THE TEN P’S OF A PERFECT EXIT – CATCH GROUP

THE TEN P’S OF A PERFECT EXIT – CATCH GROUP

An excellent exit for both the founders and team at Catch Group as well as the acquirer, Wesfarmers. Lots has already been written about the potential synergies of the Catch brand and the Wesfarmers flagships including Kmart and Target. I wanted to pen some thoughts, on what makes the Catch founders the stand out in the sector and some points on why I believe they got a great exit. I hope my notes are useful to other entrepreneurs who seek the same trajectory.

PERSISTENCE

Founded in 2006, with an exit in 2019, the thirteen year ‘overnight success’ journey speaks for itself. Very few business founders achieve a quick in and out. The Catch founders and leader team have persevered, and learnt as they went. Persistence and perseverance, a key attribute of the entrepreneurial journey.

PARTNERSHIPS

Gabby, Hezi and the leader team have always sought alliances. And best of all, when those partnerships have not worked (not all will), they have been able to elegantly move on. Consider their initial foray with investors Tiger Global, and, by example, their acquisition of VinoMofo, some years ago. In both cases, the chemistry was not there, ten out of ten for trying, but more importantly full marks for moving these partnerships along on fair terms. A hallmark of great leadership.

PLATFORM PIONEERS

The ultimate partner model is a marketplace. And the Catch Group have been pioneers in the marketplace model. Great to be with Gabby last week in Paris at the Mirakl conference where Catch was awarded a Platform Pioneer gong. Marketplaces are the ultimate catalyst for collaboration with partners, and indeed the Catch guys like many early players in ecommerce in Australia started off on eBay.

PEOPLE

The Catch journey has been a team effort. They are an outstanding team. But all credit must go to their managing director Nati Harpaz who has moved mountains since his time in the business. Similarly, I have always maintained that great founders have the self-awareness to bring in executive leadership including a CEO. Part of the “Founders Syndrome” is not wanting to let go. This can be a costly mistake.

PURPOSE

Whilst industry experts were cautioning about selling on price, the Catch culture never wavered from the price card. Unbeatable prices are a key catch cry of their business. Sure value, sure variety, sure convenience, but they stuck to their purpose of price killers. It paid off. Love a bargain.

PERSONALITY AND PR

It takes courage for a founder to step up to the plate and put his personal brand alongside the business he has started. Many founders struggle. I know Gabby won’t mind me sharing that, he, like me, and many others, feel the nerves of stepping onto a stage, or appearing in front of the cameras. Always have, always will. But Gabby never shied away from the limelight, because he knew, he knows, its good for business. And if well executed the personal face and touch can build a great connection with customers. Who can forget his famous ‘recession shushmession’ on A Current Affair! Well done to Mel Shawyer and her team too.

PLAYFUL

Whilst the founders of Catch are deadly serious about business, their has always been a playful side to their engagement. Hey, a massive colorful tube slide in their last office and a serious basketball court says it all. This playfulness has translated well into their brand position and moved the business beyond a functional transactional experience to a fun shopping destination.

PARTICIPATORS

A lot of retail leaders don’t participate in the broader retail ecosystem. And that’s fair enough. But Gabby (and his key team) often graced the stages of our retail conferences and shared their experiences and best practice. Catch has hosted a number of NORA Network retail safaris and Gabby is a regular at our leader lunches and dinners. Naturally my bias is towards those retailers who participate in the greater narrative. Whilst the Catch guys are formidable competitors, they recognize their place in contributing towards a growing retail pie, not just their slice.

PUNTERS

As business leaders we often learn harsh lessons about focus, and sometimes that means we avoid looking at the natural adjacencies of our businesses. The Catch guys have never been afraid to take a side bet. Many bets didn’t make it, but one, their investment in Menulog via their Eat Now business knocked it out of the park. There is clearly a cogent argument for taking a punt on adjacent opportunities.

PHYGITAL

I can only assume that a part of the investment thesis by Wesfarmers was the ability and agility of the Catch guys to kick off, very successfully, a physical store in the Chadstone mall. Customers shop by brand, not by channel, and the incredible foot traffic in their Chadstone store is all about their brand equity. I am sure that this strategy will be refined under new ownership. It could be really big.

Congratulations again to all involved on both sides. A great Australian retail brand could well be on its way to becoming even greater.