Ready to Invest £200M
Some years back, a group of investors contacted Boss Equity. To preserve confidentiality, let’s call them “Pratchett Esqs”. They had an investment pot of some £200M – so, deep pockets - but not, they confirmed, short arms. They had money to spend in the software tech sector, once suitable targets – plural – were identified. Excellent - More money coming into the software tech sector couldn’t be a bad thing. Money was not their issue. They knew exactly what they wanted (or so they thought) and they had some knowledge of software technology as well as a number of contacts in the sector.
Two Years Searching - No Joy
Given these facts, you would think they would be ready to roll. It transpired that, in fact, no, they weren’t. They were, really looking for what we shall call a “Five-Legged Sheep”. After a few minutes’ conversation, it became apparent that they had been searching for this five-legged sheep for……a whopping 2 years! We did wonder how that time scale could possibly be a fit for their business plan.
After some gentle probing, it was evident that they were seeking something that did not exist – Particularly at the price they were willing to pay to acquire it. Aggravating the problem was the fact that they had wasted an excessive amount of time and effort in their search; the financial expenditure, they could probably afford; the waste of time was another matter altogether.
Pratchett’s initial business plan had been based upon some “consultancy” work they had commissioned. They shared with us the “consultancy” document upon which they had based their business plan - It consisted of 30 pages, very well presented and in delightful prose. Marvellous, you may think; a solid consultancy report. Unfortunately, though beautifully presented, it was clearly boiler plate drivel – “One size fits nobody at all”.
Don’t Waste Your Valuable Time Searching for a Non-Existent Golden Fleece
Basing business decisions upon this worthless pile of paper, that should have been used for an altogether different purpose, our hapless investors had embarked on their business journey of adventure in search of the Golden Fleece - only to discover, some two years later, that they were in fact, seeking a Five-Legged Sheep.
Before embarking on any journey, make sure that your plans are based upon solid information from a reliable source. It could save you a lot of time, especially when planning to make an acquisition or sell your business. Make sure you get the right information first time. Business - and, in particular the software technology sector - moves at a fast pace; it won’t wait whilst you travel on a circular voyage in search of something that does not exist.
If you require assistance with your exit planning and/or M&A strategy, Boss Equity has decades of experience. Please contact us to arrange a free 30 minute confidential, consultation.
