Former Client Jonathan Ralphs Who Sold a Field Services Software Business
An Update by Jonanthan Ralphs, former Prism client and current CEO of Infomill.
I founded Infomill in 1996. Today it is the market-leading field services software business in the UK domestic heating sector. In December 2022 we completed on the sale to Vela Software, a buy and build group that is a Canadian subsidiary of Constellation Software.
Immediate relief!
It was a stipulation of the buyers that the deal had to complete before the end of 2022. Talk about taking it to the wire – it was completed at 11.30pm on Friday 30th December 2022! The immediate sense was that of relief. Not just that from getting everything done in time, but relief from the responsibility of providing livelihoods for my fantastic staff, some of whom I have been through thick and thin with over 25 years. I knew that they were joining an organisation that has never sold any of their businesses and they had a bright future.
Why I stayed on
I wasn’t ready to leave so I have stayed on as a full-time CEO. I wanted to make sure that the staff had a stable and continued future. It was a decision that I’m pleased I made. Initially there wasn’t any major difference and we just carried on as before, so it didn’t feel as though someone was looking over my shoulder. I think now I’m at the point where I am looking at an exit, which will probably happen at the end of this year. I am now more comfortable with leaving the company knowing that staff are looked after and have a secure future.
How the team reacted
It came as a big surprise to most people! I’d kept it under wraps for as long as possible as I didn’t want it distracting people. I revealed the plan to the minority shareholders (all founding staff including my brother-in-law!) once the due diligence interviews with the buyer kicked off. Everyone agreed it was the right move to sell to a global software group with a proven track record of buying and building businesses.
The fact that we’d gone fully virtual since the start of the Covid lockdowns and had given up our offices helped too – I could have conversations with advisors and lawyers without anyone wondering what was going on. And once the deal was done, there was barely a ripple. Day-to-day life pretty much stayed the same. The only noticeable change was in the IT and financial systems, which took some getting used to.
What it’s like to no longer be the owner
This aspect was surprisingly good! I thought staying on would be the hardest part but I’m now working with teams around the world and everyone I have met has been really friendly and helpful. Despite being part of a large global group, it still feels like a close-knit family. That was a pleasant surprise.
The only real struggle has been the financial systems. Back in the day, I could pop into Xero, see every transaction, and understand exactly what was going on. Now we have a big, group-wide system, managed elsewhere. I’ve had to let go of that control. Which is probably a good thing… but old habits die hard!
How the business is doing two years on
Infomill is doing well. We now have fairly aggressive growth and profitability targets, which focuses the mind, and financials are measured very carefully and frequently. The group is on a stock exchange so regulations are very demanding.
A few changes
We’re exploring new technologies – something that would’ve cost us a fortune before, but we can now access the group’s resources to experiment more freely. Plus, there are really well organised team-sharing forums where we can learn from colleagues across hundreds of other businesses. We have an all-staff meeting planned at a country house hotel and they are flying in experts from Australia and South Africa to support us – it really is quite amazing that we are getting this level of help and assistance.
All staff have remained in post and we are now looking at succession planning for myself and some of the senior managers as we near retirement. Conversations about these issues are all very grown up and supportive as there is a genuine desire from the group to respect and look after everyone.
The proceeds
I gave the proceeds of the sale to my wife, obviously! Standard procedure isn’t it?!
What’s next
I’m a governor at a large Academy in a nearby city that has very difficult and challenging demographic. I have responsibility for careers and the Sixth Form but also have increasingly been involved reviewing pupil suspensions and permanent exclusions. I find the role both really challenging and rewarding as I see so many pupils who need stronger role models and need to develop more self-confidence and self-esteem. I would like to spend more time supporting the school as I feel that it is all our responsibility to support the younger generations if we can.
I also want to spend more time on the South Coast where we have an old motor cruiser. Anyone who knows anything about boats knows there’s always something that has to be fixed and boats are very expensive to look after, so I am trying to become more self-sufficient. I’ve been on various training courses to look after the boat which I find very rewarding – especially if I can save some money by doing things myself!
Final thoughts from my experience
I am really pleased that we had robust CRM and financial systems in place prior to the sale. Due diligence moves fast, and you need to be able to pull accurate data quickly. I could answer almost everything myself without bothering anyone else in the team and that helped enormously.
Selling your business is not all scary spreadsheets and loss of control. It can be the start of a new phase with less pressure and plenty of purpose. Just plan ahead, bring in the right advisors (including Prism obviously!) and choose your buyer wisely.