Spark Networks
  • Common Stock Investment
  • Recognize Hidden Value
  • Sourced CEO and Board Members
Spark Networks

Spark Networks (AMEX "LOV") owns and operates online dating services including JDate, the leading Jewish dating site. GHP was contacted by an investment bank looking to solve a thorny financial problem for Spark's founders, no longer running the business, who wanted to exercise several million stock options and had only 30 days left to do it. Unfortunately, the company was a British plc trading on the Frankfurt exchange with minimal liquidity. In addition, the company was not reporting any operating earnings. The right sponsor would have to understand the intrinsic value of the business, purchase all common, and get comfortable with a minority position. GHP's knowledge of the sector and efficient diligence allowed for a timely response and a successful transaction. Former Spark CEO, David Siminoff, "GHP moved quickly to buy a large illiquid block of founders' stock in Spark. In so doing, they became board members who have been instrumental in adding other solid members to the existing Spark board. They have been great partners in helping us simplify our complex corporate structure and in being thought partners in helping us develop our strategic intents."