Due to our long experience of the independent TV production sector, we recognised that structural changes in the way the market operated would enable relatively small independent companies to expand, generating valuable - and sustainable - revenues and earnings. We realised that there would be considerable institutional appetite for these businesses, particularly as a number of private equity firms had already started to invest in this area.
In fact, RDF itself had already attracted private equity finance but it now wanted to create a platform for financing further acquisitions and give its founding investors an opportunity to exit. An IPO thus became an attractive option.
Our parallel experience with Shed Productions - we advised on its flotation in March 2005 - proved invaluable and we successfully launched RDF on the AIM market in May 2005. The listing capitalised RDF at approximately £50m, enabling a number of existing private shareholders to sell some of their shares at a very attractive price, as well as creating a profitable exit opportunity for its key private equity investor.
Ingenious Corporate Finance advised RDF on all aspects of the flotation process: selecting the nominated sponsor, negotiating the exit terms for the existing private equity investor and overall valuation.