Page 50 - Tyrrells Flip Teaching Guide

2: Interest Free Loan

Chase claimed to be a serial entrepreneur and certainly a

case may be made for this. His attention had moved

towards setting up a new business, vodka distilling, based

on his primary resource – potatoes.

Winning the £5m entrepreneur challenge allowed Chase to

split these funds between marketing and distribution of

Tyrrells Chips and developing his new Vodka business.

However, how much focus had he lost or even, had he taken

the business as far as he could?

3: Langholm acquire a majority Stake

Langholm Capital inject substantial funds into Tyrrells

essentially to develop this fast-moving business. However,

their share is the majority one with all its implications for
control and management selection. Chase is freed up to

develop his interest in his new business whilst Langholm

Capital pursue the return on investment they seek as
venture capitalists.

4: Langholm acquire remaining stake in Tyrrells

Langholm Capital acquire the remaining stake in Tyrrells

Chips and this allowed it to develop the company under the

management of Milner who was not constrained by Chase’s
ethological stance. To grow the company, he needed to seek

the large superstore outlets and new markets. This he did

and along with acquisitions refocused marketing and
distribution, drove revenue up to the point where (double

overall investment) where secondary buyers offered an

attractive buyout price which Langholm accepted.