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.
In January Doug Bonestroo was almost three months into the search for a new owner for RemotePipes, the company that sells on-the-cheap access to the Internet from remote locations.
He started to get offers for the company last year, and realized the board of directors would be open to lawsuits if they didn’t formalize the process. Bonestroo hired Manchester Cos. of Minneapolis, the investment banker, late last year.
He wrote the company’s pitch book, or the detailed information to show to potential buyers. He liked that part.
“After five years of working really hard you get to put into writing what you’ve built,” Bonestroo says.
The company has some 95 investors. “The early investors don’t want to have their money tied up for more than five years,” Bonestroo says. Many companies had expressed interest by late January, but none had offered a price.
That Bonestroo made it to this point is a testament to reinvention. He started the company in February 2000, as a “super-low-cost toll-free dial-up” service from anywhere in the world.
“Within two years we were profitable, and we stayed profitable for three quarters,” he says. But “we were a one-trick pony.” RemotePipes’ business was all wholesale; they sold the remote access to other Internet service providers. When MCI emerged from bankruptcy, the telecom giant started undercutting prices.
“We took the profits and used that to build the toll-free ISP software for businesses and individuals, starting in 2003. By April we were making $50,000 a month,” he says.
Next up at RemotePipes is the IP roamer plus wi-fi, meaning wireless access to the Internet from remote locations. The company employs 10 and has $3.2 million in revenue.
“It will sell for what it’s going to sell for,” Bonestroo says, adding he plans to stay on after any sale.
Doug Bonestroo, RemotePipes: 651.365.0504; do**@*********es.net; www.remotepipes.net
