Greater Charlotte Biz 2016.01-02 January-February 2016 by CLT.biz & Charlotte Biz & Greater Charlotte Biz

january/ february 2016

featuring… Cornerstone Wealth Carolina Premier Bank Babson Capital Management Dry•Pro Basement Systems Griffin Home Health Care

ENGAGING

GLOBAL CAPITAL FLOW$

WHO’S RIDING THE

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Global Competitiveness Summit V Growing Global Assets in the Charlotte Region Wednesday, March 23, 2016 CPCC Harris Conference Center

Speakers include:

Marek Gootman Director, Strategic Partnerships and Global Initiatives, Brookings Metropolitan Policy Program Joseph Parilla Senior Research Associate, Brookings Metropolitan Policy Program Thomas Lichtenberger President, Festo Didactic Inc. Americas Linda P. Hudson Chairman and CEO, The Cardea Group Scott Toney CEO, Camstar Enterprise Platform, Siemens Product Lifestyle Management Software Inc. Daniel Stanton VP, Education and Workforce Development, Material Handling Institute Dr. Randell Johnson Chief Analyst, Alevo Analytics Division, Alevo Group Chris William Wells Fargo Advisors Dr. Tony Zeiss President, CPCC

www.cpcc.edu/global Host:

Global Vision Leaders Group Presenting Sponsor: Contributing Sponsor:

Event Partners:

18054

featuring… ENGAGING

GLOBAL CAPITAL FLOW$

Charlotte-Invested; A World of Opportunity

“We knew we had a really good team and an opportunity to grow,” says Babson Capital Management CEO Tom Finke, on moving from being bank-owned to insurance company-owned. Today, Babson has over $220 billion in assets under management, about half of which represent MassMutual’s general investment account, and offers global investment solutions. Headquartered in Charlotte, Finke comments, “It became clear this is where a lot of our growth has been and will be.”

Unwavering Commitment to Its Clients

Nurturing Community; Focusing on Its Roots

The Clean and Dry Pros Solve Problems

Spanning Generations and Health Care Needs

“Our culture of teamwork is what makes us different from most firms,” says Andrew Smith, one of the founding and managing partners of Cornerstone Wealth, acknowledging that both advisors and portfolio managers work together in a rapidlychanging market that demands constant attention. He emphasizes, “We endeavor to keep people informed and aware of changing market influences, market disruptions and significant business trends.”

“We’ve defined our niche as small businesses and professionals—accountants, attorneys, and retail clients that come along with those niches. We focus on small businesses and bank the folks that work in there,” describes Carolina Premier Bank CEO David Barksdale. “More and more people are moving to Charlotte and more and more businesses are springing up in Charlotte. As a newer bank in the community, we are well-positioned to meet the challenges for those small businesses and professionals.”

Dry•Pro Basement Systems are foundation and crawlspace specialists. Founded in 1999, the company has evolved into a comprehensive, one-stop-solution provider for homes and businesses that need some shoring up of their foundations—whether basement, crawlspace or slab—or suffer the musty scent and attendant damage of moisture problems. “We’re out there and people see us,” says founder and CEO Ron Weatherly Jr. “They want to use somebody they can trust.”

“It’s been so exciting for me to see my son as the rising star that he is. He’s made such progress towards the growth of the company. I didn’t imagine that this is where we would be today,” says Bill Griffin of Griffin Home Health Care. Son Richie comments, “I saw a niche for service on the health and wellness side. For 32 years we were caring for those who were injured, broken, or sick, but we were not serving the health care needs of those who were well.”

o f i n t e re s t … 2

Exit Planning Now: 3 Why How to Best Plan in a Buyer's Market Family Business Succession: 5 Options, Challenges, Opportunities

january/february 2016 | greatercharlottebiz.com

Growing U.S.-India Trade Indian Cultural and Commercial Opportunity

to Success This Year: 37 Connect Focus Your Efforts on LinkedIn

OF INTEREST: Focusing on the Needs of Privately Held Middle-Market Companies

FAMILY BUSINESS SUCCESSION

OPTIONS, CHALLENGES, OPPORTUNITIES

amily business owners face both emotional and financial challenges when preparing to exit their business—and many do not have a formal succession plan. Key aspects to consider include understanding goals and objectives; analyzing options for gifting, selling and/or donating; and developing a plan that is appropriate for both the family and the business.

Being Succession-Ready According to the Baker Tilly International Succession Reset: Family Business Succession in the 21st Century (2014) report, four out of five U.S. family business owners are not succession-ready. Key challenges faced by family business owners include being ready for transition or market sale, and ensuring that the business has the financial capacity to support both retirement and the next generation. The study points out that succession today is just as much about the transfer of knowledge and skills as it is about the transfer of wealth, because the level of skills required to effectively run a business in today’s environment is far greater than it was in previous generations. According to the PWC Global Family Business Succession Reset Survey Survey (2014) report, only 16% of family firms have a succession plan that has been discussed and documented. The terms of the plans were varied: 40% would pass both management and ownership to the next generation; FUNDAMENTAL CONSIDERATIONS Family Business 32% would Survey  Retain control? pa ss on ly  Engage the next generation? ownership; 18% would sell to  Continue the business? another company including  Appreciation anticipated? a private equity (PE) firm; 5%  Stability and good cash flow?  Type of entity? would complete an initial pub Children active and non-active? lic offering (IPO); 4% would sell  Equal distribution among family to their management team; and members? the remaining 9% didn’t know  Concern for employees? or had other plans.  Key employees that are non-

Gifting, Selling and/or Donating Options for keeping the business in the family include transfers as outright gifts, gifts in trust, private annuity, Grantor Retained Annuity Trust (GRAT), Intentionally Defective Grantor Trust (IDGT), and Beneficiary Defective Inheritor’s Trust (BDIT). It may be appropriate to examine a spin-off with each child being given a separate business or division. It may also be appropriate to perform a simple tax-free recapitalization of the business so that voting stock (control) could be retained while nonvoting stock could be transferred. Keep in mind that valuation discounts may come into play, both minority and marketability discounts. The IRS may soon publish regulations limiting use of these discounts for transfers involving family-controlled entities; therefore, for those transfers currently being planned, it may be advantageous to finalize such transfers sooner rather than later. Options for selling the business include outright sale, partial sale, installment sale, Self-Cancelling Installment Note (SCIN), redemption, and Employee Stock Ownership Plan (ESOP). A family business owner may prefer a sale for reasons including: no leadership or entrepreneurial talent, irreconcilable conflicts among family and management, some family not in the business, liquidity needs, or lack of confidence in future of the business. Irrespective of to whom, when, and how it is to be sold, there are steps to get the business ready to sell, including maximizing the value of the business, maintaining good business records, obtaining noncompete and confidentiality agreements from key employees, and designing and implementing incentive structures. Consider including vesting and forfeiture provisions and linking the benefit to “x” years of service, the sale of the company, or some other performance variable. Options for transfer by charitable contribution include a DonorAdvised Fund (DAF) and split-interest vehicles such as a Charitable Lead Trust (CLT) and a Charitable Remainder Trust (CRT). While CLTs help cut estate and gift taxes, CRTs are primarily income tax planning vehicles.

Contributed by

Thorman

family members?

Developing a Plan The first step in succession planning is identifying your goals and objectives. The next step is developing a plan that achieves your goals and objectives without doing harm to the family or the business. Fundamental considerations include those listed here.

 Commitment to the community?  Transfer or sell? To whom, when,

how much, future appreciation only?  Require income?  Healthy?  Need liquidity?  Charitable intentions?  Prefer tax minimization?  Simple or complex?  Risk averse?

In summary, the succession process will guide you in gifting, selling and/or donating your business. Based on your goals and objectives, you will be able to develop a robust plan that is appropriate for both your family and your business. Content contributed by GreerWalker LLP, a Charlotte-based accounting and business advisory firm offering assurance, accounting, tax, and consulting services primarily to privately held middle-market companies, their owners, and their executive management teams, as well as a range of consulting services directed to publicly traded companies. Content written by Sandi Thorman, CPA, Partner and leader of the firm’s Estate, Gift & Trust Planning Services. For more information, contact Sandi at sandi.thorman@greerwalker.com or 704-377-0239 or visit www.GreerWalker.com.

greatercharlottebiz.com | january/february 2016

Looking for experienced writers who can fetch good stories! If you have experience in business writing and live in the Charlotte area, we’d like to hear from you! Writers are required to conduct in-person interviews at the business location and submit comprehensive pieces of 1,800 to 2,000 words in length. Requires professional composure, Internet research, effective communication, and good writing skills conforming to the AP Stylebook.

*a dog-friendly environment

John Galles | 704.676.5850 x102 | jgalles@greatercharlottebiz.com

January/February 2016 Volume 17 • Issue 1 Publisher

John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x101 mlane@greatercharlottebiz.com

Graphic Artist

ICHA T L U

NNEL MARKET

Melissa Leet Schropp graphics@greatercharlottebiz.com

Account Executives

ING

How to Be

SEEN Want More Eyeballs? It’s all about that mix—the marketing mix. From print to email to mobile, top marketers combine channels to provide a consistent customer experience regardless of channel used. Here’s some data every marketer should know: 25% of marketers say direct mail or print ads are the channels most likely to be combined with email 61% of marketers boosted investment in lead-nurturing mailers in 2015 4% of marketers cite multichannel as

an essential skill for marketers

45% of marketers are increasing mobile spending this year 7.6% response rate for print + email campaigns 6.0% response rate for print-only

campaigns

$1.2 billion increase in spending on U.S. direct mail marketing in 2015

Integrating Multichannel—Percent of marketers integrating multiple channels into their campaigns in 2014: 38% using three channels 29% using four channels Prioritizing Multichannel—Percent of chief marketing officers who prioritize the multichannel experience: 71% at high-growth companies 41% at low-growth companies

Charlotte Biz combines local print, direct mail, email and mobile solutions for your sales campaigns!

46% of consumers use mobile exclusively when researching online

56% of consumers read the postcards that come in the mail

Call us now! 704-676-5850 x102 or email jgalles@greatercharlottebiz.com.

january/february 2016 | greatercharlottebiz.com

Gina M. LaRosa x104 704-778-0728 Cell glarosa@greatercharlottebiz.com Nelson E. Sweezy x105 704-778-8866 Cell nsweezy@greatercharlottebiz.com

Business Development Consultant Philip Volponi x107 704-574-0439 Cell pvolponi@greatercharlottebiz.com

Contributing Writers Zenda Douglas Jim Froneberger Gene Stowe

Contributing Photographer mac330.com

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Progress Printing Plus Calvin Hicks • 1-800-572-7804 chicks@progressprintplus.com

Galles Communications Group, Inc. 7300 Carmel Executive Park Dr., Ste. 115 Charlotte, NC 28226-1310 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com

• Press releases: editor@greatercharlottebiz.com. • Editorial: mlane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com or sales@greatercharlottebiz.com. • Subscription or change of address: subscriptions@greatercharlottebiz.com. • General: info@greatercharlottebiz.com. © Copyright 2015 by Galles Communications Group, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group, Inc. makes no warranty to the accuracy or reliability of this information. Products named in these pages are trade names or trademarks of their respective companies. Views expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102. Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.

OF INTEREST: Insightful Solutions Perfectly Matched to Your Corporate DNA

WHY EXIT PLANNING NOW?

HOW TO BEST PLAN IN A BUYER'S MARKET

oday, more and more of the 10,000 baby boomers—those born from 1946 to 1964—reaching retirement age are exiting their businesses and listing their companies in the business-for-sale marketplace. The number of small businesses listed for sale nationwide is at a six-year high according to data compiled by BizBuySell.com, and analysts expect that number to reach unprecedented levels. The vast majority of these owners will be looking to exit their businesses through a sale to outsiders (a third party) or a sale or transfer to insiders (co-owners, key employees or family members). This movement is predicted to soon result in a glut of companies for sale, driving down valuation and creating a buyer’s market. In over 25 years of assisting closely-held businesses and their owners in the exit planning area, I have never seen more business owners who are beginning to understand how critically important it is for them to create a successful exit plan in order to reach their personal and financial objectives by maximizing the value of their business upon their exit. Let’s assume you are currently a 65-year-old founder and sole owner of a successful business. You have worked hard all of your life but are experiencing the first signs of losing some of the “fire in your belly” for driving your business’ continued growth and would like to soon be able to take some “chips off the table” and create a liquidity event which will allow you and your spouse to travel and do all of the other things you have always talked about while you are still young and healthy. As you understand it, your business will probably sell for at least $8 million which constitutes approximately 80 percent of your personal net worth. You would like to retire in the next three to five years and realize you can’t do your exit plan alone. However, you’re wondering who, exactly, are the professional advisors that have the qualities, expertise, experience, and training to help you plan in order to make your transition successful?

