Target Information

Love Energy Savings, founded in 2007 and headquartered in Bolton, is a leading specialist in energy price comparison for businesses. The company focuses on connecting small and medium-sized enterprises (SMEs) with the most suitable energy suppliers in the UK, assisting them in finding the best gas and electricity tariffs and facilitating the switching process.

Under the guidance of CEO and co-founder Phil Foster, Love Energy has experienced significant growth, reporting revenues of £17.4 million for the financial year ending December 31, 2017, up from £13.2 million in 2016. Currently, the company serves over 40,000 customers nationwide and has earned accolades as the most trusted business energy price comparison specialist in the UK, according to TrustPilot. Additionally, it ranks as the second highest rated company for work-life balance, as noted by Glassdoor.

Industry Overview

The energy market in the UK has undergone significant transformation over the past decade, driven by deregulation and increased competition among suppliers. This competitive landscape presents ample opportunities for companies like Love Energy to thrive by providing consumers with unbiased insights into energy pricing.

With a growing emphasis on cost efficiency and sustainability, many SMEs are looking for ways to lower their operational costs, particularly in energy consumption. This heightened awareness offers Love Energy a prime opportunity to position itself as a leading intermediary that helps businesses navigate the complexities of the energy market.

Furthermore, the increasing demand for transparent pricing and consumer-friendly energy solutions is fueling innovation within the sector. This is evidenced by advancements in technology that facilitate more streamlined comparison and switching processes, making it easier for businesses to obtain the best deals.

The ongoing shifts towards renewable energy sources and carbon reduction initiatives may also impact pricing structures and consumer preferences. As businesses adapt to these changes, Love Energy can play a pivotal role in informing them about the best options available in the evolving market.

Rationale Behind the Deal

LDC's investment of over £25 million in Love Energy Savings is aimed at accelerating the company’s organic growth strategy. This capital injection will empower the management team to expand its operations, particularly within the corporate services division that caters to larger energy users in the industrial and commercial sectors.

The transaction also represents a partial exit for NVM Private Equity, which has been an investor in Love Energy since September 2015. The involvement of LDC is expected to strengthen the growth trajectory of Love Energy by facilitating further investments in proprietary technology and diversifying into sectors such as water, telecoms, and insurance.

Information About the Investor

LDC, a mid-market private equity investor, has a reputation for investing in growth-oriented companies across various sectors. With a strong focus on supporting management teams and driving strategic initiatives, LDC is well-positioned to assist Love Energy in achieving its ambitious growth plans.

The firm aims to create long-term value for its portfolio companies through active collaboration and expertise, emphasizing investments that foster innovation and market leadership. By backing Love Energy, LDC is demonstrating its confidence in the company’s potential for continued expansion in a dynamic industry.

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This deal represents a significant opportunity for both LDC and Love Energy Savings. Given the growing demand for energy price comparison services, the invested funds are expected to propel the business to new heights by expanding its service offerings and enhancing technological capabilities.

From an investment perspective, the timing appears advantageous, as the energy market is poised for further evolution. By investing in Love Energy, LDC is aligning itself with a company that not only boasts a strong track record but also a clear strategy for capturing market share in a competitive landscape.

Moreover, Love Energy's established reputation as a trusted provider in the industry enhances its competitive edge and reduces investment risks. The firm's commitment to innovation and customer service positions it well to address changing market dynamics effectively.

Overall, this partnership is likely to yield positive results for both stakeholders, creating an advantageous scenario for sustained growth and profitability in the future.

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