How Sidekick Live Group used Mount Business Services Valuation to create value for the owners
OVERVIEW
Two media business owners decided there would be greater value for their separate media businesses if they combined forces in a single group.
This presented the shareholders with the opportunity to build a group legal structure that would provide a platform for agile growth through acquisition, frictionless disposals and enable cross-group investment.
Our approach to structural design is to create a long term solution in preparation for a seamless exit. Using our experience building national and multinational groups, we provided a series of options based on relevant trading and tax consequences. The outcomes were assessed and a fit-for-purpose structure was created.
“After several years of operating closely together, Ollie and I thought there was more value in the whole than the sum of the parts. Andy at Mount Business Services explained in layman's terms the costs and benefits of different group structures.
We created our group with the intention of growth and ultimate exit. Since inception the group has created 2 new entities each with over £1m in sales.
D. McCaslin MD Sidekick Live.
APPROACH
Understand the Business: Key to finding value in a business is understanding the drivers of a business and its levers of value. Our extensive and relevant experience enables us to identify this value.
Optimise the legal structure: Building a group structure that allows for future flexibility and diversification is critical to the process of realising value. MBS experience in building corporate structures has realised a best in class group for SideKick.
Stress test the options: We can evaluate by simulating a variety of financial, legal and tax outcomes and consequences
Decision making: MBS walked us through the outcomes explaining the pros and cons of each and helped us to understand the consequences of our choices. This enabled us to build a future proof, fit for purpose group.
RESULTS
CONCLUSION
Designing a group structure is complicated by the sheer number of variables. Financial, legal and taxation consequences need to be considered. Additionally for Sidekick it was about the ability to grow through shared resources and a clear exit strategy.
We used our combined technical knowledge and commercial experience to build a fit for purpose group. Key to Sidekick was the ability to create, acquire and dispose of businesses in a frictionless way.
The new group has gone from strength to strength using the structure to fund new ventures and grow new businesses. Maintaining the level of corporate transparency that is desirable to a potential buyer.