TWO SIDES x SONY MUSIC
EXPANSION OF STRATEGIC PARTNERSHIP WITH SONY MUSIC ENTERTAINMENT GSA
Avalon acted as exclusive M&A advisor to the founders of Two Sides, facilitating the expansion of the strategic partnership with Sony Music Entertainment GSA and 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 Teuchner 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. The broader Two Sides network includes Feder Musik (Apache 207), 6PM Records and Bipolar. 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. Since the founding of Two Sides in 2017, both
companies had already been closely connected through a joint venture with Four Music, a Sony Music label. The objective was to expand this collaboration with 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 expanded partnership provides the foundation to further develop artists and creative projects over the long term while creating new growth opportunities across German-speaking and international markets.
Avalon supported the positioning of the company and facilitated a focused process to structure and finalize the expanded partnership 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 within the partnership was central to the process.
Notably, Two Sides will continue to operate independently as a label and management platform. Avalon implemented a highly structured process with clear communication across all stakeholder levels. Particular emphasis was placed on aligning expectations between the founders and Sony Music, both from a strategic and cultural perspective.
The expansion of the partnership was a natural progression, built on a long-standing collaboration between Two Sides and Sony Music. Sony Music's combination of global capabilities and the ability to work with Two Sides without diluting its identity made it the right partner for this next stage.
ACHIEVING THE BEST RESULT
Avalon acted as exclusive M&A advisor and supported the founders across all stages of the process. This included the strategic preparation and positioning of the company, the structuring of the process as well as support during negotiations through to the successful signing of the agreement. Throughout the process, Avalon ensured that management could remain focused on the operational business.
The expanded partnership creates a strong foundation for future growth, combining Two Sides' creative strength and artist relationships with Sony Music's global reach and infrastructure.
CONTACT INFORMATION
Falk Ewaldsen
Managing Partner
falk@avalonadvisory.cc
+49 (0) 2054 87 357 99