£600,000 in Equity for Special Interest Publisher

If you read The Times or the Sunday Times you will no doubt have come across our client’s work. As a premium, independent publisher of special interest content for some of the world's leading brands, including Google, Bloomberg, HSBC, Knight Frank and 3i, they cover topical issues from business and finance to technology and lifestyle.

Sectors Location Stage New Capital
Business & Professional Services
Creative Media, Publishing & Gaming
London Turnaround £600,000

Our client approached us after a new free monthly magazine venture failed to meet advertising revenue targets – they were experiencing losses and needed a rapid injection of funds to aid cash-flow. We went to work seeking an investor who could not only provide the funding needed but also take a seat on the Board. A number of potential investors, including a boutique private equity firm, expressed interest and met the CEO. The client was in a difficult position, exhibiting all the distress symptoms of a classic turnaround – HMRC demanding immediate payments and a large trade creditor threatening to cease all business. A CVA or pre-pack seemed to be the obvious route forward to many.

Our priority was to support the CEO in relieving the immediate pressure before moving forward with the equity investment transaction. We managed to negotiate payment plans with HMRC and with the major creditor. With daylight ahead of us, we also secured a new alternative provider with better terms and a higher facility. With all immediately distressing items addressed, we went back to have further meetings with the investors.

We are delighted to report that terms were concluded with £400,000 injected into the business in the summer followed by a further £200,000 in September.

Our client is now focused on its key business activities of Special Reports and Custom Publishing. With revenue projections for 2017 and 2018 at a healthy £6.8M and £7.6M respectively, they are looking forward to a return to healthy profits year on year.

Associate Ash Hussain comments…

“Having dealt with the critical issues of threats from our client’s major creditor and HMRC, and delivered a healthy funding line with a progressive ABL, we avoided the need for a formal insolvency procedure – crucial in itself to maintain the value in the business. We then delivered the final piece of the jigsaw – private investment with serious added value management skills from the incoming investors.”

 

 

 



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