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‘CAN DO’ ATTITUDE DELIVERS VALUE
SARRATT OFFICE SUPPLIES has just completed its latest acquisition, and the extended business is ready to thrive as it embodies its founder’s ‘can-do’ attitude
arratt Offices Supplies has S come a long way since Alan Gray started the business in his garage 29 years ago. Alan was warned at the time that office supplies could be a tough business but, having come from the construction industry, he wasn’t fazed by this. He brought with him an ethic of hard work and this, along with some strategic acquisitions along the way, has seen the business thrive.
The latest acquisition, the fifth for Sarratt, Manton Commercial, was completed on August 1, and will add about 60% to the Sarratt turnover, according to Alan, making it the biggest deal the company has undertaken - and it was a deal long in the making. Alan had discussed the potential for a deal with Peter Herring at Manton before the pandemic, but once COVID-19 hit they both focused more on ensuring their respective businesses stayed afloat. “Then Peter ‘phoned me
earlier this year and asked if I was ready for a chat about a deal. I said I was, and we went from there,” says Alan.
He is confident that the acquisition will be a success. Manton had a diverse range of customers with differing needs, which is no problem for Sarratt, which has always offered a wide range of products and services, from sticky notes to office refurbishments. In addition, Alan expects to make efficiency improvements in purchasing, being able to buy in greater bulk from manufacturers and wholesalers, and improving margins that way.
MARGINS
Good margins are part of the reason why Sarratt – named after the picturesque Hertfordshire village near Rickmansworth – could take on such a large acquisition when many other dealers in the sector would not be able to. “We make sure we maintain our margin, and it’s as good as it’s ever been. Yes, we buy from the right areas but, for example, with furniture, which requires a high level of service, we put a healthy markup on and stick to it.”
However, this is only part of the reason why Sarratt is thriving. “If you don’t stay close to your customers - and talk to them so that you know what they are doing - it is going to be difficult,” says Alan. “That personal contact that is so crucial.” Trust is also crucial, Alan adds. Delivering a reliable service for day-to-day office supplies means that when a customer plans a larger project, such as a refurbishment, the trust with Sarratt is already there, making it that much easier to win the business.
‘CAN DO’ ATTITUDE
Alan also brings a positive, ‘can-do’, attitude with him, addressing a pet hate of his. “Often, with a contractor, when you talk about a job you want doing, the first question is ‘When do you want it done?’ which says to me ‘Don’t expect it any time soon.’ There is always that negative undertone that I don’t like. I prefer to think ‘Let’s find out what you need and then try to work around you; you are the customer’. Likewise, when I work with contractors, I work with companies and individuals that can operate promptly and efficiently..”
CLOSE TO THE GROUND
Alan also keeps a tight rein on the financial side of the business. Profits are reinvested; he makes a point of not having an overdraft and keeps a close eye on the financials, checking everything that comes in and goes out. “I like doing the finance,” he says. “I also like haggling with buyers and going out
and doing sales and seeing what customers are saying and doing. If we win an account and get an order, there is nothing better.”
Alan also has a tried-and-trusted method when it comes to acquisitions. “I like to pay an amount up front and include an earn-out. I try to do this quite quickly, over a maximum about eight or nine months, as I want the previous owner to get their money as soon as possible.
The earn-out also helps to smooth the transition and ensure that each acquisition has helped Sarratt to grow - although a large part of that is Alan and his team ensuring that customers moving over to the business are kept happy. “We try to never say ‘No’, basically; that is key. We say ‘I think we can help you – what do you need? When do you need it, where does it have to go to?’ It is this openness and positivity that I aim to have as our culture. We’ll also be honest and tell customers if a delivery isn’t arriving as soon as we know, and what the reason is. It is better to be honest and then see what we can do to accommodate that customer.”
DELIVERING VALUE
At the moment Alan is concentrating on ensuring that the acquisition of Manton delivers the value he wants it to; he isn’t looking for any more purchases in the immediate future. “I have no desire to expand geographically; we are comfortable where we are,” he says. “I have never felt that ‘big is beautiful’ – acquiring a dozen dealers is not us. A local offering is important, and I like it; all our clients are within half an hour of our offices. Having clients in outlying places that we can’t manage or reach easily wouldn’t work for us.”
But the business is still pushing forward - for instance, Alan recently added his first electric van to the fleet, as he seeks to reduce costs and the business’ carbon footprint. He is also exploring new areas that the company can sell into – Sarratt is making increasing inroads into the film and TV market, for instance, providing services to nearby Warner Bros and Pinewood Studios, among others.
