Next generation of technology firm acquire the business

The co-founders of a technology company which specialises in software for the retail sector have announced the sale of their business to the next generation of their respective families.

David Boland and John Riley founded Retail Computer Solutions in 1989 and have sold the business to the next generation of Boland and Rileys. They spoke to TheBusinessDesk.com about their family business as part of Lupton Fawcett’s family business series.

The Ossett-based company has an international client base with leading retailers using its specialist Merchandise Management software. The company employs 23 staff and reported an annual turnover of £1.5m.

Boland and Riley have been in the development and marketing of computer software since the late 1960s. It was 1980 when they first worked together; Riley then managed a software and projects team whilst Boland managed a sales and marketing team. Boland said: “the opportunity for John and I to establish Retail Computer Solutions was exciting and in the early days somewhat unsettling”.

To enhance their growing software product portfolio, in 2001 the company purchased a specialist EPoS software business. As the business grew, the need for additional software people also increased. The Boland and Rileys had families at university studying computing. After graduation they independently travelled to various parts of the world before returning to the UK and joining the family business.

In 2016, Boland and Riley began planning their exit route from the business. In 2017 they entered negotiations to sell the business to a large corporation. Boland explained: “whilst the offer was considered to be reasonable, John and I had by then discussed the possibility of selling the business to family members.”

Boland and Riley engaged with their children, by then they were managers of long standing, on the possibility of them purchasing the company. Over a period of time an agreement in principal was reached. Boland and Riley sought professional advice on legal matters from Lupton Fawcett and Brown Butler & Co for financial guidance.

In August 2018, the directors sold the business to the next generation of Boland and Rileys. Having completed the MBO, Jamie Boland and John Riley Jnr became Operations and Software Development Directors respectively; Ryan Boland and Alex Riley are Sales Director and Marketing Director.

John Riley said: “The family members have been in the business for a long time. Prior to joining they were encouraged to travel and to seek employment in other businesses. It was essential they ‘built up life skills’ before they joined the family business. Whilst we don’t expect them to carry on exactly as we did; we want them to adapt and to take the business forward in their own way, providing the business is moving forward.

David Boland added: “It’s worked very well, having the second generation of family members already working in the business made for a smoother transition of responsibility. We informed staff that the MBO had taken place and, that John and I would remain in the business during the transitional period.

“I’m not saying there weren’t obstacles to overcome during the planning and execution of the MBO but by remaining focused and being bold you can overcome most eventualities.”

Jonathan Oxley, Partner, Corporate Finance and Managing Partner at Lupton Fawcett, said: “It’s been both a privilege and pleasure advising David and John over many years. At Lupton Fawcett we advise many family businesses so we were well placed to provide counsel on all the relevant legal and other issues around  the transfer of the business to the next generation.”