Member Article

BDO advises CTI Holdings on £25m LDC investment

BDO LLP has advised on the £25 million investment in fast-growing digital agency, CTI Holdings.

The North West corporate finance team acted as M&A advisers to the shareholders of Manchester-based CTI Holdings, which has secured growth capital from leading mid-market private equity firm, LDC.

BDO led the overall process, providing sell-side M&A advice, as well as financial modelling, tax planning and due diligence services. The process was led by Rob McCann (M&A Partner), James Fieldhouse (Managing Director, M&A), and Chris Cumber (Assistant Director, M&A). BDO also provided due diligence to LDC for the transaction.

The £25 million minority investment will support CTI’s ambitious growth plans to expand into new international territories and strengthen its growing client base in the USA, Europe and Asia.

Funding will also help the existing management team, led by founder and CEO Nick Rhind, to expand and enhance its existing suite of digital services and acquire complementary businesses in the UK and overseas. In the last three years, CTI has completed five acquisitions, increasing revenues to £18 million.

Rob McCann said: “CTI is a fast-growing and entrepreneurial business, which has looked towards private equity to take the business to the next level and achieve its ambitions. Our relationship stems back many years, and we have been working closely with Nick and the team since 2020 to reach their investment and strategic goals. This transaction is a culmination of the hard work and commitment of the CTI team and its market-leading offer.

“With our connections in the digital media sector, and long track record in supporting teams to access private equity, particularly for the first time, we were able to provide robust, independent and commercial advice. This enabled us to help maximise the positioning of the group and showcase the investment opportunity to the market - highlighting CTI’s holistic and diversified digital services, buy and build opportunities, and ambitious growth profile - and ultimately deliver the best deal for CTI’s shareholders.”

Nick Rhind commented: “For business owners looking at PE for the first time, it is so important to be able to rely on insight from advisers who understand the dynamics of this world and how to get a deal over the line. It’s also vital to build a positive working relationship with those joining you on the deal process and BDO brought the perfect balance to the table.”

Since the agency was launched almost 20 years ago, CTI has developed an enviable reputation within the digital marketplace for its commitment to its people, clients and the use of cutting-edge technologies. As part of the £25 million investment, the agency aims to become a people-first international agency, creating global career opportunities for its growing 175-strong workforce.

This was posted in Bdaily's Members' News section by Ian Jones .