Information on selling your business and/or partnering with the Flowmax Group
Partnering with Flowmax
Businesses choose Flowmax because as well as helping them and providing a support network when they need it, we share in their passion for success. We build clusters of businesses in similar activities, industry segments or customer channels giving group members a chance to share knowledge and experience.
Shareholder Rewards
Realise value form the equity you have built up in your business and still continue to share in the financial reward as your company grows.
Business Growth Support
Partnership, Strategic guidance and Operational advice. Access to financial investment, funding and group knowledge.
Development support
Tailored training and development programme for key team members. Networking and knowledge sharing with others.
Your company’s future
Building your company's future with continued involvement in decision making, supporting your business culture and ethos.
Critical events in the lifecycle of an SME
Throughout the life of your business it could be beneficial to bring in external investors to finance the next stages of growth or provide resources and expertise to help you accelerate and scale-up your enterprise. When do you think your business could use investor support?
Launch phase
Businesses typically launch by providing new products or services or where someone has left their current employer with the goal of serving their customers better. Sales are usually low but slowly increasing with the focus on marketing to the target customer base by communicating its USPs.
At launch, business risk is highest due to modest revenue coupled with high initial start-up costs. It’s rare a company in its infancy can obtain debt finance due to its unproven business model and unproven ability to repay borrowing. Funding is from family and friends, credit cards or a second mortgage and in some cases support from suppliers. But as sales show an increase, the ability to obtain external finance also increases.
At this stage you may need intensive support but cannot afford the cost of additional staff. You are also likely to be spending most of your time focussing on the day-to-day challenges of keeping the show on the road with little view of the longer term or ensuring solid foundations are in place for future scale up.
At launch, business risk is highest due to modest revenue coupled with high initial start-up costs. It’s rare a company in its infancy can obtain debt finance due to its unproven business model and unproven ability to repay borrowing. Funding is from family and friends, credit cards or a second mortgage and in some cases support from suppliers. But as sales show an increase, the ability to obtain external finance also increases.
At this stage you may need intensive support but cannot afford the cost of additional staff. You are also likely to be spending most of your time focussing on the day-to-day challenges of keeping the show on the road with little view of the longer term or ensuring solid foundations are in place for future scale up.
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see our partnerships in effect
XXXX Case Study
The reasons why XXXX decided to sell their business & partner with Flowmax in 20XX and how this skyrocketed their business to success.
Growth phase
This is known as the growth phase as a rapid rise in sales occurs, as sales rise businesses begin to show profit after reaching the break-even point. Once booming sales growth is experienced, risks to the business diminish and the ability to raise capital increases. Products or services have been proven in the marketplace.
Companies at this stage seek to raise finance to expand market reach and diversify. From this point business owners are usually required to delegate more and to hire another layer of management. Owners cannot continue doing everything themselves as they may have done in the early stages. For many though, the idea of delegation is one of their biggest challenges. Let’s face it; you founded the business because you knew you could do it better yourself!
Companies at this stage seek to raise finance to expand market reach and diversify. From this point business owners are usually required to delegate more and to hire another layer of management. Owners cannot continue doing everything themselves as they may have done in the early stages. For many though, the idea of delegation is one of their biggest challenges. Let’s face it; you founded the business because you knew you could do it better yourself!
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Levelling out
When the business is small, a few extra customers can result in massive growth. As time goes on feeding the beast becomes more challenging and as your competitors begin to notice you, they become more alert to your secret-sauce and the challenges it brings for them.
The company also needs to find ways to work more efficiently and effectively to find new customers or introduce new products. It also has to introduce processes in HR, accounting & financial controls and other areas of the business where the founder is often not in their natural habitat. The additional scale and accompanying profits give the business the ability to repay debt. Business risk also continues to decline.
The company also needs to find ways to work more efficiently and effectively to find new customers or introduce new products. It also has to introduce processes in HR, accounting & financial controls and other areas of the business where the founder is often not in their natural habitat. The additional scale and accompanying profits give the business the ability to repay debt. Business risk also continues to decline.
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Maturity
Once a business reaches maturity sales slow and begin to decrease, profit margins get thinner with cash flow stagnating. As firms approach maturity, major capital spending is considered. However, unlike the early stages business risk moves in correlation with sales to the point where it carries little risk. With the elimination of risks, the most mature and stable businesses have the easiest access to finance.
