Ron King, the founder of East West Engineering, had spent four decades building his small metalworking business into a renowned name in materials handling. When it was time for him to step back, he wanted to find a successor who would value and maintain what he had painstakingly created.
Jason Andrew, from Arbor Permanent Owners, understood the weight of this responsibility. He knew that taking over a business like East West meant more than just acquiring assets—it meant carrying on a legacy. As Andrew recalls,
“Founders literally say: ‘Don’t f*** this up.’ And I get it. The responsibility is huge — you’re taking over someone’s life’s work.”
Andrew and his co-founder, Simon Plummer, were not your typical private equity investors with flashy suits and quick turnaround plans. They approached acquisitions differently. Their focus was on understanding the business before making any changes. For the first 90 days post-acquisition, they believed in stability and learning rather than implementing rapid transformations.
In contrast to the fast-paced approach often seen in private equity circles where changes are rushed without fully grasping the company culture, Arbor Permanent Owners took a more thoughtful path. Andrew highlighted that rushing in with predefined strategies can disrupt the essence of a business and its people—a risk they were not willing to take.
One key factor that swayed Ron King towards Arbor was their shared experience as founders themselves. Andrew emphasized how fellow founders understand each other’s journey and challenges intimately:
“There’s a kind of mutual respect between founders because we know what it feels like to start something from scratch.”
This mutual understanding built trust quickly—a crucial element for King when considering who would take over his life’s work.
Arbor Permanent Owners’ commitment didn’t end with the acquisition; they recognized the importance of supporting employees through transitions. Andrew acknowledged that change could be daunting for staff members and emphasized providing them with time and guidance to adapt to new ideas while preserving the company’s core values.
For Arbor, acquiring East West Engineering wasn’t just about adding another company to their portfolio; it was about setting an example for preserving Australian businesses’ legacies while ushering them into a sustainable future. Jason Andrew expressed his vision as maintaining respect for the past while gently steering towards innovation:
“It’s about striking that delicate balance between honoring the past while giving it a slight nudge in a new direction.”
Ron King affirmed Arbor’s approach by praising their straightforwardness, honesty, and unwavering dedication to supporting Australian small businesses like East West Engineering. Looking ahead, he trusted Arbor as long-term custodians of his legacy.
To founders contemplating succession planning, Jason Andrew offered poignant advice:
“It’s an emotional decision, not just financial…find someone who respects that [legacy].”
His words encapsulated the essence of finding successors who value heritage while fostering growth—an essential aspect of transitioning family-owned businesses into sustainable enterprises.
In conclusion—Ron King found solace in passing on East West Engineering to capable hands at Arbor Permanent Owners—a testament to trust forged through shared entrepreneurial experiences and aligned visions for honoring tradition while embracing progress without compromising on values or integrity.
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