MBH Corporation: a new approach to small business investing

Episode 1310,   Mar 30, 2023, 11:05 AM

(Watch the video Interview HERE)

In this interview Vox Markets speaks to Victoria Sylvester, chief executive of newly Aquis-floated , a holding company for small businesses across a range of sectors. The company’s unique model brings investors the many benefits of the SME world together with the resilience of large corporates 

MBH’s model is to acquire a diversified portfolio of growth-oriented small businesses, but to then give their incentivised owners the autonomy to run them as they see whilst benefitting from the network effects and scale of existing within a larger, listed entity – a model it refers to as Agglomeration, and which could set the standard for SME investment in the UK.

(0:37) Introducing Vikki and MBH Corporation, and how Vikki took her own company into the group before becoming chief executive prior to flotation. 
(1:57) How the ownership model differs from existing investors in small businesses, and what difference that makes. 
(2:50) How the MBH approach is more common overseas, and what the model can bring to the SME sector in the UK, a key but under-recognised contributor to the economy. 
(4:17) How a diversified portfolio derisks investing in small companies, and how the group’s network makes its holdings strong through knowledge sharing and culture.
(5:23) The expansion of the portfolio to 27 companies and future bolt-on and strategic acquisition plans.
(6:05) Looking in detail at the companies verticals, and plans to focus on growing the existing verticals
(6:49) Investments outside of the UK
(7:30) Looking at the latest numbers, and a look behind the strength of the company’s numbers even during a difficult period
(8:14) Improving profit margins, and how the internal dynamics of the group supports further margin expansion
(9:57) The importance of culture and ethical thinking within the group, and how it’s ‘family business’ style model gives small business and edge over larger corporates
(11:51) What’s behind the decision to list on Aquis?