News and Insights

We are delighted to announce the appointment of Hamilton Matthews as Chair of Insurance Insider.

Hamilton brings a wealth of knowledge and experience in building market intelligence and data information businesses, through both executive and non-executive roles.

He was the Chief Executive Officer of Acuris, a specialist business intelligence group known for products such as Mergermarket, Debtwire, and Inframation, which cater to the global financial and corporate sectors.

He successfully led the business from its early days under Pearson’s ownership to its meteoric organic and acquisitive growth under BC Partners, culminating in a sale to ION Group, for a 5x return for its private equity owners.

Hamilton served on the board of the Financial Times and is currently the Chair of Aosphere, a legal analysis business, and on the board of WGSN, a trend forecasting and analytics company.

Building a billion-dollar business is a journey of growth, resilience, and learning. At our 2024 Growth Summit Gurman Hundal, co-founder of MiQ, previously backed by ECI, shared valuable lessons from his personal experience.

From starting MiQ in 2010 with co-founder Lee Puri, to growing the company into a global leader in programmatic advertising with over $100 million in EBITDA, Gurman’s story offers rich insight into how to scale a business.  

Here are five key lessons he shared on how the MiQ team delivered that success: 

1. Diversification is key to resilience and growth

One of the most critical factors in MiQ’s success has been its focus on diversification in three key areas - geographies, client types, and product offerings – which have been essential for driving both growth and stability. By expanding into new markets, such as North America, and diversifying its client base, MiQ was able to protect itself from over-dependence on a single revenue stream or market condition.

MiQ's expansion into smaller cities in the U.S., such as Kansas City and Cleveland, proved to be highly effective. There was often more opportunity to be had in some of these US cities than in expanding into whole new countries. The lesson here is clear:  Diversification should be intentional. Businesses that focus on strategic growth and carefully assess where to expand can unlock new opportunities while maintaining resilience. As MiQ’s approach demonstrates, the right markets aren’t always the most obvious ones.

2. Go big in big markets

The second major piece of advice is to go big in big markets. For MiQ, this meant fully committing to the U.S. market - the largest advertising market in the world. Gurman learned that scaling in a significant market not only drives revenue, but also builds credibility, helping the business attract larger clients, top talent and strategic partnerships.

However, succeeding in such markets requires more than just an entry, you have to commit fully. Gurman personally moved to the U.S. to spearhead MiQ’s expansion, ensuring that the company could adapt to the market's demands and seize the opportunities present. This kind of dedication was essential to make a meaningful impact.

3. Building robust operational foundations

As MiQ scaled, Gurman learned the importance of building robust operational departments. In the early stages, he and his partner Lee managed most of the operations themselves, but as the company grew, they realised the necessity of bringing in specialised teams for finance, HR, and talent management. Gurman said that, earlier in his career, he felt that to be a good CEO you also had to be a great CPO, CFO, CRO etc, but now he understands that to be a good CEO you must have really good leaders in those areas.  

A strong finance team, for instance, helped MiQ manage the complexities of expanding globally while maintaining profitability. Having a well-structured finance and talent departments allowed Gurman to focus on strategic growth rather than getting bogged down in operational details.

4. The power of team and culture

Building a resilient team and maintaining a strong company culture were central to MiQ’s success. MiQ achieved an impressive 85% employee retention rate, a figure Gurman is rightly incredibly proud of. This high retention rate was due in large part to MiQ’s focus on creating an environment where top talent wanted to stay and grow with the company.

One of the cornerstones of MiQ’s culture is a balance between ambition and safety. Gurman encourages his teams to take risks and make mistakes and emphasises that failure is part of the process. He built a culture where making some mistakes was not discouraged as it was seen as a positive sign of courage and innovation. Simultaneously, MiQ developed a set of "anti-values"— behaviours such as ego and territorialism that were discouraged to foster a collaborative and open working environment.

5. Preparation and diligence pay off

The final key lesson is that preparation and diligence are critical when scaling a business, especially when pursuing a capital event, such as private equity investment. MiQ spent over a year preparing for their first private equity investment from ECI, focusing on building out robust financial systems, data reporting, and internal processes.

One strategy that MiQ employed was to use a refinancing process as a "dry run" to prepare for larger future events. By treating the refinancing process as a rigorous test of their diligence capabilities, MiQ ensured that when the time came to engage with investors, their data and narratives were well-organised, leading to a faster and more successful deal process.

Preparation is not just about the numbers, it’s also about building relationships. Building strong personal relationships with potential investors, meeting face-to-face or via Zoom to understand if they were the right partners for MiQ. These personal connections, paired with strong diligence, allowed MiQ to find the right investors and scale the business alongside them.

SMEs continue to be the backbone of economies worldwide, but 2025 presents a unique set of challenges. Building on the issues from 2024, such as tightening regulation and sluggish growth, this year brings new difficulties for businesses to overcome.

