Frequently Asked Questions

The Platform 1 process works well when the business has growth potential and is profitable. Most of our clients have a business turnover of between  $2M to $20M. We work across many industries including manufacturing,engineering,construction, IT and import/distribution.

While more of the team is based in Auckland Platform 1 cover New Zealand and have a team member based in Christchurch.

Platform 1 are the only business in NZ or Australia we know that focus on finding talented people with capital and capability, to help an owner exit over time.

We have been trading for approximately 14 years under Platform 1 and prior to that as under other brands. In that time, the business has been involved in over 130 transactions where equity was involved for the incoming leader.

Not at all.  You can sell as little or as much as you prefer; the control is in the hands of the owner and is generally agreed on a case by case basis. For owners exiting their business it is 100% over time however where owners are looking for capability to grow or a business partner they will sell down less equity.

This depends on several factors and there is no one size fits all. Often it is 2 to 4 years. It depends on the goals of the outgoing owner however the intention is to agree the timeframe upfront. On a full transition, the owner generally steps back from the day to day running of the business based on the business needs.

Experience has shown us that structure is important when a Business Partner or new owner is transitioning into a business. We set up a Transition Planning Board to ensure there is alignment towards the shared goals. The Transition Planning Board meets monthly for the first 6 months and consists of the owner,incoming Business Partner and Platform 1 .The purpose is to ensure the transaction works and if any issues arise they are dealt with.

We work particularly closely with Accountants, Banks, Legal Service providers and others. It is very important that your financial and advisory providers are kept closely in the loop and providing the appropriate level of support for these sorts of transitions. Banks and Accounting/Advisory firms are supportive of our process because it does ensure a continuity of relationship and growth opportunities for them. They often refer their clients to us.

Every assignment is different, and typically we will charge as milestones are achieved and over different time frames depending on what is needed for a business. You do not pay anything until you formally engage us. Platform 1 charges a fee to search for the Business Partner and the Business Partner. Platform 1 then charges a percentage of the capital raised as a success fee when the Business Partner transacts.

Typically, not, as we work for the owner of the business to maximise both personal wealth and individual opportunity.

We have relationships with financial institutions and private equity and can introduce all sorts of beneficial financial arrangements and outcomes for our clients, but this is done by always acting on their and not our behalf.

On larger deals we know people who may back a Business Partner into a strong business We want the incoming Business Partner have real skin in the game so they must be prepared to invest some capital.

We work with a wide range of business advisors and are often introduced to clients through their business advisor.

Business Owner Transition is a method of exiting or growing a private business, over time, to an external talented person with capital. This person works full-time in the business and buys shares in the business over time and to an agreed plan. A governance process is set up to ensure the transition meets your needs.

The process is flexible and tailored to your needs. You decide the timeframe you want to transition over. It could be a full transition over time or you may want to retain some equity for the longer term as you scale back your working in the business involvement.

The first step is a confidential conversation about your business and your goals in relation to succession. Platform 1 take time to understand your succession challenges,desired level of involvement and preferred transition timeline. We can then assess whether a gradual transition is the right fit and outline potential pathways forward.

There is no obligation. It simply starts with a conversation.

Our IP is knowing these people and where to look for them. Platform 1 has an extensive database of people looking for skin in the game in a business. These are often people recommended to us by others including accountants and advisors. Brokers also point people in our direction.We also apply Executive Search techniques to identify and approach people we believe are suited.

We look for capability,capital and compatibility and these three attributes are critical and non negotiable. We call it the three “C’s”.

Increasingly we are seeing owners who find or promote a GM themselves and it does not work out. A medium sized business often struggles to compete with corporates for the best people, and compromises with someone stepping up and on training wheels.

Offering equity is a way of attracting a higher calibre person who has had a more expansive role but will work in a small to medium business because of the offer of skin in the game. They relish being more hands on and bring only the good elements of corporate experience into your business.

Bringing in strong fresh skills that complement your experience and knowledge, is an ideal scenario to drive growth.

A management buy- in is when a capable external leader buys into your business . Most people know of a management buy-out through existing staff, however this is often more difficult in smaller businesses without a senior leadership bench of people.

A gradual exit over time can be an attractive option for many business owners. If your business is overly dependant on you then a gradual exit to a capable person allows relationship and knowledge to be transferred. Also, you may enjoy parts of your business and want to work on them 2 days a week while the new person does more of the heavy lifting. Some owners don’t want to sell to a competitor and want to ensure their staff and customers are looked after. A gradual exit is a good way to allow this to happen and protect your legacy.