Founded in 1988, Jim DeBoth saw an opportunity to help local mortgage lenders reach consumers in their communities through local newspapers. He founded MMIS, Mortgage Market Information Services, to create newspaper features that aggregated lenders' rates and provided mortgage-related content in local markets. In 1994, Mr. DeBoth took his model online, creating the Internet portal Interest.com. Both the print and online businesses grew substantially in ensuing years, reaching over $15 million in combined revenue by 2004.

The Challenge

In early 2005, Mr. DeBoth realized his business lacked the scale to compete with larger competitors. He also saw that his business had the opportunity to develop a lead generation model, but was unsure if it was possible to build it internally. He decided to look for an outside partner that could offer resources to take his company to the next level. When he met Arbor, Mr. DeBoth was impressed with their online expertise and understanding of the market dynamics surrounding his company. He knew Arbor would help him find the right partner for his business.

The Solutions

Bankrate purchased 100% of Interest.com/MMIS in November of 2005 for $30 million, giving Mr. DeBoth the liquidity he desired and his company the opportunity to grow as a part of an industry leader.

Arbor Value Add

• Provided strategic advice to properly position the company in the market
• Engaged both financial investors and strategic acquirers
• Found the buyer who placed the most value on the company
• Structured an all-cash transaction with no earn-out provision-maximizing the cash value of the deal
• Exceeded the valuation expectations of the owner