As the monetization of the internet has shifted focus from a PPC model to a performance-based or CPA model, the characteristics of a "quality" lead generation business have shifted as well. Investors currently "green" on the industry are becoming more knowledgeable about the space, but are still new to the concept of what makes one online marketing company more valuable than another. Arbor has advised hundreds of organizations struggling to demonstrate and communicate the value of their business to investors. We understand that technology and direct relationships with affiliates can alter a lead gen company's valuation.
Arbor has a track record of not only thoroughly investigating and mastering the investment landscape for lead generation, but also increasing valuation for companies in several verticals. Lead generation is a unique industry with its ability to scale quickly and efficiently with few barriers to entry. There does exist, however, select criteria that can determine what makes an online marketing company more valuable over another. Arbor's specialty in the space lends itself well to communicating those differences in value criteria, and the best ways to ensure maximum liquidity for these bootstrapped organizations.
Lead Generation
Arbor's comprehensive focus on lead generation has led to many successful transactions with companies in the education, financial, consumer, insurance, home improvement, and niche verticals. Arbor has provided informal advice to entrepreneurs seeking entry into a new vertical for the first time, or expanding service offering to include other forms of performance-based marketing.
We realize lead generation companies have several choices in expanding their businesses:
- whether or not to pursue payday loans or debt-related verticals to earn fast cash
- whether or not to open a sales force
- whether or not to go after certain agencies of record
Knowing the Strategic Buyers
Like most other investment banks, Arbor has strong relationships with the major Internet media companies including Amazon, AOL, Google, Hearst, IAC, Meredith, Microsoft, New York Times, Scripps, and Yahoo!, among others. However, we also know that strong relationships with buyers aren't enough to secure a successful transaction. Arbor knows that valuations in this space are very elastic and subjective, notably due to the industry's rapid growth and relative infancy.
Types of Media Companies
Although Arbor's focus on media is all encompassing for middle-market companies, Arbor has notable success advising companies in the following areas:
- Lead Generation
- Email marketing
- Search marketing
- Search Engine Optimization
- Media buying & planning
- Back-end service providers
For more information regarding Arbor's track record of success in lead generation, read the case studies for: