Greater Charlotte Biz 2010.05 by CLT.biz & Charlotte Biz & Greater Charlotte Biz

J a m e s , M c E l r o y & D i e h l , P. A .

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E l l i o t t D av i s , P L L C

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Tr i / M e c k M e c h a n i c a l

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HF Financial

may 2010

elcome ! REBOUND

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Brian T. Moynihan President and CEO Bank of America

CHANGE SERVICE REQUESTED 5601 77 Center Dr., Ste. 250, Charlotte, N.C. 28217

PRSRT STD U.S. Postage PAID Permit No. 505 Charlotte, NC

DON’T LET THE NAME FOOL YOU.

Yes, we have a reputation for doing things differently. But that’s how you simplify even the most complicated legal relationships. With innovative strategies and no-nonsense counsel. Because when the language is clear, disputes both personal and professional can be resolved productively and peacefully.

For 50 years James, McElroy & Diehl has helped individuals and businesses avoid problems, overcome obstacles and minimize consequences – fairly, efficiently and economically. So call us what you will. We strive for settlements that don’t waste money on lawyers fighting.

JUST WHAT THE DOCTOR ORDERED.

FOR DETAILED INFORMATION, CALL 704.372.9870 OR VISIT WWW.JMDLAW.COM.

in this issue

Bank of America

Brian Moynihan hopes to follow a tough year with a much more solid performance. “We are a straightforward company. We serve people, companies and investors. There’s nothing we need. It’s all here,” he says. Describing legacy Bank of America with legacy Merrill Lynch as a “business is second to none,” he points out, “We’re in a different phase. We’re not buying things, we’re not merging things… it’s really an organic growth company.” If their first quarter results are any indication, they’re definitely on the rebound.

James, McElroy & Diehl, P.A.

“As lawyers, we can read the same cases and legal encyclopedias, but how that translates into practical advice for the client will vary with the individual. Common sense takes into account the big picture to determine what is best for the client and it is that which controls the situation,” according to this firm.

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cover story

Elliott Davis, PLLC

“We don’t just churn out tax returns or audits. We give individuals and businesses advice and tools to make them smarter, more confident and able to capitalize on the opportunities that a changing world brings,” says Dan Warren. He’s looking for Charlotte to become the largest office of Elliott Davis.

departments publisher’spost

legalbiz

Transforming the Business of Law to Meet the Needs of Business

webbiz

New Media Strategies, Secrets and Solutions

bizXpert

Smart Salvos, Select Strategies and Succinct Solutions

employersbiz

Legislative and Regulatory Highlights for Area Employers

digitalbiz

bizmarketing

Maximize Marketing; Magnify Impact

Tri/Meck Mechanical

Bill Miller has been walking around with one number in his head for some time now: 212. At 211 degrees, water is hot; at 212 degrees, it boils. Boiling water produces steam and steam can power a locomotive. It’s this “extra degree” that makes all the difference in business pursuits, athletics and life.

biznetwork on the cover:

J a m e s , M c E l r o y & D i e h l , P. A .

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E l l i o t t D av i s , P L L C

•

Tr i / M e c k M e c h a n i c a l

•

HF Financial

may 2010

Brian T. Moynihan President and CEO Bank of America

!elcome

REBOUND

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HF Financial

“The financial formula is pretty simple actually, and nothing at all new. In fact, it’s a tradition as old as the Bible, and it consists of five simple principles: Spend less than you earn, minimize debt, save 10 to 20 percent of your income, think and act long-term, and give 10 to 20 percent back,” says Tim Flanagan.

