MBH Corporation: a new approach to small business investing
In this interview Vox Markets speaks to Victoria Sylvester, chief executive of newly Aquis-floated , a holding company for small businesses across a range of sectors. The company’s unique model brings investors the many benefits of the SME world together with the resilience of large corporates
MBH’s model is to acquire a diversified portfolio of growth-oriented small businesses, but to then give their incentivised owners the autonomy to run them as they see whilst benefitting from the network effects and scale of existing within a larger, listed entity – a model it refers to as Agglomeration, and which could set the standard for SME investment in the UK.
(0:37) Introducing Vikki and MBH Corporation, and how Vikki took her own company into the group before becoming chief executive prior to flotation.
(1:57) How the ownership model differs from existing investors in small businesses, and what difference that makes.
(2:50) How the MBH approach is more common overseas, and what the model can bring to the SME sector in the UK, a key but under-recognised contributor to the economy.
(4:17) How a diversified portfolio derisks investing in small companies, and how the group’s network makes its holdings strong through knowledge sharing and culture.
(5:23) The expansion of the portfolio to 27 companies and future bolt-on and strategic acquisition plans.
(6:05) Looking in detail at the companies verticals, and plans to focus on growing the existing verticals
(6:49) Investments outside of the UK
(7:30) Looking at the latest numbers, and a look behind the strength of the company’s numbers even during a difficult period
(8:14) Improving profit margins, and how the internal dynamics of the group supports further margin expansion
(9:57) The importance of culture and ethical thinking within the group, and how it’s ‘family business’ style model gives small business and edge over larger corporates
(11:51) What’s behind the decision to list on Aquis?
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.