Funding for business buy-out – Beaumont Capital and Media Measurement Ltd
Beaumont Capital provides seed investment to companies in digital customer engagement and data, excited by the transformation exerted on this space by online and social networking. The team at Beaumont also invest in companies where excellence in customer relationship management and digital customer engagement is critical to their future.
Back in 2010, Beaumont Capital secured a significant shareholding in Media Measurement Ltd; a specialist communications agency, who focus on helping businesses engage with their customers across a range of channels and delivering more effective communications strategies.
Over the next five years, Beaumont Capital worked with Media Measurement to accelerate the growth of the business, to reduce their operating costs and importantly to modernise their approach, which led to them taking a majority shareholding in 2012. Earlier this year, Beaumont approached OakNorth to support them in completing the purchase of these shares.
The growth opportunity
‘We’ve approached the usual high street banks in the past,’ Dan Morgan, Partner at Beaumont Capital commented, ‘but we’ve always found them unwilling to lend to businesses without property to secure against their loans; they seem unable to take the risk of lending to businesses without property assets even at higher rates of interest. We invest in people and tech, not property, so it was great to see that OakNorth was able to help and were willing to consider other sources of security.’
‘We looked into other solutions such as crowdfunding, but the immaturity of most of these options didn’t fill us with confidence and the lack of any real due diligence with some lenders left us unsure as to their viability.’
How OakNorth helped
OakNorth worked with Beaumont Capital to create a tailored business loan which worked for Beaumont’s business model. OakNorth also invited Beaumont to speak directly to OakNorth’s management team, allowing for a much richer understanding of the business and the people behind it. ’The face-to-face approach taken by OakNorth was really refreshing,’ Dan noted, ‘and their attitude and culture was much more aligned to a tech company than a traditional bank.’
Dan has some pretty clear thoughts on what needs to happen to support growth businesses: ‘Capital requirements aren’t a long term issue for small businesses – they’re an immediate issue. Businesses cannot wait for the high street to catch up with the type of lending they require.’