Page 8 - Wealth of Experience - Selling a Business 2019

CASE STUDY – TONY HOGG

FINDING THE

RIGHT BUYER

I joined Willbond in 1972 worked hard on our Information
and bought the company Memorandum (IM) to make sure that “We had no skeletons “The eventual result
in 1987 in a management it accurately conveyed the business in our closet to worry was beyond my
we were selling. This really showed
buyout. After working our credibility. about.” wildest dreams, I feel
in the plumbing supply that I left the business
business for over 40 If the assertions you make on the IM in good hands.”
come through then you really build
years I was ready to sell trust with your buyer. Over the years, When selling your business, it really
up, but finding a buyer we had always been an ethical helps if you’ve almost made your Any regrets? It’s like selling a house
who would look after trader and we had no skeletons in own role redundant - enabling the - there’s always going to be that
the company and my our closet to worry about. This really business to continue operating feeling that you always could have
successfully when you leave.
staff would be key to any paid off when the due diligence After our sale my deputy stood changed something. If I’d have
transaction. came to be done and it gave up to become the company chief known the outcome, I would have
everyone a lot of confidence. sold up earlier so I could have stayed
After the financial crash we had operating officer and the buyers as Chief Executive of the group for
worked hard to first stabilise the We kept the sale confidential to the asked me to stay on 3 days per longer, as this really was a brilliant
business and then to get it back on board and senior management and week and help them acquire more job. Other than that, I wouldn’t
a growth track and now aged over when the announcement was made businesses in the plumbing and change a thing. The eventual result
60 years it seemed a good time to it was a big shock for most of my heating supplies market. This suited was beyond my wildest dreams,
start planning for my future. It was staff. Their stunned reaction was me as I was very apprehensive I feel that I have left the business in
in an informal meeting with Cooper quite upsetting and it really helped about full retirement but, such good hands and sold the business
Parry that the topic of sale came up that I could tell them, hand on was our success, that we rapidly for what I believe it was worth.
and they mentioned an electrical heart, that our new owners were a) became the largest independent
merchant who might be interested committed to growing the business merchants in the sector and yours If I could give one piece of advice
in buying us. At the time I wasn’t and b) were financially strong truly became the Chief Executive to business owners thinking about
sure - water and electrics don’t enough to withstand any future Officer! Needless to say my 3 day selling, I’d say think about your life
mix! However, after meeting the recessions and keep them safe. week soon became 7 and it was post sale and whether or not you
prospective purchaser I learned that We’d put a share option scheme obvious that I needed to find another want to retire. For the people who
they were about much more than in place for our executive directors successor. This has now happened have built up businesses they won’t
electrical merchanting and it was to help retain and reward them for and I am now almost retired but I want to just dump their former
soon obvious that they would be the their great service. One of our senior have continued as a non-executive employees and it’s a big win if you
right buyer. directors actually reached retirement director of the business and this has can look everyone in the eye post
just as we sold and he came out kept me in contact with many of my sale. The key to achieving that is to
My business was an easy one to with a great nest egg. This was a old work colleagues.
sell. We had very steady revenue really positive note to leave on. work really hard on the sale process
and profit streams and we which is quite taxing anyway.
Undoubtedly a bit of luck is also
helpful but as with all things you get
out what you put in.

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