He worried about the impact of such a sale on his loyal staff, many of whom had been with him for 20 years or so and had helped to build the business to where it was today. Would they still have their jobs after the sale? Would they be properly looked after?
He also worried about the family legacy. The business had been started by Steve’s father, Chris, and then passed down to him and his brother, Dave. Whilst the company didn’t bear the family name, it was still their “baby” which needed to be both protected and nurtured, even after the family were no longer involved.
Steve worried about what this sort of sale would mean for him and Dave personally. After working for themselves for so long, they couldn’t envisage a life where they suddenly had to answer to someone else, and no longer had the freedom to make decisions without asking permission.
Like most vendors, they wanted to sell their business to somebody they trusted and were confident would be a good custodian; a safe pair of hands. But how to do that whilst ensuring that they also maximised the value of the sale?
Enter Watersheds.
The first thing we needed to do was to make sure that we talked to different types of buyers (trade, overseas, private) and talked to them at the same time.
This delivered choice; a range of different offers and different propositions in terms of the future for the business and staff.
We had offers from trade buyers, but with that came the risk of relocation, change of name and a potentially uncertain future for the staff.
We solicited interest from overseas buyers who didn’t want to relocate but relied on the senior management team staying to drive the business forward. For the staff, this could provide opportunities for progression that were simply not available under private ownership.
After much deliberation, the right deal came from privately owned UK investment firm, OVM. OVM offered the best value for the shareholders and brought ambitious growth plans for the business, bringing in industry expert, Frank Collins as Executive Chairman.
When the deal completed, Steve reflected on the journey and his experience of working with Watersheds;
“We were looking to ensure the business was purchased by someone who would share our passion and have the strategic vision for the future potential of the business. I have been led extremely proficiently by the team at Watersheds and have been continuously impressed by their tenacity and drive to achieve what we engaged them to do. Their professionalism was clear from day one and they have demonstrated their commitment every day since to get us the best possible sale.”
Watersheds is a specialist firm of Corporate Finance advisors which helps clients to buy and sell shares in private companies and raise money.
Unlike other advisers, we work entirely on contingent fees. We do not charge up front fees or retainers. We are confident enough in our ability to deliver successful outcomes that we only get paid when we deliver results.