Alternative Acquisition

Morgan O’Brien, of ESI Process UK, tells Valve User Magazine that being acquired does not necessarily mean being ‘swallowed up’

Acquisitions are a fact of business life. They take many forms and fulfil many purposes. For several small business owners, they can present a legitimate strategy for accelerating growth; either through the acquisition of other companies, or through accepting the investment of a larger group. It was the later options which ESI Technologies Group opted for recently, as they became part of the Swedish based Indutrade Group.

‘Your business being acquired: The discovery that you’re no longer a big fish in a small pond or even a small fish in a big pond, but a small fish inside a big fish! Most owners who have grown their own company or their family company would fear this as the worst possible outcome’ says Morgan O’Brien. ‘This is a legitimate fear. Whether the original owner intends to continue working in the business or not, there are few who will not consider the welfare of their work force moving forward.’

ESI Technologies has found that there is another Model that nurtures companies and its staff. The Group reports that Indutrade of Sweden has a totally different philosophy. The Swedish based Indutrade Group has acquired approximately 200 engineering companies to date.

‘Indutrade believe it is better having 200 independent ships sailing into a rocky harbour than one super tanker’ says Mr O’Brien. ‘Obviously we entered into discussion with a healthy scepticism, however we spoke to other businesses that were acquired by the group and they were extremely positive. Our own experience has been positive too,

Indutrade has been as hands of as it said it would be.’ Indutrade believe that if you are going to acquire a company and leave it run independently with its own name, brand and identity, it is critical the company, its owner and staff are a perfect fit.

They work to an exact formula. The company has to be a niche technology company, with strong management who want to stay within the Indutrade group and grow their company. Whether the growth is organic or through further acquisition, Indutrade provide the financial support.

Mr O’Brien is very happy with progress so far. ‘ESI had a long term strategy to expand in the UK.

This plan has now been accelerated with the support of Indutrade. Indutrade has built its group of companies in Northern Europe initially, they are now focusing on the UK and Ireland. ESI are one of the first Acquisitions and more are planned, be that manufacturing or distribution companies. It looks like this is going to be a busy year.’

ESI Process UK
Tel: +44 1633 877 505
www.esi.co.uk

Published: 7th March 2014