My experience has been that the most successful exits have occurred when the business owner has assembled an advisor team, usually including at a minimum a CPA, attorney, financial planner, and insurance professional, to help him/her create and orchestrate a successful exit. Why an advisor team? Why not just one advisor who can assist in creating an exit plan? The answer is simple: No single profession or professional possesses all of the necessary skills, expertise and experience to

single-handedly lead an owner through all steps of the ownershiptransition process. Also, some professionals are not comfortable cooperating closely with professionals from other disciplines for the benefit of their common clients. As a result, the process can stall before it really gets started. Your current advisors, whether CPAs, attorneys, financial or insurance professionals, may or may not be familiar with some of the important issues which you should address in any well-designed exit planning process. Instead, they may be more focused on compliance-type activities (general business matters, contracts, employee matters, tax returns, financial statements, etc.), which simply are not planning-oriented. In addition, financial and insurance professionals often focus on a subset of overall planning—investment planning or lifeinsurance planning—in order to help meet income needs or estate-tax costs. Having said that, there are of course many advisors who are exceptions to these generalizations. You should certainly discuss these issues first with your current advisors as they may be well-qualified to help you accomplish your exit planning objectives. At least one member of your advisor team should be trained and possess the knowledge to act as a facilitator of your exit planning process. This facilitator should use a written, detailed and systematic process which covers all the important issues which need to be addressed for a particular owner’s exit. This facilitator must also be able to work with you and your advisors to create and agree upon a written exit plan and action item checklist for you and for each member of your advisor team. This will shorten the process and reduce considerably the time you should have to spend creating the plan. A written exit plan is based upon your goals and objectives so it provides a road map that can be understood and followed by you and all members of your advisor team. In most cases, once you have chosen your facilitator, many (or all) of your other current advisors will likely be suitable members of your advisor team, unless they tell you otherwise. Now that the stage has been set, our next installment will discuss in detail the eight prerequisites for creating and implementing a successful exit plan. Content contributed Shumaker, Loop & Kendrick, LLP, a full service law firm founded in 1925 with more than 240 attorneys practicing in Charlotte, North Carolina; Columbus, Ohio; Sarasota, Florida; Tampa, Florida; and Toledo, Ohio. Content written by Robert Norris, Partner and co-chair of the firm’s Emerging and Middle-Market Practice Group. For more information, contact him at 704-945-2926 or rnorris@ slk-law.com or visit www.slk-law.com.

Norris

greatercharlottebiz.com | january/february 2016

OF INTEREST: Positioning Charlotte As A Global Hub Of Commerce

GROWING U.S.-INDIA TRADE

INDIAN CULTURAL AND COMMERCIAL OPPORTUNITY

I Sponsored by

Guest

Contributor

n early August 2014, on the first Sunday of my new life as a commercial diplomat at the U.S. Embassy in New Delhi, India, I struggled out of a four-seat taxi with my wife and four children in the heat of the summer in the bustling neighborhood of Vasant Vihar. There were no sidewalks, and horns seemed to honk from all directions as we cautiously crossed the street among the cows and street vendors that glanced at us. In the coming weeks, we would learn to drive ourselves through those streets, notwithstanding the cows, lack of sidewalks, and chaotic traffic patterns that always make for an interesting ride. Our experience was perhaps emblematic of India today—over whelming and bewildering at first, but dynamic and full of potential for those that adapt and form lasting relationships in this huge, fascinating country. Although I had always been interested in international affairs, I had never anticipated moving to India. After earning a master’s degree at the University of California San Diego, I spent a few years in Washington, D.C., where I worked at Georgetown University, and afterwards, the Export-Import Bank. In 2007, we moved to Charlotte where I was in commercial lending and international trade finance at BB&T and Bank of America until 2014, when I joined the Foreign Commercial Service and was assigned to serve in India.

U.S. Commercial Service in India Frost

Presently, I work as one of 10 American Commercial Officers in India within the U.S. Commercial Service, a division of the U.S. Department of Commerce’s International Trade Administration. The U.S. Commercial Service employs more than 260 Foreign Service Officers in 75 markets around the world, including seven offices throughout India. Our primary purposes are to promote the export of U.S. goods and services to India; advocate on behalf of U.S. business interests with government entities; and recruit investment from India into the United States.

january/february 2016 | greatercharlottebiz.com

Our experience was perhaps emblematic of India today— overwhelming and bewildering at first, but dynamic and full of potential for those that adapt and form lasting relationships in this huge, fascinating country. Opportunities and Challenges in India The last 16 months have been a terrific time to be at the Embassy in New Delhi. The United States and India are strengthening their commercial partnership as never before. President Obama is the only U.S. President to visit India twice while in office, including attending India’s Republic Day celebrations in January 2015. India’s Prime Minister Narendra Modi and President Obama have also met twice in Washington D.C., most recently during the two countries’ first-ever Strategic and Commercial Dialogue. President Obama said in January, “India and the United States are not just natural partners—I believe that

America can b e I nd i a's best partner.” With more than 1.2 billion people, India is the most populous democracy in the world. The country is governed under a parliamentary system comprising 29 states and seven union territories, and has more than 22 official languages. Since gaining its independence in 1947, India has passed through many struggles with a strong desire for sovereignty and independence that leaders such as Mohandas Gandhi and Jawaharlal Nehru fought so hard to achieve. India is currently experiencing some of the world’s fastest economic growth rates and is attracting impressive amounts of investment, but it also has its challenges, considering:

 Every month, roughly one million job seekers enter the job market. In response, the central government is pushing a “Make in India” initiative to spur manufacturing and job creation.  More than 300 million Indians live with no or little electricity, especially in rural areas. While there is a big push to build new energy capacity, utilities are consistently hampered with a lack of capital and abundant red tape.  About 500 million Indians have no indoor toilets, which has serious sanitation and public health ramifications.  India ranks 130 out of 189 in the World Bank’s annual “Ease of Doing Business” ranking. Although the business-friendly Prime Minister Modi wants to improve India’s ranking, it is difficult to combat the webs of bureaucracy and corruption that have contributed to this low ranking.  It is estimated that India needs $2 trillion to spend on infrastructure improvements—roads, bridges, ports, and more. But national and state budgets cannot come close to these figures, causing the government to explore public-private partnerships and look for ways to attract long-term investment.

Positive Trends in India Given these challenges, what does India offer U.S. companies? There are many positive trends and tremendous potential. First, U.S.-India bilateral trade has increased fivefold since 2000 to $103 billion today, with a projection to increase to $500 billion by 2025.

A look at North and South Carolina’s export figures to the BRICS countries (Brazil, Russia, India, China and South Africa) indicates there is room for U.S.India trade to grow, especially compared to our trade with China. Although the populations of India and China are nearly the same, North Carolina’s exports to China are more than six times higher than India, and South Carolina’s exports to China are 11 times higher than India. Second, the demographics of the BRICS indicate the growth potential for trade with India. India’s population and national savings rates are second only to China’s among the BRICS, and its population is forecast to surpass China’s by 2025. Although India’s GDP per capita is the lowest among the BRICS, its middle class is rapidly expanding. Third, despite India’s diversity of cultures and languages, English is commonly spoken throughout the country, making business activity easier for Americans. Also, there is broad familiarity with and affinity for the

United States throughout India. Roughly three out of every 100 Americans is of Indian origin, which has formed a powerful commercial and familial network. The sectors in which I specialize are indicators that the future is bright for U.S.Indian trade: • Tourism: In 2015, the U.S. consular sections processed a record-setting one million visa applications for visitors from

Ease of Doing Business Rankings Geography

2014

2015

2016

Singapore

New Zealand

Hong Kong

Denmark

S. Korea

Sponsored by

India. And the number of visitors from India to the United States has increased by 20 percent in the last year. • Education: More than 130,000 Indians are currently studying at universities across the United States, a 30 percent increase since 2014 and its highest rate ever. • Investment: At nearly $11 billion, India is the fifth fastest-growing source of business investment into the United States. Indian firms in the U.S. have created nearly 44,000 jobs and export nearly $2 billion from the United States. Sven Gertzer of the Charlotte Chamber of Commerce recently visited India to scout for more investment leads. A recent investment by an Indian firm in North Carolina is worth highlighting. In 2014, a company from southern India named SG Mills invested $40 million to

Rank

Fastest Growing Sources of FDI into the United States

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

China Hungary Luxembourg Brazil India Malaysia Korea, Republic of Switzerland United Arab Emirates Colombia Norway Bahamas Venezuela Thailand Chile

2014 Position ($M)

CAGR 2009-14

10,169 252 23,822 22,404 10,706 1,587 34,821 151,721 27,618 2,517 31,701 383 5,537 515 1,154

38.45% 34.15% 26.81% 25.24% 22.10% 19.58% 19.38% 18.20% 18.10% 16.54% 16.53% 13.88% 13.78% 13.62% 12.98%

economic development organizations in a variety of U.S. states. Ultimately, Governor Pat McCrory’s office persuaded SG Mills to establish their U.S. operations in Eden, resulting in the company’s investment of more than $40 million and the creation of more than 80 new jobs.

Be prepared to offer customization and after-sales services in order to maintain and grow relationships. These are just a few areas in which the U.S.-India commercial relationship is growing and deepening. For Charlotte-based companies, India offers much in cultural and commercial opportunity.

Finding Opportunities in India How can Charlotte companies find opportunities in India? We often share the following advice: Remember the Three P’s: Persistence, Patience and Partners. India has its challenges, but the right partners combined with a long-term commitment often leads to success. The U.S. Commercial Service offers matchmaking and partner-selection services for a small fee to American firms in any of our 100+ Export Assistance Centers throughout the United States, including one in Charlotte. Because India is so vast and diverse, it is wise to consider a regional strategy. Our seven offices located throughout India can advise Americans on ways to develop such strategies. Companies should not overlook ‘Tier 2’ cities that are each home to millions of people and often have abundant trade opportunities.

Source: Bureau of Economic Analysis

open a yarn spinning facility in Eden, North Carolina. This investment initially started when one of my colleagues in Chennai, India, referred SG Mills to the U.S. Department of Commerce’s SelectUSA office, which promotes foreign direct investment into the United States. SG Mills is a third-generation, familyowned business. It is the largest spinner in India with a total installed capacity of 1.1 million spindles and a workforce of 30,000 employees. SelectUSA, through the U.S. Commercial Service post in Chennai, India, worked closely with the team members at SG Mills as they considered their approach to the U.S. market. SelectUSA introduced SG Mills to several

january/february 2016 | greatercharlottebiz.com

Content contributed by Paul Frost, a Foreign Commercial Service Officer at the U.S. Embassy in New Delhi, India.The Foreign Commercial Service is the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration.The role of a Foreign Commercial Service Officer is to promote the export of U.S. goods and services, attract foreign investment into the United States, and defend U.S. commercial interests abroad. Frost can be reached at paul.frost@trade.gov. For more information, visit www.export.gov/india and www.buyusa.gov/india. Content sponsored by Shumaker, Loop & Kendrick, LLP, a full service law firm founded in 1925 with more than 240 attorneys practicing in Toledo and Columbus, Ohio; Tampa and Sarasota, Florida; and Charlotte, North Carolina. Our Charlotte office is sharing in the fast-paced development of the Carolinas by providing representation on corporate, securities, real estate, tax, litigation, immigration, employment, creditors’ rights, international business transactions and litigation, financial transactions, health and all other business specialty areas. For more information, contact Scott M. Stevenson, the Charlotte Managing Partner, at 704-945-2180 or sstevenson@slk-law.com or visit www.slk-law.com.

GLOBAL LEADERS SEEK CHARLOTTE BUSINESSES Ambassadors, Diplomats and Distinguished Leaders See Charlotte as Entry to U.S. Domestic Market Charlotte is home to over 1,000 foreign-owned companies that have chosen to do business in the United States. Not only do international businesses benefit from the camaraderie of other foreign-owned firms, they also benefit from the support mechanisms this community provides to help them acclimate and thrive.

