Business acquisitions are an integral part of the corporate world. For the average onlooker, they happen without much fanfare, but to the businesses and shareholders involved, they represent a huge positive shift, and an opportunity for growth and development.

 

As the Founder and Chairman of Elite Group, one of the UK’s leading business technology companies, I’ll look at the acquisition process we undertake. I’ll discuss the advantages it brings with it for both parties, as well as talk about my own experiences with the process, providing a key insight into the ins-and-outs of something that’s so often shrouded in mystery.

I’ll also reflect on the three most prominent business acquisitions that I’ve personally spearheaded in my 25+ year career, and how those acquisitions went on to make large-scale, future-positive changes for all involved.

 

What Are Business Acquisitions?

Before we look at a few of Elite Group’s largest and most impactful acquisitions, I feel it’s first important to define what we mean by the term. The complex jungle of business terminology means ideas and terms can often be misconstrued, so clarity here is crucial.

In simple terms, a business acquisition is where one business fully purchases, or purchases a majority share in, another business. It’s usually a strategic or tactical decision, in that it makes more sense (either fiscally or otherwise) to purchase an existing business rather than start an entirely new one.

I’ve gone into much more detail on this whole process in my dedicated blog post on the business acquisition process, but suffice it to say that they’re a common practice in the business sphere, and often represent a few key advantages for both parties involved.

Let’s look at their importance in more detail, before I explore 3 of the most influential acquisitions that I’ve been at the heart of.

 

Why Are Acquisitions Important?

Now that we’re fully aware of the business acquisition process, and what that entails, I’d like to briefly explore their importance and relevance. There’s the immediate draws, of course. These include:

• The ability to redesign or expand a product line
• Building and merging customer bases
• Gaining a competitive edge
• Increasing market share

All of these in their own right are reason enough for businesses to pursue a merger, but they’re just the tip of the metaphorical iceberg when it comes to the reasoning behind business acquisitions.

A good business acquisition, and one that represents the best for both parties involved, is one where both companies exercise due diligence. I’m a huge advocate for due diligence – a process like this gives you opportunity to take a step back and consider the bigger picture.

This ensures that the purchasing company is happy with the other company’s projections and plans, and that their ethos and mission statements closely align.

That second point cannot be understated, and it’s something you’ll see a lot of as I explore Elite Group’s most impactful acquisitions and deals. I’ve always believed in ensuring that the process of acquiring a company doesn’t disrupt what I know they’ve already worked so hard to establish.

Furthermore, that ethos often seeps into everything that a company does, and provides a good metric by which I can understand what they do, and how they do it. I’m then able to use it as a way to attune Elite Group to that company’s unique footprint, and ensure a smooth and unified move across.

 

Elite Group’s 3 Biggest Business Acquisitions

We’ve got extensive experience in this. I’ve personally overseen 17 business acquisitions since the inception of Elite back in 2000, and, while this short list belies my extensive experience in business acquisition, it’s testament to the approach I take.

If you’re interested, get in touch today, or continue reading to learn more about how myself and Elite Group successfully managed large-scale projects and acquisitions to ensure both synergy and satisfaction for all involved.

 

#3 – Elite’s Acquisition Of MWL Systems – 2019

This was a contentious position on the list. I was torn on the third “best” acquisition but, thinking about our ten-year plan and vision, it must be MWL given what it brought us in terms of skill and capability.

As a veteran provider of IT solutions and support, MWL had an exceptional reputation for service and technological development throughout its near 35 year tenure. That extensive time period also came with some of the longest standing customer relationships I’d ever seen, at over 10 years of consistent patronage.

It was these strong relations that meant we approached the business acquisition with a strong sense of maintaining those bonds, and providing as smooth a transition as possible. And, after careful consideration from both sides, Elite came out as the clear frontrunner for the purchasing company.

As the acquisition process progressed, it became more abundantly apparent that the culture and philosophies of our two companies aligned more closely than had been initially imagined, which further aided in that transition.

And, over two years on, MWL’s infrastructure has made a huge difference to our systems. MWL gave us our first true Azure capability and customer-facing Cloud Consultants, delivering on customer migrations and client acquisition.

Plus, we acquired an established Software Development team who create and develop their own software applications, assist with customer software system integrations and manage & develop our internal applications and systems.

