When a long-established lightside merchant based in London began to struggle with profitability, the owners sought expert help from Moorgate Management to reignite the business’ growth, but the end result became a very different conversation.
Founded more than 100 years ago, the London-based, family-run business had built an excellent reputation in its local area, trading from a prime single-site property with loyal staff and long-standing customers. Yet despite this strong foundation, margins were tightening and the owners felt the business had lost momentum in recent years.
Initially they approached Moorgate Management for support with a growth and turnaround plan – a strategy to identify where the business could improve sales, control costs and strengthen profitability. But as the discovery process unfolded, the owners began to realise that their personal goals were shifting. What started as a growth discussion evolved into a structured exit planning project designed to secure the best outcome for their retirement and the future of the company.
A plan for growth
Moorgate’s founder, Chris Maityard, was introduced through industry contacts and invited to visit the business to carry out an initial discovery session. “When I first met the owners,” recalls Chris, “they wanted to understand why their business wasn’t making the money they thought it had the potential to and how to identify and put a plan in place to achieve this. Like many owner-managers, they were working incredibly hard, but without the visibility and support structure to see where their efforts were paying off.”
Chris began with Moorgate’s trademark on-site discovery day, bringing together the family and their senior management for a structured review of every part of the operation. The session followed Moorgate’s four-pillar framework – Financial, People, Growth Drivers, and Operational – to map out how the business currently worked and where improvements could be made.
The focus at this stage was firmly on growth. The aim was to identify opportunities to increase revenue, improve margins and reduce overheads so that more profit dropped to the bottom line. The team discussed sales conversion rates, supplier terms, marketing, stock control and cashflow management, producing a detailed action plan to tackle each area.
A shift in perspective
As the conversations progressed, however, a broader question began to emerge. While exploring how to strengthen the business, Chris asked about the family’s long-term plans, and they admitted they had been quietly considering retirement but hadn’t known where to start.
“Like many family-run businesses, this was more than just a company – it was their life’s work,” says Chris. “They’d built a respected brand and owned a valuable property, but the day-to-day pressures of running the business had become all-consuming. As we talked through the growth plan, it became clear that what they really wanted was to create the option to step back.”
That realisation marked a turning point. Rather than focusing solely on expansion, the project evolved into a dual-purpose plan – strengthening profitability in the short term while preparing the business for a future sale.
Strengthening the business
The first phase remained focused on getting the fundamentals right. Moorgate helped them develop a clearer financial picture by introducing structured management accounts, budgets and a 13-week cashflow forecast. Chris also worked with them to design a strategic roadmap and five-year plan showing what the business could achieve if performance improved.
This visibility proved transformative. The family could see for the first time how specific changes – such as improved purchasing discipline, tighter rebate management and better stock control – would flow directly to profits. Chris also encouraged them to review their marketing strategy and pricing model, helping to create a more consistent approach across trade and retail customers.
At the same time, the review highlighted areas that would later become important in the context of a sale, such as succession planning, staff development and property ownership.
Preparing for exit
Once the owners had a clearer view of their financial position and operational improvements were underway, the conversation turned to exit planning. The Moorgate team guided them through every stage of the process – from evaluating the business’s readiness for sale to understanding how to structure a transaction that worked for them both financially and personally.
Together they explored different routes:
- Selling the trading business while retaining the freehold property, leased back to the buyer on a long-term agreement.
- Selling the shares or assets outright, depending on the most tax-efficient structure.
- Considering an Employee Ownership Trust (EOT) as a potential legacy option.
- Assessing potential buyers, including regional merchants, buying groups, and management buy-ins.
Chris then outlined the full sale journey – from signing a Non-Disclosure Agreement (NDA) and creating an Information Memorandum (IM) through to negotiating Heads of Terms, completing due diligence and finalising a Share Purchase Agreement (SPA).
Moorgate also helped assemble a team of professional advisers, including an Independent Financial Adviser (IFA), accountants, and lawyers specialising in share and property transactions.
Financial and property structure
For many independent merchants and showrooms, the property is their largest asset, and structuring it correctly can make a huge difference to the owners’ ultimate retirement income. Chris worked with the merchant to help them create a ‘property company’ model, separating the trading business from the building itself.
This allowed them to consider selling the business while retaining ownership of the premises, giving them a long-term rental income and turning the property into a secure pension investment.
“Most owners don’t realise there are several ways to exit,” Chris explains. “You don’t have to sell everything. Sometimes the best outcome is selling the business, keeping the property, and setting yourself up for a comfortable retirement.”
The Exit Roadmap
Moorgate supported the owners to become ‘exit ready’ by developed a detailed Exit Roadmap, mapping every stage of the journey:
- Clarify personal goals – what the owners wanted from the sale and how involved they wished to be afterward.
- Get the business sale-ready – strengthen systems, tidy up financials, document processes and ensure continuity of management.
- Engage advisers – IFA, accountant and legal team.
- Prepare marketing materials – NDA, Information Memorandum and initial buyer outreach.
- Negotiate offers – evaluating 100% upfront payments versus split earn-outs.
- Due diligence – setting up a virtual data room for commercial, financial and environmental checks.
- Completion and transition – finalising sale agreements and planning the handover.
This structured approach gave the owners the confidence at every step and helped them make informed decisions without pressure or confusion.
A personal journey
For the owners, just as for many independent merchants, the exit process wasn’t just about securing a financial future. It was about ensuring the legacy of a family business that had served its community for more than a century.
“They wanted to see the business continue and the staff looked after,” says Chris. “We built that into the plan from day one. The goal was to maximise value, but also to protect what they’d created.”
By the time Moorgate completed its work, the business had a clear set of financial forecasts, a structured operating plan, and a defined strategy for sale. Whether they chose to sell immediately or wait for the right time, they now have all the tools and information they need to move forward with confidence.
The Moorgate difference
What made the process work was Moorgate’s blend of financial precision and real-world merchant experience.
Chris Maityard’s background as a qualified Chartered Accountant, combined with decades of experience managing and acquiring builders’ merchants, gave him a deep understanding of both the numbers and the nuances of the sector. Having co-founded the creation of the original IBMG and worked on numerous acquisitions, Chris knows exactly what buyers look for and what drives value in the eyes of investors.
“Consultants who’ve never run a merchant can only go so far,” he says. “We bring practical, lived experience. We know what makes a branch profitable, what makes a deal attractive, and how to present a business so that both sides win.”
By working with Moorgate, the merchant business transformed uncertainty into clarity. The business was stronger, leaner and ready for sale, while the owners understood their financial position, their options, and how to secure a fair return for their years of hard work. Just as importantly, they had a clear plan for life after the business – one that combined financial security with the satisfaction of knowing the company’s legacy would continue.
What began as a request for help to grow the business became a carefully structured journey toward exit. Through Moorgate Management’s clear framework, detailed financial insight and hands-on sector expertise working alongside them, the family were able to make informed, confident decisions about the future of their business and their own lives beyond it.
For Moorgate, the project was another example of how its practical, relationship-driven approach helps independent merchants achieve not only commercial success but personal peace of mind – whether that means growth, succession or a well-planned retirement.
If you’d like to know more about how Moorgate Management can help your business, contact Moorgate Management’s CEO Chris Maityard on cmaityard@moorgatemanagement.com or call 07767 291 379 for more information.