BizTimes Milwaukee | March 8, 2021 by BizTimes Media

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MAR 8 - 28, 2021 » $5.00

TIME TO SELL? COVID and taxes loom over an active M&A market

plus DOWNTOWN HOTELS LOOK AHEAD AFTER BLEAK 2020 14 THE REGION’S BIGGEST M&A DEALS OF THE PAST YEAR 19 MILWAUKEE PUBLIC MUSEUM IS ON THE CLOCK 30

NOTABLES 2021 Keep up with BizTimes’ 2021 roundup of the leaders making a difference throughout southeast Wisconsin. At companies across southeast Wisconsin, notable executives are running businesses, navigating company restructurings, serving on boards, running HR and marketing departments, and investing in growth throughout the region. These notable individuals also mentor, teach and volunteer in their communities. The leaders profiled in these categories are nominated by their peers at work and in the community.

NOTABLE

The accomplished leaders on this list are shaping their own organizations as well as the path forward for leaders in their industry while serving thousands of members and managing millions of dollars.

These are the people behind the people. The unsung heroes on this list are keeping their own organizations running smoothly while shaping their own futures.

CREDIT UNION LEADERS

Nomination deadline: March 12, 2021 Issue date: April 12, 2021

EXECUTIVE ASSISTANTS

Nomination deadline: April 9, 2021 Issue date: May 24, 2021

Nominations open in 2021: Notable Women on Corporate Boards This list recognizes the accomplished women serving on corporate boards or as non-employee senior advisors to public or private companies with a connection to southeastern Wisconsin. Nomination deadline: May 7, 2021 Issue date: June 21, 2021

Notable Women in Insurance The executives on this list are shaping their own organizations as well as the path forward for other women in the industry. Nomination deadline: September 10, 2021 Issue date: October 25, 2021

Notable Women in Education The women profiled here are dedicated to creating and expanding learning opportunities for Wisconsinites of all ages, at all levels and in a host of fields. Their leadership, devotion and example are helping to shape a better future for our region and its people.

Notable Commercial Real Estate Leaders The brokers, directors, investors, developers and finance professionals on this list are among those shaping high-profile commercial real estate in Chicago. Many have brokered deals for and developed the city’s most recognizable properties. Others are helping to steer industry groups that are fostering the next generation of leadership in commercial real estate.

Nomination deadline: June 4, 2021

Nomination deadline: September 24, 2021

Issue date: July 19, 2021

Issue date: November 8, 2021

Notable Marketing Executives Profiling accomplished women steering the marketing functions of their companies and nonprofits, while serving as leaders and role models in their workplaces and community.

Notable Food & Beverage Executives The executives on this list are shaping their own organizations as well as the path forward for others in the food and beverage manufacturing industry, while mentoring the next wave of professionals and finding ways to give back to their communities.

Nomination deadline: July 2, 2021 Issue date: August 16, 2021

Nomination deadline: October 29, 2021 Issue date: December 13, 2021

To view this year’s winners and nominate, visit biztimes.com/notable

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» MAR 8 - 28, 2021

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 26, Number 17, March 8, 2021 – March 28, 2021. BizTimes Milwaukee is published bi-weekly, except monthly in January, February, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $96. Single copy price is $5. Back issues are $8 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2021 by BizTimes Media LLC. All rights reserved.

Contents

TIME TO SELL? COVID and taxes loom over an active M&A market

4 Leading Edge 4 NOW BY THE NUMBERS 5 BEHIND THE SCENES 6 JUMP START 7 IN FOCUS 8 THE FRANCHISEE 9 BIZ TRACKER BIZ POLL ON MY NIGHTSTAND

10 Biz News 10 G ROUPS TOUT DIFFERENT APPROACHES TO ADVANCE STATE’S ENTREPRENEURIAL ECOSYSTEM 12 MY TAKE

14 Real Estate 23 Strategies 23 INNOVATION Dan Steininger 24 CAREER Cary Silverstein 25 LEADERSHIP Jerry Jendusa 26 TIP SHEET

COVER STORY

29 Biz Connections 29 NONPROFIT 30 G LANCE AT YESTERYEAR COMMENTARY 31 5 MINUTES WITH… DAVID KLAVSONS

Special Report

16 Mergers and Acquisitions In addition to the cover story, coverage includes a look at the most significant M&A deals for southeastern Wisconsin companies during the past 12 months.

SECU REF U TU RES

ST. COLET TA OF WI SC ONSI N

PHONE: (414) 273-8108 WEB: securefutures.org

PHONE: (920) 674-4330 WEB: stcolettawi.org

Inspired by the Franciscan Values of compassion, dignity and respect, we support persons with developmental and other challenges to achieve their highest quality of life, personal growth and spiritual awareness.

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Leading Edge

BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe

NOW

Spirit Airlines to launch service at MKE By Brandon Anderegg, staff writer

BY THE NUMBERS

The cost for a new Milwaukee Public Museum is estimated at

240 MILLION

including site purchase, transition costs, endowment costs, collection moving costs and space for Betty Brinn Children’s Museum. 4 / BizTimes Milwaukee MARCH 8, 2021

Spirit Airlines will offer nonstop daily flights from Milwaukee to Orlando, Las Vegas and Los Angeles this summer, the air carrier announced recently at Milwaukee Mitchell International Airport. The airline will be the only air carrier in Milwaukee serving nonstop flights to Los Angeles. Flights to all three destinations will begin June 24 with airfare starting at $69. “Spirit’s legendary low fares will make it more affordable for people from all walks of life to fly to and from Milwaukee,” said Brian Dranzik, Milwaukee Mitchell International Airport director. Las Vegas and Orlando are Spirit’s largest hubs, which means Wisconsin travelers will also have access to several parts of the U.S. and other countries. “It’s a win-win because our Badger State guests will get to enjoy convenient non-stop service to popular destinations and Spirit frequent fliers can experience Milwaukee’s great festivals and sports scene and enjoy fun outdoor activities just in time for summer,” said John Kirby, Spirit vice president of network planning. The airline operates an all-Airbus fleet of about 145 single-aisle aircraft in the A320 family, which carry between 148 and 228 passengers depending on the model. The ultra-low-cost carrier oper-

ates more than 600 daily flights between major U.S. cities and vacation spots in South Florida, the Caribbean and Latin America, serving more than 75 destinations. Spirit also announced that it will add Muhammad Ali International Airport in Louisville, Kentucky to its route map with nonstop daily service to four cities including Fort Lauderdale, Orlando, Las Vegas and Los Angeles. Offering flights from both Milwaukee and Louisville is part of a broader strategy for Spirit to increase its market share, a measure the airline plans to roll out in phases, said Spirit Airlines regional director Atul Kumria. “We see a great opportunity,” Kumria said. “We already see the level of confidence of traveling guests has gone up with the (COVID-19) vaccine already out and we see that happening in our bookings.” Spirit will be the eighth passenger airline serving Milwaukee Mitchell International Airport. The others are Air Canada, Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, Southwest Airlines and United Airlines. Passenger traffic at Mitchell International fell 61.9% in 2020, due to the COVID-19 pandemic, to 2.6 million passengers, down from nearly 6.9 million passengers in 2019. n

BEHIND THE SCENES ANDREW FELLER PHOTOGRAPHY

Friday fish fry at Kegel’s Inn By Lauren Anderson, staff writer

or Kegel’s Inn in West Allis, serving up fish fry on Fridays during Lent is a well-established tradition. And during the COVID-19 pandemic, it’s proven to be a lifeline, providing one of a few profitable seasons for the 95-year-old German restaurant. “Fish fry has been monumental to the whole life of the business,” said Julian Kegel, a fourth-generation owner of Kegel’s Inn. “It’s the one time of the year we can count on keeping staff on and hiring extra people and making sure the business flourishes.” In what ended up being fortuitous timing, Kegel’s Inn transitioned from an analog system to a point-of-sale system in November 2019, allowing the restaurant to offer a drive-thru option in time for Lent 2020. On Good Friday, the restaurant served up about 1,300 drive-thru fish fry orders, which was more than double its dine-in business in a typical year. Kegel said he expects similar demand this year. n

Breading begins at 9 a.m. on Fridays. Drive-thru customers begin arriving at 11 a.m.

Stephanie Pipke breads a batch of fish. Kegel’s Inn expects at least 500 fish fry orders on Fridays during Lent, .

Wyatt Jones fries a batch of cod.

A to-go fish fry order, which is served with French fries, rye bread, homemade coleslaw, haus tarter and lemon.

Stephanie Kegel serves up to-go fish fry orders.

biztimes.com / 5

Leading Edge

LOCATION: New Berlin with national network of machining partners

ANDREW FELLER PHOTOGRAPHY

PRODx

@BIZTIMESMEDIA – Real-time news

FOUNDER: Bill Berrien FOUNDED: 2021 SERVICE: Production-volume expedited parts machining WEBSITE: prodx.tech GOAL: Build the world’s most valuable manufacturing network EXPERIENCE: Berrien has owned Pindel Global Precision since 2012.