Here, we explore the five biggest challenges SMEs are likely to face in 2025 and offer insights into how they can navigate these turbulent times.  

1. Employment costs and taxation

Labour's policies, including increases in the minimum wage, changes to NI contributions, and enhanced employment rights, are set to put pressure on SMEs. According to the Autumn Budget 2024 report, rising costs could hinder growth and limit hiring capacity, particularly in people-intensive sectors. However, while the overall NI contribution changes pose a challenge, the government has proposed measures to mitigate the impact, making the net effect less severe than some headlines suggest.  For example, the Employment Allowance has increased from £5,000 to £10,500, with the £100,000 eligibility cap removed, enabling more SMEs to reduce employer NI contributions. So, while the overall effect is net-negative, SMEs should be wary of knee-jerk reactions.

Businesses can also turn to automation and technology adoption to increase efficiency. We have seen this in our own portfolio, with platforms like CMap helping their customers to optimise project management and resource allocation. They can also invest in their own technology, leveraging the R&D tax relief scheme, which offers the dual benefit of operational improvements and financial savings. 2025 also marks the launch of the “Business Growth Service,” a UK government initiative designed to streamline and improve support for SMEs, offering additional resources to navigate these financial challenges.

2. Trade barriers and supply chain disruption

The global trade landscape remains changeable, with potential shifts in US trade policy adding further complexity. For example, discussions around tariffs by the US administration could impact UK exports, creating uncertainty for SMEs reliant on international markets.  

Labour shortages in logistics and rising energy costs further exacerbate supply chain challenges. Additionally, raw material shortages continue to impact production timelines and costs. This is compounded by ongoing geopolitical tensions, including the Russia-Ukraine conflict and war in the Middle East.  

Product-based SMEs selling to the US may feel the greatest impact, but broader disruptions are also expected in Europe and beyond. To mitigate risks, SMEs should diversify supply chains, source locally where feasible, and build stronger relationships with suppliers. Lessons learned from Brexit-related trade disruptions - such as contingency planning, improving demand forecasting, and investing in cybersecurity - are more relevant than ever for navigating these uncertainties.

3. Reversal of the WFH trend

Remote working has been a transformative shift for SMEs, but in 2025 we’re seeing a growing trend toward a return to the office. Challenges such as maintaining productivity, upskilling employees, and preserving company culture are among the driving factors. 

For SMEs, this shift presents both opportunities and challenges. Large corporations returning to in-office work may leave top talent seeking flexibility elsewhere, giving SMEs a potential competitive advantage. However, SMEs also risk losing employees if they adopt rigid policies without considering staff preferences. 

To stay competitive, SMEs can use flexibility as a unique selling point while investing in areas that improve workplace satisfaction. Prioritising culture, employee experience, and training can make a significant difference. Solutions from companies like Ciphr, which acquired Avantus and Marshall to expand their focus on these areas, can help SMEs implement strategies to create a supportive and engaging work environment.

4. Rising customer service expectations

Expectations for seamless customer service continue to rise, with SMEs under increasing pressure to deliver experiences comparable to those of larger enterprises. According to McKinsey, businesses that prioritise customer experience are more likely to achieve higher growth rates. 

Technology offers an opportunity for SMEs to meet these expectations on a budget. CRM systems, chatbots, and automation can streamline customer service operations. However, SMEs should be cautious with automation, as overly impersonal interactions may alienate customers. 

Outsourcing customer service communication to providers like Moneypenny can help SMEs deliver high-quality, human-centric experiences while minimising the need to invest in headcount. Balancing technology with personalisation will be crucial for creating long-term customer loyalty.

5. Cybersecurity threats

As SMEs increasingly adopt digital tools, their exposure to cybersecurity risks grows, especially with remote working. In the last year, UK businesses experienced approximately 7.8 million cybercrimes, including phishing, ransomware, and data breaches. 

While SMEs often lack the resources of larger organisations, affordable solutions exist to improve resilience. Employee training, firewalls, and endpoint security are cost-effective measures to safeguard sensitive data. SMEs should also consider leveraging managed IT services and cyber security providers like BCN to give them additional resilience, or platforms like ISMS.online  can help them to streamline implementation of ISO certifications, such as ISO 27001, to improve security standards. 

Striking a balance between investing in cybersecurity and maintaining operational budgets will be a critical challenge for SMEs as they navigate the digital landscape.

Conclusion

While 2025 presents challenges ranging from economic pressures to digital vulnerabilities, SMEs remain uniquely resilient. By staying informed, investing strategically, and adapting to changing circumstances, they can navigate the year ahead with confidence and success.