Brian T. Moynihan President and CEO Bank of America

Photography by Wayne Morris

YEARS

2000 - 2010

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[publisher’spost] We Need An Attitude Adjustment! By almost every conceivable measure, Americans are less positive and more critical of government these days. A recent Pew Research Center survey finds “a perfect storm of conditions associated with distrust of government—a dismal economy, an unhappy public, bitter partisan-based backlash, and epic discontent with Congress and elected officials.” In their March 2010 study, 21 percent of those surveyed were downright “angry” with the federal government, 19 percent were John Paul Galles basically “content” with the federal government, and the roughly 56 percent in between were “frustrated” with the federal government. In fact, public trust in government is near an all-time low. Only 22 percent report a trust in government, only slightly above the 17 percent nadir. Levels of trust in government (and its close corollary, satisfaction with the state of the nation) have risen and fallen over the last 50 years. The highest point of trust measured was nearly 78 percent in 1964, the year after President Kennedy’s assassination. Trust then fell during the Vietnamese War, continuing to a low of about 25 percent in 1980, another poor economy. Trust in government rose over the next 10 years through the Reagan and Bush presidencies to about 65 percent in 1991 (following the first Gulf War), and then immediately fell to its lowest point—17 percent—in June 1994. It jumped to about 60 percent in October 2001 just after the 9/11 disaster and has fallen overall ever since. Clearly, public distrust, discontent, anger and partisan rancor are the result of our uncomfortable economic circumstances. The Great Recession started in December 2007, and we now have lived through 30 months of anguish over unheard of job losses, ubiquitous housing foreclosures, numerous bank failures and banking crises, substantially diminished business activity, extended unemployment and depressed consumer confidence. In our pain it is no wonder that we strike out at those institutions that have failed. It is right to blame government. Government must be accountable and make changes so that we can to avoid these cataclysmic socio-economic shocks in the future. Blame goes well beyond government to the private sector for mistakes made by banks, brokerages and businesses. Certain of them skirted the law to take advantage of loopholes to add to their profits and margins. It seems that ethics and fair play were abandoned. Nowhere was that more evident than with the advent of collateralized debt obligations and credit default swaps, wiping out savings nationwide on the one hand while resulting in huge Wall Street bonuses to the perpetrators! Even individuals need to take responsibility and be accountable for their own bad behavior. Too many credit cards, unaffordable home mortgages, second mortgages, poor spending habits. Even poor eating habits, too much drinking, overeating, too much sugar, too much salt, continued smoking and reckless attitudes affect our own health and well being, medically and financially, in the short term as well as long term. We need an attitude adjustment. Rather than continuing in blame, anger and frustration, it is time to oust the demons, assert ourselves and take responsibility, make necessary changes in law and turn our attention to renewed economic growth and development. And for those less fortunate, we need to strengthen our outreach. We must aspire to higher ethical levels and mutual respect and hold government, businesses and their leaders to higher standards as well. Unless or until we do, we cannot be confident in any recovery. Democracy is messy—constantly a work-in-progress. Individually, we may not always get what we want, but as long as we’re moving in the right direction, we must move and celebrate that movement. In the words of Sir Winston Churchill, “It has been said that democracy is the worst form of government except all the others that have been tried.” Some people wish we could just make things “normal” again. I’d like to think that we can make things much better than they were, especially knowing how really abnormal they were. Although it does not always seem like it, in large part we create our own future. Let’s get on with it. biz

Let me know what you think - jgalles@greatercharlottebiz.com

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704-676-5850

May 2010 Volume 11 • Issue 05 Publisher John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x104 mlane@greatercharlottebiz.com

Creative Director Trevor Adams x103 tadams@greatercharlottebiz.com

Account Executives sales@greatercharlottebiz.com Marsha Bradford x106 Dave Cartwright x107 Bradley Jackson x107 Sandra Ledbetter x106

Contributing Writers Ellison Clary Susanne Deitzel Zenda Douglas Heather Head

Contributing Photographers Wayne Morris Trevor Adams Galles Communications Group, Inc. 5601 77 Center Drive • Suite 250 Charlotte, NC 28217-0737 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com • Press releases and other news-related information: editor@greatercharlottebiz.com. • Editorial: mlane@greatercharlottebiz.com. • Advertising: jgalles@greatercharlottebiz.com. • Subscription inquiries or change of address: subscriptions@greatercharlottebiz.com. • Other inquiries: please call or fax at the numbers above or visit our Web site www.greatercharlottebiz.com. © Copyright 2010 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., 5601 77 Center Dr., Ste. 250, Charlotte, NC 28217-0737. Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 5601 77 Center Dr., Ste. 250, Charlotte, NC 28217-0737.

