Finance & Capital Market

MBH eyes profitable SMEs in UAE for acquisition

MBH Corporation, a diversified investment holding company, said it is keen to acquire potential SME companies in the UAE that are well established, profitable, and looking to scale up.

The SME sector now accounts for 95 per cent of all businesses in the UAE and contributes 53 per cent of non-oil GDP.

Team from MBH Corporation led by its CEO, Callum Laing, will be in Dubai and Abu Dhabi the week beginning March 7 and are keen to meet small business owners looking to scale along with family offices and smaller funds who would like more exposure to this exciting and fast-growing asset class. With 28 companies in the group cover 6 countries and 8 industry verticals, MBH is also exploring options to list in one of the UAE based exchanges.

“Half of the developed world's GDP comes from small businesses and yet there remains no financial instrument for sophisticated investors to get access to them,” said Callum Laing, CEO of MBH Corporation PLC, who in addition to believing MBH has the answer to this problem, also believes that the Middle East may represent one of the most exciting regions to facilitate this opportunity.

“Small businesses are the lifeblood of most economies and yet often the cards are heavily stacked against them for various reasons.  With limited access to funding and resources, many hit a glass ceiling and although a single client can double or triple the profits of a small company, they are often too illiquid for any serious investor to invest in,” added Laing.

For the past 3 years, MBH, a UK PLC listed in Frankfurt and New York, has been building a portfolio of what comprises now 28 wholly owned, profitable small businesses from countries such as New Zealand, Singapore, and North America. As the world starts to open up again post the pandemic, MBH is looking to further expand its geographic footprint to include the Middle East.

“The Middle East region has a long and proud tradition of traders and small businesses.  It also has a very sophisticated investor base.  MBH has been approached by several investors who have suggested that we explore a cross-listing in the region so that Funds that are looking for strong ESG (Environmental, Social & Governance) opportunities would be able to invest more easily into the ground-breaking work that MBH is doing,” continued Laing.

Laing himself is a successful entrepreneur having built many businesses over his 20-year career - taking two of them public.  He has written 3 best-selling books on business and is so committed to this expansion in the region that he has worked with local partners to translate his latest book ‘Entrepreneurial Investing’ into both Farsi and Arabic.

MBH’s unique structure allows small businesses to join the holding company without the founder having to give up control of the business.  Investors can acquire shares in a portfolio of well run, owner operated, profitable small businesses.

In just over 3 years MBH has gone from nothing to a profitable holding company growing at around 80% per annum.  It has paid dividends every year since listing - including during the pandemic - and has won multiple awards and been lauded for both its diversity and strong ESG credentials.  It is also considered one of the most transparent listed companies for its commitment to investor relations.

Laing said that adding some companies from around the region would help not just those companies to potentially expand globally, but also encourage some of the other companies to set up offices in the UAE.

“We have grown fast,” Laing added. “But we are still very much at the beginning of our journey.  Hopefully we can support many small businesses in the Middle East over the coming years.

MBH Corporation is listed on the Frankfurt and Dusseldorf Stock Exchanges and the OTCQX in New York (MBHCF). – TradeArabia News Service