Since our formation in 2006, building our client portfolio has been at the heart of what we do. While organic growth is important, a key part of our strategy has been acquiring other leasing companies in the UK, and/or their customer portfolios.
As of Q1 2023, we have completed 21 separate acquisitions, consisting of eight companies and 13 customer databases. It’s fair to say that we have gained a solid understanding of how a UK leasing broker operates.
Below is a timeline of our acquisitions to date.
My first experience with customer base acquisition dates back to 1990. Armour Leasing, a well-known and respected leasing broker, had just shut down. I saw an opportunity to buy their client base of 1,000 companies for just £1,000. At first, it seemed like an incredible bargain.
However, in hindsight, it was a wasted investment – both time and money. The failure wasn’t due to the client base or the person selling it; the issues were entirely my own doing. There were two main reasons why it didn’t work out:
Lack of a Credible Approach: The company had ceased trading, which meant I didn’t have a legitimate reason to contact these customers. If we had purchased the client base directly from the liquidator, we could have developed a coherent and compelling sales pitch. Without that, reaching out felt awkward and uninspired.
No Infrastructure or Follow-Through: We didn’t do anything with the data. There was no CRM system to organize it, and no team in place to make the calls or engage with the clients. Without proper systems and resources, the client base was essentially useless.
In summary, this experience taught me my first two hard lessons in buying a leasing company – always ensure you have a strategy for engaging the customer base and the infrastructure to support it.
Wyse Leasing grew and prospered, largely due to bringing on board some exceptionally talented individuals from across the UK. We established several regional offices, enabling us to provide local support to both the dealers and customers we worked with.
Acquisitions were never a primary focus for us, but we did acquire a few companies along the way, including ITR in Tunbridge Wells.
Fast forward to 1999, and we sold Wyse Leasing to a NASDAQ-listed software company. This business was later repurchased and resold in 2009 to a prominent and highly respected German leasing funder.
So, why did we shift our focus towards acquiring leasing brokers?
What key factors do we consider when acquiring a leasing company?
And, importantly, how can we structure a sale and purchase to ensure it’s beneficial for all parties involved?
If you are looking to sell your leasing company, please contact us for a confidential conversation.