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Wishart Norris Henninger & Pittman AT T O R N E Y S AT L AW

Wishart, Norris, Henninger & Pittman, P.A.

[legalbiz]

Transforming the Business of Law to Meet the Needs of Business

THE NEW HEALTH CARE LAW !TAX CHANGES AFFECTING BUSINESSES

!TAX CHANGES AFFECTING INDIVIDUALS

Employers required to offer insurance. Beginning in 2014, a “large employer” (an employer with an average of at least 50 full-time employees) that does not offer health insurance coverage for all its full-time employees, offers coverage that is unaffordable, or offers minimum essential coverage that consists of a plan under which the plan’s share of the total allowed cost of benefits is less than 60%, is required to pay a penalty if any full-time employee is certified to the employer as having purchased health insurance through a state exchange with respect to which a premium tax credit or costsharing reduction is allowed or paid to the employee. There is no penalty if the employer doesn’t have any full-time employees who purchased health insurance through a state exchange and who received a “subsidy.”

Individual insurance requirement. The health care bill recently signed into law requires U.S. citizens and legal residents to have qualifying health coverage or be subject to a tax penalty. Under the new law, those without qualifying health coverage will pay a tax penalty of the greater of: (a) $695 per year, up to a maximum of three times that amount ($2,085) per family, or (b) 2.5% of household income over the threshold amount of income required for income tax return filing. The penalty will be phased in over 2014, 2015 and 2016. After 2016, the penalty will be increased annually by a cost-of-living adjustment. Exemptions from this requirement include ones for financial hardship, people without coverage for less than three months, and people living outside of the U.S.

The penalty for not offering insurance to all full-time employees during any month is equal to the number of full-time employees over 30 full-time employees for that month multiplied by one-twelfth of $2,000. The penalty for offering insurance to all full-time employees but still having at least one employee receiving a subsidy is equal to the number of employees receiving a premium tax credit or cost-sharing reduction for health insurance purchased through a state exchange multiplied by one-twelfth of $3,000. This penalty is capped at the amount that would be due under the penalty for not offering insurance to all full-time employees. These penalties are assessed monthly. Also, beginning in 2014, employers offering “minimum essential coverage” who pay a portion of the health insurance premium will have to provide a voucher to enable a “qualified employee” to purchase insurance though the state exchange instead of purchasing insurance through the employer’s plan. The voucher would be equal to the amount of what the employer would have paid for such employee under the employer’s plan. Tax credits. Employers with less than 25 full-time employees have a potential tax credit if they offer health insurance to their employees and pay for at least 50% of the total premium cost. To qualify for this credit, the employees must have wages that average $50,000 per year or less. For 2010 through 2013, the credit is available for an employer purchasing insurance from an insurance company. After 2013, the employer must purchase insurance through a state exchange, and the credit is only available for 2 years (not counting 2010 through 2013). Self-employed individuals, including partners and sole proprietors, 2% shareholders of an S corporation, and five percent owners of the employer are not treated as employees for purposes of this credit. Further, to be counted as an employee of the employer, an employee must be working in the trade or business of the employer. Tax on “high-cost” health plans. Beginning in 2018, insurance companies will be required to pay a 40% excise tax on employer-sponsored health coverage where the annual premium exceeds $10,200 for single coverage and $27,500 for family coverage. The tax applies to self-insured plans as well. Stand-alone dental and vision plans will not be counted for purposes of the tax. Adjustments to the premiums counted for the tax are allowed for employers with age and gender demographics that result in higher premiums. Employers are required to calculate the coverage they have which is subject to the limit and to provide statements to their insurers showing the amounts subject to the tax. Bottom line, you should expect higher premiums.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

