New Year; New You?
How was 2020 for you? The ICT sector has been one of the few areas to experience increased demand for its services as resellers were moving mountains to ensure that UK businesses could continue to operate in one of the most challenging business environments we have ever experienced. We have been incredibly busy at Knight reflecting continued interest in the sector from an investment perspective. Whilst our businesses may have had a relatively positive experience, on a personal level, I am sure most will agree it has been a frustrating time.
In business, decision making is relatively objective, focussed on value and we invest significant time and resources to ensure that it runs as smoothly as possible. Interestingly when it comes to our personal life, most of us don’t do this and the reality is that decisions can be far more complex.
The key area of personal/business cross-over for entrepreneurs is how you make your business work for you – again we find this is one area that is not prioritised often enough. Your starting point is to be able to articulate your ambitions, this may be in terms of a financial goal, a set of values or how long you want to continue in your current role. It’s easy to start at your current position and extrapolate forward but to make your busines work for you, it’s a case of stating your ambitions and developing your strategy to in order to achieve this.
In business, we are often too busy to devote the time to this task and our experience is that the longer you leave it, the more complicated it becomes.
The new year is a great time to get your house in order – it will have a significant impact on your outlook and your ability to run your business. If your plan includes raising money or entertaining a business sale, the impact this preparation will have on the deal cannot be underestimated. It will enhance the perception of your business, save time in the process and importantly reduce the levels of anxiety involved in a transaction. Planning aside, you never know when the perfect buyer could come knocking!
At Knight we have completed over 120 transactions across the Comms and IT sector. Our most successful outcomes have been working for businesses that are prepared for a transaction with shareholders that have clear and aligned objectives that enable their business to work for them – not the other way around.
As we start 2021, the market remains strong, M&A will continue. We are lucky enough to work in a market that will continue to bring opportunity and with a range of strategic options that we can draw upon. However what 2020 taught us is how much we miss family and friends, to be able to celebrate together, and support each other in and out of work.
Wishing everyone a happy and healthy new year, we can’t wait to see you!