Macro Art secures additional funding following successful MBO
Macro Art Ltd, one of the first wide-format print centres in the UK, has secured £3.3m in working capital from Independent Growth Finance (IGF) after outgrowing its initial MBO funding from 2014.
Founded in 1992, the Surrey based company specialises in the design and supply of wide-format digital printing for live events, exhibitions, retail and building wraps, and its clients include high-profile brands such as Harrods, Penhaligon and the Paris Air Show.
Larger-than-life printer outgrows bank funding
In 2014, YFM Equity Partners invested in Marco Art to support the incumbent management team with an MBO. The new senior leadership team set out to drive investment and change across the organisation, with a focus on production quality and processes. Since then the company has flourished, employing 100 members of staff and increasing turnover from £6m to £14m.
This push for growth resulted in Macro Art outgrowing its funding. Despite having a longstanding relationship with a high street bank, the senior team thought it strategically advantageous to partner with a more entrepreneurial lender that could support the next stage of growth.
Access to working capital is extremely important in order for Macro Art to respond quickly to clients and have the stock on hand to produce large-scale printing projects. YFM Equity Partners wanted to secure funding that would flex and grow with the business to continue its impressive growth.
James Savage, YFM Equity Partners explains: “Once we had identified a need to refinance, we spoke to five lenders. We hadn’t worked with IGF before but chose them for their sector knowledge. They moved quickly, meeting the company and responding to information requests. We were pleased with their ability to deliver exactly to the initial terms. IGF took over the entirety of funding from the existing bank lender, coming up with practical solutions to prevent stalling.”
Finding the right partner
By understanding the momentum of the market and how Macro Art operated, IGF was able to provide a £3.3m invoice discounting and cashflow facility. This cash injection was used to fund an initial systems upgrade and provide additional working capital that will grow as the business continues on the next stage of its journey.
Mike Fletcher, ABL director, IGF added: “We pride ourselves on delivering flexible funding solutions to ambitious mid-sized businesses and Macro Art is a great example of this. We were able to unlock the liquidity that exists within the business through its assets, allowing the team to invest in the technology needed to continue producing market-leading solutions.”
Thinking big, printing big
Since receiving funding Macro Art has invested heavily in improvements within its manufacturing and production lines. Including new software to quote for jobs more efficiently and incorporate supplier fees. Macro Art has gone on to invest in workflows, rapidly speeding up processing of imagery through their factory. This investment in state-of-the-art technology will help propel Macro Art to the next stage in its ambitious growth plan from 13m to 18m in the next 3 years.
Michael Green, managing director of Macro Art explained: “The business has seen significant growth over the last five years, so much so that we outgrew our finance. This new provision from IGF has provided the working capital we need to create exceptional visual communications on a huge scale. Enabling brands to drive awareness, spark conversations, and delight their consumers.”
