Scott Dunn was founded in 1986 and organises luxury holidays. 70 people work in London and Chichester and 185 overseas. The staff travel for four weeks each year checking out the best places – it is quality with a price to match.
Founded by Andrew Dunn, also CEO, with a £5,000 bank loan and a £10,000 investment by a customer (for 25%), the company first concentrated on ski chalets and in 2000 had the big break when asked to organise a corporate holiday as a reward for 30 top sales people at MCI WorldCom.
In 1991, Peter Stephens became chairman and invested £10,000 in return for a 10% stake in the company – valuing the business at £100k
In 1992, Scott Dunn almost hit the buffers from the force of the first Gulf Way, rise in fuel prices and a drop in the value of sterling. Eight friends stepped in with £40,000 for 1% of the business each valuing the business at some £500,000. The friends were also promised free holidays for five years. This was probably worth more than their investment so the company was valued at £nil but this arrangement did reduce the dilution to Andrew Dunn, Peter Stephens and the original investor so a smart move.
With turnover now at £22million this looks like a shrewd investment and the lucky eight must be able to afford a Scott Dunn holiday now that their freebies are over! Scott Dunn would make an interesting Equity Fingerprint, the business plan resource, and it would be interesting to know if there is a share option scheme for the 70 + 185 staff or whether the chance to test the resorts is sufficient. Andrew Dunn has done (sorry) well to retain a majority shareholding but for how much longer will the other investors be locked in. He is only 44yrs old with a young family so it could be more (un)happy angels!
Anyone know where the Scott comes from?
