HgCapital, the private equity owner of Eagle Rock, has conducted a beauty parade of investment banks to do a “strategic review” of the business, which is most likely to lead to a sale. The appointment of a bank is understood to be imminent.

Eagle Rock, with access to footage of acts from Radiohead to the Rolling Stones through its deal with the Montreux festival, was set up by Terry Shand in 1997.

Mr Shand will see his 20 per cent stake valued at about £8 million if his latest venture is sold for £60 million, including its £15 million of debts.

If Mr Shand, 50, cashes in his stake when the company is sold, it would be his second multimillion-pound windfall, after selling another business he founded, Castle Communications, in 1994.

A sale for £60 million would net HgCapital a profit of more than £20 million on its £25 million investment in Eagle Rock.

Eagle Rock, the world’s biggest publisher of music DVDs, also has an independent record label which includes Simple Minds, Bob Geldof and the Beach Boys as clients.

But the company is best known for securing the Montreux Jazz Festival rights, which give it the rights to reproduce footage of artists such as David Bowie, Paul Simon, the Corrs and Bob Dylan.