MBH Corporation PLC (M8H.DU) May See Eur 3.60 in 2019
2018 is probably the most exciting time in history to be alive for entrepreneurs. There have never been more customers, more resources and more talented people available on the planet than there are today.
It is also a time of huge disruption. Technology and Demographics are changing the world around us at an incredible pace. For many that change is scary, for entrepreneurs that change offers huge opportunities.
Whilst the media focuses on spotty young entrepreneurs creating digital Unicorns in their bedrooms, that is not where the majority of value is being created. And yet where the value is being created is a section of the market that is mostly overlooked.
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.
MBH Corporation PLC now provides a way to reconnect investors with the opportunity in a way that minimises risk and maximises liquidity. Allowing intelligent investors to once again support small businesses but in a way that offers the upside of ‘scale-ups’ with a more predictable and investor friendly approach.
MBH Corporation plc benefits from a new approach to building a robust group of companies, pioneering a strategic growth model, called Agglomeration™ 2.0, with a number of entities already acquired and more on the way the stock may well see Eur 3.60 in 2019.
MBH Corporation PLC completed the acquisition of Lara Group PLC on 22 August 2018. MBH Corporation PLC issued 13,369,170 ordinary shares to Lara Group PLC’s shareholders as consideration for the acquisition.
Under the Education group of MBH Corporation plc, Lara Group plc is a leader in the early years sector segments for technology and people with its two subsidiaries, Parenta Group & Acacia Training Ltd.
Parenta provides software and services as well as vocational training to over 6,500 early years settings in the UK. Furthermore, the most recent acquisition into Lara group and also building the vocational training services across new age groups, is Acacia Training Ltd.
Lara will continue to acquire and develop companies within all silos of education as it seeks to grow across the education space, with a view to being the leading provider of training and technology in each silo of education, across the globe. Subsequently, synergies will be found between the silos so that technology and infrastructure costs can be shared across the silos rather than being developed within each silo.
MBH Corporation PLC completed the acquisition of Corsora Ltd on 3 September 2018. MBH Corporation PLC issued 12,470,249 ordinary shares to Corsora Ltd’s shareholders as consideration for the acquisition.
Under the Construction services group of MBH Corporation plc, Corsora Group aims to be a world-class network of construction services providers pooling competencies across the value chain, to create a vertically-integrated vehicle that is able to deliver growth through organic collaborations and complementary acquisitions.
Building a highly complementary portfolio allows for further synergies to be achieved in terms of breadth of service and cost efficiencies. Strength in local markets is mutually beneficial for the Corsora’s in-country expansion, whilst forming a strong and scalable platform for overseas expansion.
The strategy for the construction services sector of MBH is to vertically integrate companies in the architecture & design, consulting, general construction, building services & project management sectors.
Whilst the UK and Australasia are the first two focus regions, the aim is to become a global property services provider which would include expansion out of the UK, Australia and New Zealand.
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™ 2.0, 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 incentivized 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 incentivized financially to enhance shareholder value of which, of course, they are one.