Bill Berrien

With PRODx, Bill Berrien wants to build ‘the world’s most valuable manufacturing network’ By Arthur Thomas, staff writer

6 / BizTimes Milwaukee MARCH 8, 2021

PINDEL GLOBAL PRECISION entered 2020 making no ventilator parts for its customers. The New Berlin-based precision machining manufacturer exited the year having made thousands of parts for five customers. Bill Berrien, chief executive officer of Pindel, and his team were among the companies that moved quickly as the COVID-19 pandemic hit to find a way to contribute. The experience led Berrien to start a new venture in addition to Pindel called PRODx, short for Production Expediting Technologies. The idea behind PRODx is fairly simple. Buyers at larger manufacturers will turn to PRODx when they run into issues with their existing supply chains. PRODx will then take the order to a network of machining companies, ask them to quote it and then return it to the buyer, ideally fulfilling what Berrien describes as the buyer’s “hair-on-fire” need. “There is actually an incredible amount of excess capacity across these machine shops and when you really dive into the numbers and the true levels of utilization, there is a ton there,” Berrien said. On the surface, it would seem Berrien might be better off replicating his 2020 experience as

these opportunities come up by fulfilling them at Pindel. He acknowledged that might be the better short-term play, but he’s more interested in the potential long-term benefit. “There’s a scalability aspect to it,” he said, noting that the PRODx markup from the network partner provides an attractive margin as well. PRODx launched with a half-dozen manufacturers from around the country that Berrien is familiar with and has another dozen identified for future growth. The pitch is that the company will have an opportunity to use excess capacity, see a breakdown of PRODx revenue from an order, and will get full access to the buyer’s purchase order and the opportunity to pursue their own business development when the project is done. Berrien hopes sharing best practices and innovation will help eventually grow the network into “the world’s most valuable manufacturing network.” “It might be a little too ambitious, but why not think big?” he said. Berrien discussed his plans in more detail on a recent BizTimes MKE Podcast episode. Hear more at biztimes.com/podcast n

inf cus

MILWAUKEE DOWNTOWN BID #21

Downtown ice sculptures FEBRUARY’S STRETCH of near-subzero temperatures was a welcome sight for Art Below Zero, especially following months, and hundreds of thousands of dollars’ worth, of business lost to the COVID-19 pandemic. “The whole year got completely canceled with no gatherings,” said Max Zuleta, master carver and co-owner of Art Below Zero. Since 2004, the Franksville-based ice sculpting company has built a reputation for its elaborate 20-ton ice bars and life-size ice creations, which are custom made for weddings, corporate events, holiday parties and outdoor winter festivals throughout the region and across the country. Milwaukee Downtown BID #21 earlier this year came through with a sizable order: a series of three winter- and Valentine’s Day-themed sculptures, created from 24 ice blocks, weighing 3.6 tons. Displayed at three high-traffic spots along North Water Street and in the Historic Third Ward, the installation was a COVID-safe winter attraction for locals and visitors alike. “Ice sculptures are an excellent way for cities to raise the morale of people,” said Zuleta. “It’s been very rewarding when we’re downtown and we see people looking at the sculptures and leaving their car to take a photo. They jump right back in (their cars on cold days) but there are still lots of people driving around and enjoying the sculptures.” n — Maredithe Meyer biztimes.com / 7

Leading Edge

the

FRAN C H I S E E Huhn and Gawlitta

ROBERT HUHN AND HEATHER GAWLITTA CHEBA HUT THE FRANCHISE: Fort Collins, Colorado-based Cheba Hut is a marijuana-themed fast-casual restaurant chain known for its made-to-order toasted sub sandwiches, “munchies,” and full bar at most locations. Founded in 1998 by Scott Jennings, the company has expanded to about 40 locations in 14 states. It entered the Wisconsin market in 2013 with a location in Madison.

“Cheba Hut had responded quite quickly to make sure that they had a good app for customers to go to, but they also partnered with DoorDash for deliveries and that has helped them exponentially,” said Gawlitta, of how the restaurant chain has navigated COVID-19.

“The whole area fits that culture of the Cheba Hut restaurant. … There’s a lot of that chill culture. Our real estate broker, who lives in that area and has been working with retail real estate for over 30 years, considered this one of three areas that this would fit well,” said Huhn.

AUGUST 2020: Heather Gawlitta and Robert “RC” Huhn were on the hunt for the right business opportunity when Huhn received an email from Cheba Hut soliciting franchisees. He and Gawlitta did some research, including a drive to Cheba Hut’s Madison location to give the food a taste. OCTOBER 2020 : The couple traveled to Fort Collins, where they met with company leaders at Cheba Hut’s corporate HQ and toured some recently opened locations. Within a week, the couple signed a three-unit franchise deal covering the Milwaukee area. DECEMBER 2020: Gawlitta and Huhn signed a lease for a 3,500-square-foot space on Milwaukee’s East Side. Out of several potential sites, this one on a busy corner stood out because of the surrounding neighborhood, proximity to UW-Milwaukee, and adjacent parking lot. MAY 2021: Milwaukee’s first Cheba Hut will open for business at 2907 N. Oakland Ave. Gawlitta and Huhn have plans for a swift expansion. They expect to launch a second location in the first half of 2022, with the goal of opening a third by the end of that year. THE FRANCHISE FEE The initial fee to open a Cheba Hut franchise location is $99,000.

8 / BizTimes Milwaukee MARCH 8, 2021

“We were intrigued by the fact that it’s not only a restaurant, but it’s a fast-casual restaurant with a really great vibe and high emphasis on how important your staff is,” said Gawlitta.

Cheba Hut will open at a former Blaze Pizza space on the corner of North Oakland Avenue and East Locust Street.

BIZ POLL The latest area economic data.

A recent survey of BizTimes.com readers.

Should the minimum wage in the United States be increased to $15 per hour?

The Milwaukee-area manufacturing index for February was

61.07

YES:

NO:

20.7%

79.3%

When the index is above 50, that indicates growth.

61.9%

Passenger traffic at Mitchell International fell

in 2020, due to the COVID-19 pandemic, to 2.6 million passengers, down from nearly 6.9 million passengers in 2019.

8.8%

Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll.

Home sales in southeastern Wisconsin were up

on my nightstand...

year-over-year, to 1,590, according to the Greater Milwaukee Association of Realtors.

GUS MARTINEZ

5.4%

Wisconsin companies exported $20.5 billion in goods in 2020, a

drop from the prior year and the lowest annual total since 2010.

10.2%

In 2020, 264,000 workers in Wisconsin,

of the workforce, were represented by unions, the highest level since 2014, according to the U.S. Bureau of Labor Statistics.

COURTESY OF BEACON PRESS

Founder GSM Consulting

“White Fragility: Why It’s So Hard for White People to Talk About Racism” By Robin DiAngelo

GUS MARTINEZ, founder of Milwaukee-based GSM Consulting LLC, has no shortage of new books and podcasts on deck, but currently he is re-reading “White Fragility: Why It’s So Hard for White People to Talk About Racism” by Robin DiAngelo. The 2018 New York Times best seller explores modern-day race relations in the U.S. by focusing on the discomfort and “counterproductive reactions” that many white people experience when their assumptions about race are challenged. DiAngelo, a white woman, argues that this

pattern of defensive behavior often inadvertently reinforces systemic racism, racial inequality and prevents meaningful cross-racial dialogue. “I love the book because it tackles the elephant in the room that diversity can be uncomfortable, but that we must be aware of and proactive about our behaviors,” he said. Martinez believes discussions on racial diversity and equality are more crucial than ever. “It is important to educate ourselves and advance these conversations so that we are part of the solution, not the problem,” he said. n biztimes.com / 9

BizNews FEATURE

Cordio

Still

Sikes

Chapman

Wisconsin Startup Coalition, Tech Council tout their different approaches to advancing state’s entrepreneurial ecosystem By Brandon Anderegg, staff writer TWO TECH-ORIENTED groups were quick to endorse Gov. Tony Evers’ plan for a $100 million state-backed venture capital fund when he first pitched the proposal in February. One was the Wisconsin Technology Council, which has been the state’s leading voice on startup policy for more than 20 years. The other was the Wisconsin Startup Coalition, a group formed last year that is focused on advocating for entrepreneurs and the state’s early-stage ecosystem. Both groups applauded Evers’ proposal to create a fund of funds venture capital program to support Wisconsin-based startups, saying it would make the state more competitive among its neighbors, who have historically outpaced the state in a variety of metrics, including deal flow and secured investments. While both organizations want to see increased VC and startup activity in the state, each says it takes a distinct approach in doing so. WSC is a nonprofit advocacy organization founded by Matt Cordio, who is a co-founder of Skills Pipeline and Startup Milwaukee, 10 / BizTimes Milwaukee MARCH 8, 2021

and Peter Welch, chief operating officer of Madison-based government relations firm The Welch Group. The Wisconsin Technology Council is a nonprofit member organization formed in 2001 to be a policy advisor to the governor, the Legislature and related state agencies and an educational and networking resource for entrepreneurs and high-growth firms. Over the past two decades, the Tech Council has put its support behind Wisconsin’s investor tax credits program (Act 255) and the creation of the Badger Fund of Funds, a state-backed venture capital fund; organized state-wide programming like the Wisconsin Entrepreneurs’ Conference; and published the Wisconsin Portfolio to chart venture investment in the state and produced other publications. Wisconsin startup leaders also give the Tech Council credit for influencing the new $100 million fund of funds proposal and other entrepreneur-friendly aspects of the governor’s recent budget proposal. Since November, WSC has grown to include more than 60

members, about 70% of whom are startup founders, Cordio said. His goal is to double the number of annual first fundings over the next five years in Wisconsin. It was 52 in 2019, up from 32 in 2018. WSC is proposing policy recommendations that focus on access to capital and talent. At this point, its recommendations are generally broad, such as incentivizing early-stage investment by increasing the state Qualified New Business Venture Program’s 25% tax credit and working with the Department of Workforce Development on programming to address shortages in the highskilled technology workforce. One clear initiative: WSC came out of the gate lobbying state legislators to support bills that would prevent small businesses from having to pay millions in state income tax liability on Paycheck Protection Program loans, despite those loans being tax-free at the federal level. Wisconsin’s policy environment and startup ecosystem “hasn’t really seen change” in the past three decades, said Cordio, pointing to the state’s persistent lack of

venture capital. WSC’s success in recruiting startup representatives as members indicates they want their voices to be amplified, he added. “We have dozens of startup founders and if you look at who’s engaged in the Tech Council, I think our membership doesn’t really overlap,” Cordio said. “If you look at our board and who’s on theirs, it’s a very different group of people.” WSC’s board members include founders of startups such as Fiveable, FrontDesk and gener8tor. The Tech Council’s 50-plus member board includes executives from large legacy companies such as GE Healthcare, Rockwell Automation and AT&T, and representatives of universities, venture funds and economic development groups. While Cordio believes both organizations are beneficial to the state’s overall ecosystem, WSC’s niche is to advocate for the interests of startup founders and investor groups, whereas the Tech Council focuses on a broader portfolio of issues, he said. “We’re not competing against another organization. We’re competing against the status quo of what’s happening to support entrepreneurs and innovators in Wisconsin,” Cordio said. Tech Council president Tom Still agrees Wisconsin needs more venture capital, especially for maturing companies raising Series A funding to scale and grow. He and former Tech Council chairwoman Toni Sikes, who is the co-founder and CEO of Madison-based CODAworx, say the proposed $100 million VC fund would help close the gap. The culture and business climate of the state in the early 2000s led to a slow start for Wisconsin’s startup ecosystem relative to its neighbors, Still said, adding that the state did not recognize the benefits of young companies and their ability to produce jobs at the time. The state’s Legislature has historically been cautious in its financial support of startups,

