For a market leader, deploying a managed process garners a 54% increase in valuation.
Orca Capital advised the sale of BLT Technologies to WorldCom, then one of the largest long distance telecommunications companies in the United States. BLT, of Vancouver, WA, was the top US supplier of prepaid phone cards through retail channels, and had undergone explosive growth. BLT’s signature product was the TALK N TOSS prepaid phone card.
Considered an Early Offer
BLT was in the process of selling the company for $56 million when the buyer failed to deliver. BLT turned to Orca. Upon analyzing the company financials and market, Orca suggested that the company could do much better.
The Value of a Process
Orca was retained to represent BLT. We researched and packaged BLT in an Information Memorandum and PowerPoint that put forth the future growth, strategic defensibility, and unique value of the company. We carefully and confidentially targeted appropriate potential strategic acquirers and ran a blind auction. The auction resulted in five offers for the company.
The combination of the auction dynamic and the rapidly growing market, with the leading product offering, paid off. WorldCom paid $86 million in a tax advantaged transaction, $30 million more than the original offer.