Making a bold start by acquiring a company
Toni Kammonen wanted to acquire a company that was up and running and to start a new life as an entrepreneur. Along with working as a CEO, Toni has studied the cleaning service industry. The company he acquired, Pirkon Puhdistus, already had competent personnel.
When Toni from Rantasalmi was 43 years old, he quit his regular job that he had for 17 years. He wanted to test his wings.
He had developed a dream of becoming an entrepreneur while working in the metal sector and agricultural machinery. Toni was sure that he wanted to become an entrepreneur by acquiring an enterprise. He knew that entrepreneurs are constantly retiring and that there is much demand for successors.
“I didn’t want to start from a scratch at this age. I wanted a company where somebody had laid the groundwork.”
Toni sought advise from the Business Advisors Katja Remes and Juhani Rouvinen at Itä-Savon Uusyrityskeskus in Savonlinna.
First, they mapped together the skills Toni had and the sectors he was interested in. Toni did not want to continue working in the metal sector anymore.
“I found that the property management services sector would be the most convenient alternative for me.”
Juhani saw from Toni’s eyes and attitude that he really wanted to become an entrepreneur.
“If Toni does not have the right attitude for making it, then no one has!”
Arraging financing
The first thing Juhani asks from aspiring entrepreneurs is how large an amount self-financing they would be able to arrange.
“If your self-financing amount is for example €50,000, you can by an enterprise with a value of approximately €200,000 by using supplementary funding.”
According to Katja, taking over a business that is up and running is usually a more secure option than establishing a new one. The enterprise has already a tested business idea and its own clientele. This is a good starting point for further developing the enterprise.
Soon after this, a business broker offered Toni a company in the property management services sector. Negotiations for the sale lasted for months, but they failed due to differences of opinion.
Toni started searching again and he found the company Pirkon Puhdistus (Pirkko’s Cleaning Services) through the Yrityspörssi website. The enterprise is situated in Joroinen, near to Rantasalmi. Toni and his wife, who works as a practical nurse, had a meeting with the founder of Pirkon Puhdistus and the representative of the work’s management.
“It was mutual love at first sight for both parties.”
The Enterprise Agency assisted Toni in making profitability calculations and preparing for the change of ownership.
“I received lots of support from Katja and Juhani for the decision-making.”
It takes some courage to take the leap
Acquisitions should not be rushed. First, you should determine the financial situation of the enterprise you are about to acquire. According to Juhani, the value of the company can be largely determined by using the financial statements for the last three years and the latest planned balance sheet.
“Will there be demand for the services and products of the company in the future?” If the answer is yes, you should proceed with the acquisition.
In April 2020, Toni bought the share capital of Pirkon Puhdistus along with its employees and superiors. He and his wife started apprenticeship training in the cleaning service industry. Toni likes his new life as an entrepreneur, and things have started out well.
“Thanks to my competent employees, starting out in this sector I was not familiar with has not been too hard.”
Toni encourages those who are considering becoming an entrepreneur to just take action.
“You just need some courage and tolerance for risks!”
