A new start-up set out to protect the legacies and values of Britain’s family businesses has secured its first ever acquisition and funding round backed by the UK’s fastest growing firm Allica Bank.
Astra Holding, founded by entrepreneurs Amit Rai and Sergey Sushentsev earlier this year, has announced the acquisition of Hull-based industrial doors supplier Interdoor, a family-owned business established nearly 45 years ago.
The firm’s acquisition model includes a keen focus on innovation through “best-practice governance, digitising operations to improve efficiency, as well as offering growth share incentives for employees.”
The acquisition also follows the close of Astra’s first ever funding round backed by a number of institutional investors such as Allica Bank and Spark Growth Ventures.
“We founded Astra to protect the legacy of small, family-owned businesses that are the backbone of Britain’s economy,” Sushentsev said.
Sushentsev added: “We see the value that these businesses bring to their local communities and economies, because we’ve witnessed the devastating impact that their loss can have firsthand.
“Our model is designed to ensure that the potential and opportunity local businesses provide is preserved, while simultaneously helping to drive growth and innovation of the business under new ownership.”
‘Our mission remains unchanged’
According to new research conducted by inheritance advisory firm STEP, 69 per cent of UK family business owners do not have a detailed succession plan, which will “likely” lead them to sell their businesses in the next 10 years.
The worries around the preservation of family business legacies also follows the latest change to inheritance tax announced in Rachel Reeves’ Autumn Budget last month, which has caused many family businesses — and farms — to rally in protest.
Currently, Britain’s small and medium-sized enterprises (SMEs) account for over 99 per cent of the country’s business population, a growing total of 5.5m businesses.
Despite the challenging landscape, the founders of Astra Holding have said their mission to preserve and protect Britain’s SMEs “remains unchanged” as its founding model is “designed to be resilient in any policy environment.”
“We are focused on providing a lifeline to exceptional British businesses that are at risk of closure due to succession challenges or lack of capital to grow,” the entrepreneurs told City AM in a joint statement.
They added: “The Budget underlines what we have always believed: that the SME sector is a critical part of the economy and needs tailored support to thrive.
“Our strategy, which centres on acquiring and giving businesses a permanent home, ensures stability and growth for these companies, regardless of broader fiscal or economic pressures.”