Commercial Cleaning Business
We received a call from an accounting firm we had a relationship with who had a client that needed some help in running and growing the business. Platform 1 became involved and determined that the owner had run out of ideas and energy and was looking to pass the business over to a new owner. He didn’t want to sell the business outright as he had growth plans that hadn’t been realised yet.
He wanted a Business Partner who had the skills, energy and capital to come into the business and work with him to realise him achieve the growth, but also to buy into the business and eventually buy him out.
Platform 1 met with the owner and talked to him about the P1 business model of buying an owner out over a 3-5 year period. We call this Business Owner Transition. A plan was put into place and Platform 1 undertook a search process to find a key person with skills and capital to come into the business and gradually buy the owner out while they grew it
The key person came into the business and, together with the owner, has doubled the size of the business over the past three years. The owner has been able to pass over key responsibilities to the incoming owner and together they have created a better and more profitable business. This Business Partner has started buying into the business. The original owner should fully exit the business in the next two years with a lot more capital than what the business was worth at the outset, as well as a having a better business and growing his legacy.