Founded in 1994 as a shared hosting start-up, Seattle-based digital.forest shifted its focus in 2005 and evolved into an established provider of colocation and related services. The Board decided to explore a sale because the new capital requirements to grow the business were not available from the numerous private existing shareholders.
MVP ran a comprehensive and disciplined process for digital.forest, which resulted in multiple term sheets from qualified buyers. However purchase price offers varied greatly subject to each buyer’s perceived ability to buy another in-market operating company, which had signaled the market would consider a premium sales price. Merging with the other operating company became a "de-facto" condition to getting MVP’s client the very best price. After presenting this market condition to its client, MVP received Board permission to engage in discussions with the other company to understand the business and its sales expectations. This gave MVP the knowledge to determine the maximum value any new investors could pay for its client and the other business.
The in-market merger opportunity identified by MVP allowed the ultimate buyer to realize significant synergies and digital.forest to benefit from a significantly increased transaction value. MVP attentively guided digital.forest through an extremely complex stock transaction and achieved a result far superior than the shareholder’s original expectations.