Step 4 - Building Your Inner Circle

8 Months Before “Deal Day”

After months of hand-wringing and self-doubt, I suddenly feel incredibly fortunate.

Firstly, because for the first time ever, I’m 100% confident that I have the right people on board. They’re also the team that is going to make this mad/brave/grown-up/completely-out-of-character exit thing happen. Between them, Luke and Lloyd are the perfect blend of ambition, talent, and humility. They complement each other in ways I hadn’t anticipated: challenging, supporting, and promoting each other in a way completely devoid of ego.

They are precisely what the company needs as it embarks on this new chapter.

I was bloody petrified about overtly stepping back a few steps and allowing them both to fill in the gap. I’ve tried it before, and it failed.

But it’s more than celebrating their managerial skills - Luke and Lloyd also get what I’m trying to do in terms of exit. They’re supportive, without being too excited about the prospect of me stepping away completely. When I tentatively shared my thoughts and the options open to us, they listened carefully, processed it and offered their unfiltered thoughts:

Trade Sale? Not for either of us. We’d probably look for another job within six months.

MBO? I thought they’d bite my hand off - this was a great opportunity to get rich relatively quickly, after all.
Instead, they both voiced their concern about the impact on the team (one of their partners works at a PE-backed business, and it sounds nothing short of shit)

EOT? They both loved the idea, especially when I added the EMI scheme element into the mix.

Lisa and I are in agreement that the EOT option is the way to go. It ticks all the boxes. We’re on our way…
The newest member of our special team is a chap called Simon. He’s the advisor from Baxendale, and he’s nothing short of brilliant. His patience and ability to connect with Luke and Lloyd have been invaluable. He often has to play the “grown-up” in the room and be a steadying force (vital for someone like me who tends to lose interest in the nitty-gritty of numbers), but he’s up for the challenge and seems to “get” us.

Since Simon arrived, things have got a lot more serious. It’s been a series of signing agreements, confirming valuations (they were the lowest of the three we got), and liaising with HMRC. Lisa and I chose to go with the lowest of the valuations for two simple reasons - it meets our “magic number” (something Jeff goes on about a lot) while ensuring the business is well-positioned for growth post deal. We want Eyeful to fly in its Employee-Owned iteration - not only does that mean we get our outstanding money quicker, but the team gets an even bigger upside. Everyone wins, right?

Amidst all this, Luke, Lloyd and I have agreed to clearly delineate our roles. Luke and Lloyd will focus on the day-to-day business operations, while I get stuck into the EOT stuff. It kills two birds with one stone - they establish them as the new leaders, and I can crack on with the more background, strategic stuff.

I’m buzzing. Lisa can tell. She says there’s more pep in my step than there has been for a while. It feels like I’m preparing for the end of a significant chapter in my life and about to embark on a whole new adventure. I hope Luke and Lloyd feel the same way.

Like I said before - a lot to be grateful for…