Manufacturing Export Business
Our client is a design and engineering company that manufactures components and applications in Power Electronics. The company has a Head Office in Auckland and a factory in China. The business was started over 35 years ago and has recently moved to state of the art new premises.
The business has two working partners who have grown the business over the past 25 years and developed the business into a world-class player in its field. One owner wanted to gradually ease out of the business and eventually sell out. However, there was still growth opportunity in the business and the owner was wanting to be involved in the upside. The other younger Partner remained in the business.
Platform 1 was brought in to find an equity partner to work in the business and who had complementary skills with the remaining Partner. This person needed the skills to grow the business internationally and also the capital to enable them to buy out the owner over time. This concept is called Business Owner Transition.
Through a competitive process Platform 1 found a number of prospective Business Partners with international experience and enough capital to buy into the business. Through a structured process involving Platform 1 and the two current directors, one person was selected. The exiting owner managed to cut down to two days per week, still attends board meetings, and gives strategic advice to the new owner. This gives the outgoing owner confidence as he has an individual with skills and a shareholding who is confidently running the business.