Founded in 1986 by Dick MacDonald, Synergen was a leading provider of Enterprise Operational Software solutions designed to optimize capital resources for asset-intensive industries. Synergen built a strong market presence and a referenceable customer list under Mr. MacDonald's 18-year tenure. In 2004, Mr. MacDonald decided it was time to retire.

The Challenge

Dick MacDonald considered multiple factors in evaluating a sale of Synergen. Would he be able to meet his valuation expectations? What would it mean to give up control? Should he wait for a strategic buyer to contact him? After meeting the Arbor principals, Mr. MacDonald decided to take a proactive approach with Arbor to ensure all options were pursed.

The Solutions

GFI Energy purchased 80% of Synergen and merged it with SPL Worldgroup to create a complete, single source and integrated suite of best-of-breed, utility-specific software solutions. Mr. MacDonald diversified his net-worth, retired seven months later and still maintains equity in the larger enterprise. SPL Worldgroup has since merged with Oracle.

Arbor Value Add

• Received four LOIs before signing an exclusive with GFI
• Increased the valuation from the original LOIs by over 30%
• Found the right partner to position Synergen for future success, thus increasing the valuation of retained equity
• Worked with Mr. MacDonald on investor presentations
• Effectively negotiated the escrow, earn-out and tax structure of the deal