The Business
One of the leading suppliers of metrology equipment in the U.K.
They are specialists in the field of precision engineering, and carry a stock of over 20,000 products which are sold to blue chip customers across the UK, including companies like Rolls Royce. Increasingly customers are browsing their extensive on-line catalogue and placing on-line orders.
The company also has a machine shop facility and skilled engineers allowing them to modify and manufacture instruments to customer's specific requirements. Bespoke items are a speciality.
The challenge
In June 2000, the founder of the business announced that he wished to retire. The management team wished to buy the business and required advisers to help them through the process. The team were looking for an adviser who would give them confidence and explain the process in a language they would understand. They needed to have trust in their advisers and having met the RSM Tenon team appointed them to advise on the buying process. Whilst the team knew the business and industry inside out, their skill-sets were previously more biased towards sales and production, so they were also mindful of the need to develop a wider understanding of all aspects of managing a business and making a profit.
RSM Tenon’s Approach
RSM Tenon worked alongside the management team throughout the buying process ensuring the deal terms were negotiated and understood fully by the new management team.
Following the deal RSM Tenon began acting as accountants and business advisers to both the company and management team as individuals and very strong relationships have been developed. RSM Tenon helped the team gain a solid understanding of how to manage and run business and when appropriate have introduced other specialists to help and advise. RSM Tenon hold regular management meetings with the team and input to their business strategy and planning.
The Result
The buyout went well and the company have maintained the steady growth of their business and their client base. They are continuously building their reputation in a very focused and planned manner and controlling their overheads to ensure the business delivers.
In the nine years since the buy-out the management team has re-shaped the business, introduced a larger product range, an on-line catalogue and appointed a management accountant who deals with all accounts and finance aspects and acts as business mentor on a day to day basis.
This has enabled the management team to focus on their best strengths, safe in the knowledge they have the financial information they need to run their business profitably. They also feel they have a team of advisers around them that they can trust and always feel able to ask for advice.
Quote
“I would never change from RSM Tenon. From day one they have explained things in a language we all understand. I know I can approach RSM Tenon and I’ll get sound advice. They are always responsive and I never get the feeling the clock is ticking. I’ve had some real gems of advice that have really impacted our performance and the advisory team are more like friends now - but I also know RSM Tenon will not be afraid to deliver a reality check when I need it!”