Higher Medicare taxes. “High-income” taxpayers will be subject to a tax increase on compensation and a new tax on investment income. Currently, wages are subject to a 2.9% Medicare payroll tax. Beginning in 2013, single people earning more than $200,000 per year and married couples earning more than $250,000 per year will pay an additional 0.9% tax on their wages in excess of those base amounts. Employers will be responsible for collecting the extra tax. Also beginning in 2013, a Medicare tax will be applied to investment income. A new 3.8% tax will be imposed on net investment income of single people with adjusted gross income (AGI) above $200,000 and married couples filing jointly with AGI over $250,000. Net investment income is interest, dividends, royalties, rents, gross income from a trade or business involving passive activities, and net gain from disposition of property (other than property held in a trade or business). The new tax won’t apply to retirement accounts such as 401(k) plans. Floor on medical expenses deduction raised. Currently, taxpayers can take an itemized deduction for unreimbursed medical expenses for regular income tax purposes to the extent that those expenses exceed 7.5% of the taxpayer’s AGI. Beginning in 2013, the floor will be raised from 7.5% of AGI to 10%. The AGI floor for individuals 65 years of age and older (and their spouses) will remain unchanged at 7.5% through 2016. Limit on reimbursement of over-the-counter medications from HRAs, HSAs, FSAs, and MSAs. Beginning in 2011, costs for over-the-counter drugs not prescribed by a doctor will not be reimbursable from a health reimbursement account (HRA) or health flexible savings accounts (FSAs) and are not reimbursable “tax-free” from a health savings account (HSA) or Archer Medical Savings Account (MSA). Increased penalties on nonqualified distributions. Beginning in 2011, distributions from an HSA or an Archer MSA that are not used for qualified medical expenses will be subject to a penalty of 20% of the distribution. Health flexible spending arrangements (FSAs). Currently, there is no cap on the amounts you can contribute to an FSA through your employer’s “cafeteria plan.” After 2013, contributions to an FSA will be limited to $2,500 per year. Excise tax on indoor tanning services. Beginning July 1, 2010, there will be a new 10% excise tax on indoor tanning services. Just think of it as a higher sales tax. ~Gary Smith Content contributed by Wishart, Norris, Henninger & Pittman, P.A., which partners with owners of closely-held businesses to provide comprehensive legal services in all areas of business, tax, estate planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, contact Robert Norris at 704-3640010 or visit www.wnhplaw.com.

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UNIFY YOUR

No Matter Where You Are or What Device You Use, It's Just Like Being There!

COMMUNICATIONS

TO CONNECT SEAMLESSLY

Voice • Video • Data

Making IT Work!

962 5- D So u t h ern Pin e B lv d . • Cha rl ot te , NC 28 2 73 P h on e: 704. 831. 2 50 0 • To ll F r e e : 866. 70 8 .0 8 8 6

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CC Communications

[webbiz]

New Media Strategies, Secrets and Solutions

!What’s in Your Social Media Marketing “Tool Kit?” It seems like everyone is racing onto the Facebook, Twitter, Wordpress and LinkedIn social media marketing speedway. Businesses are discovering new and exciting ways to merge with these busy customer intersections every day. The challenge is finding time-efficient, yet effective ways to shift into these fastmoving forums. Try these helpful supplemental social media management tools to tune-up your company’s social engine. Think “Social Gizmos.” Monitter.com… Serving as your eyes and ears for all things Twitter, Monitter.com is a free service that allows you to monitor simultaneous live tweets, covering multiple keyword phrases, which are presented together on a single screen. Tweetdeck.com… Update and post new content from your computer, iPhone and iPad to Twitter, Facebook, LinkedIn and MySpace all from one entry source using Tweetdeck. com. Recording and sharing of video clips is further supported. All in One SEO Pack… This “plug-in” for Wordpress helps to optimize your blog for better search engine performance, allowing you to fine-tune your page title, description, meta keywords and navigation for each post.

