Buying into a family tradition

It is a problem facing thousands of family-owned businesses. What happens when the next generation doesn’t want to step in?

The days when succession planning was a simple case of passing the keys to sons and daughters, brought up and coached to take over the helm from an early age, are fast disappearing.

Today those children often have their own interests and career aspirations that take them on another path completely.

Founded in the centre of Preston in 1802 during the reign of George III and before the battles of Trafalgar and Waterloo, H Mears (Furnishers) has prided itself as being in the sixth generation of family control in a direct father to son line.

The announcement in December that All Interests Aligned (AIA), a Switzerland-based management buy-in investment platform, had acquired the carpet and flooring industry business, broke that 220-year-old chain.

AIA says the Mears deal highlights the growing succession challenge faced by SME owners approaching retirement, providing a solution that “balances continuity, legacy, and sustainable growth”.

And it also highlights the role of European investment in supporting UK family businesses, demonstrating how cross-border capital can help maintain traditional enterprises “while driving modernisation and long-term sustainability”.

AIA focuses on management buy-ins and SME succession. It looks to match experienced business leaders looking for new challenges and opportunity with family companies facing acquisition issues.

Its solution is to bring ready private capital and experienced, entrepreneurial operators together and support them to fulfil their ambitions and acquire those companies.

On its website it says: “The company supports business transitions while preserving operational continuity, heritage, and sustainable growth.”

It adds: “A management buy-in can be the right acquisition strategy for ambitious entrepreneurial operators to step up, and business owners looking for a timely exit.”

AIA is the brainchild of Ralf Grass, a German serial entrepreneur and founder of France’s leading independent wind energy operator.

He has brought together successful entrepreneurs from across Europe looking for investment opportunities.

Charles Williams is head of value creation at AIA. Before joining the organisation, he was the right-hand-man to entrepreneur Touker Suleyman of Dragons’ Den fame, managing his investment portfolio of 30-plus companies across numerous industries.

Charles says AIA is looking for more opportunities in Lancashire and the wider North West as part of its strategy and it believes there are thousands of businesses across Europe that are currently looking to secure their future.

He adds: “We look for the people first, people with professionalism and personality, and we partner with them. It is also about bringing someone with
business experience to the table to drive growth.

“We say let’s go on this journey together. We tell them, ‘We’ll acquire the business and help you build a part of this for yourself’. We will go out and find a business specifically for that person.”

When it comes to the businesses, Charles says AIA looks for people who want a clean exit.

He says: “For those families it is not just about finding the right price, it is about finding the right type of person to take over.

“It is about the legacy of the business and the legacy of the people that continue to work there. They want to make sure that those people will be looked after.”

Philip Cefai, former managing director of Darwen based Crown Paints, will take over as Mears’ incoming chief executive, bringing his extensive industry experience to the leadership of the historic business, which is based on The
Oaks Business Park on the outskirts of Preston.

He has expertise in building and leading both private-equity backed businesses and corporates, ranging from £35m to £215m in revenue.

He spent the last 13 years of his career at Crown, stepping up to the MD’s role in 2018.

He says: “It’s a privilege to take the helm of such a respected and long-established business. H Mears (Furnishers) stands for quality, trust, and community – values that I intend to carry forward.

“With AIA as my investment partner, I have both the backing and the strategic support to build on the company’s strong foundations and unlock new opportunities for growth.”

Guy Mears, outgoing director of his family firm, which has been a regular in Lancashire Business View’s annual Hot 100 list of the most profitable SMEs, says: “From our first meeting, I felt Philip and the AIA team genuinely understood what our 220-year legacy represents and the high standards we’ve built with our loyal staff and clients, many of whom have been with us for over 30 years.

“This must continue, and I’m certain it will. That’s what sets Mears apart.”