Phil Soar
Clarion – do they double down or decide it is not for them ?”
I push Phil on the operational impact of working with PE during the crisis , have they been pressing for significant cost cutting ?
“ I think there have been significant benefits . We predicted in March 2020 that we wouldn ’ t run shows until October 2021 . We presented these pessimistic forecasts to both Phoenix and Providence and they were accepted – happily we were being too pessimistic but there was never any pressure to make unnecessary cuts .”
We have seen vast sums of money changing hands and individuals getting wealthy as a result of these transactions . With both Ithaca and CloserStill , Phil has been involved in ownership structures where all members of staff have an equity share ,
so should more businesses consider this as a viable alternative to more traditional methods ?
“ It is a complex question . It tends to work best when a business is starting from scratch . When Andy Center and I had our first discussions about CloserStill we had 100 % equity to play with , so it was easy . It isn ’ t so easy with companies with existing owners who don ’ t have spare shares to distribute .”
As I mentioned earlier , you have been at the centre of a number of spectacular growth stories – what has been the secret of your success ?
“ As I say tediously and regularly to my children : success comes down to three things : intellectual rigour , determination , and sheer good luck . Of the three , luck is by far the most important . “ Blenheim is a great example . Lawrie Lewis had two small shows and was lucky enough to meet Neville Buch who , having been a stockbroker for many years , knew how to raise cash . The two combined forces and due to the creation of the new Unlisted Securities Market in 1986 were able to float for a nominal value of £ 1m . “ The luck was that we could offer sellers shares rather than cash . With capital gains at between 50 % to 70 % transacting with Reed or EMAP would mean that sellers lost between
£ 500,000 to £ 700,000 of every million to the tax man . We could offer shares in Blenheim and , while they would eventually have to pay capital gains , they would benefit from a rising share price and hefty dividends . In 10 years that £ 1m became £ 593m . Blenheim was always essentially financial engineering . “ Similarly , with CloserStill we were very lucky . We started at a great time . In 2009 when everyone was pulling their horns in , we could launch shows like vet , dentistry and pharmacy with very little competition and buy assets at very low multiples because the market was dead .”
I think Phil is far too realistic to admit that he has not only made the most of his luck but has made some great decisions and backed some amazing talent . Either way Phil is clearly a legend in our industry and someone who thinks about the business in a unique way . He is an events man through and through and will continue to build on what is already an incredible legacy – thanks Phil .
“ Success comes down to three things : intellectual rigour , determination , and sheer good luck . Of the three , luck is by far the most important .”
June — 29