Many enterprises extend their business life cycle during this phase by reinventing and investing in new technologies and emerging markets. This allows repositioning in dynamic industries further igniting growth.
At this stage some owners consider taking money from the business to enhance their lifestyles, reaping the rewards of years of hard work. Some may also want to step back, reducing their workload but still remain active in the business as Owner or Managing Director.
Many enterprises extend their business life cycle during this phase by reinventing and investing in new technologies and emerging markets. This allows repositioning in dynamic industries further igniting growth.
At this stage some owners consider taking money from the business to enhance their lifestyles, reaping the rewards of years of hard work. Some may also want to step back, reducing their workload but still remain active in the business as Owner or Managing Director.
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Decline
In the final stage of the business life cycle, sales, profit, and cash flow all decline. During this phase, companies realise the end of business life cycle by adapting to the changing business environment. Firms lose their competitive advantage and finally exit the market.
Do you require capital for growth?
Are you looking to release cash from your business?
You’ve worked hard and may have continually reinvested profits, now it’s time to enjoy the rewards. Do you need support for new management, marketing, exploring new opportunities, distribution or finance control? Do you want to take a step back but make sure your staff and teams are still supported?
If you're looking for business support through a partnership, part sell or full sell then please get in touch.
Do you require capital for growth?
Are you looking to release cash from your business?
You’ve worked hard and may have continually reinvested profits, now it’s time to enjoy the rewards. Do you need support for new management, marketing, exploring new opportunities, distribution or finance control? Do you want to take a step back but make sure your staff and teams are still supported?
If you're looking for business support through a partnership, part sell or full sell then please get in touch.
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Get in touch with our team to find out how we can help.
Whether you're looking to part-sell, become a partner within the Flowmax group to scale your business or sell all of your business completely, we can help.
How joining the Flowmax Group affects employees
Each business continues to be managed locally, with input and collaboration from the Flowmax head office, and each team has a true sense of ownership in their destiny and success.
Case example: Kiran Shaw - Director, IFC
Working at IFC incorporates the best of both worlds. I am part of a supportive, creative and hardworking team who provide bespoke solutions for our customers, and I also have the additional support from the Flowmax group. We get great advice, guidance and strategic support. There is a strong group culture which values staff in the same way that we do and which allows us to concentrate on looking after our customers and growing our business.
Case example: Michelle Jackson - Head of Marketing, CTS
I joined CTS in the marketing department straight after graduating from university in 2011. The company and wider group have really supported my career progression, with the Flowmax management course helping me to build on the skills I need to manage the department that I now head up.
Companies who joined Flowmax
Joe Brennan - MD, Biopharma dynamics
I was co-founder of BioParma Dynamics, having first worked as part of Action Sealtite and my knowledge of the single use processing sector has helped to keep the business and its customers at the forefront of innovation for the last 12 years. I am motivated by the fact I know that the work we do makes a contribution to improving peoples lives every day. I have stayed with the group so long because they give the business the flexibility to respond to changes in the market quickly by allowing me as Managing Director to run the business without interference whilst providing the stability that a strong financial group brings to an SME such as BioPharma Dynamics.
Anthony Verhulst - MD, Petroy BV, NL
I built Petroy as an International Trade company specialized in engineering and marketing of innovative technical products. The combination of "innovation" and "international marketing" is challenging and exciting. After 25+ years of accomplishments Petroy needed a "guardian" to keep on the legacy and we found in Hytek part of the Flowmax Group the ideal "safe harbour" to assure continuity for the long term. Stakeholders were enthusiastic about future synergies and as of mid 2019 Petroy has become a proud member of the Hytek Group of companies.
Commonly asked questions about selling & partnerships
Take a look at our FAQ questions below, or get in touch with our team for more specific enquiries.
FAQ's on selling & partnerships
We associate with the manufacture, import and distribution of medium technology fluid management and control products, renewables, pharmaceuticals and technical products.
Each business continues to be managed locally, with input and collaboration from the Flowmax head office. Each team has a true sense of ownership in their destiny and success.
Please get in touch with us to find out.
Relevant information:
Talk to our team
If you're thinking about selling your business and want to find out more, our team will be happy to answer your questions.
