How to exit when selling your business is not possible
Background
In October 2011 the owner of a well-established Technology business sought Oasis M&A’s assistance regarding succession, desiring to execute an exit strategy for personal and family reasons.
Whilst the business had good market share, an unsuccessful previous attempt to place the business under management had rendered the business unprofitable and unlikely to attract potential buyers.
Process
Oasis M&A conducted a strategic and tactical business review mapping out a plan to place the business under management with an improved accountability process and following principles of good organisational design and clear accountability.
Over two years, we embarked on a gradual and extensive process of reorganising the leadership team including a balanced, expert board of strategists and thought leaders as well as appointing a CEO with not only the right experience, but the passion and dedication to guide the business in the right direction. The board oversaw a re-organisation of the finances introducing a more healthy funding mix and line of credit capable of allowing future growth.
The subsequent business repositioning yielded significant improvements in performance with the initial focus on improving gross margins profitability. As the business began to make sustainable profits the board sought growth. The new CEO and management have developed into a highly competent and united leadership group with a growing reputation in the market.
The board expect significant further value creation going forward and are now contemplating a strategic acquisition to complement the service offering.
Results
The owner currently chairs the board but plays no day-to-day role in the business and has effectively retired to pursue other business interests. He retains ownership of his primary business asset which continues to increase in value, providing a steady passive revenue stream via dividend distribution. He remains open to an exit via a trade sale, but is in no rush and would be happy to hold his position indefinitely. Michael McGrath, CEO of Oasis M&A continues to advise our client as a member of the board.