Unlocking Value Podcast, episode twenty-seven

In this episode, John welcomes back Emma Flin, an investment director at Sovereign Capital Partners, a private equity firm that focuses on backing and growing mid-market tech and professional services businesses.

Having first spoken to Emma back in episode 3, we were keen to talk to her again and learn about Sovereign’s focus on ‘buy and build’ as a growth and investment strategy.

‘Buy and build’ is a phrase that gets used a lot in investor circles, but the practicalities of what it involves and when it might be right for a firm aren’t often explained in practical terms. In this conversation, Emma breaks it down, covering what it actually involves, when it makes sense and what it demands from the leadership team at the centre.

They discuss:

  • What buy and build actually means and the two distinct types of strategy Emma sees in the market
  • Why Sovereign has made buy and build such a central part of its approach to value creation
  • What makes a business a credible ‘platform’ versus a better fit as a ‘bolt-on’ acquisition
  • What investors look for in a management team before backing a buy and build strategy
  • Why culture and communication are critical to successfully integrating people and businesses
  • How founders should think about the choice between an outright sale and a private equity partnership
  • Why Emma believes leaders should start conversations with potential investors earlier than they might instinctively think they should

This is a practical, straightforward explanation of how buy and build really works in professional services from someone at the centre of these conversations.

If you are running a consulting or tech services firm and thinking about growth, investment or what the next chapter might look like, this episode is well worth your time.

If you enjoy conversations like this, follow the show so you do not miss future episodes.

🎧 This episode is available to stream below or on any of your usual podcast platforms (such as Spotify and Apple Podcasts)

Host: John Howard, Partner at Garwood Growth
Guest: Emma Flin, Investment Director at Sovereign Capital Partners

Enjoyed this episode?

And if you’d like to explore how Garwood Growth helps firms build value in practice, get in touch with the Garwood team for a conversation.