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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."
Thursday, May 29, 2014
I was in a rut. A few months ago, I was at my desk trying to come up with cover story ideas for our June “green” issue. But I was stuck on a concept that is a bit too tried and true in the magazine business.
Tuesday, May 27, 2014
Oregon is known for its green-minded citizens, and many workers are attracted to firms and organizations that practice green, not just pay lip service to it.
Thursday, May 29, 2014
BY SOPHIA BENNETT
Tillamook expands its tourism niche.
Tuesday, July 01, 2014
BY HANNAH WALLACE | OB BLOGGER
Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.
Friday, July 18, 2014
BY JASON NORRIS | OB GUEST CONTRIBUTOR
Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”
Thursday, May 29, 2014
The CEO of Axiom EPM, Peri Pierone, and the co-founder of McMenamins, Mike McMenamin, share their recent reads.
Thursday, July 10, 2014
BY TOM COX | OB BLOGGER
Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.
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Vigilant enters a New Year with a new president.
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Forest Grove sees growth in the burgeoning food and beverage scene.
Geffen Mesher is saddened to announce the passing of long-time shareholder, Tom “Mike” Anderson, who died on July 10, 2014, from liver disease diagnosed after recent heart surgery. He was 55 years old.
Fifteen Lane Powell attorneys have been named 2014 “Oregon Super Lawyers,” and another five attorneys have been named as “Oregon Rising Stars” by Super Lawyers magazine.
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