Mergers Happen: Local Talent Gets A National Stage

Published on: 1/22/2008

Acquisition of Pitney Client Oliver Creative Expands National Firm's Interactive and Creative Design Capabilities

Oliver Creative, the brainchild of Kyra Oliver and one of Richmond's most successful interactive design studios, in 2007, with the help of our firm, successfully navigated a purchase offer from one of the country’s leading independent, mid-size public relations agencies – with offices in Richmond, New York, Los Angeles and Norfolk.

Already a significant supplier of interactive counsel and design to large national clients through the purchaser, Ms. Oliver was approached as an acquisition target early in the year. She recognized that she would have to conduct negotiations and due diligence in great detail while still running and growing her interactive business, and so immediately enlisted the counsel of her Sands Anderson attorney, Brian Pitney.

The initial discussions between attorney and client centered on the price of the going business as well as the possible compromises in independence and control that could be expected.  It was clear to both that the alternative cost of building an interactive division from scratch would be a factor in the purchase price, along with the value of current business, assets and personnel resources of Oliver Creative. With Oliver's accountant, they began to evaluate a Fair Market Value for the firm.

The acquisition was part of the purchaser’s strategy to build a national interactive and creative design practice. Oliver Creative offered a superior product, and the perfect mix of creative talent and innovative thinking to their existing interactive and design capabilities. The focus for Mr. Pitney and Ms. Oliver was on the Letter of Intent and they worked strenuously on crafting a response to the initial offer that illuminated all the operational issues, as well as offered a well-supported analysis of the value of Oliver Creative.

Due in large part to the comprehensive Letter of Intent, closing of the purchase was achieved before year end. Ms. Oliver joined the purchaser as vice president and minority owner, with responsibility to oversee the growth and direct the work of the Interactive practice. The staff at Oliver Creative moved into the PR firm's headquarters in Richmond in early 2008, from their previous offices at the Innsbrook office park in Glen Allen.