Exit Strategy? THE SHOES ARE NOW FEELING TOO TIGHT

I have spent the last few months, with Tower Growth Management (TGM), meeting many owners of companies looking for an exit strategy. Two common questions arise: “How do you see your life changing after the acquisition?” and “If you were 10-20 years younger, what would you do with the company?”.

For many, this is the first time that they have sold a business and many have run the business for more than 20 years. The common answer to the first question is the ability to transition out of the business, coming away from the daily stresses to spend more time with loved ones, but still engaged in some capacity in the business they have built.

The answer to the second question has never been to sell the business, but to grow it, “if I had the energy”. The TGM partnership comprises of a team with the knowledge of acquiring companies and growing businesses across many market sectors. In the team of partners, enthusiasm exists to re-energise acquired businesses.

All the businesses I have seen in recent months have been successful, but without a succession plan going forward. As the owner’s look to exit the business, it is easy to fall into a reactive position with their existing sales – if a customer is lost or takes a downturn, then the owner will seek to find new customers to fill the void. Selling your business is very different to making sales for the business which most of us are used to, where sales growth (and profit) is paramount to the success of the business. I have sat in so many sales projection meetings, in larger organisations, where the target growth for the team is set at 10%, 15%, 20% or more above the prior year’s achievement.
 

During our acquisition process, we will develop growth plans in conjunction with the current owner and employees. We will develop the strategy and ensure that the right tactics are in place to take the business forward, safe-guarding the assets and re-energising the employees.

Tower Growth Management can help you structure and implement a succession plan that aims to safeguard and re-energise the team, taking the business to the next level. Also, giving you the peace of mind knowing your business and the team that helped create its value are in safe hands. Call us for a confidential exploratory discussion, with no obligations on 03332 470 270.

Jon Frewin

Managing Partner - Tower Growth Management LLP