which has also contributed to the sector’s relative lag, Sikes said. However, the Tech Caucus, a new informal committee of the Legislature created to keep lawmakers apprised of tech economy trends, is evidence that Wisconsin’s culture is changing, said Sikes. “I think the $100 million (VC fund) is recognition that we need to play catch-up and I’m super excited about it and I think it’ll make a big difference,” Sikes said. “But I do have some frustration and I know the Tech Council has been out there working hard to change the climate for a long time and it’s finally happening.” Still also believes there is value to the Tech Council having a large board composed of various stakeholders, which can help establish balance even when there may be conflicting interests, he said. “We’re called Wisconsin Tech-

nology Council for a reason,” Still said. “It’s meant to be an organization that can help from the startup level on up to much more mature levels.” Wisconsin startup companies raised a record $454 million in venture capital in 2019 while a five-year rolling average of venture dollars raised in the state shows a 68% increase since 2015. Madison-based venture firm HealthX Ventures also closed its second fund last month, raising $55.55 million with 99 investors, one of several indicators that Wisconsin’s investor capacity is growing, Still said. While these metrics show progress, the state still lags in measures of high-growth businesses. Wisconsin has less than 1% of all U.S. venture capital, which is widely considered to be an indicator of a high-growth ecosystem. There were 24 technology

IPOs in the U.S. in 2020; Wisconsin had none of them, according to Crunchbase. Meanwhile, experts say more than just policy changes are needed to boost the sector. Wisconsin’s biggest issue is a lack of support for entrepreneurs on the front-end, said Tom Chapman, an ecosystem building consultant with Omaha-based Chapman & Company who has worked with individual entrepreneurs and organizations within Wisconsin’s startup sector. Having additional voices that advocate for startup growth is positive, Chapman said. However, it’s difficult for an organization the size of the Tech Council to effectively advocate for the entire ecosystem, while policy recommendations, WSC’s sole focus, are not nearly as impactful as figuring out what’s keeping entrepreneurs from turning their side-hustle into

a full-time company, he said. “Wisconsin has a lot of noise from their nonprofits and service organizations that does not always manifest in support for businesses,” Chapman said. “There’s a lot more in-fighting in conversations across all of Wisconsin … about how to do this better or that better and it feels like they call me rather than talking to entrepreneurs.” Encouraging entrepreneurship at a young age and reinforcing entrepreneurship as a path to generational wealth, whether it be starting a Main Street or a high-growth business, would have a more immediate and long-term impact on the ecosystem than changes in policy, Chapman added. “I think there is a perception within government that doing what these organizations want is going to fix the underlying problem of startups,” he said. “The answer is it will not.” n

Keeping Our Communities Strong As Wisconsin’s largest family-owned financial services company, we’re proud of the legacy we’ve built, serving families and businesses in Wisconsin for the past 50 years. At Johnson Financial Group, we’re committed to investing in the health, well-being and success of our associates, our customers and our local communities - today, tomorrow and for generations to come.

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biztimes.com / 11

BizNews

MY TA K E AFTER Wednesday, GL BALIZATION March 10 PREPARING FOR LIFE

9:00AM -10:30 AM | Virtual

Should recreational marijuana be legalized in Wisconsin?

In his biennial budget plan, Gov. Tony Evers included a proposal to legalize recreational marijuana use in Wisconsin. However, Republicans like state Sen. Chris Kapenga oppose the idea and have the majority in the Legislature. n

MMAC welcomes bestselling author and geopolitical strategist Peter Zeihan. $60 Member/$80 Non-member - See additional pricing at MMAC.ORG 2021 Platinum Sponsors:

2021 Media Partner:

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April 12, 2021 Space Reservation: March 24, 2021 Contact Linda Crawford today! Phone: 414.336.7112 Email: advertise@biztimes.com 12 / BizTimes Milwaukee MARCH 8, 2021

“Legalizing and taxing marijuana in Wisconsin—just like we do already with alcohol—ensures a controlled market and safe product are available for both recreational and medicinal users and can open the door for countless opportunities for us to reinvest in our communities and create a more equitable state.”

“The governor is adamant we follow science when it comes to COVID-19 but turns a blind eye when it comes to legalizing a drug that has no FDA approval, which all other medicines are subject to. What happened to the honorable goal of keeping the people of Wisconsin and our kids safe?”

DECRIMINALIZE “I’m particularly tired of seeing our tax dollars going across the border to northern Michigan or Illinois to go buy marijuana. I think the time has come. I hope the Legislature will agree with us.”

“The National Academy of Medicine points to a significant correlation between marijuana and psychosis, schizophrenia and other psychotic disorders, particularly in teenagers where the risk of developing schizophrenia increases three-fold.”

FULL LEGALIZATION “Frankly, red and blue states across the country have moved forward with legalization and there is no reason Wisconsin should be left behind when we know it’s supported by a majority of Wisconsinites.”

“The legalization of recreational marijuana is not in the best interest of Wisconsinites. There are serious health issues that need to be understood, and Gov. Evers shouldn’t sacrifice the safety of the people of Wisconsin – particularly our children – in pursuit of the mighty dollar.”

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Real Estate

Downtown Milwaukee hotels hope for brighter future after bleak 2020

LIKE MOST everywhere else, downtown Milwaukee’s hotels had a rough go of it in 2020 — a year plagued by a global pandemic that for a time virtually shut down the market. But industry leaders say there are indicators that things will im-

A rendering of the planned Hotel Third Ward, which is one of the downtown-area hotels that’s been proposed in the midst of the COVID-19 pandemic.

prove this year and beyond. Colin Walsh, general manager of the 481-room downtown Hyatt Regency Milwaukee hotel and president of the Greater Milwaukee Hotel & Lodging Association, recalled that things took a turn for the worse on March 13, 2020. It was Friday the 13th. While many in the industry lost their jobs in the wake of the pandemic, he said there’s hope now that more people will regain employment due to numerous positive developments. They include the COVID-19 vaccine rollout, the hoped-for return of festivals and spectators at sporting events and the further easing of restrictions on group gatherings by the city. “It really was about survival in 2020,” Walsh said. “And as we start looking ahead to 2021, we start to see signs of life.” A review of market data, provided by Hendersonville, Tennessee-based STR Inc., shows downtown hotel occupancy was down 55% year-over-year in 2020. The worst month for occupancy was April, when it performed

FEATURED DEAL: E A S T S I D E W H O L E FOODS STORE The Whole Foods store on Milwaukee’s East Side has changed hands twice in the past five years, most recently selling for $23.5 million to a California-based real estate investment firm. It sold for $1.3 million more than when the seller first acquired the space more than four years ago in December 2016. Adam Connor of Colliers International | Wisconsin, who represented the seller in the deal, said the gain in value was a reflection of the ongoing COVID-19 pandemic. He added that limited retail construction should continue to drive up pricing in the market. “Demand for well-located, net lease assets remains strong as investors are focusing their money on essential businesses,” Connor said. ADDRESS: 2305 N. Prospect Ave. BUYER: ExchangeRight SELLERS: WACO LLC, WACO Santa Ana LLC SIZE: 58,375 square feet 14 / BizTimes Milwaukee MARCH 8, 2021

HARLOW & HEM

83.4% worse than the same month in 2019. And that’s despite a 30.7% drop in supply from the prior year as some hotels were closed temporarily. “It was a dismal year,” said Greg Hanis, hotel industry analyst and president of New Berlin-based Hospitality Marketers International Inc. But some positive trends arose as the year dragged on, Hanis said. Occupancy numbers generally improved with each passing month after hitting a low point in April. By December, there was a slight gain in hotel room supply compared to the same month of 2019. The 0.4% bump comes in part from the opening of three new hotels, totaling 331 rooms, southwest of East Michigan and North Jefferson streets. And demand for the downtown hotel market, though consistently down year-over-year, generally improved as the year went on. There was a drop-off come winter, but that’s expected given the shift in seasons. “There are some signs of positive performance, but you have to kind of read between the lines to see them,” Hanis said. Walsh said his hotel is seeing growth in interest from guests and event planners in booking rooms. Leisure travelers in particular are starting to book rooms, he said. “I think folks are starting to feel a little more confident in the situation as the (COVID-19) cases drop, and thankfully they have dropped,” Walsh said. City health officials recently started allowing up to 250 people in conference spaces and potentially more if hotels have an approved safety plan. Walsh said the Hyatt expects to start benefiting from larger groups in the summer and fall months. But it will likely be a while before the market sees the massive convention crowds again. Walsh said meeting planners will likely stick to a hybrid model for some time, in which some convention-goers gather in the same location while others tune in virtually.

