Acquisition Approach
Approach
PHD Industrial Holdings has substantial financial resources aimed at bringing together well-established SMEs operating in traditional market sectors. Every year we are looking to acquire profitable, cash-generative businesses selling consumable products or services to well spread customers bases.
Our acquisitions are often retirement sales and we look to work with founders to enable them to exit the business over a timescale to suit them, whether shorter or longer term.
Whilst our businesses and their management teams continue to operate independently they have the advantage of sitting within a wider family group of companies and receiving strategic and financial support from both the PHD Industrial Holdings team and the wider group as required.
PHD Industrial Holdings Team
The PHD Industrial Holdings team have worked together since the 1990’s and have over 100 years combined experience in advising and investing in owner managed businesses. Having set up and managed a number of our own businesses we understand how passionate founders are about theirs.
PHD Industrial Holdings aims to provide an attractive home for these businesses and all the people who run them and to continue to grow and develop them for the long term.
This passion for developing SME’s goes right through PHD Industrial Holdings’ DNA with the majority of our shareholders being themselves entrepreneurs and business owners from a huge range of industries.
Long Term View
When PHD Industrial Holdings acquires a business we take a long term view regarding its development, investment and growth.
Early on in our ownership we look to develop a long term strategic plan which will typically involve one or a number of the following:
- Future proofing and supplementing the management team, as appropriate
- Investing in digital strategy e.g e-commence, websites, CRM and operational systems
- Improving financial governance and information to support decision making
- Sourcing and executing bolt on acquisitions
PHD Industrial Holdings will then work with management to provides challenge and adapt the strategic plan along the way.
PHD Industrial Holdings will sell companies if it is right for the individual business and its team.
Alignment of interest
Given our decentralised approach the incentivisation of individual company management teams and alignment of our interests towards long term capital growth is key.
In every PHD Industrial Holdings group company the management are also shareholders whether as a result of reinvestment from the original founders or management becoming new shareholders.