WACC President and CEO L.J. Stambuk

The World Affairs Council of Charlotte (WACC) is a very integral mechanism in that regard. As a regional center for education and discussion of world affairs, the Council seeks to provide leadership for global thinking, believing that a broad perspective is necessary for effective competition in the global economy and for responsible citizenship in an increasingly interdependent world. PROGRAM HIGHLIGHTS

Globalization Editor The Economist Magazine The World Aﬀairs Council of Charlotte recently hosted Matthew Bishop, Globalization Editor for The Economist magazine and author of “The Road from Bishop Ruin: How to Renew Capitalism and Put America Back on Top” and “Philanthrocapitalism: How Giving Can Save the World.” Bishop described the historical context behind the current global economic challenges faced in Europe, Asia and the United States, and shared his insights on the challenges he anticipates in global markets, future economic trends, and what can be done to increase economic growth in the U.S. President and CEO Duke Energy The World Affairs Council of Charlotte recently hosted Lynn Good, President and CEO of Duke Energy, the nation’s largest electric power company. Good She shared her insights into the global and national trends changing the energy landscape. She has been listed among Fortune Magazine’s Most Powerful Women in Business and has led the company to intensify its focus on serving its customers and communities well today while leading the way to a safe, secure and responsible energy future.

Managing Director and Global Economist Wells Fargo The World Affairs Council of Charlotte recently hosted Dr. Jay Bryson, Managing Director and Global Economist Bryson at Wells Fargo, as he provided analysis on financial markets and macroeconomic developments in the major economies of the world. His expert presentation on the outlook of the 2016 global economy addressed the impact of U.S. ﬁnancial markets around the world as well as trending economic strategies worldwide, challenges in addressing ﬁscal policy domestically and abroad and growth in emerging markets.

Corporate Membership and Support: Will You Invest in the World Aﬀairs Council of Charlotte? • Learn about international affairs from foreign government/state officials, renowned authors, and world leaders. • Build professional networks through Council events. • Support international education in the Charlotte community. • Increase corporate publicity through program and education sponsorships. • Reach out to sophisticated and high level individuals in the Charlotte community. • Build, maintain and strengthen client relationships. For more information regarding Corporate Membership with the World Affairs Council of Charlotte, please contact Charlotte Klopp at cklopp@worldaffairscharlotte.org or 704-697-7759.

World Affairs Council of Charlotte Upcoming 2016 Programs February 10 ............ Great Decisions 2016: Shifting Alliances in the Middle East by Dr. Amal Khoury (UNC Charlotte) February 10 ............. Private Dinner: An Evening with Robert Walker, President of the Population Institute February 11 ............ WACC Speaker Series with Robert Walker, President of the Population Institute February 17 ............. TMS Global Spotlight: The Rise of ISIS - A 2016 Great Decisions Topic February 24 ............. Great Decisions 2016: Cuba and U.S. by Dr. Greg Weeks (UNC Charlotte) March 22 ................ WACC Ambassadors Circle Series with H.E. Gérard Araud, Ambassador of France to the U.S. April 8 ...................... WACC Ambassador Circle Series with H.E. Arun Singh, Ambassador of India to the United States April 20 .................... World Citizen Award Dinner honoring Philip L. Dubois, Chancellor of UNC Charlotte April 23 - May 8 ...... Travel with the World Affairs Council of Charlotte “Journey of a Lifetime through Vietnam, Cambodia and Thailand” June 1 - 9 ................. Travel with the World Affairs Council of Charlotte and Opera Carolina, “A European Intermezzo: Waltz Through Berlin and Vienna”

www.worldaﬀairscharlotte.org

ALL WITH

Passion

W E A LT H

MAKES AN UNWAVERING COMMITMENT TO ITS CLIENTS

he founders of Cornerstone Wealth share a passion for helping clients achieve their financial goals. It all started with collaboration. Andrew Smith, Brian Needleman and Jeff Carbone managed individual practices while working together at a former brokerage firm, and as their practices grew, they realized the value of working together and decided to pool their complementary expertise and build a team-based business in 2001. Each partner brought a different perspective and skill set to the team; each shared a vision of building a world-class wealth management firm offering independent and unbiased advice with focus on building lasting client relationships.

H PRE ENSI

SORY TE

A DISTINGUISHED BRAND: The layers of the Cornerstone Wealth logo symbolize the many facets of the company, harmoniously working for a unified purpose. With an emphasis on transparency and integrity, the company embraces this image as it continues its evolution to better serve its diverse client base.

by gene stowe

The Cornerstone Difference

greatercharlottebiz.com | january/february 2016

independence

FINANCIAL PLANNING SIX-STEP PROCESS

Building a Team

, accountability

Today, the firm manages assets in excess of $1 billion and offers comprehensive wealth management services through a team of 22 wealth advisors and 27 professional staff members. The firm is growing at an average of 25 percent per year by acquiring new clients, establishing new offices, and hiring experts in various sectors of the financial industry.

“It’s our business model that makes us different,” Smith says. “Not many people can accomplish what we’ve done together. Our business revolves around relationship management, so it is important for our team of advisors to be in front of our clients. By leveraging our infrastructure, we liberate advisors to do what they love—serve clients. “Our success has definitely come through working as a team,” Smith continues. “We strive to understand each person’s strengths, and we allow people to focus on their passions. There are advisors and employees who enjoy client acquisition, while others enjoy the operations side of the business. “Having the right people in an organization is imperative, but it’s also important have them in the right job. We believe that if you have passion for what you’re doing, you’ll do well.” The division of labor came naturally to the founders. “Jeff Carbone had been a certified financial

planner,” explains Smith, “so he handled the financial planning. His specialty was financial and estate planning, so he brought a comprehensive approach to the firm. “My passion is client acquisition, so I handled marketing and business development. Brian had many years of investment management experience, so he managed our client’s portfolios. The three of us specialized in these areas and formed a cohesive team.” The fourth managing partner, Craig Rubrecht, joined Cornerstone in 2003, after leaving Prudential Securities. Rubrecht brought many years of advisory and management experience which was needed in the growing organization. “As it happened, we formed our company after 9/11 when people were worried about their money,” continues Smith. “We made an effort to get out in front of as many people as possible, and it worked. I believe we were in the right place at the right time, but we also worked smart.” Notably, says Smith, while other firms were reluctant to engage clients, the group acted proactively in the environment and landed dozens of clients who were accepting early retirement plans from such companies as AT&T and Duke Energy. “The market rebounded strongly in 2003, so our clients thought we were miracle makers,” laughs Smith, 43, who was in his late 20s when the company started. “Our niche was the utility and telecommunications industry early on. Since then, our business has grown dramatically to include clients from all backgrounds. Today, we are diversified across retirees, business owners, executives, independently wealthy clients and athletes.”

(l to r) Joe Sweeney Managing Director, West Coast Andrew Smith Founding and Managing Partner Brian Needleman Founding and Managing Partner Terri Fiessinger Chief Operating Officer Jeff Carbone Founding and Managing Partner Chris Zaccarelli Chief Investment Officer Craig Rubrecht Managing Partner Cornerstone Wealth

january/february 2016 | greatercharlottebiz.com

“Clear, concise information shared frequently… Engaging interaction between brokers, counselors and clients providing meaningful strategies to best serve client needs… Constant analysis, research and educational support to stay abreast of global changes—at Cornerstone Wealth, we endeavor to keep people informed and aware of changing market influences, market disruptions and significant business trends.”

A Model for Success Cornerstone’s distinctive model involves expert specialists who handle the business details, such as operations and asset management, so that advisors in the field can concentrate on building relationships with clients. “That’s what makes us different from most firms—our culture of teamwork,” Smith says. “We support our team of advisors so they don’t have to do anything but manage the relationship.” About half of the firm’s 45 employees work in its Huntersville headquarters, while the others are in branch offices of two to five people each. The firm recently hired chartered fi nancial analyst Chris Zaccarelli from Goldman Sachs as their chief investment officer. Smith remarks, “There are certainly many companies moving their workforce to Charlotte, and Chris liked the area and the wonderful climate, but it had to be the right opportunity for him.” Cornerstone has offices in Huntersville, Charlotte, Greensboro and Belmont, N.C., as well as Greenville, Lexington and Aiken, S.C. In 2016, the company will establish offices in

client focus

integrity

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Jeff Carbone on Interest Rates

Raleigh, N.C., and Lexington, S.C., continuing its growth throughout the Carolinas. “Internally, I would say two areas are growing rapidly,” Smith continues. “The high net worth area is growing rapidly. We are finding these clients want the level of service we provide. The other we refer to as ‘money in motion,’ whether it’s people retiring or passing money to the next generation. “It’s really coming at us from every direction. The baby boomers are where the majority of the wealth is,” Smith points out. “They’ve accumulated it and many of them don’t need it, so we educate clients on how to pass it to the next generation. You can either spend it during your lifetime or give it away. If you don’t anticipate using it, there are many strategies to benefit your family or charity.” Gifting and estate planning can have greater impact than a will, which covers only parts of the estate that are not already designated by beneficiary designations and other instruments. “That’s where we come in,” comments Smith. “We educate people about the various

strategies available and bring in other professionals as needed.” Cornerstone Wealth has its own apprenticeship program to recruit and train promising young advisors to work for the firm. So far, 11 advisors have completed the program which includes two years of training, mentoring by the partners and working with clients. Many of these advisors have earned the certified fi nancial planner designation and other certifications. “It’s a challenging but rewarding career,” Smith says. “We try to find those who want

INVESTMENT MANAGEMENT SIX-STEP PROCESS

people

transparency

january/february 2016 | greatercharlottebiz.com

a career in the wealth management industry and help them grow as advisors so they become lifelong advisors of the firm. We even provide a pathway to partnership in the firm, similar to the structure of a law firm.” Smith says the firm’s assets, which topped more than $1 billion under management (AUM) last year, is expected to double in the next several years. It has grown about 25 percent a year, roughly half by organic expansion and half by acquiring existing practices. “We want to grow at a healthy pace,” Smith remarks. “Our future expansion will come from a combination of organic and inorganic growth. There are many future retirees and other clients looking for a wealth management team like ours, but there are also a lot of advisors who are looking to retire and need a succession plan. Both of these are attractive ways to grow our firm.” Cornerstone Wealth has implemented various succession plans with financial advisors looking to exit the business. The firm has also transitioned advisors into the practice with the intention of remaining a part of the team. Some advisors desire a hybrid model, where the advisor stays in the

“You can’t just buy and hold any more. That’s not going to work. You have to understand what’s going on in the world and the economy.”

business and transitions their clients to a new advisor(s) over a period of time. Says Smith, “Finding a firm that can handle all of these scenarios is difficult. We offer a tailored and turnkey solution for advisors.” “For our organization, the No. 1 issue we’re going to face is change in the regulatory environment,” Smith remarks, adding that Cornerstone has created a chief compliance officer position because, “We’re finding that we need more focus to keep up with these changes.” “We’ve also hired executives to handle the operational aspects of the business. Three years ago, we hired Terri Fiessinger as our chief operations officer to help manage the advisors and staff in our multiple locations. This is critical role in our firm, and she has done a fantastic job.” Cornerstone Wealth, a Registered Investment Advisor (RIA), offers three custodians—Charles Schwab, LPL Financial, and Fidelity Investments. “Our infrastructure is large enough to handle that,” Smith says. “It makes it easy to do business with us, whether you are a client or an advisor looking to join the firm.” Many advisors joined Cornerstone during the recession, when the firm maintained its commitment to clients and weathered the downturn successfully. “Of course, 2008 was the deepest dip in recent history,” Smith acknowledges. “We made our way through it by holding client events and programs. We got in front of our clients to educate them. It’s important to stay the course during volatile times: Our clients listened and were rewarded.”

A Comprehensive Approach At Cornerstone, both advisors and portfolio managers work together in a rapidlychanging market that demands constant attention. “This part of the business is extremely

community

as motivational or topical speakers. There is no doubt that at Cornerstone Wealth, their passion for serving their clients is the fundamental cornerstone of their success.