Hotel developers are clearly in good spirits as well, given the number of new hotels at various stages of development in downtown and the adjacent Historic Third Ward. They include a 230-room Marriott Autograph Collection hotel in the Bucks’ Deer District; 155-room Tempo by Hilton hotel at the nearby Journal Square block; 32-room Kinn MKE Guesthouse at 600 N. Broadway; The Adams Hotel at 790 N. Jackson St., which will contain 11 rooms in its first phase, according to city records; and the Hotel Third Ward, a 102-room Marriott Tribute Portfolio brand hotel that would be part historic renovation of the Hoffco building and part new construction, located at 125 N. Water St. Developers justify these projects saying that by the time they’re built, the market should have at least partially recovered. But the sheer number of ongoing projects in the downtown area has Hanis scratching his head. “As an industry consultant, who (has done) for nearly 40 years market feasibility research for new hotels, I have to ask why and what (the developers) are seeing,” Hanis said. “In general, they say that by the time they open, the COVID pandemic should be behind us and people will be traveling again. But this may be very premature.” n

CONCEPT DESIGN

HARLOW + HEM The Wauwatosa Community Development Authority is working with Mandel Group Inc. to redevelop the city-owned Blanchard Street parking lot, located northeast of Blanchard Street and Wauwatosa Avenue. Mandel is planning to construct the 95-unit Harlow & Hem project there. The CDA selected Mandel’s proposal for the site over three others in February. Before acquiring the property and starting construction, Mandel will need to negotiate terms of the sale with the CDA. The term sheet and rezoning will need approval from various city bodies, including the Common Council. A preliminary development schedule anticipates a December groundbreaking, with an 18-month construction schedule. 7

DEVELOPER: Mandel Group Inc. SIZE: 95 units COST: Over $25 million (estimate)

TELLING YOUR STORY

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biztimes.com / 15

STORY COVER

TIME TO SELL? COVID and taxes loom over an active M&A market By Arthur Thomas, staff writer

YOU’D BE FORGIVEN for thinking the mergers and acquisitions market would be upset by the past year of uncertainty, that the prospect of selling your business in this environment might be daunting and any plans you had to exit would have to be delayed. But many M&A industry experts say the market is strong and conditions favorable for owners considering a sale of their business. “Valuations have definitely not come down, which I think people were assuming would happen,” said Cheryl Aschenbrener, partner and national leader of transaction advisory services for Illinois-based Sikich. “It peaked a lot of potential 16 / BizTimes Milwaukee MARCH 8, 2021

s ellers’ interest,” she added. “Busy isn’t even the word. We’re on warped speed.” “We’re back to the seller’s market we had pre-COVID,” said Ann Hanna, managing director and founder of Milwaukee-based investment bank Taureau Group. “My phone is ringing as much as ever with people wanting to sell their companies,” said John Emory Jr., president of Milwaukee-based investment bank Emory & Co. “We’re busting at the seams signing up transactions for 2021,” said Tim Oleszczuk, managing director of Milwaukee-based investment bank TKO Miller. “I’m really optimistic that 2021 is going to be a really nice year from a deal flow standpoint,” said Sequoya Borgman, managing director of Milwaukee-based private equity firm Borgman Capital. There’s even potential for activity to increase in the coming months.

“Once people get a feeling that their value won’t be greatly impacted by a couple-of-quarter drop, I think you’re going to see this year and next year people saying … ‘now’s a good time to come out,’” said Paul Stewart, co-founder of Milwaukee private equity firm PS Capital Partners. For business owners thinking of selling their company, or perhaps looking to buy one, the obvious question seems to be why is the market primed for so much activity? The next question might be how long will this last? The simplest explanation for “why” is money – as in, buyers have it and are willing to spend it. Combined private equity and corporations have trillions of dollars in capital they are looking to deploy. Stewart said the collection of capital in private equity is driven by how money is allocated at major gathering points like pension funds, life insurance companies and endowments. “Those are big pockets of capital out there and they play a diversified strategy for driving returns for the overall management of the capital they have,” he said. For those looking to balance their invest-

ments, private equity offers an alternative investment to use along with bonds and the public stock market, Stewart said, adding that some pension funds are also overweighting in private equity in hopes that higher returns will help them meet anticipated shortfalls. Corporations and other strategic buyers are also well positioned with executives, owners and boards showing increasing confidence, said Robert Jansen, managing director of Milwaukee-based investment bank Bridgewood Advisors. “That translates to greater emphasis on making strategic acquisitions, which also drives significant activity,” he said, noting a variety of reasons, from geographic expansion to diversification to new technologies driving corporate acquisition appetites. There’s also a growing hybrid approach where private equity-backed companies are now looking to do acquisitions of their own to help them grow. And not all deals need to be funded with cash given the current low interest rate environment. Hanna said debt markets are “very cooperative,” and Borgman said banks are stronger than they were after the Great Recession. Sellers are also contributing to what many expect to be an active year. For starters, there is pent-up supply as companies that considered selling in 2020 return to the market this year having weathered the COVID storm. “It’s generally known that it’s a good market. … Values are about as high as we’ve seen them, so sellers (are) understanding that there’s a lot of demand in the market. We believe they’re going to choose to come to market now versus three years from now,” Hanna said. Jansen said his buy-side clients are drawing a different response when approaching businesses that are not necessarily for sale. “What we’re finding is the motivation of that business owner and interest in at least entertaining a conversation is greater than it was a year ago,” he said. The profile of a typical seller has changed over the past five to seven years, Oleszczuk said. In the past, sellers were founders or owners in their early 60s and looking ahead to retirement. Now, more sellers are coming to market in their late 40s or early 50s. “A lot of them are not thinking about their business as their legacy but maybe the value of their business as their legacy,” Oleszczuk said. The COVID-19 pandemic has accelerated the trend and pushed more people to think about selling in general. “It’s caused people that never really think about selling their business to start having discussions,” Oleszczuk said. A year ago, of course, the market was just entering the COVID-19 pandemic and most M&A activity ground to a halt. Tom Kintis, president of Pewaukee-based CGK M&A Advisors, figured he would be taking the summer off after COVID hit, but 2020 ended up as a record year for him. Hanna said after being down significantly in

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the second quarter, the M&A market bounced back in the TO M K INTIS second half of the year. Ultimately, deal value was down about 21%, and deal count declined 5% from 2019 levels, she said. “The deals that got done were generally premium, high-quality deals. They were strategically motivated, they were in industries that were not negatively impacted by COVID or they were in industries that had a quick or clear path to recovery,” Hanna said. Aschenbrener said one benefit is that COVID helped shine a light on companies, highlighting strengths and weaknesses that may not have been obvious otherwise. Some changes or issues may be permanent while others are temporary. “All you can do is ask the questions and try to figure out what that forever change is,” she said. “The best thing you have to go on still is history.” Emory said for many industries it is “pretty clear” if they are doing well despite the pandemic. “Buyers are comfortable paying big prices for companies that are expected to benefit from the

changes to the economy,” he said. COVID-19 did throw a wrench into the financials of many companies, with massive fluctuations in at least one quarter of the past 12 months. The question is: How should those financials be normalized for the purpose of valuing the business? One option is to substitute 2019’s second quarter for the same time in 2020 when the economy was shut down, Stewart said. Or a company could use its planned 2020 performance if executives can demonstrate the validity of that plan and a track record of delivering. “There’s a couple of ways to piece together the logic flow for what is sort of the normalized earnings of (2020),” Stewart said, noting that private equity wants to get comfortable with the logic and identify systemic changes to the business. “Buyers are really looking to see where the company is trending to get a better understanding of value,” Hanna said. A business’ experience with COVID and 2020 generally falls into one of several buckets, Oleszczuk said. Some were beneficiaries because they made personal protective equipment or an in-demand product for consumers stuck at home. Owners of these businesses may be thinking they can capture a premium for their company as they come off a record year. Oleszczuk said that is possible, but the window may close if the pandemic is brought under control. Those with little or no impact from COVID-19 make up a second group and can benefit by going to market without a major swing or question mark in their operations, taking a risk factor out for buyers. Companies hit hard by COVID fall into two other groups. Those seeing some return in their business might be looking to get out after surviving a stressful year. Oleszczuk said that with a good strategy and the ability to quantify what happened during 2020, sellers can still capture a similar value to what they would have seen pre-pandemic. “Buyers are fairly forgiving,” he said, cautioning they will still look at a business closely. That leaves the final group, those hit hard by COVID with no expectation the business will return to normal levels. “They’re kind of facing the grim reality of ‘maybe I should have thought about diversifying some of my wealth or selling my business earlier,’” Oleszczuk said. The plight of these business owners is not just on the minds of those hit hard during the pandemic. “Frankly, that type of impact is what we’re seeing filter through all these business owners,” he added. After last year, business owners do not need a reminder of how quickly the economy and world events can change. Still, most signs seem to point to the strong M&A market continuing. “If I were to have a crystal ball, I’d predict the market is going to stay strong for a couple of years,” Hanna said. “If anything, all the factors that we’ve been seeing pre-COVID for many years, in many biztimes.com / 17

STORY COVER ways, several of those factors are even better now,” Jansen said. An economic downturn or an increase in the cost of money could dampen the market, and Hanna pointed out that while things seem good, “no one anticipated a worldwide pandemic.” “Things can change so quickly and by the time they’re changing it’s too late,” she said. There is one looming factor that may alter the M&A market this year. During the election, President Joe Biden campaigned on increasing the capital gains tax rate from 20% to 39.6% on those making more than $1 million annually. The change would mean business owners need to sell their company for a lot more just to see the same proceeds. Some deals pushed to close in the final months of 2020 to avoid the possibility of the tax increase being applied retroactively, Kintis said. What’s unclear, however, is if or when the tax increase might come up in Congress and how it would be structured. It seems unlikely it would be applied retroactively to the start of 2021, but an increase for 2022 is possible, Oleszczuk said. How the increase takes place – all at once or in multiple steps over a few years – could also shape how it plays out in the market, according to Stewart.

“It’s not going to change someone who says ‘I’m going to work for another five years, no matter what,’” he said. “But if someone is thinking ‘should I go now or should I wait another couple years?’ That may be enough of a motivator to make them move.” For owners thinking about selling, closing a deal just after taxes increase would be far from ideal, but rushing to get a transaction done before a hike kicks in could also cause problems. There are, however, several steps a seller can take to prepare for a potential sale. Aschenbrener compared the process to painting or improving landscaping before selling a house, advising owners to address potential skeletons early and clean up books and machinery. Limiting potential issues will help the process. “Time kills all deals,” she said. Borgman pointed out that unlike selling a house, selling a business can be a long process. “You have to start thinking about it years before you actually sell the business,” he said. Hanna said sellers should start formulating answers to questions about the business’ performance during COVID and opportunities for growth. “Any buyer is going to want to come in and understand ‘where are my growth opportunities,” she said, suggesting an owner identify the top five

things they would pursue if they were continuing in the business another 20 years. Emory said it may be worth investing in higher quality financial statements and to keep better records generally. In addition to de-emphasizing the owner’s daily role, he suggested strengthening the next level of managers and considering noncompetition agreements that a buyer might seek from key employees. He also said it is important to continue running the business as normal and to not skimp on capital expenditures, albeit with a caveat: “Be thoughtful about whether you make a big capital investment with a long-term payoff because you might not get that back in the purchase right away.” Oleszczuk said that whether a sale is in an owner’s plans for the next several years or they haven’t considered selling, they should at least give it some thought now given the current market. “You can’t always control what is going on in the marketplace and so the time when you think it’s best to sell might not be what the market thinks,” he said, noting a business doesn’t have to hit the exact peak and it may be better to be a little early rather than a little late. “Now is certainly as good a time as any and it may not be as good a time as any in the next three to five years.” n

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*Vistage CEO member companies who joined in 2006-2008 and were active members in Feb, 2010. CAGR for Vistage member companies calculated for period covering year prior to joining Vistage through 2009. CAGR for D&B U.S. companies based on 2005-2009 revenues, weighted to match Vistage company distribution per year during same period. All companies had >=$1M annual revenue, >=5 employees. Vistage: 1,265 companies. D&B: approximately 1M U.S. companies.