Plus, we’re only just starting to see the full effects of the MWL acquisition, with the cutting edge technology offering a clear path to future developments for our clients and customers.

Read more about the full acquisition, and how MWL effectively assimilated with our model of working, in our complete blog post here.

 

#2 – Elite Acquire Nexus Telecommunications – 2017

Our largest acquisition to date, bringing in a further £12 million in revenue, Nexus Telecommunications was a labour of love and expert focus, and something I’m exceptionally proud of the team for getting through.

From an internal perspective, it was a real feat of work completing due diligence and working to get the deal structure and terms right for us, and by far the most challenging business acquisition in terms of work and effort.

This was a real turning point for us in the public eye, and it garnered significant attention for good reason. Monetary value aside, the Herculean effort that we put into the acquisition process, as well as going above and beyond what’s expected in the due diligence process, meant that we started to be considered as one of the major players in business.

Nexus was already well-established, having been actively trading for over 16 years, and knew that they were looking for someone who closely aligned with their existing philosophies and internal beliefs system.

That’s where we came in. We already had extensive experience in telecommunications, and our core values harmonised perfectly with what Nexus were looking for, meaning that the business acquisition process made perfect sense.

It was then a matter of migrating across Nexus’ hefty customer base of over 800 diverse businesses and individuals, and ensuring that everyone (I placed a particular focus on the key trophy accounts like Brenntag, who we still manage) was minimally impacted.

From there, the relationship between ourselves and Nexus continued to flourish, with their expert staff merging seamlessly with our existing team. I also ensured that there were positions available for their staff, in the interests of maintaining those strong client relationships.

Bringing in the Nexus CEO into our leadership team nurtured Elite into becoming a more fully-fledged business with the advent of a true marketing function, alongside new Commercial and Product Departments.

It’s this interweaving of culture, clients, and expertise that ensures this ranks as one of our most impactful business acquisitions, and one of the key defining moments in Elite’s 23 year history, as well as my personal history in business.

Learn more about the ins and outs of this full deal with our comprehensive case study.

 

#1 – Elite Group Acquires Netcentrix & Systemhost – 2016

As much as a £12+ million deal may have catapulted Elite to headlines and further acclaim, it’s pipped to the first spot by our acquisition of Netcentrix and Systemhost.

This was Elite’s first serious step in IT services. It solidified our position as a key provider of managed IT services, and brought with it the accolades and recognition that allowed us to take key steps forward in the industry.

It’s this business acquisition that meant we could secure our first high profile customers. We went on to provide managed IT services for Preston North End Football Club and Pure Leisure Group, as well as bring onboard new, exceptionally valuable clients like Dudley Building Society.

The far-reaching impacts of this acquisition didn’t just encompass new clients and customers, though. This move meant that we were eligible for Microsoft Gold Partner Status, and could continue to build on existing relationships with technology heavyweights like HP and Dell.

It’s this substantial step forward that meant we were truly starting to make waves. It evidenced to the outside world we were serious about becoming a technology business, and it educated us on the difference between operating an IT Service and Support business vs a Telco business.

A company often has many renaissances in its time, and our acquisition of Netcentrix and Systemhost represented the first such occurrence for us. It began a new era in the company’s lifespan, and cemented our position as a force to be reckoned with in IT solutions.

Plus, while valuable clients and technological leaps forward all represent a major new epoch for Elite, it’s the people that Netcentrix and Systemhost brought with them that really set into motion a brighter, more innovative future for us.

With Phil Scanlon stepping in as Elite’s Technical Solutions Director on the Board, and many others adopting senior roles throughout the company, the acquisition provided experts in the field that can facilitate our growth long into the future.

Read the full case study in our comprehensive overview, where I go into more depth on the people and projects we carried over to Elite.

 

Final Thought

In truth, I found it difficult to pinpoint these three examples of our largest moves. The team and I put so much effort into every business acquisition, and while certain acquisitions have more of an impact or bring in more opportunities for development, each one has its own merits.

Ultimately, for a business acquisition to be successful, it needs to be taken at its own pace, considering each aspect meticulously before any paperwork is signed, or any migration of clients or staff gets underway.

That’s what we really pride ourselves on at Elite – taking the time and effort to perform scrupulous due diligence, and meld together the cultures, ethos, and approaches of our business and the company we’re acquiring.

If you’re looking to sell your business, or you’d like more information on what Elite Group can offer you, get in touch today.