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Business case

Buy-side due diligence for an investment fund

Sub-industry: Audio-visual


Our client, an investment fund, was considering taking a minority investment stake in an independent film and TV series distributor and producer.

Key Takeaway

Historically, the target’s business model was to co-invest with studios on all their titles. The model has now switched to direct investments, where the target acts both as a producer by financing titles and owning their IP rights, and as a distributor by selling the distribution licences. It was important to explain this new source of growth as most of the business plan relied on it (in contrast to the historical performance). A specific analysis of the investment portfolio was performed, focusing on secured/unsecured revenue, contribution profit and cash-on-cash ratios (key sector indicators).

Accuracy Role

During our three-week engagement, we performed a red-flag report including an adjusted net financial debt and an overview of historical performance of produced projects. We particularly focused our analysis on secured revenue and on direct investments (as opposed to co-investments), their new strategy of sourcing, financing and self-distributing films and TV series.