Jott.com… Starting at only $3.95 per month, Jott Assistant lets you record your voice message via telephone and post it automatically as text directly to Twitter, Facebook, Wordpress, Blogger and other social media Web sites. It can also convert your phone call to Microsoft Outlook, Google Calendar, and Salesforce.com applications. Slideshare.net… Take your Microsoft PowerPoint, Keynote, Microsoft Word or PDF content presentations “viral” using SlideShare. This free application converts your content into a portable online “player” that may be linked or embedded into blogs, Facebook, Web pages, e-mail, and others. An extra feature allows you to add synched audio to each slide to enhance the presentation. TubeMogul.com… Video is adding an exciting new dimension to social media. TubeMogul helps you upload your video segment once, then automatically distribute it and track viewership across multiple online channels all at once, including YouTube, Facebook, MySpace, Yahoo! Video, MSN Video, Brightcove, and many others. TubeMogul also feeds to iTunes and other MRSS feed readers as well. For more information about emerging online technologies, visit http://www.cccommunications.com/resources_articles.cfm.

~Kip Cozart

andrewroby.com Your home. It’s the one investment you can’t ignore no matter what else happens. When the time is right, we’re ready to help you invest in your home’s future – in the kitchen or bath, with a value-adding addition, or an ROI renovation. When you invest in your home, your daily returns are better.

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making it home since 1950

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[webbiz]

CC Communications New Media Strategies, Secrets and Solutions

!web @ work Quail Hollow Championship – Volunteer Management System Running a “Best In Class” PGA TOUR event like the Quail Hollow Championship requires managing over 2,500 valuable volunteers who help make the event possible. Coordinating a volunteer force of this size requires a centralized, yet distributed system that facilitates recruiting, training, scheduling, supervision, evaluation, communication and retention. The Tournament put the Web to work by collaborating with CC Communications to design and employ a customized, online, ASP.NET solution known as the Volunteer Management System. This award-winning system provides hands-on, user-friendly access to thousands of end users, helping get the job of volunteer management done for the Quail Hollow Championship. Find out more about the Quail Hollow Championship at www.quailhollowchampionship.com.

QUESTION & ANSWER

Q: A:

Why can’t I view portions of some of my favorite Web sites using my new Apple iPad?

The built-in Web browser application that is currently used by the iPad, as well as iPhone other “smart phones,” to display traditional Web pages, does not support several popular features like Adobe Flash animation and other interactive plug-ins. Many companies who want to ensure that their Web content can be seen by the widest possible audience, produce multiple versions of their

pages (or underlying “style sheet” programming that defines how a given page is displayed) that are specifically optimized for each platform. Additional programming can be inserted in the page that can detect which device the visitor is using and select the proper page configuration automatically. Have a question about Web design or online marketing? Submit your question to www.greatercharlottebiz/webbiz. Questions & Answers may be reprinted here in upcoming editions of Greater Charlotte Biz! Content contributed by CC Communications, a Web design, programming and Internet media company providing a full array of services to businesses and organizations to enhance and produce effective Web, e-mail, multimedia marketing initiatives and business process improvements. For more information, contact Kip Cozart at 704-543-1171 or visit www.cccommunications.com.

Skyrocketing health care costs! Knauff can help.

WE HAVE CREATIVE COST-SAVING STRATEGIES. Your Trusted Advisors at Knauff are here to help you.

1001 Morehead Square Drive, Suite 400 Charlotte, NC 28203-0013 800.849.8008 | knauffins.com

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Smart Salvos, Select Strategies and Succinct Solutions

[bizXpert]

core competencies—the foundation of strategic thinking Most CEOs understand that one of their most important roles is to be the Chief Strategist for the company. At the same time, many CEOs struggle with the Strategic Thinking Process and have difficulty in even knowing where to start. A good starting point is the identification of a company’s Core Competencies. These are the unique capabilities that a company has developed over the years that provide high value to customers and create competitive advantage in the marketplace. Core Competencies tend to be processes that operate independently of specific individuals and thus can stand the test of time. In defining Core Competencies, it is helpful to first define why customers purchase products or services from a company. Then, by working “backwards”, the CEO can zero in on the internal processes that are driving value to customers. A good visual to use to guide the analysis is to think of the company as a sphere. Customers are located outside of the sphere and are looking for value on the surface of the sphere, which can be described as the “customer interface.” The internal volume of the sphere is the company itself, containing people, assets and the processes called Core Competencies. The trick is to separate the perceived value on the part of customers from the underlying processes that are driving the value. A good example is Wal-Mart. It is generally accepted that the primary perceived customer value is low price. This value has driven

