One of my business “heroes” is Sir Martin Sorrell, the Chairman of WPP plc arguably the largest marketing communications groups in the world and a true UK success story. But what most people don’t know is that WPP stood for “Wire & Plastic Products”, a small listed company into which plain Martin Sorrell invested in 1985.
But the story leading up to and afterwards is the real magic for me. You see Martin Sorrell was the Finance Director of Saatchi & Saatchi the world famous advertising agency behind some of the most memorable and effective ad campaigns in the heyday of British advertising (and one of my inspirations to work in that industry). Whilst the brothers were undoubted geniuses at devising and managing advertising campaigns, the growth of the business was largely down to Martin Sorrell and his strategy of acquisition through earn outs.
He was so effective in his role that he was often referred to as the “Third Brother” yet for all that was famously rebuffed by Charles and Maurice Saatchi when seeking greater recognition for his role in the growth of the agency.
So what did he do?
Well he clearly decided that his “freedom” clearly lay in his own hands – the freedom to do as he wanted and financial freedom.
So he looked for a small listed company that he could develop (the listing was important not the business so that he could leverage a public market to raise funds) and use as a vehicle for his future plans. So in 1985 he left the Saatchis and privately invested in Wire and Plastic Products, a British wire shopping basket manufacturer, joining it full-time as Chief Executive in 1986. He began to acquire “below-the-line” advertising-related companies, purchasing 18 in just three years!
In just four years, he had acquired two of the world’s biggest agency groups including J. Walter Thompson and Ogilvy and Mather, acquiring $1.3billion revenue in the process! Amazing!
And yes, you guessed it…he also acquired Saatchi & Saatchi too (although the brothers had sold out by then)! Since then WPP has also acquired two more global agency groups and dozens of smaller, niche businesses around the world across 111 countries.
They now employ around 180,000 people (that’s 100,000 more than the British Army) and generate £11billion of revenues. The business is now worth around £16.4bn.
And the point of the story, in case you had missed it…growth through acquisition can be spectacularly good and create the kind of freedom most business owners dreamed of when they set up their business. Are you in that category? Did you set up your business dreaming of the freedom to do and be all that you wanted? And as the business owner, do you feel like you just own a job?
If you were impressed or inspired by Martin Sorrell’s story (like I am) then get in touch and share what your dreams are and see whether I can help you achieve those dreams more quickly.
I run regular workshops where you can come and learn the step by step method for how to buy a second business using none of your own cash.
Questions before booking? Simply message us through our Facebook page here or call 0161 883 1829.
Here’s to dreaming big!