NVM Private Equity has backed the management buy-out of Presteigne Broadcast Hire.
Presteigne Broadcast Hire is one of the market leaders in the broadcast equipment hire sector in the UK. The business hires a selection of specialist equipment predominantly to outside broadcast companies with a particular focus on the live sport and event sector.
Founded by industry veteran Mike Ransome, Presteigne has always been seen as a market innovator as they invest in the latest products and emerging technologies ensuring they can deliver the highest level of service to their clients. Headquartered in Crawley and with additional facilities in Warrington, each being equipped with the latest in technology and the best in engineering skills, Presteigne has supported many global sporting events. More recently these have included the supply of equipment and services in connection with the Rio 2016 Olympics and this season’s Formula 1 Grand Prix schedule.
Presteigne’s primary focus over recent years has been live sport: a sector which has enjoyed considerable growth in the last decade with consumers increasingly seeking access to live events, either at the venue or remotely. The timing of the transaction perfectly positions the company for accelerated growth as the market embraces rapid advances in radio frequency, IPTV and 4K technology.
The Presteigne management team were provided with Corporate Finance advice by Jeremy Rayment of Brebners Corporate Finance, and NVM were serviced Legal advice by Jeff Chang, Mike Freer, Hugh Jones and Rebecca Scott of Osborne Clarke. Financial due diligence was carried out by Andy Harris, Steve Holmes and Max Whitehead of BDO, whilst Commercial due diligence by Geoff Rampton and Roger Penney of RPL Advisory. Management due diligence services were provided by Steve Wycherley of Continuum, Technology due diligence by Tim Chapman of Hickman Shearer, and Insurance due diligence by John Donald and Gordon Shaw of Aon.
Interview with Jeremy Rayment of Brebners:
Please tell me about your involvement in the deal?
As a lead advisor with many years’ experience and interest in a broad range of media businesses, particularly services related to content creation and delivery to consumers, I was introduced to Presteigne’s management team who had been afforded the opportunity to progress a management buy-out from their Parent, Avesco PLC.
We helped review and establish the future plan, covering strategy and forecasts, and assisted the team approach and negotiate with financiers the requisite investment to acquire and develop the business as well as assist with the PLC negotiations.
The business operates in a market experiencing a considerable amount of technological change and dynamic consumer adoption shifts across differing content types and geographies.
Accordingly, the planning and strategic outlook needed to identify and address the dynamics of the investment and growth cycle, including potential M&A.
Why is this a good deal for all involved?
There are occasions when a set of circumstances determine a ‘win/win’ equation all round.
Presteigne’s parent wanted to concentrate on its main activities and divest of a non-core business, which had a high degree of ongoing investment required to meet its dynamic market challenges.
Presteigne’s highly experienced management needed to partner with a proven investment house to help them capitalise on their MBO opportunity, and in coming together with NVM (who are keen to be involved in partnering with dynamic businesses such as Presteigne), they have secured the finance and support they need, not just for the buy-out, but to further develop the business.
What challenges arose? How did you navigate them?
No business or transaction is identical and lead advisory is about bringing experience to bear in successfully identifying and managing inherent challenges.
In Presteigne’s case, the principal challenges lay in creating the narrative and definition of its business case.
There was a considerable amount of information to be assimilated and review to give satisfaction to investors, not only as to the business’ growth potential, but additionally due consideration of the underlying business performance, which on the face of it reflected a business in transition.
Once the business case was established, the key to concluding negotiations successfully was in keeping good balanced communication between the respective parties, always mindful of their ‘win’.
