Digital advertising company Brave Bison has proposed an all-share takeover offer for fellow AIM resident, the Mission group, amid an acquisition spree that saw it snap up Steven Bartlett’s Social Chain last year.
London-based Brave Bison is currently in discussions with Mission’s board and major institutional shareholders to garner support for their proposal, which at this stage is a possible offer. Mission’s board has not yet granted Brave Bison access to conduct due diligence, which is necessary for making a firm offer.
Brave Bison’s board believes that this merged company would be a “more attractive investment opportunity” for institutional shareholders compared to either company on its own, potentially trading at a higher earnings multiple.
If the deal goes through, the combined entity would have revenue of around £120m and adjusted earnings of £14m for the fiscal year 2023. The Sunday Times reported the prospective bid would be at least £22m.
Oliver Green, executive chairman of Brave Bison, said: “The combination of Brave Bison and Mission has the potential to deliver compelling value for both company’s shareholders, clients and employees. We look forward to engaging with the Board of Mission to discuss the merits of our proposal further.”
City A.M. has approached Mission for comment.
As of December 2023, Mission had outstanding debts of £30m, consisting of bank loans, acquisition commitments, and overdue payments.
Brave Bison, which counts New Balance, Curry’s and Asus among its customers, says its net cash position of £7m would strengthen Mission’s financial position, improving its balance sheet and debt ratios.
The latter business recently said its losses widened to £10.7m but it has embarked on a turnaround plan.
In February 2023, Brave Bison inked a deal to buy Social Chain, the social media advertising and influencer marketing company founded by podcaster Steven Bartlett.
Bartlett, who stars on BBC show Dragon’s Den and hosts the popular Diary of a CEO podcast, founded the company in 2014 before stepping down in 2020.
Prior to that, it also bought The Hook, a social publisher and social media marketing company, as well as digital commerce companies, Best Response Media and Greenlight Commerce.
The potential takeover may fuel fears over an exodus from the London Stock Exchange’s smaller AIM market after a flurry of exits this year.
The number of firms listed on AIM has cratered 30 per cent from 1,104 in 2015 to just 742. Last year alone, AIM suffered 78 cancellations alongside a further 15 in the opening two months of this year.