OurFamilyWizard

OurFamilyWizard

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 provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Dynamic Solutions

Dynamic Solutions

Dynamic Solutions Worldwide

Cherry Tree advises Dynamic Solutions Worldwide

“Thank you for the great work and extremely valuable “out-of-the-box” thinking to solve some very complex issues. The hard work, dedication, and determination resulted in a very positive outcome! I look forward to working with Cherry Tree again in the future.”

Juan Rocha, Co-Founder and President
Dynamic Solutions Worldwide

INDUSTRIES:
Branded Consumer Products
DESCRIPTION:  
Insect Traps
LOCATION: 
Milwaukee, WI
TRANSACTION TYPE:
100% Sale to Strategic Buyer

Situation

The founders of Dynamic Solutions Worldwide (“DSW”) built a tremendously successful company around a single product, the DynaTrap insect trap. Originally introduced in 2006 by Juan Rocha, DSW experienced tremendous growth as its highly effective insect traps were complemented by strong consumer marketing programs and distribution through warehouse clubs, hardware and lawn and garden retailers, and TV shopping channels. During the course of their amazing run and succession planning discussions, the decision was made to sell DSW.

Cherry Tree’s Personalized Solution

Through its prior operating and M&A experience in the hardware and lawn and garden industry, Cherry Tree worked closely with the founders to create a competitive sale process that would result in a favorable outcome for themselves as well as their employees. At the top of their list and throughout the entire process, an emphasis was placed on how a particular suitor would treat their personnel. The founders had created a team-based culture that they knew was a critical element of the success of DSW. From our prior industry experience, Cherry Tree leveraged its network and, carefully, filtered the target buyer list for suitable candidates.

Outcome

The founders were extremely sensitive about confidentiality so the initial outreach was done with a very generic “teaser” that did not identify the company. After calling each targeted buyer and entering into confidentiality agreements, a comprehensive Confidential Memorandum was supplied. Follow-up Q&A sessions were handled by Cherry Tree to further qualify interest and generate excitement. A double-digit number of offers were received, of which a handful were invited to face-to-face half-day meetings with DSW’s leadership team. The uncertainty surrounding tariffs was a major external factor however the leadership team had a tariff mitigation plan in action plus the overall performance and outlook of DSW continued to exceed projections.

In a near perfect fit with the owner’s goals, DSW was acquired by Woodstream Corporation, a leading provider of pest control and lawn and garden solutions that includes thirteen market leading brands including Victor, Terro, and Safer.

About Dynamic Solutions Worldwide

Dynamic Solutions Worldwide is the maker of the DynaTrap brand of insect traps, a safe, silent, and simple way to safeguard living spaces from mosquitoes and more by trapping insects without the use of chemicals. Founded in 2011 and located in Milwaukee, its products are available through major retailers including Home Depot, Costco, Sam’s, Bed Bath & Beyond, Amazon, and Ace Hardware, as well as on QVC, HSN and online retailers.

About Woodstream Corporation

Woodstream Corporation is a global manufacturer and marketer of a broad portfolio of branded pest control and lawn & garden products, under brands such as Victor®, Terro®, Perky-Pet®, Havahart®, Safer®, Sweeney’s® and Mosquito Magnet®, among others. The company’s products, which have leading market share positions within their respective segments, are sold at more than 100,000 retail locations and to professional pest control providers throughout the United States, Canada, the United Kingdom, and other international markets.

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. For more information, visit Cherry Tree & Associates.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Fullerton Case Study

Fullerton Case Study

Fullerton

Cherry Tree Advises Fullerton Companies

“Cherry Tree shepherded us through a comprehensive process that resulted in a great outcome for our family, employees, and customers. Their experience and valuable guidance was essential at each stage of the deal.”

Jim Fullerton
Board member and Shareholder
Fullerton Lumber Co.

Transaction Description

Consolidated Lumber Company, doing business as Arrow Building Center, announced the acquisition of Fullerton Lumber Company from Plymouth, MN-based Fullerton Companies.

Marna Fullerton, chairwoman of the 134-year old Minnesota Company said, “For more than a century, our family has been executing a successful business that remains focused on serving our customers and driving growth in the building industry. Our decision to move on from the lumber and building materials business was led by a strategic desire to focus on Fullerton’s rapidly growing factory-fabricated building systems and products business.”

Cherry Tree’s Role

Cherry Tree & Associates was engaged by the Fullerton family and Board of Directors to advise the company on its strategic alternatives related to the sale of the company. Cherry Tree led the process that included introductions and discussions with numerous potential acquirers and financial partners, soliciting proposals, negotiating terms, supporting the due diligence process and facilitating the closing of the transaction.

“Cherry Tree shepherded us through a comprehensive process that resulted in a great outcome for our family, employees, and customers. Their experience and valuable guidance was essential at each stage of the deal,” stated Jim Fullerton, Board member and Shareholder of Fullerton Companies.

About Consolidated Lumber Company

Consolidated Lumber Company, doing business as Arrow Building Center, is a leading provider of residential and commercial building and construction materials. The company operates out of 16 locations serving the Wisconsin and Minnesota markets. Consolidated’s broad product mix and service offerings enable it to reach a diverse customer base of professional contractors. Further information about Consolidated Lumber Company is available at www.abc-clc.com.

