NVM backs £5.7m Fresh Group MBO

Harriet Bailey
05 June 2014

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NVM has backed the management buyout of The Fresh Group, a creative events agency based in Cheadle, in a ТЃ5.7m transaction.

The company aims to secure new clients in untapped industry areas with the new funding, as well as continue to build the business from its existing client relationships.

All three of NVM's VCTs committed to the management buyout, alongside other funds under NVM's management. The acquisition did not involve debt, but the company's existing banking relationships will be maintained, according to the GP.

The MBO sees founders Julie Besbrode and Nick Porter partially exit the business. They will retain a stake in the company as well as specific roles in the business.

The vendors appointed advisers to find potential trade and private equity buyers, which is how NVM became involved with Fresh.

According to NVM, the UK corporate events market is highly fragmented and is estimated to be worth £1bn. It states it was attracted to the company because Fresh was able to differentiate itself from its competitors and has an impressive client base.

Company
Founded in 2004, Fresh is a creative events agency specialising in the UK retail and financial services industries. It primarily organises internal corporate events for employees, customers and suppliers. It also offers other group services such as video content, design, branding, exhibition stands and digital marketing.

Headquartered in Cheadle and operating out of additional offices in Greater Manchester and London, the 85-strong company says it will achieve 30% year-on-year growth this year. Its 2013 turnover was £13.6m.

The company has recently secured new contracts with Home Retail Group and Dixons Carphone, with companies including Marks & Spencer, The Co-Operative Group and Santander among its existing client base. The agency says it will achieve new business of more than £3m in 2014.

People
The management team involved in the buyout comprises managing director Patrick Howells, financial director Antony Wilson and operations director Damian Besbrode. Andy Leach is investment director at NVM.

Advisers
Management – Hurst Accountants, Liz Gallagher, Tim Scott (Corporate finance, tax); Clarke Willmott, Ed Foulkes (Legal); Continuum, Steve Wycherley (Other due diligence).
Equity – Osborne Clarke, Mark Spinner (Legal, tax); Baker Tilly, Gary Houghton, Russell Armstrong (Financial due diligence); Armstrong Transaction Services, Robin Illingworth (Commercial due diligence); Aon, John Donald (Insurance due diligence).