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|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
Page 2 of 5
A small-business state, Oregon doesn’t have a lot of big companies to act as acquirers. But our acquisition dynamic is as much a cultural as economic phenomenon, some observers say. Today, new public and private sector initiatives are improving market conditions for keeping and growing companies and jobs in state. But if Oregon aims to move beyond its incubator status — and not everyone thinks we should — that may require overcoming yet another hurdle: a deep-seated ambivalence about thinking big.
“There is a culture in this community that’s torn about growth, size, scale, companies — about capitalism,” says Dave Chen, principal of Equilibrium Capital and former chair of the Oregon Innovation Council. Oregon isn’t lacking in innovation, Chen says. “We’re lacking in the desire to grow it. There is something in our culture that says, ‘Keep it small.’”
Jim Johnson, president and CEO of Tripwire, wasn’t thinking small when he sold the Portland security solutions software company to San Francisco-based private equity firm Thoma Bravo last June, a deal valued in the hundreds of millions of dollars. But he did do some soul searching about continuing to get big on his own, and getting big in Portland in particular. “I asked myself: ‘Jim, why the hell would I want to be owned by a private equity firm? Why didn’t I do this myself?”’
In fact, Tripwire was on a path to go public when a faltering market led the company to change plans. But Thoma Bravo did more than “present the better deal,” Johnson says. Portland isn’t Silicon Valley. “And if you’re not in the middle of that competitive crunch every day, it’s easy to lull yourself into thinking you’re a great company when you’re not,” he says. Thoma Bravo “brought in the business expertise that allows us to grow,” he adds, and also provided access to the firm’s handful of other software acquisitions — “sister companies that push each other to be best in class.” Tripwire, which is still headquartered in Portland, is on a path to gross $300 million in the next four to five years, Johnson says.
A world and a sector away, Terry Oftedal, director of supply chain operations for YoCream, describes similar reasons for selling the Portland-based frozen yogurt company, which was acquired last year by French company Danone, which has its U.S. headquarters in White Plains, N.Y. For years, the board of directors had sought a strategic partner to accelerate business, he says. “A lot of culture and capabilities are being brought to the table that we couldn’t have done on our own,” said Oftedal, citing as examples Danone’s “global reach” as well as project expansions, such as YoCream’s conversion to a much more powerful IT database. YoCream has about 100 employees in Oregon, and is “seeing substantial growth,” Oftedal says.
In 2001, after her husband fell ill, Hanna Andersson co-founder Gun Denhart sold the family-owned children’s clothing store to a private equity firm—the company has since been resold several times. The company employs 98 people in its Oregon headquarters.
Noting that one of the original buyers had managed Neiman Marcus and that Hanna Andersson is now a national brand, Denhart says: “We could not have done it ourselves. We did not have the skill set."
Friday, July 10, 2015
BY DAN COOK
The Affordable Care Act has triggered a rush on health care plan redesign, a process fraught with hidden costs and consequences.
Friday, August 14, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
17 airlines make stops at Portland International Airport, but not all are created equal when it comes to customer service.
Thursday, August 20, 2015
BY JOE CORTRIGHT
We get the education we deserve.
Wednesday, August 19, 2015
BY GARY THILL | PHOTOS BY JASON E. KAPLAN
A storied institution climbs down from the ivory tower.
Wednesday, July 15, 2015
We asked readers how Obamacare has impacted their business.
Friday, July 10, 2015
BY JACOB PALMER
Most of the food Americans consume is trucked in from hundreds of miles away. Eric Wilson, co-founder and CEO of Gro-volution, wants to change that. So this past spring, the Air Force veteran and former greenhouse manager started work on an alternative farming system he claims is more efficient than conventional agriculture, and also shortens the distance between the consumer and the farm.
Tuesday, July 28, 2015
BY JASON NORRIS
Uncertainty in Greece and China, along with potential interest rate hikes mean investors are looking at the market and nervously questioning where they should be invested.
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Yesterday, a divided National Labor Relations Board dropped another hammer on the employer community. In a long-awaited and much debated move, the Board jettisoned the decades old standard for determining when two independent businesses should be considered joint employers of an individual worker for collective bargaining purposes.
Transforming the culture of Oregon’s educational leadership.
The Board dismissed a petition related to efforts to unionize the Northwestern University football team.
The Oregon Entrepreneurs Network (OEN) is pleased to announce 16 finalists — from over 60 nominees — for the 2015 OEN Tom Holce Entrepreneurship Awards.
Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.