Transaction Overview

• Owners of Greystone.net, Inc. received an unsolicited offer to acquire the Company and approached The Lenox Group to advise them in the negotiations.  The original transaction was not consummated and Lenox was retained to run a full sale process.  Greystone.net is a leading provider of proprietary, customizable healthcare content to the hospital channel.  The content is produced by professional writers and can be distributed via podcast or vodcast to educate the consumer/patient about a specific condition and treatment.
• Advised owners on appropriate valuation, structure and negotiated transaction with "strategic" acquirer - a competing operating company owned by large private equity sponsor.
• Managed sales process allowing senior management to remain focused on operations of existing divisions.

Transaction Process

• Lenox bankers developed a detailed presentation to use with potential acquirers highlighting the key investment considerations and the Company's market position, growth opportunities and significant margin generation.  The investor presentation was used during meetings with management and included additional details regarding the Company's initiatives.
• Identified a broad list of both strategic and private equity buyers and worked with senior management to select a final list of firms to contact.
• The Lenox Group contacted potential acquirers, sent the memorandum to qualified, interested parties, held meetings with several groups and received multiple term sheets thus creating an auction environment and an extremely competitive process.
• Selected a portfolio company of a leading institutional private equity investor that shared management's vision of growth and presented the Company with additional marketing channels and product line extensions.

Transaction Benefits

• Maximized value to owners by running a competitive auction process.
• Structured achievable earn-out to bridge valuation expectations gap.
• Allowed owners to receive significant liquidity as well as maintain the consulting division in a tax-efficient structure.
• Structured transaction to position senior managers joining acquirer to benefit from growth of the business in a current compensation manner as well as equity upside.