In our latest Quick Fire, we chat with ECI’s Head of ESG, Fiona Moore, to talk about her career in private equity, whether she worries about an ESG backlash, and why lists help her to relax…

Q: You are coming up to your 5-year anniversary at ECI? How has it compared with expectations?

One of the reasons I joined ECI was because they did a very impressive sell of their culture – but I won’t lie, there was always the concern that companies can say anything they like about their culture when they’re trying to win you over! But ECI have delivered on what they told me about their organisation – it being low-ego, supportive, collaborative – in spades. And that has been tested, whether it was going into lockdown in my third week, or even how ECI have supported me to return to work since coming back from maternity leave in September. They are very consistent in how they think about supporting people. They are individuals who trust you to do your job, and are interested in and focussed on problem solving together. When everyone is aligned on that, it makes work incredibly enjoyable and rewarding.

Q: How has your role changed since joining ECI?

I joined ECI as Head of Marketing five years ago and then after having joined the ESG Committee in 2022, I was increasingly picking up more ESG work and now have a dual role, splitting my time equally between Marketing and ESG. You might ask if that is a natural fit, and to be honest those are very much two separate hats. While being able to communicate effectively is important in ESG, if you are doing too much marketing in your ESG work, there’s something wrong!

It has been a fascinating new challenge shifting into the ESG space. I have always been passionate about how companies can be a positive force for good, and in my view the climate crisis can only be mitigated by governments, asset managers and companies making progress together. Beyond my personal optimism for what can be achieved, I also believe the recommendations that we make to our portfolio companies are driven by good business practice and are value accretive. So, it’s fair to say my role has changed a lot over the last five years and is more interesting and motivating with each new project.

Q: Do you worry about a backlash to ESG, given the shifting global politics?

As someone who thinks the climate crisis will be the defining and life-limiting problem for the next generation, obviously any negativity that will hinder progress concerns me. I don’t want people to lose their homes to floods, hurricanes and fires, and when those things do happen, I hope people will move to action as they come to understand that this will happen more frequently, that our lives will become more difficult to insure, and we will increasingly suffer loss due to extreme weather. So, when that doesn’t happen, and instead commentators spend time discussing the backlash to ESG as a concept, that does sadden me.

But, despite all that, when it comes to the work I do at ECI, I genuinely don’t think about it too much. The label ESG is really just a way of describing preparing for the future. We would ask the same questions of a company as we do now, because we need to understand the risks and opportunities that will hinder or support their growth. At the moment, most of our LPs have clear ESG objectives and I don’t think any backlash from commentators has negated the strong global movement of asset managers to make progress on this topic, even if some in the US may be less vocal about it publicly. But even if they were less interested, it wouldn’t change the questions we ask and the progress we want to make, because we are not doing it due to some moral code we hold – we do it because it makes sense as a way of protecting and driving the value of our investments, which is our duty to investors.

Q: What does a typical day look like for you?

I would say managed to within an inch of its life! Having a dual role and returning four days a week post-maternity leave means that I must be very focussed and efficient in what I do. It can often involve jumping quickly between my two roles, so I tend to know what I’m doing each minute of the day before I start. It’s not a very cool admission, but my to-do lists are immaculate. They keep me sane when I get especially busy; I probably spend more time with my Trello board than is healthy.

As an example though, at the moment I am working with the ECI portfolio on their end of year ESG assessments, where we come up with a list of prioritised recommendations for what they are going to achieve over the next 12 months. I work closely with our Commercial Team to make sure those companies have the support they need to progress on those recommendations. For ECI, I am responsible for making sure the objectives set in our Impact Report are progressing, so today that includes starting projects to find ESG training providers, beginning the process of calculating our 2024 carbon footprint in support of our decarbonisation goals, and working with the ESG Committee to progress initiatives around DEI such as evolving our internship programme. Then on the marketing side, I have a call with our PR agency to discuss upcoming appointments across our portfolio, I am drafting an article on SME challenges in 2025 and creating our social posts for the next week. So, there’s no doubt it’s busy, but very varied.

Quick Fire with Fiona: 

What did you think you would be when you were younger?

When I was five, I genuinely thought being a fairy was a profession and was very disappointed when I found out that no school existed to give me the required qualifications. Then post-university, I thought I would be a music journalist and did a number of freelance roles and sofa surfing for a while, before realising it was almost as unrealistic as the fairy idea…

What is your favourite film?

Either Roman Holiday or The Lego Movie.

What’s the best concert you’ve ever been to?

This is a hard one, as I probably have been to over 500 (I say probably…obviously I’ve got a list!) I’m going to say either Rolling Stones at Glasto as it was such a once-in-a-lifetime experience or The National at All Points East as I listen to them all the time. I clearly have the music taste of a middle-aged Dad.

What piece of advice do you like to give other people?

If you set your mind to it, you can do anything. What sets people apart isn’t so much what they can do, it’s whether they can do what they say.