About Fullerton

Fullerton has two operating companies, Fullerton Building Systems, a premier provider of panelized building packages, and Fullerton Finish Systems, the leading U.S. manufacturer of custom exterior factory-applied finishes for the construction industry. Further information about Fullerton is available at www.fullertonbuildingsystems.com.

About Cherry Tree & Associates

Cherry Tree & Associates, LLC is a private investment banking firm headquartered in Minneapolis, Minnesota, specializing in serving entrepreneurially-managed companies. Founded in 1980, the firm provides financial advisory engagements for buyers, sellers, and companies seeking growth capital, and provides fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Oak Ridge Financial_1115

Oak Ridge Financial_1115

Cherry Tree Advises Oak Ridge Financial Services Group on its Sale to Private Investors

Cherry Tree & Associates investment bank advised the shareholders of Oak Ridge Financial Services Group, Inc., in their sale to Oak Ridge Acquisition Corp., a firm formed by Russell S. King and Jacob Simms.

Oak Ridge Financial is a leading full-service Midwest broker-dealer and registered investment advisory firm based in Golden Valley, MN. Its Private Client Services Group serves more than 3,000 clients in 46 states with offerings including securities trading, investment management, estate planning, wealth management and insurance. Its Investment Banking Group advises on capital raises, mergers and acquisitions, and other services to community banks and emerging growth companies.

“Russell and Jacob are the perfect team to see this through, and the company is in great hands with them at the helm,” said Oak Ridge CEO Marc Kozberg. “They have an exciting plan to grow the company and help our professionals continue to deliver the superior service our clients have come to expect from us.” Kozberg led the selling shareholder group and is turning over the leadership to King.

“Oak Ridge Financial is incredibly well-positioned for tremendous growth and success, thanks to its outstanding staff and loyal clients,” said King. “Jacob and I are excited to help the organization capitalize on its significant potential. We extend our sincerest thanks to Marc Kozberg for all he has done to build Oak Ridge.”

King and Simms are, respectively, president and chief investment officer of King Capital Corporation, a Minneapolis-based private firm that manages a proprietary portfolio of securities, funds and limited partnerships. It also manages the Peter J. King Family Foundation, which awards major grants to organizations focusing on family initiatives and children’s health care.

Oak Ridge Financial was founded in 1977 and has been under control of a shareholder group led by Marc Kozberg since 2004. It is a member of FINRA and SIPC. More information about Oak Ridge Financial is available at www.oakridgefinancial.com.

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis. Cherry Tree was founded in 1980, and specializes in M&A transactions for both buyers and sellers of middle market companies.  It also conducts private placements for entrepreneurially-managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services. More information is available at www.cherrytree.com.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

BMTN_080315

BMTN_080315

Cherry Tree Advises BringMeTheNews on Sale of Local Digital News Operation to Pohlad Companies Subsidiary Northern Lights

Cherry Tree & Associates investment bank advised BringMeTheNews, LLC, on the sale of its Minnesota-based local digital and broadcast news curation operation to Northern Lights Broadcasting, a subsidiary of the Pohlad Companies.

The asset sale included BringMeTheNews’ 24-hour digital news curation operation that generates a million-plus monthly online audience by monitoring all media and creating online distillations of news of interest to Minnesotans at www.bringmethenews.com. It also reaches 400,000 listeners a week via a 28-station radio network, one of Minnesota’s largest by audience size.

BringMeTheNews has proven particularly successful at using social media, both in news curation and in audience-building.

“Cherry Tree was particularly adept at navigating the process, contributing greatly to development of the negotiation strategy and directly driving the process of the conversation with the buyers,” said Rick Kupchella, chairman, president and founder of BringMeTheNews. “It felt good to have folks with their level of expertise at times volunteering to drive the bus.”

“Cherry Tree’s professionals added value throughout the process,” said Simon Raper, BringMeTheNews chief financial officer. “They kept up the momentum and drove practical solutions to potential problems. They were professional throughout and fun to work with.”

The buyer operates Go 96.3 Radio, an FM station that airs modern music and the Minnesota Twins baseball games. It also operates a music-centric web site. The addition of BringMeTheNews gives Northern Lights Broadcasting a much larger statewide voice in Minnesota’s digital media ecosystem. Northern Lights and the Twins both are owned by the Pohlad Companies.

BringMeTheNews was founded in 2009 by Rick Kupchella, a longtime Twin Cities television journalist. The assets that were sold related only to the company’s local Minnesota news operation and include the company name. Simultaneous with the transaction, Kupchella announced a name change for his company to PresentNation, consistent with its refocusing on national digital news curation for certain highly desirable market sectors, starting with health care.

Cherry Tree & Associates, LLC, is a private investment banking firm headquartered in Minneapolis and specializing in serving entrepreneurially-managed companies. Founded in 1980, the firm provides financial advisory services for buyers, sellers and companies seeking growth capital, and provides fairness opinions and other valuation services. More information is available at www.cherrytree.com.

BringMeTheNews’ legal advisor for the transaction was Dan Young, co-chair of the Business Law Group at Lommen Abdo, P.A. (www.lommen.com). Northern Lights was represented by in-house legal counsel at the Pohlad Companies.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC