Our client is an iconic food brand of the last five years with the best tasting premium frozen yogurt. In addition to selling from their own stores and franchises, they also distribute into the top four UK grocers via a licensing agreement with Unilever.
This vibrant brand attracts high value target markets to eleven sites throughout London and the South East and has generated brand sales of c. £5m in FY 2015/16.
The business still required investment to grow, and existing shareholders were not strategically able to invest further. We were appointed by the Board to find a buyer for the business and to complete a sale within a strict five month timeline.
With a business plan forecasting sales to increase to £18m by 2018/19 and profitability of 17% EBITDA, we could see our investors would be excited about this opportunity – a growing market segment with potential to grow through UK and international franchises, as well as through in-home product extensions.
We worked quickly to develop an initial shortlist of 80 potential investors. Within four weeks of engagement we had shared detailed information packs under NDA with around 20 investors. This led to management meetings with six interested parties and the first of two offers was received within nine weeks of engagement.
The project was concluded within the required timescale and the buyer is now engaged in a process of rationalisation of the brand formats and integration with their existing operation.
It was a pleasure to work with the shareholders and management on this time-pressured deal and I am extremely happy that we were able to conclude the deal by the required deadline. Given the existing formats of the business – company-owned stores, franchises and an in-home product – we were able to cast the net widely amongst not just our own database of investors, but also many retail food VCs, corporate venture partners, and potential trade buyers. Ultimately, I was glad to see the company being bought by a company with a real passion for the brand, and a strong sense of how to take it to the next level.
Associate
B Y Consulting
