideal choice. By fostering a culture of trust, collaboration, and innovation, Phenna Group has created a blueprint for shared success that continues to deliver exceptional results.