Braveheart was introduced to me by Andrew Burton who sold Viking Fund to them in 2009. Its good to hear that they are in the process of acquiring Envestors including the North West Franchise setup by Manchester based entrepreneurs Mike Pearls of MC2, Scott Fletcher of ANS Group and Imran Hakim of iTeddy, the three musketeers.

Its also good to hear that having setup the North West franchise in 2009 with big bang party of RAW2010, they have recently made their first investment. As no public announcement has been made yet, I will refrain from disclosing the investee company.

Let's have a closer look at the deal. The £2.45 million exit includes 6 tranches of Braveheart shares over the next five years, subject to a maximum consideration value of £2.45 million. Number of shares attributed is based on turnover generated by Envestors post acquisition. Non-binding heads of agreement was signed on 11 March 2010 with deal announced on 18th August 2010. The advance payment, or the first of the 6 tranches of payment (note these are not necessarily of the same amount), of £150,000 attributing to 442,870 shares are to be paid upon their admission to trading on AIM, disposable only after the completion of first year of anniversary. Selling the shares in the following year requires consent of Braveheart and its advisors.

Looks like the existing team would need to remain committed and its not quite the time to party and head towards the sunset, yet!

What's interesting to me is the details and not necessarily the headline numbers (especially as I am yet to go through such an experience). In one respect, the deal sounds almost one-sided, but I guess, it is not.

Envestors turnover for the year ending 31 March 2010 was £495,346. Interesting to hear that it made significant profits of £254,006 ("available for division among members"), a mammoth 51.27% net profit.

Envestors were voted best Private Investor Network in 2009 and claimed to have helped more than 60 companies raise over £22 million.

I wish everyone involved all the best, and let's see whether we could attract some of them to our BBQ on the 15th September.