Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
Splice Here’s bosses decided to purchase and renovate their new headquarters, in large part because the company has specialized technology needs.
“Our buildout is so customized and expensive. For example, there’s about nine miles of special cabling that we put in,” says Eric Mueller, executive producer at the Minneapolis edit, design and sound studio and post-production shop. “We didn’t want to lease, build out, and then move again in five years.”
What they didn’t expect is the fast ramp-up in business that followed the move, completed in the first quarter of 2004.
“We’ve filled the first two floors already and we never thought that would happen so quickly. We had five people; now there’s 13,” Mueller says.
Says Clayton Condit, owner and president: “We took the chance and bought something that we could grow into.”
Condit believes that clients who come to use the space are impressed with Splice Here’s capabilities, and employees respond to their enthusiasm.
“In our business it’s important: What is the vibe? In return, our people step up for our clients,” Condit says.
The building cost $1.3 million, plus $350,000 for the typical buildout and $500,000 for engineering, or the special cabling that the company’s business requires. It’s 12,000 square feet, up from 1,800 in rented space before. An SBA loan financed the deal.
“It terrifies me,” Condit says about the company’s fast growth, when he considers that his original business plan was no more complicated than sharing the cost of a $50,000 editing deck. He was a freelancer before starting Splice Here four years ago.
When contemplating the real estate move, Condit says he put fear aside. “I wasn’t scared. I was highly responsible and micro-managed every dollar. I had the thing budgeted to a T,” he says. “You have to.”
Now he’s enjoying the growth: “I never expected it to be that quick.”
Clayton Condit and Eric Mueller, Splice Here: 612.767.1111; cl*****@********re.tv; er**@********re.tv; www.splicehere.tv
