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27/10/2015

60 Second Interview – GRS Care Ltd

Last week we spoke to Fiona from Beaufort Research about her experiences of a management buy-out. As part of our series of interviews on buying a business we caught up with the Chairman of GRS Cared Ltd about the company's recent management buy-in.

Swansea-based GRS Care Ltd provides assisted living and care services across South Wales. In June this year entrepreneurs Ceri Todd, Amrita Amin and Dave Howells used a Finance Wales loan to buy into the company. As the company’s new Chairman, Dave Howells speaks about his experience of the management buy-in.

 

 

Why did you decide to embark on a management buy-in of GRS Care?

I was interested in the social care sector and GRS stood out as an established care provider with impressive standards and a successful track record spanning 20 years. I also believed the company had enormous potential and building on this success was an attractive proposition.

 

Did you have any previous experience of management buy-ins beforehand?

Yes, I had some indirect experience with a previous company, but I learned a lot from going through it directly myself. 

 

How did you find the process?

The key element for me was to understand what the existing owner wanted to achieve from the sale and whether or not I could fund the process. Once I established this, we were able to reach agreement in principle together quite quickly.

The details of the deal were quite complex and included funding from a number of different sources. The experience of the financial advisors we used as well as Finance Wales was key in helping to structure the deal and guide it through.

 

Were you worried about coming from a different sector/industry to GRS Care?

No, not really. I had an interest in the social care sector and the market research I conducted beforehand helped me to understand the business’ sustainability and growth potential. The due diligence process gave me confidence in the financials of the business.

 

Since the management buy-in how have you found your new position as Chairman?

Initially challenging, as I expected it to be. I still had a lot to learn about the sector and the challenges our staff face caring for our residents. It has taken a good six months for staff to get used to the new frameworks we’ve introduced, but now we are reaping the success of this as we’ve simplified aspects of the business and modernised our processes.

 

Would you consider any further management buy-ins in the future?

Yes, with the right opportunity.

 

What advice would you give to others considering a management buy-in?

Understand your business sector (market research), do your due diligence, know your limitations, expect initial changes and challenges, and operate a clear and concise strategy.

If you’re thinking of buying into a business  speak to Finance Wales today to find out how our funding can help.