Comments on: Click Your Heals Twice DorthyClick http://www.feld.com/wp/archives/2007/04/click-your-heals-twice-dorthyclick.html Mon, 13 Feb 2012 23:12:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dasher http://www.feld.com/wp/archives/2007/04/click-your-heals-twice-dorthyclick.html/comment-page-1#comment-4622 Dasher Sun, 15 Apr 2007 03:04:06 +0000 http://www.feld.com/wp/?p=1585#comment-4622 Thanks for the explanation Brad. So it was really $700M net. Wow, they got 75% of it back by selling abacus and the email marketing business. So it is really the remaining 25% ($175K) that returned them $3.1B. That is a big time score. In hindsight H&F has done an amazing job in evalauating the assets of DC. I am surprised to read that the deal was seen as a risky (or even dumb) at that time. There must have been other dot com assets that were picked up on the cheap 2 to 3 years ago. This only goes to show that the best time to buy is when no one is buying. Thanks for the explanation Brad.

So it was really $700M net. Wow, they got 75% of it back by selling abacus and the email marketing business. So it is really the remaining 25% ($175K) that returned them $3.1B. That is a big time score.

In hindsight H&F has done an amazing job in evalauating the assets of DC. I am surprised to read that the deal was seen as a risky (or even dumb) at that time. There must have been other dot com assets that were picked up on the cheap 2 to 3 years ago. This only goes to show that the best time to buy is when no one is buying.

]]> By: Brad Feld http://www.feld.com/wp/archives/2007/04/click-your-heals-twice-dorthyclick.html/comment-page-1#comment-4621 Brad Feld Sun, 15 Apr 2007 02:17:44 +0000 http://www.feld.com/wp/?p=1585#comment-4621 Dasher - DoubleClick had cash on their balance sheet (I vaguely remember it being in the $400m+ range.) So - that effectively can reduce the purchase price since H&F can use DoubleClick's own cash to buy part of the company. In addition, H&F could have borrowed the balance of the cash - a 1:1 leverage ratio is very low (they likely could have raised a lot more if they had wanted to - and might have.) Dasher – DoubleClick had cash on their balance sheet (I vaguely remember it being in the $400m+ range.) So – that effectively can reduce the purchase price since H&F can use DoubleClick’s own cash to buy part of the company. In addition, H&F could have borrowed the balance of the cash – a 1:1 leverage ratio is very low (they likely could have raised a lot more if they had wanted to – and might have.)

]]> By: Dasher http://www.feld.com/wp/archives/2007/04/click-your-heals-twice-dorthyclick.html/comment-page-1#comment-4620 Dasher Sun, 15 Apr 2007 02:03:52 +0000 http://www.feld.com/wp/?p=1585#comment-4620 Brad, I am not too familar with the PE world. Can you please explain how H&F can spend just $330M to fully acquire a company valued at $1.1B? Sorry if this is a dumb question, but I am not very familar with how this stuff works. Thanks. Brad, I am not too familar with the PE world. Can you please explain how H&F can spend just $330M to fully acquire a company valued at $1.1B? Sorry if this is a dumb question, but I am not very familar with how this stuff works. Thanks.

]]> By: Charlie Kemper http://www.feld.com/wp/archives/2007/04/click-your-heals-twice-dorthyclick.html/comment-page-1#comment-4619 Charlie Kemper Sun, 15 Apr 2007 00:30:33 +0000 http://www.feld.com/wp/?p=1585#comment-4619 Hellman & Friedman's acquisition of Double Click is probably one of the best technology-media buyouts of all time. Not only did the H&F team take a gutsy contrarian bet at the time, as they called the ad cycle perfectly, they seem to have made all the right strategic operating moves along the way by breaking up the business. Kudos. Hellman & Friedman’s acquisition of Double Click is probably one of the best technology-media buyouts of all time. Not only did the H&F team take a gutsy contrarian bet at the time, as they called the ad cycle perfectly, they seem to have made all the right strategic operating moves along the way by breaking up the business. Kudos.

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