National Distribution Business
This client is a leading parts supplier providing nationwide delivery services across New Zealand. Most of its revenue is generated from B2B sales in New Zealand and a smaller proportion from retail and export. The business has established relationships with a variety of major international suppliers.
The business has been operating for over 30 years and since the client purchased it they have modernised systems and processes to allow it to be scaled up. One of the owners worked full time in the business for a period to get these systems set up. The building blocks for further growth had been created.
The owners were looking to realise the growth opportunities they had built up in the business, however, knew that a salaried GM was unlikely to have the required "horsepower" and/or "passion" to accelerate this growth. They wanted to work less in the business and move into more of an advisory role. How would they get the right person who had the appropriate senior management experience and would treat the business as their own?
Through a referral from a trusted advisor, the owners met Platform 1, discussed their situation and moved down the path of Platform 1's ownership transition model.
Platform 1 explored their own database and conducted an executive search process, identifying key people who fitted the criteria of the owners. Four prospective business partners were put in front of the owners and their Advisor and a highly qualified individual with experience as a leading national distribution executive was selected. The fact that equity was involved allowed Platform 1 to secure a more highly skilled Business Partner than if the search was just for a GM. Tests, checks and references were completed, and the preferred candidate completed their own Due Diligence before commencing in the business.
Both existing owners have been able to step back from the business as the new Business Partner quickly started adding value as the Managing Director. As part of the plan this person bought 30% of the business after 3 months and is now driving the business forward. The owners have the confidence that the business is being run by someone with "skin in the game" who treats it as his own. They still provide strategic support based on their understanding of the business and its markets and key relationships have been handed over in an organised manner.