“Collectively, our passion drives our work ethic to not only meet, but to exceed expectations.”

teamwork

important,” Smith says. “You can’t just buy and hold any more. That’s not going to work. You have to understand what’s going on in the world and the economy. These days, that global economy includes issues in China and Europe, as well as the strength of the U.S. dollar. “The challenge that we’re faEcing right now is that we have a global slowdown,” Smith begins describing a host of issues causing volatility. “Part of this is due to China. They overbuilt—they built cities with nobody in them. Now all of a sudden they have this real estate glut. Even so, there are going to be certain industries that benefit from the 1.3 billion people who live there. “At the same time, Europe faces a refugee crisis and terrorist fears while it struggles to rebuild its economy. “Meanwhile, the U.S. has stopped printing money and our dollar has gotten quite strong against other currencies. From a currency standpoint, your dollar would go a lot further today, which impacts trade profits. “There are many external factors,” Smith adds. “There’s terrorism and crossborder conflicts we need to keep in mind. We’ve lived with this in the past, but now their literally on the news every day.” Cornerstone Wealth holds client events at all of its locations twice a year— with updates on markets, the economy, and financial planning concepts as well

e es are th Magazin t performer n te onsis MOST c rchase funnel. u in the p

Gene Stowe is a Greater Charlotte Biz freelance writer. Executive photo provided by the company; other photos by Cory Tapia of Afterglow Creative with assistance from Ginger Grifﬁn Marketing and Design.

Cornerstone Financial Partners, Inc. dba

“Clear, concise information shared frequently…Engaging interaction between brokers, counselors and clients providing more meaningful strategies to best serve client needs…Constant analysis, research and educational support to stay abreast of global changes and how those changes affect portfolios—at Cornerstone Wealth, we endeavor to keep people informed and aware of changing market influences, market disruptions and significant business trends,” says Smith.

te t a ra t h a l l p a e w of n o s ho Tw ces s half ac t o ) . ur an s o re t h ( 5 4 % a d s e s o n m der azi re a m a g

“Collectively, our passion drives our work ethic to not only meet, but to exceed expectations.”

Cornerstone Wealth 16810 Kenton Dr., Ste. 200 Huntersville, N.C. 28078 Phone: 704-987-3410; 800-738-6734 Principals: Jeffrey A. Carbone, Brian T. Needleman and Andrew K. Smith, Founding and Managing Partners; Craig A. Rubrecht, Managing Partner Employees: 45 employees Established: 2001 Portfolio: Assets under management exceed $1 billion; 1,500 clients Recognition: Financial Times Top 400 wealth management firms in the country; Barron’s Top 1,200 advisors Business: Wealth management firm advising individuals, executives and businesses in a wide range of financial matters, including investments, retirement and estate planning. www.cfpwealth.com

Magazine media engage readers significantly more than television or the Internet.

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by gene stowe

Nur uring Community PREMIER BANK FOCUSES ON ITS Roots

or the past year, David Barksdale has been leading the charge at Carolina Premier Bank, a wholly owned subsidiary of Premara Financial, Inc., to grow it to be one of North Carolina’s largest community lenders. “I loosely deﬁne leadership,” says Barksdale, “as balancing the task with the people—being able to move the company forward toward its goals while engaging the people to want and to share the same goals.” Shortly after his arrival in February 2015, Barksdale set forward his ﬁve core values for the banking company: Trust, Excellence, Focus, Collaboration, and Balance.

Carolina Premier Bank Organization and Mission

Streamlining Operations

“There are many values that we all want to model,” comments Barksdale, “but we limited ours to these five. If we all embrace and model these values, I am convinced that our culture will thrive. “Engaged professionals lead to great client service, which ultimately increases shareholder value. It all starts with culture. This year, the focus has been on Focus.”

“We’ve deﬁned our niche as small businesses and professionals— accountants, attorneys, and the retail clients that come along with those niches. We need to focus on small businesses and bank the folks that work in there.”

David P. Barksdale President and CEO Carolina Premier Bank

“I felt like we had spread ourselves so thinly that we weren’t able to do everything well,” Barksdale explains. “You can’t be all things to all people. We did a lot of hiring, a lot of repositioning, a lot of tweaking the processes. 2016 is going to be about executing on that focus based on what we’ve done this year. “We’ve defined our niche as small businesses and professionals—accountants, attorneys, and the retail clients that come along with those niches. We need to focus on small businesses and bank the folks that work in there.”

Charles Davis, Carolina Premier’s board chairman, tapped 28-year veteran of the banking industry Barksdale for the helm position leadership role after the bank’s founder John Kreighbaum resigned in mid-2014. Barksdale was chief strategy officer at NewBridge Bank. Barksdale, whose 10-year career at Greensboro’s NewBridge included a stint as chief banking officer on a team that arranged three mergers, had the blessing of the bank’s CEO Pressley Ridgill when he took on the new challenge at Carolina Premier. “As most bankers do, I had several roles within the organization,” he says. “I wanted to try my hand at being at the helm at a community bank. I study culture, creating culture, what makes excellence.” Barksdale’s mission at Carolina Premier is to create that culture and excellence, while streamlining the banks operations—focus— and bringing a return to the shareholders. Carolina Premier has raised $8.5 million in capitalization to retire $6.2 million of Small Business Lending Fund capital acquired five years ago before rates on the recession-related program rise, and now has about $2 million in growth capital available. The bank has also closed its direct mortgage division, now offering third-party mortgages, and hired a chief banking officer, a chief credit officer, three new commercial bankers and a retail banker. “The banking network is a small family, especially community banking,” comments Barksdale. “We all know each other and have often worked with each other.” A rash of mergers in recent months has reduced the number of community banks, with only one other institution with less than $1 billion in assets remaining in Charlotte. “We are having a lot of consolidation within the community banking space,” Barksdale notes. “While there are many community banks, there are not as many as there used to be at the start of this cycle in 2007 and 2008. As we talk to our clients, we’re convinced there’s a spot for small community banks.” Carolina Premier Bank has approximately $250 million in assets. It is headquartered above its banking operations in Ballantyne, and has branches in Rock Hill and Blacksburg, S.C. It also has two divisions: Bank of the Urban League of the Central Carolinas in uptown Charlotte and Our Bank in Six Mile, S.C. In true community fashion, Six Mile residents invited Carolina Premier to take over when their bank was closing. Our Bank, as the branch is known, leases space in a

New Vision, New Focus

“We also want to deal with clients who are in their second and third S-curves of growth— perhaps vertically integrating, buying new equipment, or opening a new business line. That’s where there’s change, and that’s what creates banking needs.”

unintended consequences to this move you’re making.’ “We differentiate ourselves by being that challenger-style of communicator where we’re looking for that answer. There is that solution out there, and we want to go out and find it.” “We also want to deal with clients who are in their second and third S-curves of growth— perhaps vertically integrating, buying new equipment, or opening a new business line,” says Barksdale. “That’s where there’s change, and that’s what creates banking needs.” Under Barksdale’s leadership, Carolina Premier Bank is practicing what it preaches. “We’re in the process of changing ourselves, so we understand that,” he says. “We want to bring that knowledge to our clients and help them understand—‘Here are some things you can anticipate and here are some of the challenges.’ While you’re not in their shoes in their business, in their seat, you can certainly empathize, and you can help them get to the spot where they want to be.” Recently, Barksdale attended an extensive meeting with other bank officers and a client who is in the process of transferring part ownership of his business to successors—both family and otherwise.

“We have been working with this client on how he, in a smart manner, transitions that business to the next generation,” Barksdale explains. “It’s a regimented process. There are tax consequences. Do the successors have the

town-owned building. The arrangement, complete with a robotic teller, recently won an economic development award. “We really have a great partnership there,” Barksdale comments. Carolina Premier has a three-year-old uptown partnership with the Urban League of the Central Carolinas with an office in the Urban League’s building and one permanent staff member who is supplemented as needed. “Our mission there is to help the Urban League’s clientele establish banking relationships and understand what banking is about, because many of them are unbanked or underbanked,” Barksdale says. “It’s a way for us to give back to the community.”

Positioned for Success Local, high-level relationships and decision-making are attractive to small businesses, and Carolina Premier Bank takes an active “challenger” approach to make sure that clients are positioned for success. “I think folks like the opportunity to deal with a banker that’s got a lot of expertise and gets to know them and their challenges,” Barksdale says. “We want to say, ‘Tell me about this—what will it do—are there any

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cash to buy in? By working with us, a community bank, he got a team of professionals helping him understand what his business is worth. “I enjoyed getting to know him and understanding his business model. I was able to probe him with some questions like, ‘How do you do this and how do you stay competitive in these situations? Show me how you do this.’ We went back and he showed me the backroom operations of how it all works. He, I think, feels good that I took an interest in him.” Barksdale credits Hunter Widener, executive director of the bank’s Center for Business Strategies, for leading a retreat when Barksdale arrived to brainstorm ways the bank could better serve clients. In an era of massive wealth transfer to younger generations by baby boomers and those who started businesses decades ago, proper valuation of the business

“You’ve got to balance the electronic banking with brick and mortar banking. Folks still want to come to a bank to handle more complicated transactions such as home equity lines of credit, savings plans for their children, or mortgages. Even technology-focused millennials who conduct day-to-day transactions by phone seek face-to-face relationships for larger issues. When they want to deal with something in more depth, they prefer brick and mortar.”

and effective transition plans rank high. “We believe they want advice and counsel and products and services that help them realize the value of their business,” Barksdale says. “How do you plan on exiting? How do you plan on monetizing the wealth you created? Let us help you figure out how to monetize that. “We’re able to dovetail the relationship we have on the traditional banking side of loans and deposits to ‘Let us help you determine how to ultimately get value out of your business.’ There’s such a huge wave

of generational wealth transfer that is happening and will continue to happen. Some of the small businesses are not going to be on the radar screens of these mega accounting firms and mega legal firms,” maintains Barksdale. “The mega firms are not participating in the business owners’ exit strategy.’” Carolina Premier launced the Center for Business Strategies just for this reason, and led by Widener they hold one-hour breakfast meetings for up to 20 people with networking, topical presentations such as ACA and year-end tax planning, and an introduction to Carolina Premier Bank.

Emphasizing the “Community” Barksdale firmly believes that relationships with small businesses can mean relationships with big businesses later, as those clients grow. “Every big business starts out as a small business,” Barksdale emphasizes. “We certainly believe that small businesses and the groups that support them is a great segment to add value, and that’s what community banking is all about.” Barksdale paraphrases UNC Charlotte professor Tony Plath, “If you need good, old-fashioned banking and service and advice and relationships, I think community banking stands apart.” In an industry largely dominated by megabanks, Barksdale believes that community banks—even as small as Carolina Premier Bank—can find a niche to flourish. “I do think there’s a certain attraction to community banks,” he says. “There’s a segment out there that needs and wants to support community banks. Charlotte’s a big city, a New South City. There’s a ton of activity here, and there’s a ton of small business activity here. “I have found folks to be very open to community banking. I have found the professionals that work here have a deep passion for the bank and a deep passion for their clients and great relationships with their clients.” Barksdale points out that the young bank is a natural fit in Ballantyne, a relatively recent development filled with entrepreneurial energy and newcomers who have no generationslong banking relationships in the community. “It is a great match for us,” Barksdale says. “We haven’t been in Charlotte since the 1800s; we’re a new and cutting-edge bank. Ballantyne hasn’t been around since the 1800s; it’s new and cutting-edge. Ballantyne kind of encapsulates our entrepreneurial spirit.

“More and more people are moving to Charlotte and more and more businesses are springing up in Charlotte. As a newer bank in the community, we are well-positioned to meet the challenges for those small businesses and professionals.” Barksdale expects the bank will eventually expand in the Charlotte area. Blacksburg and Six Mile will remain focused on retail banking. “We consider Rock Hill part of the greater Charlotte area,” he adds. “We’ll continue to analyze the branches. Branch banking is changing. We never say we’re done. We’ll eventually need another branch in Charlotte or the greater Charlotte area—Concord, Kannapolis, Lake Norman.” Barksdale sees a vital balance between online and in-person banking in the future. “You’ve got to balance the electronic banking with brick and mortar banking,” Barksdale explains. “Folks still want to come to a bank to handle more complicated transactions such as home equity lines of credit, savings plans for their children, or mortgages. You don’t need eight teller stations at each branch. We get clients coming to our building all the time. We’re happy to go to them, but they say ‘I’d rather come to your place.’ “Even technology-focused millennials who conduct day-to-day transactions by phone seek face-to-face relationships for larger issues,” he says: “When they want to deal with something in more depth, they prefer

brick and mortar.” A groundswell movement for local economic focus works in favor of community banking, Barksdale points out. “It’s very much like shopping local,” Barksdale comments. “The big-box retailers are out there. If you need a variety of things, they’re there. “But I go to the local hardware store to get paint brushes and get my lawn mower serviced and get my chainsaw sharpened. I like to shop local restaurants, local hardware stores, local gift shops. I know the service I’m going to get and the level of expertise.”