Special Report M&A BIG DEALS lion in cash, which also helped the company expand its cancer screening capabilities. The deal was completed in the fourth quarter of 2020. The multi-billion-dollar investments came a year after Exact Sciences paid $2.8 billion in cash and stock to acquire California-based Genomic Health.

Bankruptcy-related deals

Rexnord Corp.

Rexnord, Regal Beloit merger headlines recent big deals in region By Arthur Thomas, staff writer THERE HAS BEEN PLENTY of merger and acquisition activity in Wisconsin in the past year, even after the COVID-19 pandemic introduced new uncertainty and slowed the pace of deals for several months. One of the biggest deals of the past 12 months was just announced in mid-February as Milwaukee-based Rexnord Corp. will spin off its process and motion control business, which is the legacy portion of the company, and then merge it with Beloit-based Regal Beloit Corp. The deal is valued at $3.68 billion and would leave Rexnord shareholders with around 39% ownership of Regal Beloit. The two companies share a lot of overlapping shareholders and so they are structuring the deal as a reverse Morris trust transaction, potentially making it tax free for Rexnord and its shareholders. Choosing that structure adds work as the companies move toward closing. Rexnord and Regal will be seeking a letter from the IRS on how to handle their combined shareholders and need to calculate adjustments just before closing. If the deal does close, Regal Beloit would keep its corporate name while the combination of its power transmission segment and Rexnord’s PMC business would operate under the Rexnord name. That segment would be headquartered in Milwaukee. The company currently known as Rexnord Corp. would be left with a smaller operation, around $700 million in annual revenue, focused on water management. The heart of that business currently is the Zurn brand, which is also headquar-

tered in Milwaukee. Rexnord and Regal Beloit set an initial closing deadline of Nov. 15, but that can be extended in certain circumstances until May 2022. The termination fee for either side to walk away from the deal is set at $150 million, according to securities filings. Outside of southeastern Wisconsin but still in the state, Madison-based Exact Sciences Corp. announced two deals in October for a combined $2.56 billion. The larger of the two was a $2.15 billion cash and stock offer for Massachusetts-based Thrive Earlier Detection Corp. Exact Sciences had previously invested in two funding rounds for Thrive, which is developing an early-stage cancer screening test. The deal was completed in early January. The second deal was to acquire England-based epigenetics company Base Genomics for $410 mil-

The past year has also seen several bankruptcy-related sales of companies, with the highest profile of these being Wauwatosa-based Briggs & Stratton Corp. In March 2020, just before the pandemic took hold, Briggs executives were outlining an ambitious new strategic direction that focused on developing battery power options, growing its commercial engines line and improving the profitability of its residential products. Briggs said it would sell most of its turf care, power wash and portable generator lines, expecting to generate more than the $195 million it needed to meet looming debt payments. But the COVID-19 pandemic made selling those businesses difficult and the company quickly found itself looking for new financing instead. By July, the company entered Chapter 11 bankruptcy with a $550 million stalking horse bid from KPS Capital Partners, a private equity firm that owns TaylorMade Golf and previously owned Waupaca Foundry. KPS was also able to reach a new agreement with local union members who had not had a new deal since 2017. Other companies, including Generac, expressed interest in all or parts of Briggs, but no other qualifying bids were submitted and KPS’ bid won out. After closing on the transaction, KPS brought in Steve Andrews as a new CEO, replacing longtime Briggs executive Todd Teske. The new Briggs & Stratton has since touted its local hiring efforts and extended its contract as a Summerfest sponsor. Other area bankruptcy-related deals included Jason Industries, Arandell Corp. and Techniplas. New Berlin-based Cascio Interstate Music also went through the receivership process in state court and was bought by Geneva Supply, which closed the New Berlin store and said it planned to

Exact Sciences Corp.

biztimes.com / 19

Special Report M&A BIG DEALS open an event venue in Menomonee Falls and expand the company’s online presence. Milwaukee-based Jason acquired Chicago-based Matchless Metal Polish in a $5 million cash deal just months before filing for bankruptcy. The company emerged from Chapter 11 in August as a private company with ownership drawn from its senior creditors, including Monomoy Capital Partners and Credit Suisse Asset Management. As Jason was getting ready to exit bankruptcy, Menomonee Falls-based printer Arandell Holdings Inc. was preparing to file for Chapter 11 protection. The third largest catalog printer in the U.S. was challenged by store closings and the popularity of e-commerce, trends exacerbated by the COVID-19 pandemic. Arandell had to close its Kentucky plant, which was part of a 2018 expansion, but it was able to continue operations in Menomonee Falls after it was bought by a group led by Saothair Capital Partners, a Pennsylvania private equity firm. An early example of the challenges brought on by COVID-19 came from Nashotah-based manufacturer Techniplas LLC, which was forced into bankruptcy after a restructuring plan was derailed by the pandemic. The company had been exploring

Briggs & Stratton

strategic alternatives since 2017 and had an agreement in principle by mid-February 2020. When sales slowed because of COVID, the deal fell apart and Techniplas was in bankruptcy court by May. Techniplas did emerge from bankruptcy by the end of June with a new ownership group that included Bayside Capital, Amzak Capital Management and The Jordan Company. Jordan was also part of the deal that fell apart when COVID hit. Other deals were impacted by COVID too. Green Bay-based Nicolet Bank planned to acquire West Bend-based Commerce State Bank in what was a

nearly $130 million deal when it was announced in February 2020. The deal called for Nicolet’s stock to remain above at least $62 per share to move forward. When the pandemic hit, the bank’s stock plummeted from more than $70 per share to a low of around $47 per share amid market uncertainty and economic shutdowns. The two sides called off the deal in May, citing the unlikelihood of the share price returning to the required range. It ultimately took until October for Nicolet’s stock to top the $62 threshold and only returned to pre-pandemic levels in January and February. n

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20 / BizTimes Milwaukee MARCH 8, 2021

A busy year despite a COVID-19 pause SOUTHEASTERN WISCONSIN COMPANIES continued to evolve through mergers and acquisitions over the past year. Here is a look at some of the region’s other significant deals: • Wauwatosa-based insurance software company Zywave Inc. was acquired by California-based private equity firm Clearlake Capital Group, L.P. from Los Angeles-based Aurora Capital Partners. Members of the management team, including CEO Jason Liu, invested alongside Clearlake Capital. Zywave also continued making its own deals, acquiring Texas-based Insurance Technologies Corp. and New Yorkbased Advisen, which helped expand its international presence. • In December, Waukesha-based concrete precaster and machinery manufacturer Spancrete was acquired by Minnesota-based Wells Concrete, the fifth largest precaster in the U.S. The deal expanded Wells’ footprint and the company said it planned to keep Spancrete’s plants in operation. • Milwaukee-based enterprise software company PKWARE was acquired by St. Louis-based private equity firm Thompson Street Capital Partners in May. Later in the year PKWARE acquired California-based data privacy management firm Dataguise. • Sussex-based Power Test acquired two competitors in 2020. In March, the company acquired New Hampshire-based DynoMite Dynamometer and then in June it acquired Milwaukee-based Taylor Dynamometer. • Whitewater-based Universal Electronics Inc. was acquired in September by Atlanta-based East West Manufacturing to expand its manufacturing operations in the Midwest. • Milwaukee-based Super Steel LLC acquired Indiana-based Manitex Sabre Inc. in August in a deal worth up to $4.4 million. The move was expected to bring 50 jobs to Super Steel’s Milwaukee operations. The company has since said it would move its operations from the city’s northwest side to the former Telsmith property in Mequon. • In January, IBM acquired Milwaukee-based Salesforce consultancy 7Summits from private equity firm Sverica International Management. Terms of the deal were not disclosed, but the company was to remain headquartered in Milwaukee as an independent IBM subsidiary under the leadership of CEO Paul Stillmank. • Waukesha-based Generac Power Systems expressed interest in parts of Briggs & Stratton during the bankruptcy process, but ultimately did not submit a qualifying bid. The

Downtown Milwaukee

•

rapidly growing manufacturer did expand its outdoor power equipment offerings with the acquisition of Ohio-based Mean Green Products LLC, a maker of battery-powered turf care products. Later in the year, Generac expanded its energy management offerings by acquiring Denver-based Enbala Power Networks, which helps control distributed power generation sources. Those deals follow several recent acquisitions in the clean energy space. Milwaukee-based Dohmen made several acquisitions during the year, acquiring Delafield-based Salus Corporate Wellness in January, Chicago-based meal preparation and delivery company Cooked in February, and Madison-based online marketplace and logistics company FoodChain in April. Those moves came after divesting its life sciences business in 2018 and transitioning to a benefit corporation owned by The Dohmen Company Foundation. Illinois-based Windy City-Fox Motorsports acquired the former Iron Town Harley-Davidson dealership in New Berlin from bankruptcy, but did not plan to reopen the dealership previously known as Hal’s in New Berlin. In November, the property was acquired by Middleton-based interior-home products retailer Nonn’s, which planned to turn the building into a showroom and warehouse. Boston-based SV Health Investors LLC acquired a majority stake in Milwaukee-based health care technology company Health Payment Systems Inc. last month. The deal, intended to help fuel the company’s growth, installed SV executive in residence Tom Policelli as CEO with Terry Rowinski staying on as president. The maker of the Pretzilla bread brand, Milwaukee-based Miller Baking Co., was sold in November to Benestar Brands, a portfolio company of Salas-based private investment firm Highlander Partners L.P. Miller had been family owned since 1923. The company

launched Pretzilla in 2010 and said it would focus exclusively on it in 2018. Pretzilla founder Brian Miller said he would stay on with the company and no changes were planned to local operations. • After nearly two years spent exploring alternatives for its automotive business, Racine-based Modine Manufacturing Co. said in November it would sell a portion representing around $300 million in sales to Ohio-based Dana Inc. for $1, plus the assumption of $2 million in debt and $15 million in unfunded pension liability. Modine spent more than $27 million preparing to be able to sell the business and had also walked away from a potential deal in November 2019. Executives acknowledged the deal took longer than anticipated and said the COVID-19 pandemic caused some delays. • Sussex-based Quad/Graphics Inc. completed the sale of its $200 million book-printing business last year. The company announced plans for the divestiture in 2019 after a planned acquisition of LSC Communications ran into regulatory roadblocks. In July, the company sold its Kentucky book plant to Minnesota-based CJK Group Inc. In November, Quad sold plants in Pennsylvania and West Virginia to Berryville Graphics. The book business was originally acquired in 2020 as part of Quad’s acquisition of World Color. Quad also sold its Omaha, Nebraska packaging plant to Atlanta-based Graphic Packaging International for $40 million. In late 2019, the company sold its heavy industrial wood crating business in Franklin to Transpak. • Brookfield-based strategic employment recruitment company Cielo acquired a “significant foothold” in China with the acquisition in March of AsiaNet China, an executive search, recruitment, payroll and recruit process outsourcing business based in Shanghai. In December, Cielo added California-based advisement and consulting firm Talent Function. n biztimes.com / 21

