With businesses now investing more in eCommerce technologies and infrastructure, an agency like Space 48 is a lucrative opportunity.

The challenge

It has a track record as an independent consultant offering advice for leading eCommerce platforms on how to improve end-customer experiences.

After seeing organic revenue growth of more than 25% in just two years and with brands such as Charlotte Tilbury and Menkind in its portfolio, Space 48 was ready to be sold and reinvested into. With a new company backed by Foresight Group LLP ready to invest, the agency needed a smooth transition to get Spaced 48 ready for its next stage of growth in Manchester – a key UK region for eCommerce businesses.

TLT was asked to advise the owners and management team on the sale of the entire issued share capital as well as the agency’s reinvestment into a new company backed by Foresight Group LLP.

The transaction was one of the first in a highly fragmented eCommerce consultancy market. TLT also had to complete the deal before Space 48’s busy trading period at the start of the year, which meant we had a very tight timeframe to work to. 

Taking a multidisciplinary approach

Drawing on TLT’s expertise in digital and technology, we were well placed to advise on the unique details of the transaction. Our corporate team also co-ordinated colleagues from our tax, employment, commercial and real estate teams, meaning we were able to advise seamlessly across all areas of the transaction. 

This integrated approach was vital to meeting the tight deadline. We were on hand to progress the transaction from offer letter stage at the end of November to completion in January. To keep everything moving, we negotiated the Acquisition and Equity documents through the busy December period.

Another key challenge was overcoming the numerous contingent elements on the purchase price mechanism. To make sure the complex commercial arrangement between the buyer and the seller was properly recorded, we drafted details freehand. This required rigorous testing of the drafting formulas and input on the potential variables from the tax advisers.

Priming Space 48 for future growth

Throughout its 13-year history, Space 48 has seen growth as the shift in consumer demand for online retailers increases.  Foresight’s investment came at the perfect time to drive further growth across the business, with plans to develop the team, go-to-market strategy, and explore international opportunities. 

This investment provided a launchpad for Space 48’s next exciting period of growth in the UK and overseas. And that’s not only in terms of business expansion. It would also enable the agency to enhance its services and capabilities, create new partnerships with industry-leading ecommerce solutions, provide opportunities for current employees’ career progression and open up recruitment opportunities. In fact, immediately after the transaction, Space 48 was in a position to create 20 new jobs.

Date published

10 February 2022

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