25 August 2022
Newsletters and UpdatesIn business (and cricket) timing is everything. So is preparation, especially for company owners who want to avoid batting on a sticky wicket when they come to sell up.
That’s why keen cricketer and James Cowper Kreston’s Head of Corporate Finance Stuart Williams always urges clients thinking of selling their business, bringing in new investment or making new acquisitions to start preparing early.
His mission is to maximise the value of clients’ businesses on exit or in helping them to grow. He helps clients to navigate through transactions and also advises private equity houses on investing in businesses.
The firms corporate finance team is sector agnostic, although given the preponderance of technology and healthcare companies in the South East, there’s a weighting towards these types of business.
The team has doubled in size since Stuart joined and is currently looking to hire a further three corporate finance specialists.
Dedicated to getting deals done
Typically, James Cowper Kreston's corporate finance clients have average earnings £1m-£15m. Over the last year, despite Covid-19 uncertainties, the corporate finance team’s work included advising YFM Private Equity’s investment in RGE, the cross-border disposal of Fluorogenic to NEB and the disposal of DTE to Lloyds Development Capital backed Solutions.
“Company owners come to us for our experience, commitment and the fact that, like them, we are an entrepreneurial business,” said Stuart.
What motivates Stuart is his clients’ passion, which he finds infectious. “A sale is usually the culmination of their life’s work. It’s always good to share their passion and achieve the result they want,” he said.
One of the biggest challenges for clients is preparing for an exit. “It’s a data-hungry process, so business owners should start at least 18 months ahead to get everything ship-shape in time,” he recommends.
For Stuart, personal relationships are the bedrock of his approach. “You have to ask if you wouldn’t mind being in a room together at midnight discussing the finer points of a deal when things are getting a bit fraught,” he observed.
Private equity houses regularly return to James Cowper Kreston for business. “When we work on a transaction, we’re not like larger firms, where senior staff might delegate to junior colleagues. I work directly with clients supported by my team, which investors appreciate,” he said.
Stuart finds he is increasingly working with younger business owners, as he explained: “I think since Covid-19, we are seeing more entrepreneurs re-evaluating their lives – they’re not waiting before deciding to move on but thinking about it earlier. They are asking ‘how much money do I need to enjoy my life?’.”
Both sides of the fence
Stuart Williams joined James Cowper Kreston from university in 2003 and became a partner in the corporate finance team in 2017.
Today, he’s based at the firm’s Reading office, lives in the New Forest, and spends time across all its offices in the region.
“We’ve a great bunch of people here – very dynamic and I’m pleased our team is growing,” he said.
Working on “both sides of the fence” – for business owners and also acquisitive financial institutions investing in SMEs – means he assesses deals from all angles.
Outside edge
The numbers that matter most for Stuart outside work are on a scorecard. He captains Southampton-based Mansbridge Cricket Club and while he doesn’t often discuss business over tea in the pavilion, he brings workplace disciplines to his sporting role and vice versa.
“Captaining a cricket team requires planning, deciding tactics, morale-building and keeping everyone motivated to succeed. That’s also important back in the James Cowper Kreston office although I’d say we’re already highly motivated.”
He enjoys being able to make decisions at James Cowper Kreston in an entrepreneurial way – just like his clients do, pointing out that as a smaller business, James Cowper Kreston doesn’t suffer from layers of bureaucracy that can slow decision-making.
What should business owners be thinking about right now?
Stuart Williams says macro-economic pressures from rising inflation and the war in Ukraine are leading businesses to re-appraise their long-term outlooks. However, whatever the economic circumstances, some things never change when business owners are looking to sell. The success or otherwise of a deal often comes down to the quality of your data and back-office operations. They may be the most important factors in securing a sale or new investment.
Best advice you’ve received
Focus on your people. Great people can make a struggling business great. Bad people can make a great business struggle!
About James Cowper Kreston
James Cowper Kreston provides audit, accounting and tax work along with a range of business advisory services, from offices in Newbury, Oxford, Reading, Southampton and London.
For information about James Cowper Kreston's audit and accounts service, email Stuart Williams.
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