Interview with an angel: Phillipe de Wilde

03 August 2010

Passion and an entrepreneurial streak are character traits associated with business angels and Phillipe de Wilde is no exception.

Here the former financial auditor explains how he became an angel and why people, honesty and realism are critical.

A financial auditor with KPMG for 11 years, de Wilde worked with numerous clients and developed a varied range of skills, but always regarded himself as a businessman. So he decided to turn his hand to management consultancy and in so doing set about becoming a business angel, occasionally exchanging his expertise for equity instead of charging fees.

Skillset

"Quite simply, I sold my personal skillset as a way of buying into a business," he explains. "Initially, I focussed on software businesses and bought into one alongside three angels. I remained on its board for three years, in which time it secured contracts with blue chip names like Christies and Marsh."

Reputation for quality

It is perhaps his latest investment, however, that de Wilde is most proud of. Already a xénos investor, when the owner of Barry-based Roperhurst, was looking to retire in 2008, de Wilde seized the opportunity to buy into the specialist plastic fabrication and environmental engineering company.

"What attracted me to Roperhurst was its excellent local and national customer base, a reputation for quality and the enthusiasm of its team," explains de Wilde. "The existing management could really see the company's future prospects. We now plan to build on its strengths, improve customer retention and focus on new markets."

Syndication

In terms of investing, de Wilde has learnt some important lessons along the way. Syndication, he believes, is an excellent route to angel investing, but that a syndicate's make up is important. So much so, he formed 'Collective Thought', a group of trusted angels he has worked with many times.

"I've learnt a few lessons from some of the syndicated deals I've been involved in," explains de Wilde. "Getting a syndicate of angels to work effectively together can be hard work, so it's best to find out early whether the syndicate will exceed the sum of its parts."

A realistic business valuation is also crucial: "Frequently business owners have unrealistic expectations of their business's value, particularly when it's at an early stage. Valuation is critical," de Wilde emphasises. "Ultimately you have to be realistic and honest and if things don't sit comfortably with you, walk away!"

And finally, de Wilde always takes professional advice on legal aspects of a deal. "EIS (the UK government's Enterprise Innovation Scheme) is complex, so a deal must be well-structured and the agreement written to maximise any potential benefits."

This article first appeared in insidetrack.

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