UK-based Rocksteady Music School has appointed Clearwater International to run a sale of the company, EducationInvestor Global can reveal.
This publication has learnt that information memoranda are expected to be distributed to potential buyers in a week or two.
Rocksteady has been marketed off an EBITDA of around £3 million, with price expectations in the £25-30 million region, according to two sources.
“Despite some difficulties during the pandemic, the company has started to grow again and is looking for expansion and internationalisation. The sale will probably attract some lower mid market private equity firms that are comfortable with this asset size, as well as several trade buyers that want to expand their scope to the music education segment,” one of our sources said.
Among the prospective bidders that have shown interest in the sale are Apiary Capital – a private equity firm that typically invests in businesses valued between £10-75 million – and music courses provider The Academy of Contemporary Music, a second source told this publication.
Established in 2007 and based in Liphook, Hampshire, Rocksteady partners with schools across England and Wales, offering pupils tuition on electric guitars, bass guitars, drums, keyboards and vocals.
Founded by music teacher and author Mark Robinson and led by chief executive Scott Monks, the company proposes a child-focused teaching method to learn how to play an instrument.
The method is based on the idea that children should learn without the pressure of understanding how to read music and passing exams. Instead, they can achieve better results by enjoying music, having fun, playing their favourite songs and being part of a band.
Date published: 11 May 2022