S3 Advertising

The brief:

To assist the management team in the buyout of S3 Advertising, to secure funding to support ambitious re-structure plans.  Verde would need to provide a range of services to include creation of a financial model and financial projections, carry out a valuation on the business, negotiate terms with the vendor, source and negotiate with relevant funders and present the business plan and projections to secure the fundraising.

The approach:

Firstly, Verde began with a consultation exercise to understand the business fully in order to complete a thorough and accurate valuation that all parties could agree and rely upon. Then, Verde developed a detailed financial model to understand and assess the company’s revenue model, recruitment planning, expenditure profiles and cash-flow implications.  Financial projections were created alongside a detailed transaction and funding briefing pack in order to present the information to relevant funders.

The outcome:

Verde liaised with the company’s preferred funder, Caple, to interrogate the business model and arrive at a deal structure suitable for all parties.  The successful outcome was securing the desired funding amount to enable the team to buy the share capital of S3 Advertising.

The press release can be found here: MBO AT WELSH ADVERTISING AGENCY

“Selling via an MBO to my team, the very people who have been through all highs and lows with me is a dream come true. Mike, Becky, Mel and Louise will continue to take the agency forward and ensure it remains the very best – and boldest – in the industry. I wish them every success.”

Matt Jones, Founder and former owner of S3 Advertising 

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