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National Clients. Global Results. While COVID has hampered numerous industries and impacted the lives of many, deals still got done in 2020. Taureau Group’s global network provides the market reach that enables us to achieve outstanding results. At Taureau Group, we’re predicting that 2021 will be a banner year for M&A, specifically for corporations looking to grow and private equity groups looking to add on capabilities or establish new platforms. Interest rates on debt are at or near record lows and now is the time for companies to make strategic acquisitions to bolster their positions. Anecdotally, we’re working on more buy-side engagements than any time in our history, so we see the demand from organizations to find opportunities and make acquisitions.

Our advice to business owners is to adapt to the “new normal” in order to excel in strategy, growth and profitability. For buyers in the market, the shifts in supply chain dynamics and business practices will affect the types, sizes and strategy of acquisitions in the future. For sellers in the market, this is a new world with new processes in place. Understanding buyers’ motivation will guide you to maximizing value and terms in a sale. If you’re considering selling or looking for ways to grow, we are here to help. Our team can discuss your objectives, answer any questions you may have, and develop and execute an ideal strategy.

Work with a top M&A team with a singular focus: Achieving Outstanding Results.

Securities offered through Burch & Company, Inc., member FINRA / SiPC. Burch & Company and Taureau Group, LLC are not affiliated entities. Ann Hanna and Corey Vanderpoel of Taureau Group are registered investment banking representatives with Burch & Company. LeRoy Matuszak is an independent consultant.

414.465.5555 | taureaugroup.com

Strategies INNOVATION

Be an anthropologist Study the behavior of your customers ARCHAEOLOGISTS CONTINUE to discover more ruins in Pompeii, Italy, buried by a volcano centuries ago. The more they uncover, the more anthropologists can give us a real feel for what life was like in that city more than 2,000 years ago. The American Franz Boas is considered the father of anthropology and defines the various research methods now commonly used throughout the world. What has this got to do with running a business and innovation? In many ways, a business owner is like an anthropologist studying human behavior. The key to developing new products or services is to identify problems or opportunities for potential targeted customers. This is known as “ethnographic research.” Henry Dreyfuss first pioneered industrial design in the 1950s. Dreyfuss is known for designing some of the most iconic devices found in American homes and offices throughout the 20th Century, including the Western Electric Model 500 telephone, the Big Ben alarm clock and the Honeywell round thermostat. Ethnographic research has made air travel unbelievably safe. Historically at one point, aviation experts studied airplane crashes caused by two cockpit toggle switches that were similar in shape and size, one for the flaps and one for the landing gear. Now the switches have completely different shapes, so pilots can utilize them without even looking at them. The goal is to continue making technology more human-friendly and trying to eliminate human error.

Business owners are often instructed to “walk in the shoes” of their customers in developing their ethnographic research insights. But how do you do that? One business leader figured it out because Keli Backes began her career as a waitress serving truck drivers in the transportation business. She listened intently as they described the challenges in driving trucks, the dangers, and their frustrations. That inspired Keli to seek employment in the transportation industry and eventually she worked her way up to becoming president of Oak Creek-based B&K Transportation/Transport National. She used the insights from truckers to evolve the business and grow its reputation, addressing the specific needs of customers while at the same time developing the loyalty of the truck drivers who make great service possible. Transporting products by truck is, in many ways, a commodity business because there are numerous options when utilizing trucking services. Keli learned that by providing seamless and easy transportation options for customers, they earned customer loyalty and thereby differentiated her company from the competition. It begins with purchasing trailers that have high-quality equipment capable of meeting customers’ diverse needs. But it doesn’t end there. She’s acquired state-of-the-art software programs that assist drivers in loading trailers and find the best routes that avoid traffic and construction delays that ensure on-time deliveries. Behind all of this is back-office support that is second to none. That includes a steady commitment to maintenance of the equipment, ongoing training of drivers so they know how to take advantage of the new equipment and keeping the trucks clean and in perfect functioning order. There’s even the human component of providing training for wellness so drivers can counter the effects of sitting long hours. B&K Transportation/Transport National does not fall into the commodity pricing trap but focuses on market differentiation by studying customers’ needs and relying on technology to continue improving their experience. You may not necessarily have the opportunity

to be a waitress, but you can brainstorm ways to do relevant customer research by interacting with the people you serve. There’s a tendency in America to move right to a solution. But the time spent in a variety of capacities to “walk in the shoes” of your customers will lead to more creative and innovative products or services. Here are some tips: » Pretend every team member is an anthropologist and identify multiple ways to get inside the customers’ framework and mindset and appreciate and understand the frustrations or challenges. » Keep asking the question “why?” multiple times of your customers to really understand the depth of the problem. » Don’t hesitate to use a video camera, even with Zoom, to observe customers interacting with your product or service. » Perhaps you should develop nonmonetary rewards for those who come up with the greatest and most relevant insights. Give them an “anthropologist” award. With that in mind, the next time you’re in a restaurant or a bar, remember the waitress or waiter helping you may be the next entrepreneur that starts or scales a business! n

DAN STEININGER Dan Steininger is an author, national and international speaker, business advisor, and president of Steininger & Associates LLC, which helps companies drive innovation. He can be reached at DSteinin@execpc.com. biztimes.com / 23

Strategies CAREER

Career reset Time for some job seekers to cast a bigger net

“Why not go after that next-level position and not limit yourself by fishing in the same old pond?”

AS THE ECONOMY STARTS to regain strength in the coming months, and the positive impact of the COVID-19 vaccination program is felt, numerous new employment opportunities will begin to surface. Over the past few months during various coaching sessions and networking meetings, I have heard many unemployed middle and upper-level executives complain that they can’t find the right job. In many cases they are looking for the same or similar position they held prior to being laid off or having their job eliminated. I have also heard these same people state that the hiring manager or recruiter provided constructive feedback that included the fact that they were overqualified for the applied position. After these sessions, I find myself posing two questions to these individuals: What is the right job? And why do you believe that you were seen as overqualified? 24 / BizTimes Milwaukee MARCH 8, 2021

To properly answer these two questions, they would need to do a personal inventory of their skill sets and understand how they could apply them to any potential job opportunity. Once this inventory is completed, they may realize that there is a high probability they are ready to move to the next level of responsibility and that they were overqualified for the position being offered. The next step is to sit down and identify their transferable skills – those skill sets from their previous position that they can apply to the next posted position. They need to be ready to demonstrate how they will apply each of these skill sets to the roles and responsibilities outlined in the job description. Once these two prior steps are completed, they may ask themselves the following question: “Why not go after that next-level position and not limit yourself by fishing in the same old pond?” A possible answer is that there may be one or more skill-set gaps identified that need to be filled. If that is the result of the analysis, then their personal action plan should include finding online courses that will provide the needed skills that would fill those gaps. One last reality check would be to meet with your “personal board of directors” (business contacts, friends and network members who provide you with advice and support) and get their insights into your strategy. This feedback will either validate your action plan or permit you to adjust it to reflect their valuable feedback. Once these identified gaps are filled, it’s time to cast a bigger net and seek new opportunities with greater responsibility and authority, where your vast experience and skills can be best applied. By challenging your self-image and replacing the “I am” with “I can,” you will provide the motivation needed to apply for that next-level opportunity. There is a good possibility that in your previous position, you felt you could have done your boss’ job. In some cases, you possibly filled in when he or she was ill or on vacation, demonstrating you could take on those next-level responsibilities. Remember, you should be ready to demonstrate how your knowledge and experience can be an asset to the hiring manager or to a recruit-

er during your initial interactions. You will not be able to sell yourself unless you believe in yourself and your abilities. Here are some examples for you to consider. If you previously were a general manager at a large industrial or manufacturing firm, supervising many operational areas, you could probably be a chief operating officer in a mid-sized firm in the same or allied industries. The same supervisory, delegating, motivational, financial planning and administrative skills used by a general manager can be applied to the position of the chief operating officer. In addition, if you were a procurement director at a large international manufacturing firm, you could provide supply chain and procurement expertise for a management consulting firm. The greatest challenge is not only to sell the potential employer on your abilities, but to convince yourself that you can successfully fill that next position. In some instances, you may need to pivot out of your comfort zone. You can’t convince the employer of your value unless you believe in yourself and can successfully provide examples on how you will make a positive impact starting on day one by applying your knowledge, experience and acquired skills. n

CARY SILVERSTEIN Cary Silverstein, MBA, is a speaker, author and consultant, a former executive for Gimbel’s Midwest, JH Collectibles, and a former professor for DeVry University’s Keller Graduate School. He can be reached at csilve1013@aol.com.

