MLM News Flash: NY Based Private Equity Firm To Acquire Pre-Paid Legal Services In $650M Deal

Pre-Paid Legal

Pre-Paid Legal Services Inc., will be acquired by Mid-Ocean Partners, a NY Based Private Equity Firm by the end of July 2011.

Pre-Paid Legal Services Inc, which offers legal services for a monthly fee, agreed to sell itself to private equity firm MidOcean Partners for $650 million in cash.

The offer price of $66.50 a share represents a 9 percent premium to Pre-Paid’s Friday close of $60.26.

Pre-Paid Legal said its board unanimously approved the agreement with MidOcean on Sunday and that the transaction is expected to close on July 31.

Pre-Paid had said in October that it was evaluating a $592 million buyout offer from an unnamed private equity firm. The company has been considering merger and acquisition offers for several months.

Shares of the Ada, Oklahoma-based company closed at $65.84 on Monday on the New York Stock Exchange.

“We are excited to have MidOcean involved in our efforts to increase the awareness of our consumer and small business services,” said Harland C. Stonecipher, Pre-Paid founder and chairman. “Our entire team is excited about the future prospects of our company and continues to believe, as does MidOcean, that our products offer tremendous value.”

Pre-Paid sells subscriptions to a limited package of legal services through a multilevel marketing network of independent agents. Those salespeople earn commissions on their sales, and the sales of others they recruit.

The transaction is expected to be complete by July 31.

Pre-Paid Legal’s 2010 4th Quarter & Year-End Results

During the 4th quarter of 2010, Pre-Paid’s new sales associates enrolled decreased 54.3% to 28,160 from the 61,623 enrolled in the 4th quarter of 2009 and new memberships produced decreased 20.8% to 117,472 during the 2010 quarter compared to 148,248 for the 2009 quarter.

For the year 2010, new sales associates enrolled decreased 25.6% to 138,442 compared to 186,064 enrolled during 2009 while new memberships produced were 502,982, a decrease of 11.5% from 568,095. Active memberships decreased 4.8% during 2010 from 1,547,585 to 1,473,237. From the 3rd quarter of 2010 to the 4th quarter of 2010, active memberships decreased by 19,896 memberships.

SOURCE Pre-Paid Legal Services, Inc.

Several leaders in the MLM Community are predicting that within 2-3 years Pre-Paid Legal will no longer be a multilevel network marketing company. Only time will tell.


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About The Author:

Rose Mis is the author of “Dead Blogs Don’t Lie ~ 7 Secrets To A Wildly Popular High Traffic Blog” and the editor and publisher of The Frugal Networker Newsletter. She is the creator and Executive Chef of the internet’s only Award Winning Attraction Marketing Training Kitchen. Rose is a top MLM / Network Marketing blogger and regularly blogs at thatMLMbeat.com. You are invited to stop by the Kitchen anytime you have any questions about blogging, marketing or mindset. Rose is here to help you get the results you are looking for as quickly and cost effectively as possible.

Blog: RoseMis.com Forum: MLM News

MLM Weekly News In Review: Learn The Inside News From Around The Direct Selling Industry

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This week we are sponsored by David Ballard & Bill Wardell founders of The Cyberhood Watch Community and Online Security Authority Site. These guys are two of the most active Cyber Bounty Hunters I know. And right now they need our help. Watch this video below and help us protect children and other innocent people from the predators surfing the net.

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Visalus
Visalus

Visalus aka Body By Vi has picked up another solid MLM Pro, Robert Dean. Now many rumors have been running across the net, and some in my in-box, so I picked up the phone and talked to Visalus co-founder Blake Mallen, and asked him point blank “Did you pay Robert to join the company?” Blake didn’t hesitate at all when he stated “NO! Robert, tried the products, saw results and joined the company.”

Now, I know some folks have stated “Robert had already started losing his weight before Body By Vi!” Well, having tracked Robert’s success over the last ten years or so, I can see why he would want to lose his weight, and may have already started.

But, I stand by my original statements “Robert, has found a company that the Top Gun Team can get behind.” Maybe not everyone will want to join Robert and Top Gun, but at the end of the day, finding a company with leadership, a crusade and products/services you can believe in, is the #1 goal of all direct selling distributors, small or large.

Pinnacle

For some, Pinnacle University simply provides continuing education, filling in the gaps left by more traditional degree programs. For others, Pinnacle University classes provide a comprehensive education in one of four certification disciplines: 1) Personal Leadership Development, 2) Personal Finance and Wealth Building, 3) Personal Health and Nutrition, and 4) Personal Relationship Development. Regardless, Pinnacle University is the place where you’ll learn the skills that matter most in life, at a price affordable by everyone.

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My good friend Brett Matheny has come out with a great question… Is There A Need For Another MLM Convention? Here is the link to an anonymous survey you can take. Oh one last thing, Bret is offering a chance to win an 8 Gig Nano ipod ($150) for anyone who takes our survey. The survey takes around 3 to 4 minutes to complete. Click Here

Where is Duke Kevorkian on his MLM Journey. Well I caught up with Duke last week (Week 9) and here is his activity, and a short video from one of his new leaders.

Week 9 Results:
129 calls, 38 emails, 39 ads posted, 3 appts. booked, 2 happened, 8 new contacts, 2 referrals, 6 three way calls, 0 personal new recruits, 4 team recruits-congratulations to you guys! I am getting several calls per day from the ads posted online but no results for quite some time now….as long as the calls keep coming I will stay on it and keep working warm market….also putting bigger focus on prospecting while I am out and running around….have a great week and HAPPY HALLOWEEN!