20130701-NEWS--1-NAT-CCI-CL_--
6/28/2013
3:33 PM
Page 1
$2.00/JULY 1 - 7, 2013
Small buys are next big thing Private equity firms are targeting acquisitions at lower end of middle market because of better values and lower costs By MICHELLE PARK mpark@crain.com
If this keeps up, more small to midsize companies will net bigger paydays if and when they sell. The number of acquisitions at
the lower end of the middle market is up, and observers expect the deal volume to keep growing because those who make them happen are hungry. Private equity firms flush with investor cash are yearning for yield
and are willing to move down in deal size to deploy that capital, especially because valuations for larger deals are pricey, observers say. Some sellers — many of whom are baby boomers who have waited
INSIDE
INSIDE: A look at U.S. private equity buyouts in the middle market from 2000 to 2012. Page 16 to exit their companies until their performance improved after the recession — desire liquidity. And, faced with a stagnant economy, strategic buyers are chasing growth by acquiring and tucking in smaller businesses. See BUYS Page 16
Hot spot for cyclists Blazing Saddle Cycle, located in a former hardware store on Detroit Avenue, is the place to go for those who prefer to commute to work via bike. PAGE 3
Onosys is making its living with help Software company has doubled business since it was bought by LivingSocial By CHUCK SODER csoder@crain.com
eight-story atrium and lobbies to enliven the high-toned but restrained former headquarters of BP America.
Before it was bought last year by LivingSocial.com, Onosys had a sales force consisting of Stan Garber. Nowadays, Mr. Garber has some help. As a subsidiary of LivingSocial — which offers daily deals and other services to 70 million members worldwide — Onosys now has five inside sales representatives based in Washington, D.C., who Garber are helping the Cleveland company sell its software, which allows restaurants to take orders via the Internet. That’s just the beginning, according to Greg Mazanec, general manager of takeout and delivery at LivingSocial.
See SQUARE Page 6
See ONOSYS Page 17
RENDERING PROVIDED
A rendering of the major renovation Westlake Reed Leskosky will make to the eight-story atrium and lobbies at 200 Public Square.
200 Public Square entering a new era Westlake Reed will liven up office building’s lobbies and atrium
The 200 Public Square office building in downtown Cleveland can be called a lot of things, including a trophy skyscraper and the
home of corporations and law firms. But few think of it as a building with inviting entrances or dynamic first-floor space. That’s about to change.
26
By STAN BULLARD sbullard@crain.com
The building’s owner, an affiliate of real estate investment firm Harbor Group of Norfolk, Va., has retained Westlake Reed Leskosky to design a major renovation of its
0
NEWSPAPER
74470 83781
7
SPECIAL SECTION
MILITARY VETERANS Plenty of help is available when former service members report to work ■ Pages 11-14 PLUS: ADVISER ■ STORIES FROM THE HOMEFRONT ■ & MORE
Entire contents © 2013 by Crain Communications Inc. Vol. 34, No. 26