Palladio Holding Invests in Wisycom

Wisycom, based in Tombolo (Padova), designs and produces professional proprietary systems with high technological content and is recognised as one of the main players in the wireless equipment market in the professional audio sector, particularly in the broadcast, live events, cinema and theatres segments. Through its team of highly qualified engineers, the company designs sophisticated wireless solutions for microphone systems, in-ear monitors and reportage using cutting-edge tools and software.

Wisycom brand is recognised on a global scale, boasting noteworthy customers such as CNN, TF1, ZDF, BBC, NBC and others. Over multiple years of operation, the company has established a presence in prestigious sporting events, including the international circuits of Formula 1, Formula E and MotoGP, the Super Bowl final, the Roland Garros tournament and the Tour de France, as well as miscellaneous events including the New Year’s celebration in Times Square in New York.

Wisycom also continues to grow in prominence in the world entertainment sector. Its highly innovative in-ear systems guarantee high-level performances among artists and musical groups engaged in international tours and its technology promises numerous benefits to those who work in cinematography.

The entry of Palladio Holding into Wisycom’s share capital is aimed at accelerating the firm’s growth in international markets, supporting the entrepreneurs in developing their business and consolidating their competitive positioning.

Wisycom brand is recognised on a global scale, boasting noteworthy customers such as CNN, TF1, ZDF, BBC, NBC and others.

D.G.P.A. & Co. advised Wisycom and acted as sole financial exclusive advisor with a team led by Stefano Balbinot. Wisycom was also advised by LCA for legal aspects and Vedove Studio for due diligence aspects, while Chiaramonte Reali Studio advised Palladio Holding and Legance advised Banco Popolare di Sondrio on financial aspects.

 

Lawyer Monthly had the pleasure to speak with Stefano Balbinot, Co-Partner at D.G.P.A. & Co. to give us some further insight into this transaction:

Can you tell us more about the deal and the role that your team played in it?

Our job with Wisycom began at the end of 2021. Since the deal’s inception, we worked closely with the entrepreneurs to better understand their objectives in pursing an M&A transaction. We supported the team from business planning to the definition of an appropriate set of documentation aiming at presenting to the market the distinctive competitive hedge that the company has developed over the years, as well as highlighting the mid-to-long term expansion strategy achievable via organic and external growth.

We supported Wisycom’s stockholders in all phases of the process, from strategic planning and corporate governance assessment to transaction structuring, capital structure optimisation, negotiation on sale agreements and reinvestments.

Throughout the process, our goals and efforts were driven by the strong desire to pave the path to further exceptional growth for the company. We continually advised Wisycom’s stockholders on actionable tools to achieve their goals.

How did your skills and experience make you a good fit for the operation?

The multidisciplinary skills and diverse experience of our team are key to ensuring that M&A transactions enhance growth potential for both parties.

In this case, a hands-on approach to every aspect of the transaction was ensured by a combination of M&A advisory and entrepreneurship experience and being a part of a professional network that can leverage a strong academic background.

Throughout the process, our goals and efforts were driven by the strong desire to pave the path to further exceptional growth for the company.

We strive to establish long-standing relationships with our clients and being able to deliver a one-stop-shop financial service to Wisycom’s shareholders made a significant difference.

Every transaction is a story and a unique experience by itself.

Many successful entrepreneurs, over the course of their professional careers, have only one chance to manage a (partial) sale of their company. Being able to support such a delicate process with significant implications for the wellbeing of a company’s stakeholders is a privilege and an honor.

In every transaction there are pitfalls that need to be addressed, and we strongly believe that those can be overcome through empathy and attention to details. The need to manage both parties’ specific expectations requires listening capabilities and transparent communication in order to identify an appropriate balance of interests.

Let’s not forget that the transaction’s closing, as in Wisycom’s case, is only the first step of a mid-to-long-term partnership amongst parties. Having the opportunity to immediately establish clear and transparent communication paths is, in our view, key to facilitating the post-acquisition plan for growth.

How did you work with LCA and other firms to ensure a positive outcome for all involved?

We worked as a coordinated team with LCA, who acted as legal advisor, and Vedove Studio, who supported the due diligence process, to ensure smooth transaction execution.

A clear understanding of everyone’s role and responsibilities – and, more importantly, of our client’s expectations – informed our work throughout the process and guaranteed delivery of satisfactory results for Wisycom’s team and Palladio.

In performing our task, our main focus and concern was to both negotiate and define the best contractual structure for the sale of the shares, with particular attention needing to be paid to the terms and conditions of the reinvestment made by the sellers according to their specific roles and needs.

A clear understanding of everyone’s role and responsibilities – and, more importantly, of our client’s expectations – informed our work throughout the process.

We are very pleased of the synergic work performed with LCA and Vedove Studio and we trust that our relationship will lead to many more opportunities in the near future.

Have you worked on similar operations in recent years? In what other areas do you specialise?

The focus of D.G.P.A. & Co. is on value-added advisory. We are an independent reality, operating without conflicts of interest to provide transparent, objective and impartial advice, offering quality solutions that are tailored to the specific needs of our clients.

Over our 30+ years’ worth of professional experience, D.G.P.A. & Co. has supported its clients on transformational transactions in multiple areas, such as:

–              Corporate finance: M&A and strategic finance; capital markets, corporate consultancy;

–              Restructuring: independent business review; bank debt renegotiation; debt restructuring agreement according to bankruptcy law;

–              Financial modelling: business analytics, financial modelling and financial planning; valuation modelling, impairment tests and fairness opinions regarding assets and financial instruments; risk management;

–              Expertise: company valuation in extraordinary corporate transactions; asseverations of renovation plans and or debt restructuring agreements.

What impact do you expect the success of this particular transaction will have on Wisycom and the wider audio market?

Wisycom’s unique expertise in the professional audio market and more specifically in designing wireless solutions is well recognised by the market on a global scale.

Wisycom offers a unique platform for growth. Thanks to its role as strategic partner and leveraging on the complementary skills of the new corporate structure, Palladio will support Wisycom’s shareholders on a development path that entails new acquisitions aimed at consolidating the company’s positioning abroad and extending market penetration in verticals with greater growth prospects, such as the live events sector.

I have no doubt that Wisycom’s standings in the audio professional sector will benefit from its partnership with Palladio.

 

About D.G.P.A. & Co.

D.G.P.A. & Co. is an advisory firm specializing in corporate finance and M&A services. Founded in 1991 in Milan by Maurizio Dallocchio and Luciano Avanzini, the firm is driven by a spirit of innovation and represented by a team of accredited professionals with consolidated seniority, recognised standing and strong bonds with the academic and entrepreneurial world. The team’s primary focus is on providing their clients with independent value-added advisory services.

About Stefano Balbinot

Stefano Balbinot is a co-partner at D.G.P.A. & Co., an entrepreneur in the ICT sector and an M&A expert who has been involved in a number of Pan-European transactions across a wide range of industries.

 

Via Crocefisso, 27,

20122 Milano MI, Italy

Tel: +39 335-731-2836

E: stefanobalbinot@dgpa.it