Success Stories

Apex Information Technologies

Little Canada, Minnesota

Peak Performance

Tonka Bay helps a fast-growing business pursue its long-term growth strategies while providing liquidity and wealth diversification for its founder.

In 1995, Brian Kueppers launched a healthcare statement processing company out of his Minnesota home. Within 15 years, this business had mushroomed into Apex Information Technologies – a business listed as "one of the fastest-growing companies in America" by Inc. Magazine.

Seasoned salesperson Brian Kueppers had a knack for winning new customers, and had lofty aspirations for growth and geographic expansion. But much of his wealth was still tied up in the business. With three young kids and their educational pursuits still ahead, he wanted to realize some of this hard-earned money for his children's future.

Kueppers recognized that pursuing his aggressive growth strategy would require incurring greater risk, which meant the potential loss of the wealth he had accumulated.

Tonka Bay offered the perfect solution to this challenge: a sound recapitalization transaction. In 2007, Tonka Bay purchased a majority equity position to provide both partial shareholder liquidity and capital for growth. Now Kueppers is partnering with Tonka Bay to help him grow the business, while also retaining a meaningful equity stake so he can participate in the value being created. In the process, Kueppers was also able to diversify some of his capital outside of the business.

"Brian had done an excellent job growing Apex into a very successful business," said Tonka Bay Principal and Apex board member Steve Soderling. "Being young and ambitious with a clear vision for taking Apex to the next level, his was a perfect situation for a recapitalization with Tonka Bay."

Apex has been very busy lately. The company has achieved significant recent growth by helping the healthcare market serve an aging population. It has unveiled a state-of-the-art proprietary technology platform to differentiate Apex in the marketplace even further. Tonka Bay and Kueppers have also added a president to the senior management team, along with the addition of two highly experienced independent directors to the board.

"Tonka Bay has been great to work with, and there's tangible proof everywhere that we're moving in the right direction," Kueppers said. "As we've continued to grow Apex, our strategic discussions with the Tonka Bay team have been invaluable. We especially appreciate the insights Tonka Bay can offer based on past experiences with other companies. These are a few of the reasons why Apex has become the nationwide leader in healthcare statement processing."

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