Following are some of the projects ATW and/or Blake Ashby have been involved with.
- Primary Network Communications
- Helped found BroadSpan Communications, Inc., a startup data-centric competitive phone company. Funded by Primary Network, became Primary Network Communications. Grew to offer DSL and voice service in four states before being acquired by Mpower Communications. Blake Ashby served as first President, then VP, then joined parent company (Primary Network Holdings) as a VP. 1997 to 2000. Worked on everything from funding to regulatory to acquisitions to sale.
- Diamond.Net/Savvis Communications
- Internet Backbone Provider. Startup company founded in St. Louis which popularized the managed network concept. Now one of the largest backbone providers in U.S., after emerging from bankruptcy and the purchase of competitor’s network. Provided startup consulting for six months in early 1996. ATW assisted with preparation of first business plan and financial models, through first significant venture funding.
- Delmar Restaurant and Lounge
- Restaurant and lounge offering Americana-style food and live jazz music. The two principals purchased the location when named “The Grateful Grille.” Principals changed theme and food to jazz lounge, more than doubled revenue. ATW assisted with the business plan, financing and acquisition.
- Mangia Italiano Restaurant
- Restaurant offering Italian. A group of principals purchased an existing restaurant that was almost out of business for health code violations. The principals did a gut rehab on the location, and then re-opened. Revenue more than doubled, and is on pace to eventually triple. ATW assisted with the business plan, financing, acquisition and provided a significant amount of operational consulting over the first nine months of operations.
Unsuccessful Projects
Not everything works. Following is a partial list of some projects that have not succeeded, as well as ATW’s participation and some notes on why the projects did not succeed.
- Posterworld
- Startup company intending to provide digitally manipulated photographs printed as posters, founded in mid-1993. Principal recognized the potential of digital imaging and its eventual consumer applications. The project failed for a number of reasons: the principal had a little bit of bad luck, made a couple of decisions which didn’t turn out right, and as much as anything the concept was just a few years too early. ATW assisted with bank business plan and provided ongoing consulting.
- USDA Further Processor
- USDA wholesale food producer started by two brothers in 1995. Introduced one of the first three-compartment frozen barbecue dinners in the Midwest. Revenue grew from approximately $90,000 in the initial year of operation to approximately $22 million before the company went bankrupt. Company had purchased a competitor with a larger facility doing approximately $13 million in revenue, and was actively pursuing two additional transactions which would have taken revenue to approximately $50 million. While in diligence, the larger of the acquisitions lost its major customer and all of its EBITDA. Company didn’t shut down its acquisition efforts soon enough, and also didn’t pare down the management structure it had in place in anticipation of the acquisition. As a result, the Company burned through its working capital, started buying raw materials on account and saw its costs rise and profit margin disappear. The board lost confidence in the principal and replaced him, but because of a bad capital structure was unable to secure necessary turnaround financing. ATW assisted with numerous business plans, the acquisition plan, and providing ongoing strategic and operational consulting services for almost six years.
- Premier Film and Recording
- Blake Ashby’s first effort as a principal. In 1995 put together a small group to purchase and re-open one of the oldest film and recording studios in the Midwest. Initially opened in 1946, the studio recorded Frankie Lane’s Mule Train, was the location of the studio portion of the Wild Kingdom television series and produced numerous commercials for Anheuser Busch. Gussie Busch introduced Busch beer to the nation in a live broadcast from the facility in the 1950s. After approximately two years of effort, Ashby and group closed the studio. Failed for numerous reasons: principal lacked general business experience; principal lacked specific industry knowledge; under-capitalized, under-estimated capital needs, did not adequately document agreements, and did not anticipate or respond adequately to the challenges of operating in a bad neighborhood.
- SellMeat.com
- Startup electronic exchange for the commodity meat and poultry industry, founded in 2000. Very well-received software and functionality, started generating traffic and a trickle of revenue. However early in process six of the largest meat producers announced they were going to establish their own trade exchange, and funding for SellMeat.com dried up. ATW provided a range of strategic and operational consulting services.
- Softswitch Services Corporation
- The one that got away. Startup telecommunications service company planning to provide softswitch call control services to second- and third-tier local exchange carriers. Would have enabled phone companies to offer a wide range of IP-based phone services, including VOIP and IP Centrex, without requiring the phone companies to develop the in-house skills or infrastructure. Great plan, good principals, initial funding. Headed toward a funding/service relationship with four large independent phone companies when MCI declared bankruptcy in mid 2002, and activity in telecom largely shut down.