In 2014 Mike Davies sold his business, Compass Computer Consultants because he was not interested in the day-to-day management of running a business, he was a developer at heart. He said: “The thing that excites me the most is designing and writing software.” Many tech entrepreneurs feel this way.
Compass is a specialist software development company, with an established reputation for providing a range of powerful solutions to the further education sector.
Technical at heart
For Mike, the business was doing well but his business partner had reached his chosen retirement age: “He was working reduced hours, and by the time we came to sell he was down to 1-2 days per week. I was left running all the day-to-day management issues. I didn’t mind shouldering all the responsibility and my business partner was always on hand for support, but I started to find it boring. For me it was always the technical side that gave me a buzz, I am a software guy, technical at heart. That’s when we decided to start looking at selling.”
After making the decision to sell Mike looked around at different advisors. “We really had no idea how to sell the business. We then received an invitation to attend a BCMS event at a hotel near Northwich and that was quite good.”
The BCMS approach
After being approached by a handful of buyers, Mike realised that there were certain things they could do to increase the value if the business. “The BCMS approach helped us tweak the business and make it more saleable, which had a beneficial impact on how much we got, who we sold to, and the conditions attached to the sale.”