Founded in 1999 by Cory Janssen and Cory Wagner, Investopedia.com is the leading online portal for investor education. The most comprehensive and frequently visited investor education website, Investopedia.com draws over 2,900,000 monthly users and 20 million monthly pageviews. In mid 2006, the company received an unsolicited offer from a potential acquirer.

The Challenge

Cory and Cory were intrigued by the unsolicited offer, but felt other potential buyers might provide better deal terms and more resources to help them further realize their vision for their website. They decided that the best way to maximize the value of their equity was to hire an investment bank to run an M&A process. They wanted their investment bank to run a customized process to create the best possible outcome. They chose to work with Arbor Advisors due to their unique approach and deep understanding of the online media industry.

The Solutions

Forbes Media acquired Investopedia in April 2007, providing liquidity to Cory Janssen and Cory Wagner. Forbes' infrastructure allowed Investopedia to accelerate its growth in coming years.

Arbor Value Add

• Contacted over 60 potential strategic acquirers while searching for the ideal partner
• Received eight LOIs from potential buyers
• Increased the valuation from the original offer by over 100%
• Negotiated a favorable post-deal incentive structure for the founders
• Exceeded the valuation expectations of the founders
• Found the right partner to support Investopedia's growth potential