TWO SIDES x SONY MUSIC
SALE OF MAJORITY STAKE TO STRATegiC PARTNER SONY MUSIC
Avalon acted as exclusive M&A advisor to the shareholders of Two Sides on the sale of a majority stake to Sony Music Entertainment Germany, paving the way for the Company’s next growth stage.
INTRODUCTION
Two Sides is one of the most influential independent music labels and artist management companies in the German-speaking market.
Founded by Lucas Teucher and Julian Otto (aka Bausa), the Company has played a key role in shaping the development of German rap and hip-hop over the past decade. Two Sides is closely connected with a new generation of artists and has built a strong reputation for identifying and developing talent at an early stage.
The Company currently works, and has previously worked, with a diverse roster of artists, including Capital Bra, Shindy, Loredana, Coach Bennet, Apache 207, Reezy, Badchieff, Miksu/Macloud, Bozza, and many other prominent German rap artists. Through its releases, artist development and cultural relevance, Two Sides has established itself as a key player in the German music industry.
GROWTH POTENTIAL
Two Sides has demonstrated strong growth, driven by its close connection to artists, its entrepreneurial mindset and its ability to identify cultural trends early on. The objective was to identify a partner capable of supporting the company beyond its existing scale, particularly in areas such as global distribution, infrastructure and long-term artist development.
Sony Music offers a comprehensive platform with international market access, established distribution channels and significant operational resources. The partnership provides the foundation to extend Two Sides’ activities beyond the German-speaking market while maintaining its core strengths.
Avalon supported the positioning of the company and facilitated a focused process to engage with a strategic partner aligned with the long-term vision of the business.
KEY TO SUCCESS
A critical factor in the process was the precise articulation of what defines Two Sides as a business. The Company operates in a space where commercial success is closely linked to credibility and long-term relationships with artists. Ensuring that these elements would be preserved post-transaction was central to the partner selection.
Avalon implemented a highly structured process with clear communication across all stakeholder levels. Particular emphasis was placed on aligning expectations between shareholders and potential partners, both from a strategic and cultural perspective.
The selection of Sony Music was driven by the combination of global capabilities and the ability to integrate Two Sides without diluting its identity. Even prior to the transaction, there had been a long-standing and close collaboration between Two Sides and Sony Music making the partnership a truly natural progression.
ACHIEVING THE BEST RESULT
Avalon acted as exclusive M&A advisor and supported the shareholders across all stages of the transaction. This included the preparation of all relevant materials, a focused partner approach and the coordination of due diligence as well as negotiations. Throughout the process, Avalon ensured that management could remain focused on the operational business.
The partnership creates a strong foundation for future growth, combining Two Sides’ creative strength and artist relationships with Sony Music’s global reach and infrastructure.
Closing remains subject to customary conditions and regulatory approvals.
CONTACT INFORMATION
Falk Ewaldsen
Managing Partner
falk@avalonadvisory.cc
+49 (0) 2054 87 357 99