24
Feb

0

The Sharks are Hunting! – Helplessness to Empowerment

Introduction

In January 2017 I was introduced to the Chief Executive Officer (CEO) of a medical supply and distribution company.

For the sake of respect for the CEO’s anonymity and confidentiality, the CEO will be called Sauvuer[1]

Sauvuer had a dilemma (risk or opportunity). She has a successful company, but has been identified by one of the corporates who approached her with the intention to procure her company. Although the offer on the table looked good, there was a lot of uncertainty[2] and she was in an unsteady state in making a decision.

In Setting the Contextual Baseline

Sauvuer explained that her company was in the market for 7 years and has a niche product, service and relationship with a huge network of doctors, hospitals, optometrists, and everyone within the medical environment.

Her company is trusted with the printing of script pads for all the above, thus a unique and trusted environment.

But her company did not show the expected growth over the past year. At this vulnerable state, her and her company were identified by the African Corporate to be acquired.

She was overwhelmed and in no equilibrium state to evaluate the pros and cons of the offer.

The Tuna is in sight!

The Corporates current position is that they acquired a similar company, with financial risk and the people risk (old and no energy) two years ago and they were flourishing.

They also identified that Sauvuer was the competition and they need to eliminate the risk to grow as a business.

With their due diligence, they offered Sauvuer, with the extensive network, the trust relationship, etc., X amount to procure the total company. Sauvuer would have had no equity in the future of her creation. None at all! Totally disowned by the corporate.

Here is the bait! Yes, they would not let her go (as yet), because they are sitting with the Inherited Risk of the previous acquisition. They offered a senior position to Sauvuer for 24 months.

Creating the Equilibrium

With all of this, Sauvuer was a fish out of water, or a Tuna in the site of the Shark. We had to establish and take stock of Sauvuer’s business and the Intellectual Property (IP) she has build over the seven (7) years.

With this mapped out, Sauvuer saw the “Unknowns” and the gaps in her business model. She had the opportunity to diversify, but did not utilise it. This is not a calculated risk, it is an opportunity staring a Blind Person (Johari’s Window) right in the face.

The Offer is on the Table: Sign!

Sauvuer met with the Corporate for the final decision. She indicated to them what position she was in and that she was no longer prepared to sell her company.

The response was a 400% increase in her offer, and 49% equity in her own company.

This offer was the confirmation that Sauvuer is sitting on unearthed Gold! And this boosted her confidence and self-belief.

This also confirmed the mentoring / coaching process we went through just to create the equilibrium and prepare her for this decision.

Sauvuer’s Way forward

She needed a strategist to take stock of what she had, a visionary to determine where she needs to go to and the strategic partner who can protect her from the Shark Attack.

Sauvuer is the 100% owner of her ever-growing business, the Captain of the Ship and the master of her own destiny.

With little input and alignment of the landscape, Sauvuer is seeing the value in her network, the diversity she can offer and is busy with the roll out of three new income streams, which will yield the Return on Investment (RoI) and the assurance she was looking for.

Conclusion

CAA and specifically the CEO, Nico Snyman, embarked on this exiting journey as a strategic partner with Sauvuer.

The initial qualitative business mapping resulted in the Corporates offer to increase their offer and to give away 49% equity. That in itself is a huge win for Sauvuer.

To sell Sauvuers business would have been disastrous for her and the mistake which could have ruined her forever.

For any enquiries, please contact Nico Snyman on nico@crestadvisoryafrica.com or 0764034307.

  1. A savior that’s come all the way from the future to show you how it’s done. Un sauveur venu des fins fonds du futur pour vous faire une démonstration. “A savior will rise to uphold justice”
  2. Uncertainty on Objectives is defined as a Risk. Risk is the effect of uncertainty on objectives (positive or Negative): ISO 31000