Springboard Ventures

Background:

Recognising there were many successful MDs and CEOs employed in the corporate world but with ambitions to own and run their own companies, we set up Springboard to support them to do just that.

From our own experience we knew that identifying potential businesses to buy is time-consuming and most MDs and CEOs can’t give up a well-paid, full-time salary to devote themselves to the process. Springboard offered the solution.

Operations:

To remove the salary-forfeiting obstacle and free-up our ambitious MD and CEO clients, during the business search process, Springboard employed them on their current salaries.

We then used our extensive and high-quality contacts, relationships and networks, to identify prospective companies for our client to buy.

Once the business had been identified, purchase-terms agreed and due diligence completed, we would negotiate terms, finance the deal with our private equity partners and banks, and see the deal through to legal completion.

We monetised the process for Springboard by charging a fee to the new company, based on the cost of employing the MD or CEO during the interim period and for our advice during all stages of the deal-making process. We also took a carried interest with the new company, which would be realised on either the new owner’s exit or within an agreed timescale.

Outcomes and numbers:

• During my 18 months as a co-founder and non-executive director of Springboard, we completed numerous successful transactions for businesses, which included Directorbank, Zero Waste and Business Health.
• In 1999, following our listing of the company on the Alternative Investment Market, I sold my stake in Springboard with a return of £25 for every £1 I had invested.