Gene Stowe is a Greater Charlotte Biz freelance writer. Some images provided by the company.

THE PATH TO SUCCESS IS NARROW. WE’LL HELP YOU FIND IT.

At Gardner-Webb University’s Godbold School of Business we balance the pursuit of knowledge with a commitment to Christian ethics, empowering our Carolina Premier Bank 13024 Ballantyne Corporate Pl., Ste. 100 Charlotte, N.C. 28277 Phone: 704-752-9292 Bank Holding Company: Premara Financial, Inc. Principal: David P. Barksdale, President and CEO Assets: Approximately $250 million Branches: Ballantyne (headquarters), N.C.; Rock Hill and Blacksburg, S.C. Divisions: Bank of the Urban League of the Central Carolinas (Charlotte); Our Bank (Six Mile, S.C.) Employees: 50 Established: August 2007 Business: Community bank offering a broad range of commercial and consumer banking services focusing on the needs of small businesses, professionals, and retail clients; expertise includes lending, treasury management, wealth management, and the Center for Business Strategies which provides strategic advice for business owners. www.carolinapremierbank.com

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Thomas M. Finke Chairman and CEO Babson Capital Management LLC

mac330.com

More Than Investing... INVESTED

New York

Springfield

Boston

Chicago

For Babson Capital Management, Itâ&#x20AC;&#x2122;s a World of Opportunity by jim froneberger

ne of the less frequently recognized financial behemoths in Charlotte is Babson Capital Management (Babson). As one of the worldâ&#x20AC;&#x2122;s leading asset management firms, with investment teams on four continents managing more than $220 billion in assets, Babson works with clients in countries across the globe. The company offers expertise in a wide Charlotte variety of traditional and alternative asset classes, including global high yield loans, structured credit, private debt, and real estate. Clients include both institutional and wealth advisory clients. While Babson began in New England, the company is now headquartered in Charlotte and its presence will soon punctuate the Charlotte skyline with a towering office building providing penthouse views.

Los Angeles

London

Hong Kong

Melbourne

Sydney

Tokyo

Tom Finke on CNBC Greece and Europe

Global Equity, Fixed Income and Multi Asset

Global Fixed Income, Private Credit and Equity, Multi Asset

Global Equity and Fixed Income

$222.9 billion in AUM2

$216.8 billion in AUM

$35.2 billion in AUM

Commercial Real Estate: Public and Private Equity and Debt

Real Assets: Tangible / Intangible

$46.3 billion in AUM

$2.6 billion in AUM

“We knew we had a really good team and an opportunity to grow. Babson offered an opportunity to move from being bank-owned to insurance company-owned. Not only did they want us as an asset manager, but MassMutual’s general account invested in leveraged loans, and they wanted a team dedicated to that. Part of the deal was we got to stay in Charlotte.” CEO Tom Finke’s ambition is to make Babson top-of-mind for institutional investors around the world seeking global fixed-income managers.

A Force to Be Reckoned With Babson’s growth will soon bring a new addition to the Charlotte skyline—300 South Tryon—a 25-story, 630,000square-foot office tower located on the corner of Third and Tryon streets.

Babson Capital traces its roots back 75 years to the creation of David L. Babson & Co., a Boston-based value equity firm and pioneer in growth stock investing. The firm grew steadily into a highly regarded investment manager, and was acquired by Massachusetts Mutual Life Insurance Company (MassMutual) in 1995. In 2000, David L. Babson & Co. was integrated with MassMutual’s Investment Division, uniting two fi rms under a shared dedication to unwavering client service and

long-term, fundamental investing. The combined entity refined its expertise across both public and private asset classes by managing investment portfolios on behalf of the parent company MassMutual as well as a growing base of institutional investors. The firm continued to grow both organically and through a series of strategic acquisitions, with two in particular significantly adding to the investment management platform: First Union Institutional Debt Management, an experienced leveraged loan and CLO manager in the U.S., Duke Street Capital Debt Management, one of the largest bank loan managers in Europe. These acquisitions solidified Babson’s presence in the world’s two largest high yield markets, and the firm was rebranded as Babson Capital Management in 2004. With proficiency across the fixed income spectrum, Babson has continued to expand its investment capabilities over the last decade. To serve the needs of an increasingly global client base, Babson further extended its offerings in private finance, private equity and emerging markets. Today, Babson offers a wide range of investment solutions to a client base that spans the globe. Throughout its growth, the firm has maintained a strict adherence to the bottomup, fundamental analysis that has long been the hallmark of Babson’s investment process, and fostered a corporate culture that thrives on teamwork and collaboration. Babson is part of the MassMutual Financial Group, which includes Baring Asset Management and Oppenheimer Funds. Babson also has two wholly owned asset management subsidiaries: Cornerstone Real Estate Advisers and Wood Creek Capital Management.

Charlotte Figures Prominently Babson opened their first Charlotte office in 2002 when Wachovia sold First Union Institutional Debt Management (IDM), a 13-person boutique high yield loan manager specializing in leveraged loans and collateralized loan obligations (CLO). One of the co-founders of that Charlotte company was Thomas M. Finke. A Pittsburgh native, Finke received his MBA from Duke University’s Fuqua School of Business in 1991, after earning his undergraduate degree from the University of Virginia’s McIntire School of Commerce. Prior to forming IDM, he held positions in high yield and loan syndications at First Union Capital Markets, Bear Stearns and Company, and

Mellon Bank. But in the wake of the 20002001 recession, and after the merger of First Union and Wachovia in 2001, Finke decided he needed to find a permanent home for IDM. “We knew we had a really good team and an opportunity to grow,” says Finke. “Babson offered an opportunity to move from being bank-owned to insurance company-owned. Not only did they want us as an asset manager, but MassMutual’s general account invested in leveraged loans, and they wanted a team dedicated to that. Part of the deal was we got to stay in Charlotte.” Over the next several years Finke’s responsibilities at Babson grew, and in 2008, he assumed the role of chairman and CEO. The core management team being assembled in the Charlotte office included long-time business partner Russell Morrison, who was with Finke at First Union and who now serves as vice chairman and oversees Babson’s global fixed income and global private credit businesses. In addition to Finke and Morrison, the team includes company 35-year MassMutual veteran Cliff Noreen, president; Anthony Sciacca, the head of global business development who also oversees private equity

BABSON CAPITAL MANAGEMENT

External AUM by Client Region

• AUM: $222.9bn (31 Dec 2015) • Global high yield: 23%

• Private credit: 15%

• Investment grade: 36%

• Private equity: 2%

• Real estate: 21%

• Emerging markets: 1%

investments; Paul Thompson, the COO, CFO, and head of global investment services; Susan Moore, the chief administrative officer; Sheldon Francis, co-general counsel; and Christopher DeFrancis, co-general counsel and chief compliance officer. “There was no specific intent to move the headquarters to Charlotte,” explains Finke. “It just turned out as we executed our business plan post-financial crisis, and as our leadership took form, it became clear this is where a lot of our growth has been and will be. There’s a very strong base of financial talent in this city, regionally we have great universities, and we have an airport which allows us to operate as a global investor.” Just as the growth of Bank of America, Wells Fargo, and their predecessor banks

13%

Asia-Pacific (50) 26%

61%

EMEA (203) United States / N. America (316)

AUM & Client Growth ($B) # of External Clients

112

116

$104.1 $108.2

2007

2008

125

$117.8

2009

213

265

450

2010

2011 AUM

569

337 $192.7

$133.1 $139.0

517

$212.8

$222.9

$160.1

2012

2013

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greatercharlottebiz.com | january/february 2016

“As I looked at our long-term space plans, we needed more space,” says Finke about their plans to launch the new building. “Office vacancy was coming down fairly quickly, and when we did the fundamental analysis of Charlotte CBD office real estate, it made sense to develop a prime office building.”

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drove much of the center city growth in Charlotte from the 1970s to the 2000s, Babson’s growth will soon bring a new addition to the Charlotte skyline—300 South Tryon—a new 25-story, 630,000-square-foot office tower located on the corner of Third and Tryon streets. The site had been in the MassMutual real estate portfolio for many years; it was the first new uptown tower to be announced after the Great Recession of 2008-2009. Babson expects to relocate their Charlotte offices from the Duke Energy Center to the new tower sometime in 2017.

january/february 2016 | greatercharlottebiz.com

Today, Babson’s 1,100 employees offer a wide range of investment solutions to over 500 clients in more than 30 different countries. These clients include banks, insurance companies, pensions, endowments, foundations, sovereign wealth funds, and private wealth advisory clients. Babson’s total assets under management have grown from $104 billion in 2007 to $223 billion as of the fourth quarter 2015, an average growth rate of about 10 percent per SYDNEY MELBOURNE

LOCATIONS

HONG KONG

TOKYO

year. About half of Babson’s assets represent MassMutual’s general investment account, and the growth of MassMutual’s overall business is one important driver of Babson’s asset growth. Just over 60 percent of the external assets under management (those assets excluding the MassMutual general account) are from clients in North America; 26 percent are from Europe, the Middle East, and Africa; and the remainder is from the AsiaPacific region. But one amazing thing you notice about Babson’s growth is that, unlike other financial firms that suffered from 2007 to 2010, Babson continued to grow, fueled by large institutional investors in search of higher yields on their investments during the recession and the tepid economic recovery that has followed. “Coming out of the financial crisis, investors were looking for higher yields and looking for investments that were less correlated to the equity markets,” explains Finke. “We also invested significantly in building out our local distribution business, and we now have about 100 people around the globe developing relationships with the largest institutional investors.” Something else that helped Babson weather the crisis was their long-term,

value-driven investment philosophy. Unlike some asset managers, the unique needs of their clients drive them to a more conservative investment philosophy. “We’re not a hedge fund where we can just take our parlor chips off the table and go home when markets change,” states Finke. “Our clients are long term investors. You can’t go to cash in the general investment account of an insurance company. Our discipline has been built around the ability to manage through the cycle and adjust, both when times are good, and when times are not.” In addition to their core asset management solutions, Babson has two wholly-owned specialized subsidiaries: Cornerstone Real Estate Advisers and Wood Creek Capital Management. Headquartered in Hartford, Conn. Cornerstone invests across all four segments of the real estate market—public and private equity and debt. Wood Creek based in New Haven, Conn., focuses on real asset investments, including investments in global agricultural resources, intellectual property, pharma, and reinsurance.

“You have to build portfolios that have the ability to manage through tough times. We tend not to invest into trends; we invest in companies. We invest in projects, and we invest in properties where we can tangibly analyze the fundamental value.” “There are a lot of interesting things going on within real estate,” Finke says. “Foreign money is looking for hard assets, so it just drives up the price of real estate in gateway cities like London and New York. The millennials are also driving growth in cities because of the re-urbanization process that is going on. We invest through cycles, so real estate is no different. It cycles relative to the economy, and it also cycles relative to what’s going on in terms of demographic trends.” With offices in places like London,

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Sydney, Hong Kong, and Tokyo, Babson is truly a global business. Through those offices and their other U.S. offices, they are closer to their clients, but those offices are also where they are investing. Babson is a major investor in European high yield debt, Cornerstone invests in European real estate, and in Sydney and Hong Kong they invest in the Asian leverage finance market. “When you think about the total business—Babson, Cornerstone and Wood Creek— we really have discrete teams defined by their functions,” explains Finke. “Global fixed income, global private credit, global real estate, and private equity are the key functions, but we do believe in being in the markets where we invest as much as we can. “To sit in Charlotte and think you can invest in a middle market leverage buyout in Sydney, Australia, and do it well—that’s naïve. What you can do is find good people, share a system of how you invest—how you risk manage—and let them do their thing. “We’re living through an extraordinary time of globalization,” Finke continues. “The technological revolution is bringing the world closer together, and because of that, you see more money flowing from one part of the world to the other. Over the last six or seven years we’ve seen many of our clients in the U.S. look more towards investing in the European high-yield market. They didn’t do that before.” Finke explains how when investing globally an investor or an investment manager must also be mindful of the macroeconomics connected to the political events in those countries—whether it is the unrest in the Ukraine or the economic and political issues in Greece. “You always have to assume something will go wrong, because something’s going to happen,” says Finke. “When we build portfolios, we have to consider how this company will perform if we have a real disruption in the Middle East and oil prices spike up. “You have to build portfolios that have the ability to manage through tough times. We tend not to invest into trends; we invest in companies. We invest in projects, and we invest in properties where we can tangibly analyze the fundamental value.”

