0816_TOEFL-Test-and-Score-Manual-1997

Money Matters ● 89
founded in 2003 by Nesbit and Ruedger Rubbert, a German mechanical
engineer. They worked with a doctor to develop the proprietary technology
and intellectual property needed to launch the company.
From the beginning, Nesbit said she made sure all the major players
in the industry knew who she was and what Lingualcare was all about.
“I made a point of knowing all the big fish,” she said. “I would introduce
myself to people at trade shows. I had relationships with every major
company in my industry.”
With a great product but not a lot of cash to spare, Nesbit said
Lingualcare had to be agile and creative to compete with bigger players. From
the beginning, she and other company executives planned to eventually
sell Lingualcare to a big public or private company. They relied on skilled
financial advisers to make sure the books were in order. That data helped
Nesbit’s team come up with a realistic valuation for the firm.
In 2005, a few years prior to the sale, Nesbit moved the factory operations
to Calexico, Mexico to cut costs. (See Great Idea #184.) In 2006,
Lingualcare was gaining market share and growing. That year, a friend
sent Nesbit a press release announcing the sale of a competitor to 3M for
$97 million.
“I asked myself, ‘How did a company that didn’t have a nickel of revenue
make that deal?’ ” Nesbit recalled. She quickly tracked down the investment
banker who sold the other company and convinced him to meet with her.
They eventually presented the company to eight potential buyers. “We
took bids for the first round and then let the top bidders into our electronic
due diligence room,” recalled Nesbit. She worked closely with the investment
banker throughout the process. “His job was to bring people to the
table. My job was to get them excited.”
In the summer of 2007, four companies went through the due diligence
process. “We took final bids at the end of August. I knew I wanted cash. 3M
wasn’t our highest bidder, but they were willing to pay cash.”
Nesbit declined to disclose the terms of the sale, but said, “I was happy
and everyone else was happy.” The day the deal closed was bittersweet; it
was the same day her divorce was finalized.
She agreed to work for the newly acquired company for about three
years and left in 2010. “I reported to someone who was two levels down
from the CEO,” said Nesbit. “I learned a lot. It’s been a good acquisition.”
(The company is now part of 3M’s Unitek division.)