Boom Pictures Limited
Background and business issues
The PLC Advisory and TMT sector teams have acted as financial adviser to Boom Pictures Limited on the £7m public to private of the AIM listed company Boomerang Plus Plc.
Boom Pictures Limited is a Newco formed by Lloyds Development Capital (“LDC”), Lorraine Heggessey (the former controller of BBC1 and CEO of Talkback Thames) and the Boomerang Plus Plc management team.
Boomerang is primarily a TV production business that creates entertainment, factual, sport, music, drama and children’s programmes for television, radio and the internet.
Boomerang was looking to expand organically and via acquisition, but found that the valuation ascribed by the public markets made raising equity disproportionately dilutive.
Our role and approach
The transaction was a proprietary idea that the team generated in conjunction with Lorraine and took to LDC.
The idea was to use Boomerang as a platform to expand in the UK and the US. Lorraine’s reputation and network of contacts would also allow Boomerang to access higher profile commissions and attract high profile talent and acquisitions to join the group.
Deloitte was able to provide a cross service line offering to Boom Pictures Limited comprising PLC Advisory, M&A Advisory and financial and tax due diligence.
The combined CF Advisory team provided advice on all stages of the transaction, including:
- assisting in the preparation of the business plan and exit strategy documents,
- complete execution advice from the initial conversations between Lorraine, LDC and Boomerang through to completion, and
- managing the public company aspects of the transaction, including drafting the offer document, liaising with the Takeover Panel and negotiating with shareholders.
The transaction was completed, with over 97% of shareholders accepting by first closing date, and any outstanding shares being acquired under the squeeze-out process.
The company is now well positioned to become a larger independent platform through organic and acquisition opportunities, unencumbered by the capital restraints it was subject to as a publicly traded company.
Lorraine Heggessey, Executive Chairwoman at Boom Pictures Limited, commented:
"Deloitte was a terrific partner throughout the process of setting up Boom Pictures. I chose Deloitte as my advisor because I wanted a firm that could offer depth and breadth, and from the earliest stages of the business plan I was able to tap into a range of expertise which was essential given the complexity of the transaction. If you're planning to start a new venture, back an MBO or delist a company - go with these guys!"