OurFamilyWizard

Cherry Tree Advises OurFamilyWizard on an Investment by Spectrum Equity.

INDUSTRY:
Consumer Software-as-a-Service
DESCRIPTION:
Provider of Software-as-a-Service Co-Parenting Applications
LOCATION:
Minneapolis, Minnesota

Situation:

In March 2020, the owners of OurFamilyWizard (“OFW”), the leading provider of SaaS-based co-parenting applications, welcomed as an equity partner Spectrum Equity. OFW was founded in 2001 and developed the industry leading co-parenting app, for a market that had little to no modern software solutions. The company experienced rapid adoption and growth as they worked with family law professionals and court systems that saw the need for co-parenting tools to help their clients through one of the most stressful situations in their lives.

The investment by Spectrum Equity will help OFW in continuing their mission to improve communication and reduce conflict in families after divorce or separation. Spectrum is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. Some of Spectrum’s current portfolio companies include SurveyMonkey, Headspace, The Knot Worldwide, and Ancestry.

Cherry Tree’s Personalized Solution:

Cherry Tree provided advice to the OFW management and its Board over many years, as they evaluated inbound interest and considered when would be the right time to bring in an experienced investor to support the company’s continued growth, while providing some liquidity for their original investors. Cherry Tree guided OurFamilyWizard through discussions with and evaluations by numerous parties, including a competitive process that resulted in a relationship with Spectrum Equity. Cherry Tree’s customized services included introductions and discussions with numerous potential investors in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.

Outcome

OFW’s strong financial performance, user engagement, and market leading position piqued the interest of numerous financial partners. OFW ultimately decided to proceed with Spectrum Equity as a partner due to their experience in supporting high growth consumer software solutions and their commitment to building high quality, long-lasting businesses.

About OurFamilyWizard

OurFamilyWizard: Headquartered in Minneapolis, MN, OFW invented the concept of a co-parenting application. Its website, iOS and Android applications have been used by nearly one million people since the company was founded in 2001. The platform allows parents to communicate, share calendars and journals, track expenses and transmit payments. OFW is recommended by family law attorneys, mental health practitioners and courts in all 50 states, Canada, the United Kingdom, Australia and New Zealand.

About Spectrum Equity

Spectrum Equity: Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with proven entrepreneurs and management teams to build long-term value in market-leading software, information services and Internet companies. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Headspace, Lynda.com, SurveyMonkey, The Knot Worldwide and Verafin. For more information, including a complete list of portfolio investments, visit www.spectrumequity.com.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.