The Company

DAE

Profitable San Francisco based full-service advertising agency founded in 1990, with a unique niche serving the growing Asian-American communities.

The Challenge

In 2000, the company was acquired by a web development company, who was then acquired by a large software company, which was going through the process of divesting of all its assets.  The liquidating trust hired Equity Partners in late 2016 with the directive to facilitate a sale prior to the end of the year, as DAE was the last asset on the books.  A heavy reliance on one large customer, with no certainty of contract renewal, had made it hard for the company to sell itself, especially since it was only interested in all cash offers with no earn-out.

The Process

Equity Partners ran an international marketing campaign to identify buyers for the company that could conduct their due diligence and close quickly. Equity Partners received expressions of interest from several groups, however initial offers included some form of payout over time, which would not allow the parent company’s liquidating trust to close out their books by year end.

The Solution

Through continued negotiations, by year end, a cash sale of the company’s stock closed with a U.S. subsidiary of a Stockholm based marketing company. All DAE management and employees were retained and the trustee received an all cash price in time to close the books on the trust.