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- Advertising Services was a privately-held company, built over two family generations and generating over $40 million in revenue annually. The company offered a wide range of services to advertisers including program design, auditing, and processing of cooperative advertising claims.
- Advertising Services was approached by Data Processing Concepts (DPC) (1), a publicly-held provider of consulting and data analysis services, to explore a possible merger.
- The principals at Advertising Services believed DPC to be a serious acquirer. However, to ensure that the offer was real and represented full value for the company, the principals engaged CoView Capital.
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- While entering into preliminary, non-exclusive negotiations with DPC, CoView developed a comprehensive sell-side marketing plan including a detailed Descriptive Memorandum and an extensive list of other potential acquirers.
- The marketing plan and Descriptive Memorandum discreetly signaled that Advertising Services had other options. This approach allowed CoView to negotiate from a position of strength and prompt DPC to offer full value for Advertising Services.
- CoView played a key role in developing a transaction structure that gave the principals full value in cash at closing and significant future performance-based earnouts.
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- Advertising Services was acquired by DPC.
- Proceeds to the principals exceeded their expectations.
- Total elapsed time: six months.
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*Names and certain information changed to protect confidentiality.
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