It's hard to think of a company or business category which hasn't been affected by the Coronavirus pandemic. Most will have been adversely affected... some will have managed to tread water...only a handful will have been able to grow.
Everyone was hoping that once 2020 was out of the way that we could all start to regroup and move forward. Sadly, that’s not going to happen quickly and the actual end date is by no means certain. Thankfully, help is at hand locally for small to medium sized owner-managed businesses in terms of guidance and financial assistance. Martin Wrightson is one of the North East’s most successful businessmen. He has a track record of going into businesses and dragging them up by the scruff of their neck.
“I’ve been involved in a wide variety of business sectors such as computing, software, printing and adhesives and have always tried to stay in the North East where I was born and bred,” said Martin, “In January 2020 I sold my last business, UNIKA Innovation, to a US Private Equity firm but as I always enjoyed developing strategies to turnaround and transform businesses I decided it was time to give something back. I want to offer my experience and, if everything looks right, I’d like to offer flexible financial backing via a new company I’ve just launched…Activ Investment Partners. I have a team of people behind me who have vast experience across a whole raft of disciplines which means we can help most businesses head out of lockdown with confidence.”
Typically these local businesses will have underlying profits of between £300k to £1.5m pa. For those of you who would like the benefit of Martin’s experience and the potential of his investment, it’s worth pointing out that, for obvious reasons, Martin wants Activ Investment Partners to only get involved with businesses they know they can help and have had personal experience of dealing with. So he’ll not be getting involved in retail, property, bleeding-edge technology or early start-ups.
He’s keen to invest a financial stake in any company he’s advising but Activ Investment Partners won’t actually run the business. They use their experience to proactively support and encourage the current owners and management team to transform and grow their business in the right direction. “Currently when I meet owners and founders I invariably find that there’s a legacy as well as a funding issue. Some owners have successful businesses but post Credit Crunch and now post Covid have understandably lost the enthusiasm to take their business to the next level. Many do not have a strong succession plan but want to pass their business onto a safe and successful pair of hands. They need an exit plan and ideally a proactive investor that will support their loyal staff and customers.”
Another driver for many owners who would like to confidently retire and put their feet up, is that new taxation rules will probably be introduced post lock-down. The government needs to balance the books; someone has to pay for all of the Covid support. Raising income tax or VAT would be unpopular, but Capital Gains Tax is politically less damaging. Having significantly reduced Entrepreneurs Relief in 2020 it is expected that Capital Gains Tax on company disposals will rise substantially this year.
Sadly post lock-down not all owners will be able to sell up and retire. For many their legacy issue is one of survival and firms must bear in mind that government funding and payment holidays will have to be repaid at some stage. They need to be prepared for when that bombshell hits and the sooner any financial difficulties are identified, the easier and quicker those stresses can be resolved. In many cases creditors will expect external investment and new management support, a “white knight” like Activ Investment Partners, before they agree to an owners restructure, turnaround and survival plan.
“We want to help open-minded North East businesses, anywhere from Northumberland to Teesside. In terms of investment, we’ll put between £250k to £1m into each relevant business. Once we’ve invested and successfully transformed them, the next stage is to welcome other high nett worth individuals to join Activ Investment Partners. Some, like me, will have successfully sold their businesses and now want to proactively invest and use their experience supporting other local businesses. Okay, these people could invest in international stocks and shares, but getting actively involved in a local business offers more satisfaction as well as the potential for much higher returns.” There is undoubtedly a funding gap in the North East so the best idea to understand what is different about this approach is to visit the website…www.activ-investment-partners.co.uk You’ll find further details plus some background on what Martin’s company does and how they can help you. Don’t just cross your fingers and hope for the best. Contact them. Get active with Activ Investment Partners
