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.
A product called MainTrax, which tracks the results of marketing campaigns, was a key prize that led to Imagewerks Marketing Inc.s pursuit of MainStreet Group. Imagewerks merged with MainStreet in February.
It allowed us to complete the circle of services, says President Dave Rowley. Imagewerks, in Maplewood, started as a commercial printer, then added graphic design and eventually became a traditional ad agency.
Imagewerks has worked with MainStreet for 15 years. MainStreet had long done graphic design in the cable industry, Rowley says, and then had developed MainTrax. The founder of MainStreet, Scott Bakken, will continue to work with that product in the new firm.
There were a lot of shared characteristics philosophy with employees, philosophy of operating the companies, Rowley says.
He’s a veteran of mergers: About two years ago, Imagewerks merged with Creative Marketing, a research firm. He believes you have to have a good reason to merge.
There are always opportunities to buy accounts, but there has to be a compelling reason, he says.
He says both mergers went well. He was warned that working with another CEO can be difficult. Advisers said be careful. It’s hard to manage two CEO personalities, Rowley says, adding one key was that each had different areas of responsibilities.
An advantage of merging or acquiring is you can identify what you’re buying, Rowley says. A disadvantage: You don’t always get what you pay for. Shared ownership issues are a challenge to mergers, as is the debt or the diluted ownership that comes along, he says.
Imagewerks has 36 employees now, up from 28 before. They’ll post revenue between $5 million and $6 million this year.
They’ve purchased a new press and are adding 8,000 square feet of space to their real estate to accommodate it and the new people. He also launched an independent research company, called I.W. Research, so they can conduct focus groups for clients.
Dave Rowley, Imagewerks Marketing Inc.: 952.252.7906; da**@*********ng.com; www.iwmarketing.com
