11 years ago, changes to building standards meant that stormwater attenuation was forced onto shrinking greenfield sites. With existing tank options too large or too costly for smaller sites, Andrew Olsen and his son, Elliot, saw a unique opportunity.
Nine years later, they grew their business from a single innovative tank into a 40-strong water-services business with its sights set on the Pacific. But rapid growth brings its own challenges, and behind Watersmart‘s rise is a financial partner who understood exactly where founder Andrew wanted to take it.
Spotting a Gap Others Missed
Having spent 26 years working in Auckland’s property development and building industry, Andrew understood the challenges developers were facing better than most. As the residential lots became smaller, a new problem began to emerge: finding practical ways to retain, detain and reuse stormwater on increasingly compact sites.
“The existing solutions like above-ground tanks or digging a great big hole and burying a plastic tank didn’t work when you had small sites. They either were too big or too expensive to do.”
While working for a major development company, Andrew was searching for a solution. That search led him to Aquacomb, an Australian-designed tank system that offered a more practical alternative for smaller sites. Recognising its potential, Andrew secured the New Zealand rights before later acquiring the intellectual property.
With an entrepreneurial spirit, Andrew took the leap.
“I’d been looking for an opportunity to do something myself again… My son and I started the business then. We started basically with one product, a tank, which was quite unique because of where it was located and how the system was designed.”
What began with a single product has since evolved into a far broader business. Today, Watersmart works with two contract-moulding factories and offers a growing range of tanks and pumps, all built around the same philosophy that has guided the company from the beginning: solving customers’ problems through innovation.
Innovation Fuels Growth
Andrew and Elliot didn’t stop there.
“The business is based on innovation and solving our clients’ problems. Now we’ve got two different factories contract moulding for us. We have a multiple range of other tanks and pumps to service that market as it keeps growing.”
In nine years, they developed a broad range of tanks and pumps, now working across stormwater, flood management, water treatment, rainwater harvesting and greywater recycling.
With a keen eye, they were always looking for opportunities to support their community. Andrew said, “what started as helping kids in rural schools have safe drinking water has turned into plug and play water treatment plants that are going into schools and marae all around New Zealand.”
Eventually, they were required to move to a new premises that was four times larger than their previous. That lead to their Water Innovation hub, a facility that harvests rainwater and treats and recycles greywater onsite.
“The whole thing [is] set up as a working example of all of the solutions that we provide.”
When Growth Demands More Than Innovation
With no end in sight, Watersmart continued to grow. But its increasing scale and complexity also required new skills and a clearer plan for the future.
“I recognised that I didn’t have the skill set to run a business the size that we were getting,” says Andrew. “I play to your strengths and identify people to cover your weaknesses.”
Andrew appointed a General Manager to oversee the day-to-day operations, allowing him to focus on product innovation, emerging technologies and international opportunities. This included attending water conferences around the world and exploring ways to take or license Watersmart products overseas.
But operational leadership wasn’t all the business needed, they needed a clear financial and governance plan that could support their ambitions and prepare them for whatever came next.
“We needed to have a bit more of a plan as to where we were going with the business and how it was growing.”
Finding a Partner for Growth
With a clearer vision for the future, a board adviser, who had previously worked with Moore Markhams, introduced Andrew to Atul Mehta and Tristan Smith, and the connection was immediate.
“We were introduced to people who understood what we were trying to achieve and understood our business,” says Andrew. “They could easily articulate with us what we were trying to achieve.”
Watersmart was not simply looking for someone to prepare its annual accounts. The business needed advisers who could help strengthen its structure, plan for continued growth and prepare it for a potential future sale, whether or not that sale ultimately happened.
“We weren’t looking for an accountant who was a backward-looking bean keeper. We were looking for an accounting firm that could partner with us for our growth.”
Working together, Moore Markhams helped turn Watersmart’s ambitions into a five-year plan designed to make the business more structured, valuable and ready for whatever came next.
Turning Ambition into a Plan
The team developed a financial model to support the plan and completed a business valuation, giving Watersmart a clear baseline from which to measure its progress. The valuation also helped determine the value of shares for an options programme designed to involve senior staff in the company’s future.
Moore Markhams also advised on the accounting implications of different business, shareholder and trust structures, while quarterly management accounts gave the leadership team greater visibility over performance and progress towards its goals.
The impact extended into day-to-day decision-making. Better stock control, greater rigour around costs and clearer working-capital forecasts helped Watersmart plan for growth with more confidence.
For Andrew, the value of the relationship extends beyond technical expertise.
“Tristan handles the day-to-day stuff and he’s very competent. He obviously runs a team, but he’s our go-to guy.”
While Tristan provides practical support and guidance, Atul plays a key role in helping Watersmart navigate the bigger strategic questions that come with growth.
“He just gets it. He understands business, he understands the drivers, he understands the challenges instinctively. He has a creative mind when it comes to solving financial problems.”
As Watersmart continues to expand, including into the Pacific, those conversations have become increasingly important as the business considers capital requirements, growth planning and future opportunities.
“For me personally, it’s the confidence in knowing that we have a trusted and organised financial partner. As a shareholder, you know that they’re running things effectively.”
For Andrew, Moore Markhams can be summed up in a single sentence:
“A financial advisory company that gets what it’s like to be in business.”
Building More Than a Business
For Andrew, the most rewarding part of the journey isn’t the growth targets, new technologies or international opportunities. It’s seeing the impact the business has on the people around it.
Through Watersmart, Andrew has seen and helped employees build careers, develop new skills and create better lives for themselves and their families. Today, the company employs around 40 people, including several family groups working alongside one another.
“The good thing is that if we’re looking at what I’m looking forward to in the future, it’s how the business becomes a life support system. A community for a bunch of people to grow and develop, and that’s a really cool by-product out of developing a business that’s successful.”
For a company founded on solving problems, it may be the most meaningful solution of all. And for businesses navigating their own growth journey, it highlights the value of having the right people around you, from trusted employees to trusted advisers.
If you’re planning for growth, preparing for the next stage of your business, or simply looking for advisers who understand what it’s like to be in business, the team at Moore Markhams is here to help.
