WHAT WILL HAPPEN TO YOUR COMPANY AFTER WE ACQUIRE/INVEST
If the wheel is not broken, why try to fix it.
Of course if you want a different result, you have to do things differently.
However, the different result that we desire in any business we acquire or invest in, is that we want to make bigger and better as a whole. The only change is really around investment to grow the business – the day to day operations of the business generally remain unchanged.
Expansion Plan Post-Acquisition
We will look to implement an expansion plan post-discussions with the management team of the business what the best path for growth will be for the company.
We will look at things like acquiring competitors, pitching for bigger tenders, looking at increasing the frequency of purchase from clients, adding products and services to the offering.
Generally looking to implement strategies to increase the top-line of the business and have the team incentivised.
The day to day will be left with the Management team, which we will empower, trust and work with.
We see our role at Opulentia Capital, more about bringing the tools, resources and capital to the table to empower the senior team to take the business to the next level.
What our schedules will look like post acquisition
30 DAYS IN
The first 30 days after acquiring your company is about "letting the dust settle a bit".
You as the principal owner of your business, will normally announce that there is a change in ownership.
Staff are the most important asset and as such we want to reassure and quash any concerns they may have.
Employees may ask themselves questions like:
- Will my job be safe?
- Will there be cut-backs?
- What is going to happen to suppliers? Manufacturers? Distributors? Partners?
We always try to take a calm approach, to get to understand the current staff, the business and the culture within it.
Obviously we will have done some due-diligence prior to making an acquisition, but we understand that you only get to know a company until you take over it.
60 DAYS IN
After the unsettling period has passed, we will try to get a more in-depth understanding into the key personnel, spend some time with the senior management depending on the size.
With a leisure company we acquired in 2019, there was a senior management within the company.
Thereafter, we will look to see what is working and what isn´t working within the business, based on feedback from employees.
Our HR Manager, Peter Lawrence, performed a confidential survey the staff when we first acquired, what it was like working in the company? what would they change? asking about any tools and resources that would be needed? and how happy they would say to be working in the current environment?
After a year, some small changes had been made in terms of infrastructure, support, regular training for people, helping them work towards goals.
Within this business several key people have been promoted & new people have joined the business to compliment the team. Productivity has improved, revenue has increased by 3% and profit 194% and most importantly staff retention has improved and overall staff engagement.
90 DAYS IN
A budget is produced with the Senior team which we use to measure the growth of the business.
We look at were we can bring improvements to sales, marketing, operations, IT, and finance.
Looking at the Leisure business we invested in several new CRM & Cloud based accounting system. We have moved the service centre from a ‘paper based’ system to using Ipads which means productivity is improved (we are completing work quicker, able to get parts quicker etc).
We overhauled the website and have invested heavily in marketing.
6 MONTHS IN
After 6 months we of acquiring the business and seeing small improvements in the company based on feedback and leadership from within, we will then look at acquiring further businesses to add to the company, look to increase top-line, etc...