Business
National Britannia Group (NBG) was a software-enabled risk management consultancy and compliance services firm supporting corporate and public sector customers in safety, health and environment. The business offered services in three divisions: inspection & testing; information services; compliance & consulting.
Market
With the Safety, Health & Environmental sector growing at 14% a year, driven by legislation and regulation, Lyceum Capital targeted compliance and risk management providers operating in this highly fragmented market.
Strategy
Through in-depth industry research we identified NBG as a key industry player well positioned to capitalise on positive market dynamics and generate significant further growth through bolt-on acquisitions in order to extend services and reach.
Our understanding of the market helped us build a good relationship with NBG’s owner and management and, after opening a dialogue with the firm, we developed an appropriate deal structure that enabled founders and managers to make a significant re-investment.
Lyceum Capital acquired the firm for £25m in 2005 and implemented a strategy to build a leading and highly profitable group by:
- Investing in company infrastructure, marketing and IT systems
- Focussing on customer service and retention levels
- Building service delivery and reputation to acquire more blue-chip customers
- Accelerating sales growth through effective cross-selling
- Extending the service offering through add-on acquisitions
Outcomes
In less than three years, NBG invested significantly in the infrastructure, management and systems of its business. The divisional structure was streamlined to drive cross-selling, employee numbers grew from 270 to 770 and eight add-on acquisitions were completed to broaden the service offering.
Sales grew 81% to £49m and EBITDA rose from £3.1m to £8.6m. Connaught plc acquired NBG in October 2007.