Small to Medium Enterprises make up 50% of GDP in most developed countries yet remain off limits to investors.
These are business owners, men and women, with decades of experience in their industry who have already figured out ‘the client/product fit’ and their own ‘unique selling proposition’. They provide childcare to children. Build houses for families and cook meals for hungry people. They don’t rely on eyeballs, growth hacking or crypto pump and dump schemes. They sell a good service for money. And weirdly many of them make profits too, year after year!
And yet this little known and profitable section of the market known as SME has previously remained off limits to intelligent investors. Too illiquid and too risky. Many of us have been burnt investing in a friends new business with a promise of an exit in 3-5 years. Those that have actually got that result are almost as rare as the Unicorns mentioned above.
The Agglomeration™ solution
MBH Corporation plc benefits from a new approach to building a robust group of companies, pioneering a strategic growth model, called Agglomeration™.
The core principle is that the corporation protects and preserves what made a business profitable, then places the same into a community of like-minded businesses with the sole intention of enhancing the value of each individual group company.
With Agglomeration™, profitable companies convert their private shares into public shares in MBH Corporation plc at an agreed multiple. Locked up for 365 days, company owners are then incentivised to accelerate their growth trajectory using the resources of the plc including expertise, skill transfer of best in class practices, cross selling to other group companies and where appropriate, zero cost funding for new growth projects.
Each group company retains its autonomy by following appropriate Corporate and Financial Governance and business owners are incentivised financially to enhance shareholder value of which, of course, they are one.
Victoria Sylvester, Managing Director, Acacia Training Ltd, United Kingdom
"Our experience since joining MBH has been nothing but positive. The model completely fits where we are as an organisation and where we want to be in the future. MBH is supporting us to grow and develop the business to the next level whilst being part of a broader and more diverse team who all bring skills, knowledge, resource and expertise to facilitate this development. The vision, culture and ethos of MBH is a really important part of the agglomeration model, and our experience is that they are delivering on their promises and value our contribution, and opinions, with regards to the strategic direction of MBH and how as a team we are working together."
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