Young Growth Companies

Shortlist Media Limited

Their situation: Armed with a brilliant idea for a magazine launch and interest from a high profile, high quality pool of investors, Mike Soutar approached Integral2 in early 2007. He needed advice over constructing appropriate equity structures, construction of equity documents, providing with advanced and detailed business modelling plus provision of a robust and scalable financial management and accounting infrastructure solution.

Our input: Detailed business modelling, negotiation of constitutional documents, specifying funding requirements, instituting a business planning process, provision of accounting infrastructure, monthly financial reporting and ongoing monitoring.

The result: Since inception 4 years ago, Shortlist Media Limited has successfully launched the critically acclaimed Shortlist and Stylist magazines plus associated websites. The business has also launched a weekday email, Emerald Street. By any measure, Shortlist Media Limited is a tremendous success and is growing rapidly. Also since launch, Integral2 have managed an EIS compliant rights issue and implemented an EMI compliant option scheme for the business. It now operates from its one location in London.

Grand Parade Limited

Their situation: Andy Clarkson and Ed Needham had an ingenious business idea for the online betting market. They needed advice on equity structures and documents, business modelling and the creation of a scalable financial management and accounting solution.

Our input: We detailed advanced business modelling, presented to potential investors, negotiated constitutional documents, specified funding requirements, secured EIS compliant funding, instituted a business planning process, and provided accounting infrastructure, monthly financial reporting and ongoing monitoring.

The result: Since they started five years ago, they have carved a well earned and highly profitable niche within their sector, providing highly effective marketing solutions for online betting companies.

 

Established Growth Companies

PEI Media Ltd

Their situation: In 2006, their business reached critical mass with offices spanning four different countries and required a more professional and joined-up approach to financial management and accounting. They wanted to exit their founding investors and recognised their financial reporting and controls would need to be up-rated to Banking standard to secure the significant Bank debt required.

Our input:We provided detailed business modelling, specified funding requirements, sourced and selected suitable Bank funding and arrangements, negotiated banking documents, instituted a business planning process, provided accounting infrastructure, monthly financial reporting and ongoing monitoring. We also helped to source and select a Managing Director for the business to allow the proprietors to scale down their day to day involvement.

The result: Despite a challenging environment for this business, PEI Media has thrived and fully repaid its stakeholders, including paying down the Bank debt used to exit the founding investors.

PPA Limited

Their situation: They needed to replace their historic internal financial management and accounting solution. Key concerns included the visibility of cash and the speed and accuracy of monthly reporting. They needed to ‘clean up and catch up’ fast to bring Board reporting up to a satisfactory standard.

Our input: We provided detailed business modelling, instituted a business planning process, and provided accounting, monthly financial reporting, and ongoing monitoring. Their business now sits in a robust and professional financial management and accounting infrastructure.

The result: The Board, comprising heads of the UK’s largest magazine companies, is pleased with the restored financial management and reporting standards. Cash flow is now visible and controlled, and working capital is being optimised, while preserving trading relationships.

 

MBO / MBI’s

Aspermont UK Limited

Their situation: An MBI team needed detailed business modelling and a robust and scalable financial management and accounting infrastructure solution post acquisition. Funding was to be supplied by Aberdeen Asset Management together with Bank of Scotland so the reporting and monitoring requirement was high.

Our input: We provided detailed business modelling, specified final funding requirements, negotiated banking documents, instituted a business planning process and provided accounting, monthly financial reporting and ongoing monitoring.

The result: The MBI team successfully acquired the target business and executed its plans successfully over the following years. We later managed various capital restructures and the highly successful exit of the original MBI team in early 2008. The new owners, an Australian listed company, continued to retain Integral2 on the same basis.

Boat International Group Limited

Their situation: A former senior executive of Emap needed help to acquire and run the Boat International Group. We were asked to construct detailed business modelling and a robust and scalable financial management and accounting infrastructure solution post acquisition. Funding was to be supplied by Henderson Private Capital together with Royal Bank of Scotland so the reporting and monitoring requirement was high.

Our input: We negotiated the management deal and management equity documents, negotiated banking documents, detailed their business modelling, instituted a business planning process, and provided professional accounting, monthly financial reporting and ongoing monitoring.

The result: The £17m acquisition was completed in August 2004. We then managed the acquisition of a number of bolt-on businesses and managed the secondary buy-out by August Equity in December 2006 for £26m. We then continued to manage further acquisitions and the establishment of strategic trading relationships.