No, not the start of a bad joke. This is a story about three
enterprising individuals who, in the late 1990s, decided to build a specialist
industrial water treatment company. Over a 5 year period they gradually built
the business, carefully acquiring a number of smaller companies, nurturing their
innovative spirit, guiding them towards success. Eventually they had a business
of scale (turnover of £50m) with a great reputation. A German trade buyer made
them a juicy offer and they took it.
The Germans decided that it was best to integrate this
delicate, some might say glorious, new creation into their big established
corporate structure. They sacked the entrepreneurs who had grown the business
and made everyone report into the existing German management structure. The
business was destroyed within 6 months.
Our cosmopolitan heroes were unhappy. Yes, they had the money
from the sale, but their ‘baby’ had been destroyed. They decided to do it all
over again. Four years and five neat acquisitions later they have a great
business, filled with promise and opportunity. To grow to the next stage they
need a financial backer. Preferably one with clout. And deep pockets. And an
understanding of the sector. And they need to be drop dead gorgeous. You can see
why I was there.
I spent 8 hours today shut in a room in New Jersey hearing
about their plans, their hopes, their dreams. They are passionate and dedicated.
They are also a bit cautious. They have not forgotten the previous disaster. At
the end of the meeting, when I had heard what I needed to hear and fallen just a
little bit in love with them, I got to make my pitch: We are not a
trade buyer. We don’t have a business we want to fold you into. We just have
money, intelligent money. Money that understands the water sector. Money
that can help you grow. Money that can put wind under your wings and help your
business fly…
I got quite carried away. I think the jet lag may have kicked
in. It all became a bit of a blur.
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