Tuesday 8 November 2011

How to Escape Your Head Office

Businesses in Britain are often run like small fiefdoms.   Even the largest companies, some with thousands working for them are often reliant on a small group of executives, not all on the board, for their future.

Often, subsidiaries, based in other locations other than head office, are excluded from the vital discussions which can effect investment in their businesses and growth becomes harder.  Being excluded leads to frustrations and the best solution may be a parting of the ways.

The most beneficial solution may be for the key executives of the subsidiary to propose a Management Buy Out. Here, the executives put together a business plan, seek finance and propose the buyout to head office.

Private Equity Companies are probably the only place in the economy right now who have the cash to fun medium to large buyouts.  Banks are over cautious, government doesn't have the money and the stock market is jittery at the best of times.

According to Equity Quest Partner, David Titmuss, "The potential for key executives to take their company and make it fly is enormous.  Unfortunately awareness of the Private Equity solution and, sometimes, key executives run scared of this solution as they have not understood how it works."

Titmuss says that the 'big conversation' is the first one.  Deciding to take that peek out of corporate life and find out more.  "At Equity Quest we're happy to have that conversation. Primarily we're a recruitment firm - we find executives for Private Equity portfolio companies.  But we're also happy to make introductions.  There are hundreds of firms out there and it can be a bit daunting at first."

Success stories abound.  The interests of Private Equity and key executives are perfectly aligned.  Both want the business to grow and both want to make money and create growth.  Maybe it is time to have that chat and escape the Head Office chatter.





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