LEADERSHIP

How to create a great workplace Leaders need to provide hope, positivity, flexibility and open communication FINDING MOTIVATED, ENGAGED and highquality employees is paramount to the success of any organization. Employees like this truly make the workplace great. With COVID-19, it’s important that we pay more attention to how we can sustain a healthy, growth-minded culture. This pandemic has led to additional work and personal stressors for our employees. Many employees are still working from home, alongside their spouse and children. People are being pulled in so many different directions and feeling as if, at times, they can do nothing right as they try to balance their work and family life. It’s important to remember that, no matter what life throws at us, we can always work towards having an amazing workplace. Positive leadership is critical right now. This consists of hope, positivity, flexibility and open communication. What is working? What needs to be improved? What is the feedback and necessary action steps to continuously improve our positive results? A barometer health check to answer these questions will lead to an overall sense of purpose for everyone. Leaders are key for facilitating these discussions. Every employee is different, but they will all remember how they have been treated during these times. Not every employee is in the same predicament and should not be treated the same way. Some employees may be struggling and others may be thriving. Some people may not be comfortable coming back to work yet, while some team

members may work better from the office. One way to help every employee succeed is by creating personalized game plans that align with your culture. Having a customized approach will make all the difference in the world. These individual plans can include accommodations to ease day-to-day stressors that the employee may face. For example, you can work out a personalized schedule and flexible work hours (as opposed to the typical 8-4 or 9-5 shifts) for the employee. There is also power in making time for consistent one-on-one conversations and check-ins. In one of our operating companies, we allowed workers to have their children come to work with them. We have also encouraged those who are most vulnerable, or those who are not ready to be back in the office, to work from home. There should not be any lack of confidence or a negative stigma of working from home. Another part of having a great place to work is making sure your customers are taken care of. Even if your team is remote or working at different hours, it’s crucial to make sure that they know how important it is to still meet or exceed the expectations of your internal and external customers. This requires a level of trust that comes from having the right employees in this type of environment.

maximize your employees’ contributions to the organization and their overall effectiveness. Allow employees to make mistakes, as there can never be improvement without them. Don’t forget to do some fun things as well. Simple actions such as sponsoring a meal or providing discounts to services such as DoorDash can really go far with making an employee feel valued. This can also lead to increased workplace morale where everyone feels inspired to take part in simple, thoughtful activities. You can provide tips to help with mental health, such as meditation and exercise as well. What can you do at your workplace to make it even better? How will you involve your employees in that initiative? After all, it is stability, trust, respect and purposeful work that keeps us all invested. n

What else can be done? Employees will succeed when they know their purpose and that they are valued. The success of a company, however, is dependent on everyone’s success. When everyone works together to be successful, then the workplace will truly be great. You can help your team succeed by redefining what success means. Talk to your employees about how they can align to the company’s overall goals and purpose. It’s truly inspiring to be part of something bigger than themselves. To sustain these initiatives, encourage accountability and a culture of continuous improvement without excuses. Provide tips on topics such as efficiencies and the flow of work. Ask your team for their suggestions as well. Consider setting goals, such as making one improvement per week, in a tailored manner, to

JERRY JENDUSA Jerry Jendusa is the co-founder of STUCK Coaching and was the founder of EMTEQ. He is a business advisor, investor and the author of “Get Unstuck.” He can be reached at jerryj@getunstuck.com. biztimes.com / 25

Strategies

Tip Sheet Employers’ role in curbing vaccine hesitancy

he end of the COVID-19 pandemic is in sight, but a return to normal won’t be achieved until the vaccines are widely distributed. In December, the Pew Re-

search Center reported that 39% of Americans surveyed said they definitely or probably would not take a vaccine, though later studies have shown attitudes toward the vaccines are improving. A recent piece by Ernst & Young suggests employers play an important role in overcoming vaccine hesitancy, considering the pandemic’s impact on the workforce and disproportionate effect on at-risk populations and communities of color. Here’s how employers can take action: 1. SEEK TO UNDERSTAND Listen and conduct surveys to better understand employees’ “baseline” beliefs on vaccination. That information can be used to tailor education and engagement with the help of existing public health materials. Continue to conduct surveys over time to measure change in attitudes. EY suggests taking time to learn more about the cultural beliefs that may dissuade employees from getting vaccinated.

2. TAKE A LOCAL APPROACH With varying beliefs based on region – or even by neighborhood – “understanding local context and nuances” is crucial, EY says. Data-driven and personalized communication can be an effective tool for getting the word out. 3. EDUCATION Present the most up-to-date information on vaccination – goals, safety and benefits – while being transparent about challenges and other concerns as they come up. “Messaging will need to be agile to respond to changing conditions and should be delivered with nuanced and culturally sensitive messaging for greatest impact,” according to EY. Leverage your diversity, equity and inclusion professionals to effectively reach all demographics within the employee base. Make it a priority to address vaccine hesitancy issues among employees who identify racially as members of vulnerable populations. n

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BizConnections BIZ PEOPLE

Advertising Section: New Hires, Promotions, Accolades and Board Appointments

BANKING

BANKING Carla Cross Joining Commerce State Bank Board.

Commerce State Bank is adding Carla Cross, President/CEO of Cross Management Services, to its Board. Ms. Cross brings a strong financial and development background that includes working with the city of Milwaukee, Fiserv Forum, Miller Park and Lambeau Field. CEO Joe Fazio said, “It’s great to have such a talented and accomplished Director.” Ms. Cross said, “It’s an honor to join the Board of Commerce State Bank. I’m excited to incorporate my diverse perspective working alongside my new colleagues to mold the present and future of the bank.” She is the second female and the first African American Director on the Board.

MANUFACTURING

Bradley Corp. Names VP of Business Development. Bradley Corp. names Mark Whittington to Vice President – Business Development for the Menomonee Falls-based manufacturer. Whittington will join Bradley’s leadership team and in his role be responsible for growing Bradley’s plumbing products business.

NONPROFIT

Sinclair named chief diversity and inclusion officer for GMF. The Greater Milwaukee Foundation has hired Kenyatta Sinclair as Chief Diversity and Inclusion Officer. In this new role, she will lead the effort to fully incorporate a racial equity lens into all aspects of the Foundation’s work and relationships.

28 / BizTimes Milwaukee MARCH 8, 2021

MANUFACTURING Wintrust has promoted a new Executive Vice President, Middle Market Banking.

Wintrust Commercial Banking at Town Bank is pleased to announce the promotion of Glenn Margraff to Executive Vice President, Middle Market Banking. With over twenty years of banking experience, he is a highly accomplished banker who specializes in management, sales, and underwriting positions in asset-based, workout, and mid-market divisions. He is a graduate of the University of Wisconsin – Milwaukee where he received a Bachelor of Business Administration degree in Accounting and Finance.

NONPROFIT Erin L. Henry, PhD Appointed to YWCA Southeast Wisconsin’s Board of Directors. Erin L. Henry, PhD has been appointed to YWCA Southeast Wisconsin’s Board of Directors. Henry is the Senior Director, Venture Platform at Northwestern Mutual. She has a passion for supporting organizations focused on economic empowerment.

NONPROFIT Tammi Summers Appointed to YWCA Southeast Wisconsin’s Board of Directors. Tammi Summers, Ph.D. is VP of DEI at Gateway Technical College has been appointed to YWCA Southeast Wisconsin’s Board of Directors. Dr. Summers encourages others to use their personal strengths as a guide to overcoming barriers building resilience.

Perlick Welcomes New Facilities Manager.

Perlick is pleased to welcome Pat Holden to our team as Facilities Manager. Pat has nearly 20 years of experience in Maintenance Supervision from his roles at Poclain Hydraulic, Weasler Engineering, and Borg Warner. In his new role, Pat will lead the maintenance, machine shop, inspection &amp; plating teams, and will also oversee the environmental, health, and safety functions of our manufacturing facility. Based in Milwaukee, WI, for over 100 years, and headquartered on Good Hope Road, Perlick designs, engineers and manufactures luxury refrigeration equipment and systems for the bar and beverage and home industries.

NONPROFIT Danielle Johnson Appointed to YWCA Southeast Wisconsin’s Board of Directors. Danielle Johnson has been appointed to YWCA Southeast Wisconsin’s Board of Directors. A Racine native, Johnson is the Senior Program Associate at The Johnson Foundation at Wingspread. Danielle received her Masters of Social Work from UW-Madison.

NONPROFIT Dr. Alonzo Walker Appointed to YWCA Southeast Wisconsin’s Board of Directors. Dr. Alonzo Walker is an Emeritus Professor of surgical oncology with MCW and most recently served as MCW’s senior associate dean for faculty affairs & diversity. He’s devoted to assuring access to breast cancer treatment for the medically underserved.

ARCHITECTURE FIRM

Kahler Slater promotes Jeff Piette, AIA to Vice President.

After 27 years with Kahler Slater and 13 years as Higher Education and Sports + Recreation Team Leader, Piette has been promoted to Vice President. He will continue to lead the firm’s sports and recreation market and guide the firm’s strategic plan.

MANUFACTURING

Standard Process Hires Andrew Hocek as Director of Sales.

Standard Process has announced the addition of Andrew Hocek as its new Director of Sales. Hocek brings extensive sales management experience to the role, and will be responsible for the growth and success of companywide sales performance.

NONPROFIT Jaquilla Ross Appointed to YWCA Southeast Wisconsin’s Board of Directors. Jaquilla Ross, MPA is the owner and operator of Ross Financial, LLC, an accounting firm founded in 2016. Her passion for educating the community on financial literacy shines through her entrepreneurship and lecturer roles at UW-Whitewater and MATC.

ANNOUNCEMENTS To place your listing, or for more information, please visit biztimes.com/bizconnect

NONPROFIT JOHNSON CONTROLS COMMITS $2 MILLION TO NATIONAL URBAN LEAGUE AND ITS MILWAUKEE AFFILIATE Johnson Controls has committed $2 million over three years to the National Urban League and Milwaukee Urban League. Dr. Eve Hall, president and chief executive officer of the Milwaukee Urban League, said it’s a “transformative investment” that will allow the organization to increase the capacity of its programs and services related to employment, education and advocacy, as well as make potential investments in Milwaukee’s Bronzeville neighborhood. The MUL operates a variety of programs, including workforce development and training, and education and youth-centered programs.

