Almost everyone knows that Dealfind merged with TeamBuy following a tumultuous period at Dealfind that included an alarming amount of complaints about product value, order fulfillment, and customer service. There were also sweeping changes in management.
However, the company seemed to be fine with an impressive growth but it was a surprise for many when the company merged with the successful TeamBuy. On May 16, 2011, Dealfind completed a funding round of $31M. Early in 2012, the company started facing serious operational problems. In the summer of 2012, there was a significant rise of customer complaints and by the end of 2012; the company closed completely its customer service due to the excess of consumer complaints. The complaints included a general frustration of not reaching customer service at Dealfind, shipping delays, customers not receiving orders, and un-satisfaction with the product quality.
Dealfind decided to transition, in the summer of 2012, from local daily deals to essentially product deals because it was becoming very expensive to source quality deals across so many markets. For unknown reason, Groupon was about to acquire Dealfind for $120M but did not conclude the deal.
After this failed deal, Dealfind pursued another deal with Living Social with the same result. The company investors and the board dismissed the CEO, Michael Tulman, and the president, Gary Livovetsky, in late 2012. However, these two persons, as co-founders, kept a large part of their shares in the late 2012.
Finally, in January 2013, TeamBuy completed a merger with Dealfind. The deal costs TeamBuy near 50% of their outstansging orders. The CEO of TeamBuy, Ghassan Halazon, negotiated directly with investors of Dealfind without involving the Dealfind founders since they were already dismissed from the company.
Dealfind completed the deal with hope that they could save something from their investment. Over 2012, Dealfind lost $16M while TeamBuy rose $15M from investors. Ghassan Halazon was very positive about the deal. He pointed that the combined firm was financially in good standings with no or little debt. Therefore, the deal did not require any funding. In order to deal with the growing number of complaints about Dealfind, Halazon said that the TeamBuy Company was working to integrate their internal customer service in order to support Dealfind. For him, it was the best way to resolve all outstanding complaints.
Ghassan Halazon said that Dealfind, as a brand, would coexist with TeamBuy. He added that the ultimate objective was to mix everything under the TeamBuy brand. According to Ghassan halazon, this deal aimed to make the combined company the largest Canadian Daily Deal site around. DDM estimated that the combined gross revenue for the two companies was averaging currently around $6M monthly.
The principal priority for the combined company will be to pay attention on all thing deals with no particular niche or vertical. Halazon wants the mixed firm to be known from people as the go-to-site with the best deals. In addition, the acquisition included Menu Palace and the combined company planned to launch TasteAway.com, which is a food delivery service in Toronto.