Interview with David Thomas

This week we caught up with David Thomas, Founder and Managing Director of Liberty Gate, one of Nottingham’s largest independent estate agencies, who has just completed on the sale of the business to industry giants, Leaders Roman Group.

Liberty Gate was founded just over 8 years ago and isn’t your run-of-the-mill estate agency.

Having been set up by entrepreneur David, they have won countless industry awards and boast more than 20,000 social media followers. This agency certainly puts innovation and customers at the heart of their business.

In this frank and honest interview, David shares his story of why now was the right time to sell the business and why finding the right buyer was so much more than a commercial decision for him and his team.

Talk to us about your decision to sell the business?

I have been pondering the decision for some time and the driver was really about how to spend more time with my family and do the things that I’d put on the back burner for many years.

I started Liberty Gate eight-and-a-half years ago and as an entrepreneur, I had a lot to learn, but I had big ambitions for the brand and the business I wanted to create.

Ambitions that we delivered on and that I’m very proud of. But with success often comes sacrifice, and the flip side of this was my personal time, my family time and my health always came second. So in September 2022, I came to the conclusion that it was time to explore a change of direction.

I’d heard about Lucy Noonan and Atomic Consultancy, they have a very solid reputation in the industry, and I approached her to value my business. I guess from there I didn’t look back and that was the start of the journey.

What was important to you in choosing the right buyer?

The vision for the Liberty Gate brand was to change the perception of estate agencies.

Our model was built around a strong set of values and on delivering a service that our customers truly wanted.

We never talked about targets and numbers but about relationships and service. I honestly thought this could be a stumbling block when it came to selling the business, as we’re not your traditional estate agency.

The key for me was finding a buyer who could not only share our values, our ambitions and our ways of working but who understood what this meant to our clients and our team and would continue to build on this.

I’m sure everyone says this, but we have a really wonderful team who have won multiple industry awards. I was adamant that we needed to keep that level of service and focus going with whoever bought the business.

The reality of this meant that when it came to choosing a buyer and considering any offers, I was not looking at the best commercial offer, but the best fit for the team and our clients.

Why did you choose to get external support from a business like Atomic?

When you build a business, you are often learning as you go along.

Facing new challenges and adapting to find solutions to whatever comes your way.

I knew how to run a successful estate agency, but had no clue how to sell one! I’d always considered what an exit plan would look like and weighed up how to exit; do you sell, keep hold of it, pass it on to family, but you genuinely don’t have experience until you actually do it.

It was a big decision to sell and a huge decision on who you trust to help guide you through the very complex process.

I’d heard of other brokers, but my general feeling was that other brokers I’d seen were solely commercially focused.

You fill in a form, agree on a price and they list your business for sale. This isn’t what I wanted. I knew I needed advice and guidance, and I knew I needed someone I could trust.

Most people in the industry know Lucy and her experience and credentials speak for themselves. In my opinion, she is THE person to go to when you need help buying or selling a business. So for me choosing Atomic was a really easy decision, as there was nobody else I could trust.

How did Atomic Consultancy help?

Lucy and her team are very well connected and were able to get a buyer to the table straight away. I didn’t want to list the business on the market, so Lucy approached potential buyers confidentially and strategically.

Once we had a buyer and an offer we were happy with, Atomic negotiated the deal and crucially helped me understand the complexities in the offer process and the way a business is sold.

There are so many elements you just don’t consider; how the deal is paid over time, any ongoing commitments and “tie-ins”, how you hand over a business and integrate with a new company.

Atomic guided us every step of the way and we wouldn’t have had a clue on our own.

One of the other areas we had a great deal of support was Lucy’s link to great solicitors.

I used two solicitors throughout the process who were just incredible and there is no way I would have been able to do any of it without the legal advice and the working relationship between Atomic and the solicitors.

What lessons have you learnt throughout the process?

I wasn’t naive, I knew the process was going to be hard, and it has been but I’ve learnt so much and taken so much from the whole experience.

The biggest lesson in selling your business, or indeed in running a business, is to ensure you have the right people around you. If it hadn’t been for Atomic and their solicitors, the whole sale could have gone a totally different way.

This team totally had my back and I’m not too proud to say there were lots of aspects of this process where I was totally out of my depth. There is tons of jargon and corporate commercial legal language and the team simplified, explained and advised throughout.

What advice would you give to others going through this process?

My advice is simple – pick the right power team. You’ll need them!

I would also say to go into it with an open mind. Be realistic with your price, listen to the market and take the advice you’re given. If I’d gone into the deal with a set price and strategy in mind, I wouldn’t have got it done. Listen to the experts around you and you won’t go far wrong.