“This support is going to help us to increase capacity, to deepen impact, expand who we are reaching in this community through our employment efforts. It’s going to allow us to increase our staff, but (also) really dig deep into what is going to work to get people back on track in their lives.” Hall said. “Because the economic fallout for communities of color has been enormous.” Hall said the investment will also support an upgrade to MUL’s facility, at 435 W. North Ave., that will allow the organization to bring some clients back safely. — Lauren Anderson, staff writer

c alendar GPS Education Partners will hold a virtual fundraising event,

“20 Years of Transformations,” on March 11, beginning at 6:30 p.m. The event will help close the financial gap for a student’s work-based learning journey. The event will be emceed by Toya Washington, news co-anchor of WISN, and Denise Thomas, owner and president of The Effective Communication Coach, and will include a silent auction. More information is available at gpsed.org. The Young Nonprofit Professionals Network-Greater Milwaukee Chapter will host its annual awards ceremony virtually on

March 25 from 6-7:30 p.m. The free event will include networking, community-building and mini-sessions. More information is available at ynpnmke.org.

D O N AT I O N R O U N D U P

Community Advocates received a $100,000 donation from The Jack and Barbara Recht Family Fund, which will support its Homeless Outreach and Supportive Housing Programs. | The Baker Tilly Foundation recently donated $10,000 and 40 hours of volunteer time to Milwaukee-based SecureFutures. | The Milwaukee Urban League recently received a $50,000 grant from Oak Creek-based Stella & Chewy’s that will support a transportation initiative to help MUL clients who work in outlying areas. | The Milwaukee Bucks and Heartland Business Systems recently donated 20 new HP laptops to local college students from All-In Milwaukee. | Molina Healthcare of Wisconsin donated $12,000 to Mercy Housing Lakefront to provide rental assistance for 13 Milwaukee families. | Milwaukee Public Schools recently received a donation of 5,000 pizzas from Palermo’s Pizza, which were handed out through the district’s Stop, Grab & Go meal distribution sites.

nonprofit

SPOTLIGHT

G I G I ’ S P L AY H O U S E M I LWA U K E E 8685 N. Port Washington Road, Fox Point 414-797-0522 | gigisplayhouse.org/milwaukee Facebook: facebook.com/gigisplayhousemilwaukee Instagram: @GiGisPlayhouseMKE

Year founded: GiGi’s Playhouse

Minsky, program coordinator

Milwaukee opened on World Down Syndrome Day, March 21, 2015.

Board of directors: Susanne

Mission statement: The mission

of GiGi’s Playhouse is to change the way the world views Down syndrome and to send a global message of acceptance for all. Primary focus of your nonprofit organization: We change lives

through the consistent delivery of free educational, therapeuticbased and career development programs for individuals with Down syndrome, their families and the community, through a replicable playhouse model. Our promise is a lifelong commitment to families. Number of employees at this location: 3 (one full-time,

two part-time) Key donors: Bader Philanthropies,

Harri Hoffman Family Foundation, Anon Charitable Trust, Stackner Family Foundation, Bank Five Nine and a growing number of other contributors. Executive leadership: Sue Schrader,

executive director; Sara Van Deurzen, site coordinator; Heather

Griscom Pelikan, president; Barry Goldman, vice president; Mike Wachter, treasurer; Erin Anderson, Grant/Fundraising Committee chair and secretary; Ann Jasen, Donor Relations chair; Kari Dyer, Donor Relations Committee member; Griffin Gross, Board Development chair Is your organization actively seeking board members for the upcoming term? Yes. We are looking for

people with backgrounds in education, health care, marketing and events. We are also looking for a volunteer coordinator. Ways the business community can help your nonprofit: Spread the

word. Visit our Playhouse and take a tour. A sponsorship or donation is always appreciated. Volunteer as a board member or committee person. Program volunteer opportunities are also available. Key fundraising events: • GiGiFIT Acceptance Challenge • Brew Ha Ha • Wisconsin Arm Wrestlers State Tournament • 3-21 Campaign biztimes.com / 29

BizConnections VOLUME 26, NUMBER 17 | MAR 8, 2021

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120

Wisconsin Tower rises This March 1, 1930 Brown & Rehbaum photo shows construction progress on the Wisconsin Tower at 606 W. Wisconsin Ave. in Milwaukee. The building, which was originally called the Mariner Tower, was designed by Weary & Alford Co. S.M. Siesel Co. served as general contractors and J.C. Theilacker did the steel erection. Once home to offices, the 22-story Art Deco building was converted to condos in the mid-2000s.

PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com

PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

SALES & MARKETING

DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com ASSOCIATE EDITOR Lauren Anderson lauren.anderson@biztimes.com ASSOCIATE EDITOR Arthur Thomas arthur.thomas@biztimes.com REPORTER Brandon Anderegg brandon.anderegg@biztimes.com REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com CONTENT SOLUTIONS MANAGER Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com ACCOUNT EXECUTIVE Dylan Dobson dylan.dobson@biztimes.com SALES ADMIN Gracie Schneble gracie.schneble@biztimes.com

ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN

REPORTER Alex Zank alex.zank@biztimes.com

GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com

— Photo courtesy Milwaukee Public Library/ Historic Photo Collection

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

COMMENTARY

MPM is on the clock IN A CLEAR SIGN that the Milwaukee Public Museum must address its facility problems, the American Alliance of Museums has tabled MPM’s application for re-accreditation. Accreditation is an important standard of excellence for museums and a loss of that distinction would be a tremendous blow to MPM and its reputation and prestige. Accreditation serves as a national recognition that a museum is operating at high standards, and it lends credibility when seeking funding. Museums seek re-accreditation every 10 years. Typically, the AAM either approves accreditation for another 10 years, denies accreditation or tables its decision for a year so specific issues can be addressed. MPM’s request for re-accreditation has been tabled by the AAM because of significant problems with its facility. Chartered in 1882, the Milwaukee Public Museum’s current facility in downtown Milwaukee opened in 1962. The facility has served MPM well and it has been 30 / BizTimes Milwaukee MARCH 8, 2021

a jewel of the community for decades. But it has deteriorated significantly and its problems, including leaks in the roof, put its priceless collections of artifacts at risk. The facility faces an estimated $87 million in deferred maintenance projected over the next 20 years, just to keep the doors open, according to MPM president and CEO Ellen Censky. It is clear if MPM doesn’t solve its facility problems it will lose its accreditation. To avoid that happening, MPM must continue to make progress and eventually must complete construction of a new facility. That certainly won’t be easy. MPM is working on plans for a new $240 million museum facility, which would also be the new location for Betty Brinn Children’s Museum, northeast of North Sixth Street and McKinley Avenue downtown. The natural history museum itself is expected to cost $170 million. Other project costs include site acquisition, transition costs, endowment costs, moving collections and building out space for BBCM. That is a high price tag. By comparison the Bradley Symphony Center project is costing $139 million and the Milwaukee Art Museum’s Quadracci Pavilion (designed by Santiago Calatrava) cost $130 million. Those projects

required huge fundraising efforts and the new MPM facility will be yet another massive lift for Milwaukee’s philanthropic community. Gov. Tony Evers requested $40 million in state funds for the new MPM facility. That will be a tough sell to the Republican-controlled Legislature. If MPM is going to get state funds, the name of the museum might have to be changed. How does “Wisconsin Public Museum” sound? Perhaps it is time to identify it as not just a local treasure, but a state treasure. The design of the new MPM may be an even bigger challenge than the fund-raising. The museum is known for its iconic diorama displays, but some of it feels dated and appears unchanged since the 1960s. The challenge will be to design a modern museum that will appeal to younger, tech-savvy visitors but also captures the nostalgia of its iconic displays. It will be a tricky needle to thread. n

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

CONTRIBUTED

5 MINUTES WITH…

DAVID KLAVSONS Chief executive officer, King Juice Co., Inc.

MILWAUKEE-BASED KING JUICE CO., INC., maker of Calypso brand drinks, recently signed a distribution agreement with Big Geyser Inc., a non-alcoholic beverage distributor in the New York metro area. The partnership will bring the company’s flagship product and its various flavors to the five boroughs of New York City and Westchester, Nassau and Suffolk counties. According to King Juice Co. chief executive officer and Calypso brand owner David Klavsons, Calypso grew 33% in 2019 and 62% in 2020, making it the second-largest player in the shelf-stable lemonade category, behind Minute Maid. Calypso has built a national and international distribution network reaching all 50 states and more than 20 countries. SIZING UP THE COMPETITION “If we double our business again, which is very aggressive but a reasonable target for us in the next couple years, we’re going to beat out Minute Maid for the No. 1 spot in shelf-stable bottled lemonade. You can imagine what that does. Think of Snapple in the ‘80s and early ‘90s. Snapple was the first ready to drink tea that came to market and exploded. Next thing you know, everyone is into shelf-stable tea. Well, we’re really the first in shelf-stable bottled flavored lemonade. While lemonade has been there a long time, we were the first with flavored lemonade. I see this as a bit of a parallel to the Snapple story of years

ago in terms of the brand growth and the opportunity we have because (Calypso) is so unique.” DISTRIBUTION OPPORTUNITY “Distribution is the biggest opportunity we have now. We’ve got a terrific brand, positioning and great marketing support and innovation. We have to get after distribution at a more accelerated way. We’ve been able to grow distribution, but now is the time to double our distribution. … The international business has started to take off, so (we’re) expanding there. We just signed a big contract with Big Geyser, which is the largest distributor in New York. We had a terrific distributor there before, but they just didn’t have the scale to get after the market like we knew we had the potential to get after. Florida continues to be another opportunity for us where we’re filling out our distributor network that right now, nationally, is over 160 distributors.” FINDING THE RIGHT MIX “Recently, with innovation, we extended our brand to ‘Lights,’ a zero-sugar, 5-calorie product, which is really difficult to do in lemonade. When you think of lemonade, you think of sweet and tart. Getting that right mix in a zero-sugar product is really difficult. To give you perspective, the carbonated soft drinks have about 25% of their business in low or no sugar. Teas are about 27% and lemonade was only 10%. There’s a reason for that. It’s really hard to do because of that sweet and tart mix and trying to do that without sugar. We took a year to do it and we figured it out. It’s a fantastic product and it’s done very well. Our business at Kroger, where we launched (Lights) last year, Lights represents about 15% of the business so we already outplayed that 10% number with our initial launch into Kroger.” n biztimes.com / 31

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