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greatercharlottebiz.com | january/february 2016

Tom Finke on Babson’s Global Growth Opportunities

“We’re living through an extraordinary time of globalization. The technological revolution is bringing the world closer together, and because of that, you see more money flowing from one part of the world to the other.”

is no one’s right, and no one’s wrong! Every time there seems to be positive momentum somewhere in the economy, the next day you see a negative sign. The reality is the global economy is being exceedingly stimulated by cheap money in terms of low rates.” “It used to be there was a real cycle coming out of a recession,” he continues. “There were layoffs, but then you’d get hired back. Well, this time, people didn’t just layoff—they reinvented. They became more efficient; they implemented new work processes or new technology; and some businesses completely changed their business models.” Finke says that while it’s very hard to identify the drivers of growth in today’s economy, many companies are still well positioned to grow. So even though the overall economy may be stuck on a modest growth pace with fairly flat inflation, the key is to identify those companies with attractive growth dynamics that are not sensitive to negative GDP headwinds or low commodity prices. “I think that’s why the feds have a real hard time here, getting off zero,” he admits. “It’s really hard to commit one way or the

Jim Froneberger is a Greater Charlotte Biz freelance writer. Some images provided by the company.

other, and to start pushing rates up.” But in the fi nal analysis, Finke says, no matter what the economy does, it all comes back to the client. “We’re very proud of what we’ve accomplished since 2009. We wanted to create a presence as one of the leading global institutional asset managers, but that job is not yet done. “Our goal is to build on what we’ve done before, and to take the disciplines of our investment process and the culture that we bring to what we do, and go to the next level— while always serving the client the best that we can.”

Babson Capital Management LLC 550 South Tryon St., Ste. 3300 Charlotte, N.C. 28202 Phone: 704-805-7244 Parent Company: Massachusetts Mutual Life Insurance Company Subsidiaries: Cornerstone Real Estate Advisers and Wood Creek Capital Management Affiliates: Baring Asset Management and OppenheimerFunds Principals: Thomas M. Finke, Chairman and CEO; Russell D. Morrison, Vice Chairman, Head of Global Fixed Income; Cliff Noreen, President and Managing Director In Business: 75 Years Employees: Over 1,100 globally including over 500 investment professionals Assets Under Management: Over $220 billion Locations/Clients: Headquartered in Charlotte; locations on four continents and clients in over 30 countries Business: Global investment management firm with expertise in a wide variety of traditional and alternative asset classes including global fixed income, structured credit, middle market finance, private debt and commercial real estate for both institutional and wealth advisory clients. www.babsoncapital.com

CAPITAL FLOWS:

Gross Cross-Border Capital Flows into G20 Nations ($B) Cross-Border Capital Flows

6,104 5,056

22%

17% Foreign Direct Investment Portfolio Investment

Bank Lending

3,847

3,538

38%

13% 48%

2,681 43% 48%

1,912

51%

35%

36%

40%

49% 42% 9%

AS % OF GDP

3,503

31%

3,261 46%

45% 33%

814 100% 147% -146%

24%

62%

46%

25%

-10%

2005

2006

2007

2008

2009

2010

2011

2012

2013

10.0

13.3

14.6

4.3

1.9

7.4

6.1

4.6

5.5

ross-border capital ﬂows are at an inﬂection point. While in aggregate they have not returned to pre-crisis

Aggregate cross-border capital ﬂows have become more multidirectional in nature, incorporating more of the emerging world

NOTE: Gross flows are defined as the summation of the cross-border inflows into each G20 entity. EU data reported as one consolidated entity. No 2005-2009 data for China or 2005 highNumbers watermarks—primarily driven a significant into the exchange of capital. Indeed, key emerging-market data for Saudi Arabia available. do not always equal 100% due to by rounding. SOURCE: IMF - Balance of Payments International Investment Position Data varied in decline in bankandlending—they are increasingly countries are now attracting closer to their “fair share” of

Source: IMF Balance of Payments and International Investment Position Data

their scope and direction. More countries around the world are seeking and providing capital across borders than ever before. And asset managers and asset owners—not just governments, corporations and banks—are becoming increasingly inﬂuential in determining the scale and stability of global capital ﬂows.

capital, in proportion to their share of global GDP—a significant change from a decade ago. Accordingly, ﬂows into G20 emerging markets have grown almost five times between 2005 and 2013 while developed G20 economies have witnessed more than a one-third decline in the same time frame. Several indicators point to continued growth in multi-directional capital ﬂows in the years to come.

GLOBAL FLOW$:

WAVES OF OPPORTUNITY?

World Commodities Oil

his graphic shows every country in the world by its highest valued export—the commodity that makes the country the most money in the global market.

Food / Drink Metals / Minerals

WORLD

COMMODITIES

Precious Metals / Minerals Wood Products Textile / Apparel Machinery / Transportation

Source: CIA Factbook, 2014 Simran Khosla/ GlobalPost

Electronics Other

Trade Flows

TRADE

FLOWS:

Leading Exporters’ Trade with Each Other

he visual highlights the intricate web of global trade. While a part of the world’s trade in goods can be described as truly global, regional trade accounts for a very important share of overall global trade. Neighbors clearly play an important role in exports. Some countries, like China, Germany and other Asia Pacific countries, have emerged as rather diversified global exporters. The visual also shows the increasing role of China as an importer rather than exporter. Exports hubs, such as Singapore, Hong Kong, Belgium and the Netherlands also feature prominently in the chart. Source: Euromonitor International (Countries & Consumers), Circos/Krywinski, M et al., 2013

january/february 2016 | greatercharlottebiz.com

THE

AND

CLEAN DRYPROS DRY•PRO BASEMENT SYSTEMS Solves Foundation and Crawl Space Problems by gene stowe

ry•Pro Basement Systems are foundation and crawlspace specialists. Founded in 1999, the company has evolved into a comprehensive, one-stop-solution provider for homes and businesses that need some shoring up of their foundations— whether basement, crawlspace or slab— or suffer the musty scent and attendant damage of moisture problems. Founder and CEO Ron Weatherly Jr. says the award-winning business has comprehensive services for the full range of potential problems in below-grade construction, from shifting footings to softened wood structures to cracked slabs.

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Waterproofing Crawl Space

(l to r) Holly Weatherly Payroll/HR Manager Ron D. Weatherly Jr. Founder, President and CEO Ron D. Weatherly Sr. Vice President of Operations Dry•Pro Basement Systems Inc

greatercharlottebiz.com | january/february 2016

CONCRETE LIFTING

BEFORE

AFTER

Most recently, Dry•Pro has started providing PolyLEVEL injected foam for stabilizing slabs, gained a general contractor’s license for its work, and expanded its offerings to include repair of damage when the basic problem is solved, such as tuckpointing oncecracked brick walls.

Foundation and Crawl Space Specialists

“Now we can handle the gamut of everything,” Weatherly says. “From the floorboards down, we can help with it.” The company, which has grown to upwards of 60 employees, serves customers in a six-county area around Charlotte including Concord, Kannapolis, Hickory, Gastonia, Statesville, Huntersville, Matthews, Salisbury, Monroe, Morganton, Newton, Shelby, Kings Mountain, Mount Holly, Belmont, Lincolnton, Albemarle, and Indian Trail. Dry•Pro is an Authorized Basement Systems dealer and offers services for both new construction and homeowners or

january/february 2016 | greatercharlottebiz.com

business owners who have encountered problems in their existing structures. On-site inspections, consultations, and estimates are no charge. Accord i n g to Weat herly, muc h of his business comes from referrals through Realtors, HVAC contractors, pest exterminators, and former customers. Dry•Pro also works with Realtors to provide inspections and repair services for their clients. Customers call when they notice cracks in drywall or brick, problems that often result from problems with the wood structure or the foundational piers. Cracks on the outside are more likely to result from foundation problems, while cracks on the inside usually reflect wood structure problems stemming from termite damage or humidity in the crawlspace. Typical customer complaints include: “Every time it rains really heavy, my basement leaks or my basement floods.” Or, “Sometimes we get these musty smells coming from the crawlspace in certain rooms. Or, customers report that they walk in the house and everything rattles in the china cabinet. Or, “The door is not opening and shutting—you have to pull hard to get it open.” Or, “The windows on one side of the house don’t open anymore.” Customers sometimes are working in the yard and see a crack in the brick that goes up to the roof or to a window. Or they see the basement wall has a crack down the center and is bowing in. “With footings, typically you’re going to see a problem outside the home,” clarifies Weatherly. “The wood structural is going to be more interior cracks. But all customers know is that they see cracks and they need to get this fixed.”

Working on a Good Foundation Dry•Pro has two wood structural crews who spend full-time on such repairs, unlike typical contractors who focus on interior home remodels. The preponderance of dirt crawl spaces in the Charlotte area can mean challenging working conditions in tight surroundings. “We’ve really grown in that market,” Weatherly says. “That’s probably what sets us apart from a lot of our competition. A general contractor might do wood repair for a home once a month or once every couple of months. All we do is structural repairs under homes. The crew that works on that gets to be really good at it. Contractors don’t

“We’ve really grown in that market. That’s probably what sets us apart from a lot of our competition. A general contractor might do wood repair for a home once a month or once every couple of months. All we do is structural repairs under homes. The crew that works on that gets to be really good at it.”

necessarily like to lie on their backs and do their work. They’d rather be doing a remodel.” In addition to wall cracks, crawlspace problems can lead to foul odors in the house and even heightened allergy and asthma problems. When they are solved and the crawlspace is dry, the homeowner can see savings on energy costs and gain more useable storage space. Moisture accumulates in crawlspaces because water in the air that enters from outside condenses when it encounters the cool air in the crawlspace. Mold that grows in those conditions is drawn through the house as air rises and escapes through roof vents. In addition to humidity from outside, water can get into a crawlspace through groundwater flooding or plumbing leaks.

The solutions can involve sealing crawlspace doors and vents to keep out moisture, removing standing water sources with a drain and sump pump, repairing areas of mold and rot in the structure, insulating the crawlspace and encapsulating it with a liner, and installing a dehumidifier for guaranteed dry conditions. Weatherly adds, “If the structure is sagging, installation of Smartjack Crawl Space Stabilizers can solve the problem.” When the problem involves the foundation’s footings, Dry•Pro enlists an

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engineer to design the solution as required by North Caroline guidelines. “We drill into the ground until we hit good soil,” Weather explains. “We attach a bracket to the pier and attach it to the footing about every six feet.”

BASEMENT WATERPROOFING

BEFORE

Crawl Space Repair Client AFTER

For example, the Push Pier System by Foundation Supportworks involves heavyduty steel tube sections pushed through the inadequate soil to a more stable layer and attached to the foundation with brackets. Dry•Pro is a member of the Foundation Supportworks international contractor network based in Omaha, Nebraska, and its employees are certified by the agency. If the problem is a bucking wall because of pressure from the soil outside, Dry•Pro can install a wall anchor system. Over time, the anchor can be tightened to return walls to their original orientation. If the repair needs to be finished more quickly, that can be accomplished by excavating the soil around the wall. Dry•Pro uses the GeoLock Wall Anchor System, which requires only a one inch hole in the wall for the rod that connects a steel plate to the anchor outside.

New Technology for Slabs Homeowners and business owners also call Dry•Pro when they notice cracks in a slab floor. “Most often, we drill a couple of small holes in a handful of areas and pump in a structural foam under the slab,” Weatherly explains. “It fills the void and raises it at the same time. The hole is roughly the size of a penny.” Dry•Pro uses PolyLEVEL rather than another alternative, called mudjacking. Weatherly explains that mudjacking pumps in heavy cement slurry, which can lead to further movement, and requires a hole the size of a soda can. Also, PolyLEVEL is lighter— two pounds per cubic foot compared to 100 pounds per cubic foot—and expands in all directions. Dry•Pro also uses this technology for concrete sidewalks, garage floors and pool areas as well as commercial spaces such as factory floors. PolyLEVEL cures in 5 to 15 minutes after application, compared to a full day’s curing

“I do see us continuing to get into things, such as the tuckpointing that involves the art of matching existing colors so the repair is seamless. We want to add services that help with the customer experience.”

for mudjacking, and the floor can be used in a half-hour. “We’ve gotten some really cool results out of it and we’ve saved customers money,” Weatherly attests, adding that more commercial customers are beginning to notice the company’s service. “We can go in and put PolyLEVEL under the slab and lift it back up in most cases.” Most impressively, demolishing the cracked concrete, removing the debris and bad soil, adding and compacting good soil, and pouring a new slab can cost between $5,000 to $15,000—the PolyLEVEL solution costs are significantly lower. Dry•Pro also installs systems for removing water from basements, a more reliable and less costly solution than digging, applying paints or sealants, and backfilling. Modern solutions with extensive warranties involve drainage and pumping systems with alarms and sophisticated battery backup. Perimeter damage, crawlspace and basement waterproofing systems come with a lifetime warranty. When the work is finished, Dry•Pro offers an annual maintenance program that includes checking pump operation, cleaning sediment and silt from the sump liner, changing the batteries in the WaterWatch Alarm, checking the discharge line to prevent freezing, inspecting for potential problems, and, with the SaniDry Basement Air System, when applicable, replacing the filter and oiling the equipment.

