Interview Series: Ask a Seller with Rick Andrews

Can you introduce yourself and the company you previously owned?

My name is Rick Andrews. I founded Quality Engineered Systems Ltd. (QES) in 1991 after two decades as an engineer in the forest products industry. My experience overseeing the design and implementation of cutting-edge, mill-wide computer systems for a major facility provided the perfect launchpad for QES, with customers essentially ready to sign on.

QES specialized in industrial production management and control software, initially for the pulp and paper industry but later expanding to serve customers across various industries in North and South America, Europe, and Asia. We delivered adaptable software, tailored configurations, and on-site support to meet each customer’s unique needs. It was a rewarding journey growing QES from a small team into a recognized leader, culminating in its sale to Perseus Group in 2010.

What does post-acquisition life look like for you?

‍I’m retired near Gibsons, BC, and as busy as ever, enjoying a mix of personal projects and community involvement. This area is aptly known as the “Sunshine Coast,” one of the most pleasant places to live in Canada. I’d recommend it to any other Perseus “entrepreneur retirees.”

How has selling impacted your life?

‍Sure. Selling QES allowed me to move into high gear on a plan we had been slowly developing to fulfill a family dream. We built and opened The Highland Centre, a music venue with teaching studios and a recital hall. The Centre has become important to our local community orchestra, a community band, and a number of music teachers. It has hosted many music camps, events, and performances by musicians from both near and far—even from overseas.

What were your main reasons for selling your company?

‍Well, it was partly that I knew I had to sell at some point—I didn’t want to die in the office! But there was more to it. I think one thing I’ve learned is that it’s harder to invest time than it is money. I knew I needed to change my investment strategy, so to speak, to have a broader focus, a happier family, and a better life. The Highland Centre is an example—not the reason in itself, but certainly an example of the reason.

Why did you choose to sell to Perseus?

‍QES had a strong management team, but there was no ideal successor within the business for the top position.

Selling to Perseus overcame that problem. Over the years, I had built a good relationship with the Perseus team, particularly Steve Latham and Joel Dauterman. There was mutual trust, and Perseus offered the senior management structure, financial stability, and resources I was looking for.

I also appreciated their centralized back-office support, which provided access to HR, legal, and accounting expertise—something that’s often hard to come by in smaller companies. I had no interest in pursuing other expressions of interest that lacked these attributes. The last inquiry, from an organization with a strong international presence, appeared coincidentally during our discussions with Perseus. We thanked them for their interest and left our response at that.

To round out this answer, I recently had lunch with one of my former managers. He confirmed what I had anticipated: from the perspective of our team, and with the passage of almost 15 years, choosing Perseus has proven to have been the best decision.

Looking back, is there anything Perseus could have done differently to make the process smoother?

‍I can’t think of anything. The process was smooth. We had a great lawyer, payments were prompt, and everything was straightforward. There was also a certain level of excitement in selling that overcame even the sadness I felt upon leaving. I felt confident choosing what is now the second-largest publicly traded software company in Canada, knowing it was the right decision for both QES and for me. There has even been a certain level of cachet among my peers as I benefit from what might be called reflected glory from the stellar reputation of Perseus.

What advice would you give to other business owners considering selling their company?

I’ve seen companies sold strictly for the financial benefit of their owners, with little or no regard for the future of the company or its employees. Over the years, I believe many of us who have sold a business come to realize that the positive impact and personal reputation we’ve left with our former employees are worth as much, if not more, than the financial gains we’ve personally received from the sale. Sure, money is important, but it’s far from the only consideration.