481: Achieving a Milestone Transaction | Mike Myshrall, CFO, Cyren


Manage episode 230142908 series 1039141
By Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio streamed directly from their servers.

Of all the finance milestones that CFO Mike Myshrall uses to illustrate Cyren's appetite for success, perhaps few are more enlightening than the one involving private equity titan Warburg Pincus. Two years ago, Warburg Pincus offered to buy out Cyren shareholders at a 35 percent premium over the current price of their shares. However, unwilling to have the firm forfeit its publicly owned shares entirely, Cyren management structured the deal so that Warburg would be eligible to acquire only up to 75 percent of Cyren's outstanding shares.

Surprisingly, Warburg found itself battling to capture half of the available shares despite the hefty premium. In the end, the PE firm ended up with only 52 percent of outstanding shares.

"Many shareholders chose to stay in the company and ride it with Warburg so that they could potentially get an even bigger return down the road if the company were to go fully private or if we were to sell to a larger company through an acquisition," explains Myshrall, who describes the transaction's structure as being "quite elegant."

For his part, Myshrall advanced down the business development path before jumping into the ranks of finance leaders. However, before there was a leap upward in finance there was a sojourn inside the electrical engineering realm and an MBA from Harvard Business School—both of which Myshrall today credits with having helped point the way down the finance leadership path.

NOW SUBSCRIBE: The Quarterly Digest of CFO Strategic Insight http://bit.ly/2Wfv291 (50 CFO Profiles Every Issue).

553 episodes available. A new episode about every 3 days averaging 41 mins duration .