Staying Out in Front Dry•Pro continually offers new services ever since its founding 16 years ago. It has added bowing wall repair, a mudjacking

january/february 2016 | greatercharlottebiz.com

alternative, and many other foundation and basement repair products over the years. “I do see us continuing to get into things,” Weatherly says, such as the tuckpointing that involves the art of matching existing colors so the repair is seamless. “We want to add services that help with the customer experience.” Weatherly, who did landscaping, cleaning, and sales work after studying business at Austin Peay State University in Clarksville, Tenn., moved to Charlotte and worked in a textile business before starting Dry•Pro. He worked nights while getting the business off the ground. A true family business, Weatherly’s wife Holly manages the office, and his father Ron Sr., a military retiree who joined in 2003, runs the production side. Early on, Weatherly affiliated with the 300-member Basement Systems and Foundation Support Works International Contractor network for access to products, support and more than 1,000 hours of staff training each year. Basement Systems has been developing products for keeping basements dry since 1987. Weatherly expanded the business into mold remediation and duct cleaning in 2006, when he bought the established AdvantaClean of Charlotte company, a diversification that left him less dependent on solving water problems only.

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“If somebody’s got a problem, they’ve got to fix it, whether it’s now or down their road. It’s their house, and it’s one of their largest investments. You can’t put off foundation like a kitchen or bathroom remodel.” While the recession led to a brief dip in business, Weatherly says the service is not as sensitive to economic conditions as some home remodeling companies. “If somebody’s got a problem, they’ve got to fix it, whether it’s now or down their road,” he says. “It’s their house, and it’s one of their largest investments. You can’t put off foundation repairs like a kitchen or bathroom remodel.” Customers appreciate the longstanding company’s services. Dry•Pro has an average 4.8 of 5-star ranking among 125 Google

reviews, and has received the Angie’s List SuperService award in 2005, 2006, 2008, 2011, 2012, and 2013. It has an A-Plus Better Business Bureau rating. In 2006 and 2007, Weatherly was named Business Person of the Year by the National Association of the Remodeling Industry (NARI).

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“We’re out there and people see us,” Weatherly says. “They want to use somebody they can trust.” Gene Stowe is a Greater Charlotte Biz freelance writer. Some images provided by the company.

Dry•Pro Basement Systems Inc AdvantaClean of Charlotte, Inc. 2953 Interstate St. Charlotte, N.C. 28208 Phone: 866-437-9776; 704-523-9111 Principal: Ron D. Weatherly Jr., Founder, President and CEO; Ron D. Weatherly Sr., Vice President of Operations; Holly Weatherly, Payroll/HR Manager Established: 1999 Employees: 48 to 60 Recognition: Angie’s List SuperService award 2005, 2006, 2008, 2011, 2012, 2013; 208 Angie List Reviews; A-Plus BBB rating; 125 Google reviews with a 4.8 out of 5 star rating Business: Solutions for basement, crawlspace or slab foundations, including wood structural repairs, concrete leveling, footing stabilization, and water removal; also mold remediation and duct cleaning. www.4drypro.com www.dryprosystems.com

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OF INTEREST: Get LinkedIn or Be LeftOut

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FOCUS YOUR EFFORTS ON LINKEDIN

ake 2016 the year where you keep an important business resolution. We suggest you focus your efforts on LinkedIn, for it’s a pretty safe bet that your prospects and clients are already there. Whether you are seeking a new position or looking to grow your business, there are several simple steps to take to reach these goals.

Freshen Up Your LinkedIn Profile Get a new professional headshot that makes a great first impression. Use a solid, or preferably white background. Too many people have unflattering or inappropriate photos on LinkedIn. Enhance your personal brand with a background image. This really makes your profile stand out from the crowd. Update your contact information. It is really frustrating to call or email a connection to find that the phone number is incorrect and the email has bounced back. Add media of all different types. For example, add photos, videos, presentations, certifications, audio clips, etc. This makes your profile more searchable and offers the reader a greater understanding of you and your organization. Add optional sections to your profile such as Honors and Awards, Organizations you support, Publications, Projects, etc. These sections round out your profile by exhibiting to the reader who you are beyond your title and job description.

Monitor Your LinkedIn Homepage for Hidden Opportunities Regularly check to see who has viewed your profile. These are potential new clients who might be checking you out. Keep in touch with your network by congratulating your connections on milestones in their life and career. Share an update on a regular basis to keep you top-of-mind with your network.

Become a Thought Leader in Your Industry Publish insightful posts about your industry that your connections would find of interest. Contribute thoughts and comments within your strategic LinkedIn groups on a regular basis.

Prospect for New Connections Set a goal of connecting with a certain number of prospects on a regular basis to expand your network and to develop valuable relationships. Advanced search is an area where you can set the parameters to search for people, jobs, articles, companies, and universities. If you are seeking to connect with CEOs in your region you can set the search to do so and come up with hundreds of results based on the size of your network. Save the searches you create to get notified of any new results on a regular basis.

Follow Companies That You Want to Do Business With Keep up to date on the latest developments within targeted companies with little effort by following them on LinkedIn. Learn who is inside that company of interest who might be a lead for you or introduce you to a specific individual. Stay updated about jobs that may be of interest to you.

Educate Yourself About LinkedIn Premium LinkedIn offers several options to upgrade to a premium account. This can result in a more targeted experience depending on your specific goals. Free LinkedIn users may test drive premium accounts for one month. Here are the four versions:  Searching for a job this year? If so, then LinkedIn’s Job Seeker premium account may be right for you. This premium version presents you as a featured applicant when you apply for a job through LinkedIn. You are able to see salary data when searching for positions and have the ability to send 15 Inmails per month to recruiters or individuals inside organizations you are interested in.  Power up your sales efforts with LinkedIn Sales Navigator. This version allows you to receive targeted leads and makes prospecting much simpler. It is possible to integrate Salesforce to create a seamless and more efficient experience.  Seeking to grow your workforce in 2016? Find the right talent on LinkedIn with Recruiter Lite or Recruiter Corporate premium versions. Track candidate activity with smart notifications and automatic organization.  Enhance your overall LinkedIn experience with Business Plus or Executive. This version includes additional advanced search filters as well as more saved search alerts. Your profile is displayed more prominently with a larger profile photo and background image.

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Make it a great year! Take 15 to 30 minutes each day to check your inbox, make connections, review connection requests, join and monitor groups and search for prospects or jobs. If you stay motivated and are consistent, you will see results. “Ambition is the path to success. Persistence is the vehicle you arrive in.” ~ Bill Bradley Content contributed by Ira and Linda Bass of Connect To Success, specializing in LinkedIn individual and group training for corporations, associations and networking groups along with communication coaching. For more information, please contact Ira Bass at IraBass@ConnectToSuccess.biz or 704-989-3790. Learn more at www. ConnectToSuccess.biz.

greatercharlottebiz.com | january/february 2016

january/february 2016 | greatercharlottebiz.com

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(l to r) Thomas R. (“Richie”) Griffin Vice President and COO William H. (“Bill”) Griffin President and CEO Griffin Home Health Care, Inc.

“It’s been so exciting for me to see my son as the rising star that he is. He’s made such progress towards the growth of the company. I didn’t imagine that this is where we would be today,”

THE

Right

GrifďŹ n Home Health Care Spans Generations and Health Care Needs

FIT

by zenda douglas

n the 33 years since starting Griffin Home Health Care, Inc. in the corner of The Peak Drug Store on Charlotteâ&#x20AC;&#x2122;s Graham Street, Bill Griffin has seen phenomenal growth, relocations and expansions, computerization, and too many changes in industry regulations to count. Under his leadership, the business has grown to include a centralized administrative hub and warehouse and three area showrooms. No small feats, indeed, but his proudest moment may be at hand as he prepares to turn the reins of the business over to his son, Richie, as, together, they launch a new business model.

GHHC New Business Model

greatercharlottebiz.com | january/february 2016

Spanning the Generations

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“It’s been so exciting for me to see my son as the rising star that he is. He’s made such progress towards the growth of the company. I didn’t imagine that this is where we would be today,” says Bill. Griffin Home Health Care is a leading provider of home health care equipment, supplies and services in the Charlotte metropolitan area and services retail customers around the world. As the population ages and the baby boomers move well into their 60s, the need for wheelchairs, lift chairs, respiratory equipment, and other medical supplies and equipment continues to increase. “In health care, we are full service from band-aids to hospital beds; wheelchairs to CPAPs; wound care to cast covers,” says Bill. “The business continues to grow in terms of products and services, with the advent of sleep apnea treatments representing the largest shift in emphasis within the medical equipment industry.” Griffin Home Health Care has just recently moved into new administrative and warehouse headquarters on Monroe Road, not far from its former location. The 5,600-squarefoot space anticipates the growth from the company’s new business model and centralizes the company’s operations including order intake, insurance verification, billing, purchasing, finance, human resources, warehousing and inventory. Additionally, the company has three retail

showrooms in the metro area. The new headquarters is only a stone’s throw from the new Charlotte showroom, 3,000 square feet in size and a completely new design. The company has also opened a new showroom in Concord on Copperfield Boulevard, and maintains a showroom in Gastonia on Ozark Avenue near Cox Road. Bill has always been president and CEO with Richie as vice president and COO, but a succession plan is underway that will soon

“If you go into a big box store for a product—be it a bath chair or knee brace—you can select it from the shelf and pay for it, but who’s fitting you for that? How do you know if the fit is right? You could do more damage than good if it’s not the right fit. Plus, oftentimes, there is a difference in quality. Big box stores do not have to be accredited and are able to sell products that are of a lower quality—not medical grade.” make Richie the company’s president and ultimately, the CEO. Bill’s brother, Jim, who joined the company in 1996, is secretary and formerly ran the Gastonia showroom. He now manages the showroom in Concord. “Richie is running the business now,” says Bill. He has a vision.” Bill, at 64, and Richie, at 37, say they have been working towards succession for two years now. When at work, they call each other by their first names. “It’s more professional than referring to each other as dad and son,” remarks Bill. “But I’m still his dad and he’s still the father of my

january/february 2016 | greatercharlottebiz.com

grandchildren.” “And when we are here, he’s still my boss,” laughs Richie.

Spanning Health Care Needs In the fall of 2014, Richie was instrumental in successfully kicking off a new division of sports, health and wellness. “It’s a sister component of what we do,” says Richie. “I saw a niche for service on the health and wellness side. For 32 years we were caring for those who were injured, broken, or sick, but we were missing a big chunk of the family by not serving the health care needs of those who were well.” With the increased emphasis on health and wellness, Griffin Home Health Care now carries a wide variety of rehabilitative and exercise equipment, pain management, wound care, braces and ambulatory aids, and also provides a team of highly trained staff to assure fit and proper use. The company has brought in some nutritional products such as Bruk’s Bars and Honey Zingers, as well as CEP compression products and many other wellness related items. While some of their products are available in big box stores, Richie points out the lack of service there.

“Our technicians are trained for ‘up-caring,’ prepared to discern and recognize the needs of clients. They help them assess their situation and environment to best utilize the equipment they need. There is no outsourcing or contracting with drivers to simply drop things off. Part of our service is to show clients how to use the equipment in their own environments.” offers with c-pap, bi-pap, oxygen concentrators and nebulizers—everything except clinical services and ventilators. Services are provided by service technicians who do routine checks to ensure that the equipment is delivering the right amount of oxygen. “We do what we call ‘sunshine calls.’ Anybody that gets equipment from us will receive a call a few days after we deliver it to make sure they are doing well with it. More often than not we get commendations, and

sometimes recommendations as to how we can do better,” comments Bill. “What sets us apart from other businesses is our dedication to compassionate service,” he assures. “Our tagline is ‘Serving your family like family since 1983,’ and we firmly believe that if we serve our customers like our own family, we won’t make too many mistakes.” The company maintains a significant level of inventory to meet the

needs of its clients and prides itself on being special-order specialists. “We have folks here dedicated to finding what clients need quickly. That’s always been a niche of ours,” touts Bill.

