Electronics Manufacturing Business
The client is a medium sized Electronics Manufacturing business. The company was founded in the 1980's, recognising the growing need for electronics installation and service in the Marine industry.
Through the 1990’s the company grew, adding more electronic products and services as well as contract electronic design and manufacturing. The 2000’s brought more growth and more contract electronic manufacturing, investing in state-of-the-art machinery and automation.
The husband-and-wife owners, having built up a successful substantial business with over 50 staff, felt it was time to bring in some fresh management expertise to take the business to the next level.
It was decided that the Platform 1 model was the best solution for them, a gradual sell down of shares would enable the owners to work on parts of the business they enjoyed and be able to take more time off, while maximising their capital.
Platform 1 found a CEO to come on board and take over from the owner, who enjoys the financial side of the business and migrated to that role.
A Transition Board was set up with three members – the owners, the CEO and Platform 1 representative. The Board has met monthly and the first 25% tranche of equity was settled successfully after the new CEO had been in the business for six months, according to the plan.
The business continues to grow, and the next equity tranches will be sold down to the incoming CEO over the next four years.
The owner has been so delighted with the result that he has sent out an email to all his business friends to let them know that this is an excellent way to exit their businesses.