RM2 brings home the bubbly at the Ideas Initiative
Last night (31st March) was the second edition of the increasingly successful Ideas Initiative, a concept developed by a set of local businesses including the RM2 Partnership, Ramsac (IT Consultancy), Hart Brown (Law Firm), Lloyds TSB (Banking), Roffe Swayne (Chartered Accountants), Room 11 (Web Design), and The Perfect Pitch (Sales Consultancy). The event was hosted by the University of Surrey.
With nearly 100 attendees the events headline topic was Top Tips for Selling Your Business. First up was Avril Miller from Leadout Business who gave us some valuable tips about how small changes can make big impacts to profit multiples on a sale. Second was Derek Mersh, the man who bought Muller yogurts to the UK, who looked at life from a business buyers' perspective. The two speakers were then joined on the panel of Dragons by Cameron Wilson who heads up the Young Entrepreneurs Club at Surrey University and Nigel Biggs who is the Entrepreneur in Residence at the University.
A team event followed which was a challenge with two teams of four competing for the bottles of Moet & Chandon. One team had to make an offer for a business, then grow the business over 5 years and subsequently sell the business. The other team, faced with the same business had to establish their sales price today together with their 5 year plan and a sales price in 5 years time. Given that the teams had little over one hour to prepare they gave a sterling performance especially when questioned by Dragons and the audience.
Suffice to say the ultimate 5 year valuations were different by exactly £100m which for a business that made a £1m profit in the current year was quite something! What was really interesting was the difference in mindset between the two teams which shows that emotion can often be as important as facts in business. From our perspective we were delighted that both teams established the need to lock in the Sales Director via an equity based reward. This was hugely important to the future of the business and of course RM2 were on hand to facilitate this discussion.
Naturally the team championed by RM2 came to the fore and took home the bubbly more importantly though, there was some great learning for all attendees and the networking session in the bar lasted a little longer than the norm!
Congratulations and thank you to those involved and we look forward to the next event in the Autumn.