Should Stuart Roberts sell the family silver?

Stuart Roberts took twenty-five years to build Two Seasons up from one retail store in Northampton to thirteen stores across the Midlands of England. Offering a blend of urban and technical sports equipment and clothing for ski-ing and surfing, turnover was up but profit margins remained thin. He had just come from a family board meeting where the Australian multi-national sports clothing supplier, Billabong, had offered Stuart GBP2.5 million to buy Two Seasons outright. Pondering his options, Stuart reflected on how he could take his business forward. He could ‘sell the family silver’ or, alternatively, seek to use bank debt finance or equity finance to grow his business. Another central question was if the valuation was a fair appraisal of Two Seasons’ worth.