ATTENTION CMOs

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Both Griffins say they don’t see themselves as sales people. “We have our own fleet of vehicles and client services technicians who are often the face of our business,” says Richie. “Our technicians are trained for ‘up-caring,’ prepared to discern and recognize the needs of clients. They help them assess their situation and environment to best utilize the equipment they need.” “There is no outsourcing or contracting

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greatercharlottebiz.com | january/february 2016

with drivers to simply drop things off,” continues Richie, “Part of our service is to show clients how to use the equipment in their own environments.”

Spanning the Health Care Industry Richie joined the business in 2002 after attending Appalachian State University where he studied Interdisciplinary Studies and Sustainable Community Development and, ultimately, fell in love with the mountains. With a carpentry job waning during the winter months, he came home for a parttime job in his father’s business cleaning equipment and making some deliveries, and never looked back.

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Subcommittee Testimony on Medical Equipment

“I like that I can go home every day and know that I made someone’s day a little easier, a little safer,” says Richie. Bill says he was only a little surprised: “When Richie was in middle school, I took him to the Jewish Community Center where he worked with children with infirmities. I could see how well he related

january/february 2016 | greatercharlottebiz.com

to others and began to have a flicker of hope that someday he would be interested in the business.” As Richie became more a part of the business, he was instrumental in forming a vision for a centralized business model. He knew the first order of business was to upgrade the software behind the company’s medical billing and inventory management system to a cloud-based system. “It was a massive undertaking,” attests Richie. Medical billing is critical because like many industries, medical equipment sales and service requires revenue streams from diverse sources to remain strong financially. Griffin Home Health Care relies on two large and powerful bureaucracies—government and insurance—for approximately 60 percent of its livelihood. Another 20 percent results from contracts with hospice care and similar organizations, and the remaining 20 percent comes from private individuals. Because of the company’s heavy reliance on governments and insurance, Griffin Home Health Care is involved in lobbying efforts to keep health care options reasonable for families relying on government or insurance for their medical needs. Additionally, the company is constantly alert to changes in legislation and insurance practices. About 20 years ago, Bill was instrumental in organizing a network of medical equipment suppliers in North Carolina to help independent providers remain competitive in a market that was quickly changing thanks to the onset of managed care. The resulting organization has become the most successful network of medical equipment providers in the country. Griffin Home Health Care, Inc. is accredited by the Accreditation Commission for Healthcare, a national organization. “They take all the regulations that are imposed upon

us from the N.C. Pharmacy Board, Medicare/ Medicaid and boil them down and consolidate them into accreditation standards,” comments Bill. “The regulations touch upon every aspect of the business from human resources to fire extinguishers, and dictates the training of

“I saw a niche for service on the health and wellness side. For 32 years we were caring for those who were injured, broken, or sick, but we were missing a big chunk of the family by not serving the health care needs of those who were well.” our folks in a positive manner,” says Richie. “Every three years, we have to pay for an internal industry audit. They ride along with our technicians, look at our charts, and review our policies. It’s a learning process for our employees.” When asked about challenges, the Griffins agree: regulations and big government. The problems stem from “competitive bidding” legislation enacted during the second Bush administration. “It’s anything but competitive bidding,” laments Bill. “It was shoved down the throats of this industry and the problems are endless.” Under the rules, people who are unlicensed to work in a particular state can submit very low bids bringing the median bid down below what is a legitimate bid amount, making it difficult to get a legitimate bid through the process. The end result is loss of care, reduction in quality and businesses are closing down, according to the Griffins. “They are limiting the number of providers that can provide a service. When we entered business, there were at least 50 competitors; now there are three or so. That creates an access problem for patients,” says Richie. “Plus, Medicare is making it so difficult for patients to qualify for services; patients must jump through so many hoops. If we don’t take care of that patient, they have to go to the emergency room, for instance, for when they are short of breath and need oxygen and equipment. Congress needs to see that this is a very shortsighted and expensive way of doing things,” says Bill. Part of the Griffin Home Health Care philosophy is to train and retain its 26 employees. “Ninety percent of our folks had no prior industry experience. We hire smart and caring people and train them ourselves,” says Bill. “After 14 years, I am still learning every day,” comments Richie.

As if handling the recent expansions were not enough, Richie elaborates on his plans for furthering the sports and wellness division and finalizing the succession plan. “I am quite hopeful that this business model is expandable. I would love to get to the mountains. There is a need for what we do there,” he says knowingly. “The transition has been challenging for me,” confides Bill. “It’s [the business] my child, too. It’s harder for me to turn loose than it is for Richie to take over. I’m not ready to retire but I am ready to take a lesser role.” Bill is sure to stay busy. He is active on the Council of Aging and works on several boards including the Western North Carolina Region of the American Red Cross. He is also a Rotary member. “I think Richie still appreciates my counsel. Plus, he’s pretty liberal with me and my hours. I don’t rush to get in here early and don’t always stay to turn the lights off.”

Zenda Douglas is a Greater Charlotte Biz freelance writer. Some images provided by the company..

Griffin Home Health Care, Inc. 9123 Monroe Rd., Ste. 135 Charlotte, N. C. 28270 Phone: 855-513-GHHC (4442) Principals: William H. (Bill) Griffin, President and CEO; Thomas R. (Richie) Griffin, Vice President and COO; James E. (Jim) Griffin, Secretary Established: 1983 Employees: 26 Locations: Charlotte, Concord and Gastonia, serving the 16-county region Division: Griffin Sports, Health and Wellness (mygriffinsports.com) Business: Full service health care equipment and supply company providing a wide range of home medical equipment and related supplies for individual Medicare, Medicaid, and private patients, physicians, clinics, hospice organizations, assisted living centers, nursing facilities and commercial accounts. www.griffinhomehealthcare.com

[publisher’spost]

Continued from Page 44

GLOBAL WARMING:

ALREADY INEVITABLE... IRREVERSIBLE? cont. London, New York, Miami and Shanghai.” As these scientists describe it, there is a great deal of excess energy already in the “system.” So far, the oceans have been absorbing a huge amount of this excess heat. However, this will not continue forever, and when it stops, the heat will go into the atmosphere.

Evidently, the Arctic has been heating up much faster than other places. The volume of sea ice has been drastically reduced, so that there is less and less multi-year ice. Sometime in the next few years, there will likely be a period late in the summer when all the sea ice will disappear. The ice reflects most of the sunlight that hits it regardless of whether it is 3 inches thick or 3 meters. So, when light reflection is diminished by melting ice, the oceans warm. The next great fear is that as the oceans warm, methane that is now held in ice crystals deep on the ocean floor will be released. This is especially true at the Siberian continental shelf. Methane gas has a much stronger greenhouse effect than carbon dioxide. Virtually every aspect of climate change that we have seen has occurred much, much, much faster than previously predicted. This is true of the Arctic sea ice melting, glaciers shrinking, sea level rising, and ocean warming. There’s no reason to believe any of this will slow down. In fact, it is only likely to accelerate. Of course, many big questions remain, but having the Paris Accord in place is a collective first step. Implementing the agreed-upon assessment mechanisms and action plans

will be essential to meet the longer term challenge. Making sure that nations fulfill their obligations under this agreement is also vital to the prospect of slowing and reversing the greenhouse effect. What is most important is to learn all we can to take individual ownership of climate change. This is not an effort won by any

James Hansen TED Talk

Methane Hydrates

Climate Change an Emergency

one person or any one nation. It will only be won with every effort we can put forward. Even if you refuse to accept these concepts for your own generation, then make it your commitment for future generations. As Chief Seattle is frequently quoted, “Take nothing but memories, leave nothing but footprints!” I believe that we need to apply that same premise to our lives here on this earth. I challenge you to follow that fundamental premise.

greatercharlottebiz.com | january/february 2016

[publisher’spost]

OF INTEREST: Promoting Thought Leadership Across the Carolinas

GLOBAL WARMING:

ALREADY INEVITABLE... IRREVERSIBLE?

n May of 2006, the Brookings Institute published a working paper titled Case Closed: The Debate about Global Warming is Over. It set forth three basic findings with regard to climate change. First, the consensus of the scientific community has shifted from skepticism to near-unanimous acceptance of the evidence of an artificial greenhouse effect. Second, while artificial climate change may have some beneficial effects, the odds are we’re not going to like it. Third, reducing greenhouse gases may turn out to be much John P. Galles more practical and affordable than assumed. Publisher While many people to this day remain skeptical about global warming and climate change, many nations around the world are worried enough that they have continued to seek further consensus as Please feel free to contact me at well as formal agreement 704-676-5850 x102 or jgalles@ and an actual business greatercharlottebiz.com. plan that addresses global warming and reducing greenhouse gases. It’s hard to overstate the importance of what happened at the 2015 United Nations Climate Change Conference (the yearly session of the Conference of the Parties or COP21) in Paris in December 2015. Basically, official representatives from 195 countries adopted the first-ever universal, legally binding agreement to fight climate change. The Paris Agreement or Accord, as it has come to be called, aims to help the world abandon fossil fuels in this century and, specifically, stop global warming “well below” 2 degrees Celsius and, if possible, below 1.5 degrees. And while the Paris Agreement will be dissected and discussed every way imaginable, it represents a key shift in the climate movement: A global consensus that something significant needs to be done, and a pathway to do it. One of the most respected voices on 44 climate change is James Hansen, a former NASA scientist now climate activist that has been studying changes in the Earth’s climate since the 1970s. At a benchmark january/february 2016 | greatercharlottebiz.com

Congressional hearing in 1988, he described the “greenhouse effect” where heat-trapped gases are released into the atmosphere causing global warming with a 99 percent certainty. He advocated the radical suggestion that there should be a “sharp reduction in the burning of coal, oil and other fossil fuels that release carbon dioxide.”

It was Hansen and 16 others who released a report in July 2015 announcing that the Earth’s huge icebergs and ice sheets, such as those found in Greenland, are melting faster than expected. It stated, “The sea level could soon be up to five meters higher than it is today by the latter part of this century, [if] greenhouse gases aren’t radically slashed. This would inundate many of the COP21: world’s cities, including James Hansen

SHARE OF GREENHOUSE GAS EMISSIONS BY COUNTRIES WITHCLIMATE CLIMATE TARGETS SHARE OF GREENHOUSE GAS EMISSIONS BY COUNTRIES WITH TARGETS

United States: 12%

EU: 9% India: 6% Brazil: 6% Russia: 5% Japan: 3%

China: 23%

Indonesia: 1% South Korea: 1%

Countries that have not submitted INDCs: 1%

Mexico: 1%

International Transport: 2%

Canada: 2%

Other countries that have submitted INDCs: 26%

Saudi Arabia: 1% Source: Natural Resources Defense Council, as of December 15, 2015.

South Africa: 1%

“Many of the conservatives know climate change is not a hoax.” ~James Hansen, former NASA scientist, considered the father of global awareness of climate change

PRESENTS

CHARLOTTE STANDS FOR HEROES CONCERT & COMEDY SHOW IN SUPPORT OF THE BOB WOODRUFF FOUNDATION

WEDNESDAY, FEBRUARY 17, 2016 KNIGHT THEATER AT LEVINE CENTER FOR THE ARTS

Darius Rucker

Sinbad

Meghan Linsey

AN EVENING OF FUN, LAUGHTER AND INSPIRATION THAT BENEFITS OUR INJURED HEROES AND THEIR FAMILIES Darius Rucker, Sinbad and Meghan Linsey will perform for a special night of music and comedy at the inaugural Charlotte Stands for Heroes event presented by the Hood Hargett Breakfast Club on Wednesday, February 17, 2016, at the Knight Theater. Money raised from Charlotte Stands for Heroes will beneﬁt the Bob Woodruff Foundation, which ﬁnds, funds and shapes programs serving injured veterans and their families across the country, including here in North Carolina. See more at www.charlottestandsforheroes.com. BUY YOUR TICKETS NOW! If you prefer to buy tickets over the phone, please call 704.372.1000. Scan to purchase tickets