Tag Archives: Jim McColl

Acquisition Secrets Revealed – Jim McColl

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Growth by acquisition can be exponential, exciting and financially rewarding. If you get it right. But in many cases the acquisition doesn’t work out, the acquiring company struggles to integrate the new company, and the new company fails to fit in.

Jim McColl

Jim McColl


So how do you make successful acquisitions? Who better to ask than Jim McColl of Clyde Blowers whose successful acquisition strategy over the past 10 years has seen the business develop into a truly global portfolio of 90 companies in 30 different countries, employing 6,000 people, with an annual turnover in excess of £1.35bn.

Murray Strachan chaired the evening. He summed up Jim’s key advice quite simply:
• Focus on what you’re good at, what you can add value to and/or leverage.
• Remember the best business to be in is the one you’re already in.
• Research competition, market/industry sectors and look for gaps, potential and to identify targets.
• Development and implementation of a 100-day plan is the key to integration and success.
• Motivate the management team, help them understand the vision and let them help in developing the storyboard.
• Be careful with the brand of the target, and/or eroding its inherent value.
• Always present an acquisition as a merger.

“Jim’s key approach came down to four factors, said Murray. “Big ambition, a “can do” attitude, understanding your markets and thinking globally.

“There were so many lessons and golden nuggets from Jim my arm hurt writing them all down. What a guy!”

For Amanda Boyle of Bloom VC the key lesson was that successful acquisitions focus on the return not the cost and the most valuable due diligence is carried out on operational issues by an internal team before professional services are engaged.

“Planning and ambition are important at every stage of building your business,” said Amanda. “It’s important to map and articulate these then share with everyone, every day… so that’s what I aim to do!”

She added: “Doing the right thing can be compatible with big ambition. A strong sense of personal values shines through Jim’s approach to negotiation.

The most memorable piece of advice that Tony Banks took away from the evening was that Scotland would flourish as an independent nation.

Tony, of Balhousie Care Group, added:” The highlights for me were tips to get your own team to do most of the operational diligence during an acquisition and then get the ‘expensive’ professionals to only provide confirmatory diligence.

“There will be no major changes in my business but I need to talk to Jim about raising funds and becoming a debt financier,” smiled Tony.

Attendee Thoughts and Key Tips
“Lots of practical advice and guidance, underpinned by focus, patience and sharp vision. What shone through were Jim’s priorities and values, and a very clear sense of self.”
“Target peoples dreams not just how much they want to be paid. Make that dream a reality!”
“Key tip for me – operational diligence before you bring in the expensive professionals to carry out the confirmatory diligence.”
“1. Get to know the firms first, just ‘drop in’ for a coffee whilst you’re in the area – so really get to understand the business from afar 2. Let them think you’re merging 3. Keep staff informed & updated with your goals 4. Do diligence internally where possible.”
“My tips from the evening – Market analysis – get to really know your market and competitors – Key staff – play to their dreams when looking to incentivise – Story board – set out clearly the vision for all to see and buy into – Can do attitude is essential – Look at what you are good at – best business to be in is the one you’re in!”

Jim also recommended a number of his favourite books, his personal top ten list is here. Better get them on your Santa list!

1. Think and Grow Rich – by Napoleon Hill
2. Success Through A Positive Mental Attitude – by W. Clement Stone
3. You’ll See It When You Believe It – by Wayne W. Dyer
4. You Can If You Think You Can – by Norman Vincent Peale
5. Born to Success – by Colin Turner
6. Are You Positive? – by Richard Gaylord Briley
7. The Secret – by Rhonda Byrne
8. A Passion for Success – by Kazuo Inamori
9. Ask And It Is Given – by Esther and Jerry Hicks
10. Abundance – The Future Is Better Than You Think – by Peter H. Diamandis

Biographies “here”

How to turn your business into a billion dollar success story

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There are successful entrepreneurs and then there are super successful entrepreneurs. What they all have in common is a desire to share the secrets of their success, to help others learn from their mistakes and follow their winning examples.

Look at Sir Tom Hunter, Jim McColl, Richard Branson – all work hard to give something back.

Now consider Sara Blakely, the founder of Spanx. The men reading this might not recognise the brand, but for women everywhere Spanx has had a life-changing, shape-altering affect on their bodies. Spanx is body contour underwear, created by Blakely in America but now sold in shops worldwide.

Want to know how to replicate her success? Author, investor and entrepreneur James Altucher wrote this blog highlighting the key attributes that saw Blakely take her business from startup to billion dollar corporation. It happened in America, but the key learnings from Blakely’s entrepreneurial journey are relevant to everyone, anywhere.


Sara Blakely’s Spanx Story

Vision and Communication

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Vision and communication were two of the key themes that came out of the recent Evening with Jim McColl in Glasgow.

Board members Peter Grant of Grant Management and Scott Allison of Teamly took time after the event to share their thoughts on Jim McColl’s story, and to tell us what they are going to change in their business as a result of having heard him speak.

Highlights from An Evening with Jim McColl #entex

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Scotland’s richest man, entrepreneur Jim McColl, has revealed how he added value to a £48m company and turned it into a £750m company.
Speaking at “An Evening With …” he shared his experiences and words of wisdom with a packed room of Exchange members at 29 Glasgow.
So many people wanted to hear Jim speak but couldn’t, so we’ve taken the highlights of his talk and posted them here.

Jim McColl on his £750m deal:
“I was keen to buy Weir because it had fabulous heritage and great portfolio of products but hadn’t been updated for years.”
“At the start of 2009 we hired more than 200 engineers, on an average salary of £35k, knowing there would be a lag before we actually got the business.”
“At the start of 2009 we were bidding for £50m of business a month, and at the end of 2009 we were bidding for £250m a month.”
“We created a compelling vision, and we shared it with everyone in the company – ‘£1bm by 2011 – Yes we can’. And we did. And then some.”
“Weir planned to grow the business from £68m turnover to £90m and £4.2m profit to £5.5m. In the same period, we grew the business to £413m turnover and £60m profit.
“I told the management team I didn’t want to read in a business plan about a banking crisis or an economic downturn.”
“Buying Weir was more than a financial decision, it was an emotional one as well.”

On the £750m valuation:
“You can’t factor a highly motivated workforce into a spreadsheet.”

On doom and gloom in the market:
“Try and avoid being drawn in by the global psyche”

Answers from the Q&A

On tax, the government and banks:
“ I want to minimise what I pay in tax so I can maximise what I invest back into the economy.”
“I guarantee I create more economic wealth in a year than the treasury does in a lifetime.”
“I’d like to see more powers for the Scottish government.”
“The government should set up an industrial bank to support SMEs with competitive lending.”

On being rich:
“People make the mistake of thinking if you are rich, you are smart.”

On advice for entrepreneurs of the future”
“Young entrepreneurs should look east, to Hong Kong, Singapore, and to India, that’s where all the growth and excitement is coming from. That’s where I would go.”

On going international:
“Analyse the market, be focused and create a compelling vision for people working with you.”