ImageOne, a leading provider of marketing and practice management solutions for tax and accounting professionals, retained FocalPoint to identify liquidity options
Owned by a father and son team, the father was looking for a liquidity event as he approached retirement
Challenges
FocalPoint determined that acquirors would not assign sufficient value to the entire company given the disparate nature of its two businesses – one content driven, the other a more commodity print business
An internally generated recapitalization was not suitable either as the son wished to focus on the content driven
Continuing Professional Education (“CPE”) and newsletter businesses, but not the older print assets
Solution
FocalPoint was able to create value by
Separating the company into two business groups
Using its knowledge of the printing industry to identify a strategic partner who was willing to acquire the printing and catalogue sales business for full value
Keeping the higher margin, higher growth business group as a standalone company for the son to run
Greatland Corporation ultimately acquired ImageOne’s printing and catalogue sales assets at a highly attractive multiple of over 1x revenues
