Responding to the fragmentation of the custom research market, MVL Group Inc. of New Canaan, Conn., has been formed as a holding company to consolidate competing operators in the $2.4 billion industry.
As a first step, the company raised $8 million in equity from Fleet Equity Partners and $15 million in subordinated debt from Allied Capital to support its formation, said Rory Smith, a managing director at Fleet Equity.
The proceeds from the July 8 transaction financed the formation of the holding company, which included the acquisition of Heakin Research and Target Research, and the simultaneous merger of Quick Test Inc. MVL’s chairman Van Lefferdink, chief executive and principal owner of Quick Test, developed the idea for a consolidation effort. Lefferdink then enlisted Lehman Brothers to secure financing for the deal, Smith said.
MVL is currently negotiating a $35 million bank loan to finance additional acquisitions.
Custom research consists of taking an assignment from a customer to analyze particular areas of a market. This differs from syndicated research, which is when a company conducts its own research for resale to the general public. Smith said MVL intends to maintain a strong focus on custom research where typical customers are consumer products manufacturers, pharmaceutical companies and financial services organizations.
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