I was drawn to the idea of being able to make a difference and to be in control of my own destiny. I was joining an already successful business, but there was a fantastic opportunity to have a go at growing the company further.
CEO at Wholesale Domestic Bathrooms
Established in 1963, Wholesale Domestic Bathrooms is a well-known third-generation Scottish family business. Originally focused on selling paint and wallpaper, the businesses has transformed itself since the 1980s into a specialist bathroom company. We spoke to CEO Brian Toward about the transition into his family business and the company’s subsequent growth.
Brian explains that it was never the plan for him to join the family business, and when he did join in 2012, it happened somewhat spontaneously after discussing it with his father while on holiday together: “My father and uncle joined the business when they were 17 out of necessity; they worked extremely hard to make it a success. I was very privileged to have the opportunity to go to university, after which I gained invaluable experience working for Deloitte for several years.”
The second generation had initially intended to sell the business to a third party, but family sentiment among other reasons made them change their minds. The need to respond to the shifting landscape, particularly in terms of technology, was one of the key factors for bringing Brian on board.
“The transition was a success because my father and uncle gave me full autonomy. I was able to throw myself into all aspects of the business, enabling me to really understand it and the value I could add.” Bringing an invaluable external viewpoint to the table, he soon realised that although the business was working well and profitable, it needed to be modernised.
Joining as the boss’s son was one of the biggest challenges for Brian, primarily because he wasn’t starting from the bottom and working his way up: “We're proud of our track record of looking after our employees over the long term. I didn't want to come in and step on people’s toes, but I was brought in because of my skillset and experience.”
Aside from some differences of opinion – which Brian believes is usual in any family situation – the transition was pretty smooth. “Once the business started to grow, many of those initial concerns were put aside.”
Brian only took ownership of the business in March 2021, after helping to lead the business through the difficult pandemic period. “It was the right time to take over, but the decision was accelerated by the impending changes to capital gains tax,” he explains. “Of course, we had to find a solution that worked for everyone – my uncle wanted to exit completely, but my father still wanted to be involved.” They chose to complete a buyout whereby Brian bought the company and his father retained a small percentage.
Brian says: “One of our core values is that we aren’t just colleagues, we’re family. Our legacy as a business is that we have always looked after our staff. I'm very aware that I'm responsible for over 100 people's mortgages, and that responsibility drives me and always forms part of my decision-making process.”
“My time at university and working for an accountancy firm prior to joining the family business provided a good grounding for the transition. I brought a fresh perspective as well as best practice from my time working with big clients. If other family members wanted to join the business, we’d now expect them to first gain experience elsewhere.”
“One of my biggest learnings was around the importance of networking and learning from others. I’ve learnt so much from other businesses and other people – I only wish I’d started using my networks, mentors and other informal forms of support earlier on. For example, the Barclays and Family Business United events provide invaluable exposure to other family businesses facing similar challenges.”
“I’m a very logical and practical person, but the emotions tied up with a family business can easily sway you off course. For example, given the age gap, I might not be able to pass the company to my children, which means in the future I might have to sell it. Potentially being the one responsible for ultimately ending our family’s involvement in the business makes me incredibly nervous.”
Working with Barclays
Barclays provided a flexible financing structure to support Brian with the purchase of the company and a subsequent consolidation of resources. Brian says he benefits hugely from the direct and responsive relationship the company has with the Barclays Corporate Banking team. “During the buyout and when faced with business decisions now, I really appreciate the ability to have positive, dynamic conversations that enable creativity and growth. I’m able to be entrepreneurial because I know I’m going to get a fast and comprehensive response and invaluable input.”
To discuss your business requirements and how Barclays can support you, contact us today.
You may be interested in
Family businesses are the backbone of the UK economy. Find out how we can support your business.
