Situation
Sound Advice is a private UK based producer of live music events and entertainment for private and corporate clients. The company also produces the Cornbury Music Festival each July - www.cornburymusicfestival.com.
Sound Advice is a well established business and had been funded by the Managing Director and a small group of private investors. The business had built a solid platform from which to generate future growth that required a fresh injection of new capital.
Approach
ARC Associates (“ARC”) initially provided a strategic review of the financial alternatives for the business. The directors implemented a number of recommendations in relation to the capital restructure.
Following completion of the capital restructure, Sound Advice completed the first tranche of a private placement to position the company for its anticipated growth.
Transaction
The Company approached a small number of qualified investors and has completed a private placement of equity and convertible debt to both High Net Worth investors and existing shareholders.
The funds raised will be used to assist Sound Advice in its anticipated growth and enable the Company to strengthen its balance sheet. The management team and the Board of Directors have also been expanded as a result of the fund raising.