This week nearly broke me…
Originally sent exclusively to The Letter subscribers on February 10th. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
Good morning, the regulars of this scribe will know that last week there was a missing chapter from an otherwise perfect run of hits!
I apologise to you all; I was simply done.
I don’t mind admitting that this week I have been absolutely wiped out by an awful bug.
I felt so ill that I couldn’t sleep, all while keeping up with my duties at work. Devilishly difficult!
It’s during times like these that you find out whether you truly have responsibilities!
It’s very hard to call in sick when you’re a responsible person.
We march on when others falter. The whole team needs you. While it may not be for day-to-day tasks, in my position, there are always significant goals that require clear decision-making.
This week, I drove to Blackpool, flew to Germany, keynoted at a conference, dealt with countless lawyer calls regarding a transaction I'm working on, and still answered as many emails and calls as I could - while feeling like I was dying inside.
I detest making excuses, but I really should have cancelled some of my appointments. I could feel the enemy bug attacking my body bit by bit.
If my time is not being leveraged or used effectively, I get quite cross; I take pride in getting a lot done!
Hence the packed diary. Plus, I never get ill, so it has never been something I needed to consider.
Even my bank manager texted me after a call we had this week, asking, “Health is wealth; are you doing too much?”
I replied that if he wanted to lower interest rates on my loans, I wouldn’t have to work so hard!
Am I not allowed to feel poorly every now and then?
This made me think about rest.
I admit this week I needed it, In general, I’ve always found rest to be overrated and boring.
Holidays never excite me; I find them pleasant, but I would prefer not to go. Two weeks off fills me with dread.
Being bed-bound for seven days has truly switched me off.
I couldn’t even check emails or watch a film; the thought of doing anything took too much energy. I felt that rough.
What I do appreciate about "purposeful' rest like holidays and being in new environments is how powerful my thinking becomes.
Innovation, opportunity seeking, problem-solving, and reflections on challenges all come to mind when I have a moment to pause for thought.
Unfortunately, I didn’t even manage that this week. Getting up the stairs to bed was my win of the week!
Well, enough about boring old me and my vegetable-like state; let’s get back to it…
A few letters ago, I mentioned that we had just acquired another business.
This came to my attention over Christmas, time was on my side, so I took a look and liked what I saw.
It was a group of businesses generating around £10 million in revenue.
We actually bought two brands, both operating internationally.
One of them is called Camp Beaumont, which is one of the UK's largest and oldest school holiday camps - one I attended as a child!
Their operations extend all over London and the Home Counties, as well as international schools in Hong Kong, Singapore, and Malaysia, among others.
After some light due diligence and meeting some of the team, I decided to proceed.
I was reassured by the fact that the deal was offered to me via one of the directors who engages with my content and its brand recognition was top notch. The deal was done.
The transaction was a carve-out from a large group that unfortunately went into administration.
While I ensured we acquired Camp Beaumont in a solvent manner to protect its brand, there was another brand within the group that I knew would be an incredible addition for us.
It’s called IN2Action.
IN2A helps companies excel with world-class training to improve customer satisfaction. (tap us up if you need some mystery shops and customer service training)
To wrap up this week (the one during which I started to feel better) I viewed a couple more businesses to potentially buy.
One was interesting, but overall not large enough for us.
If mergers and acquisitions pique your interest - and frankly, they should - because it’s the fastest way to drive profits, growth, and cost savings into your business, then remember that buying bigger is better. It simply is.
The business I observed had £700,000 in revenue, which is too small to effectively manage and grow.
That’s the first rule of the M&A game in my book - who’s the manager?
The challenges of small businesses are cumbersome for us on the buying side, regardless of how good you think the deal is.
You need enough margin and size to pay for management. We want to acquire profitable businesses that can quickly feel and look like investments.
We do not want to buy profitable jobs. No way.
£700,000 in turnover is too close to the profitable job category for my liking.
So why did I look? Well, it’s in a sector I really fancy getting into, so turning over a few stones doesn’t harm anyone.
I’ve picked up some valuable tips and tricks for the industry.
I have eight more viewings of similar businesses, which would neatly fit in with what we already do. With every meeting or viewing, I learn more about the nuances of the sector, arming my noggin with important facts and figures.
I love the learning you get by having a butchers.
If I summarise my M&A career, everything I have bought that is below £1 million in revenue has been a headache.
In contrast, everything that has been above £1 million in revenue has been a much more enjoyable experience.
This week, I was frustrated to find that my four-year-old daughter can’t even say "please" in Spanish!
That’s "poor for four " isn’t it?
(to get that joke you need to read it out a loud, let me tell you its one of my absolute favs)
To your continued success,
James
PS. Talking of buying businesses, I’m hosting a 1 day workshop in March sharing everything I know about merges and acquisitions so you’re prepared to do the same. Tickets are selling fast, very limited spaces. Find out more here.