RESERVE YOUR SPACE AND RESERVE YOUR STAY!

the rapid growth of the company for decades. Few customers, however, understand the real reason the company can offer such low prices. Most management experts point to the world-class Logistics System of Wal-Mart as the real Core Competency of the company. With over a million distinct items for sale at each store, sourced from virtually every country in the world and Tom Jackson then distributed to tens of thousands of stores around the globe, it would be easy for such an enormous system to get bogged down by its own weight. Wal-Mart, however, has turned this potential liability into its greatest strength. The Logistics Core Competency drives the customer value of low price at the customer interface. Once the CEO identifies the company’s Core Competency, the crucial question becomes: “How do we strengthen our Core Competency to the point that it cannot be imitated by competitors and is without substitute in the marketplace?” Specific tactics can then be deployed by the management team to “build the moat around the castle” protecting the competitive advantage created by the Core Competency. Tom Jackson is president and owner of Executive Forums of Charlotte, one of 50 nationwide offices of Renaissance Executive Forums, Inc. based in La Jolla, California. Tom leads over 50 business executives in four independent peer-to-peer advisory boards. Contact him at 704-367-0011 or TJackson@ExecutiveForums.com.

:;..'<=*+5,9'&9-)/'-9'9,2'>-/09"*'?**'@'AB+92& Reserve your space in Greater Charlotte Biz magazine for a 6X or longer run, 1/3 Box or larger size, and we’ll reserve your stay at the luxurious oceanfront of Myrtle Beach! Broadcast your message to over 100,000 business owners and executives at nearly every business location in the greater Charlotte area. Reach them directly at their desks in their offices, even while you’re vacationing! /0123456'786953586:'4;;<=>''+5?5319'35?1'8@@12>'

3 buildings. 418 creative minds. 156,106 square feet of inspiration. Step inside the Design Center and you’ll quickly realize that creativity is happening here. Inside. Outside. Even on the water tower, where the winning entry from our “Inspiring Your Community” elementary school art contest is on display. From our distinct interiors, to our wide-open courtyard, to our prime location across from the light-rail in Charlotte’s bustling South End, it’s clear to see why the city’s most innovative companies come here to find their inspiration.

Contact Meredith Dickerson at 704-971-6517 to see what makes us truly unique.

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www.designcentercarolinas.com

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

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[employersbiz]

Legislative and Regulatory Highlights for Area Employers

THE EMPLOYERS ASSOCIATION Trusted HR Advice, Tools & Training

!HEALTH CARE REFORM….How Employers Are Impacted Now Although the debate goes on, The Patient Protection and Affordable Care Act and its companion bill, The Health Care and Education Affordability Reconciliation Act of 2010, are now law and set the stage for a comprehensive overhaul of our current health care system. Many of the changes directed in the new legislation won’t take effect for years; however, some mandates will impact employers immediately. Those include the following: # Small employer health insurance premium tax credit program. This is retroactive and will apply to premiums paid in taxable years beginning after December 31, 2009. It will give certain qualified small employers who have 25 or fewer full-time equivalent employees, pay average annual wages of less than $50,000 and provide qualifying coverage (among other criteria a credit of up to 50% of premiums for up to two years if the employer contributes at least 50% of the total premium cost. #$The development of a national high-risk pool program for individual market consumers with pre-existing conditions. This program is effective 90 days from the enactment of the legislation. # The development of a temporary re-insurance program for

employees that provide retiree health coverage for employees over age 55. This program is effective 90 days from the enactment date. #$The development of a new grant program for small employers that offer wellness programs. The target date for this program is October 2010. #$Rollout of new market reforms and coverage provisions. These include a requirement to provide coverage for dependent children to age 26, addition of new preventive care provisions requiring first dollar coverage, prohibition of lifetime limits and maximums and penalties for waiting periods of more than 60 days. Recognizing the significant impact of these changes on its member companies and the level of detail that employers need on the subject, The Employers Association, in partnership with Ogletree Deakins, will be keeping abreast of developments in this section as they occur.

!Independent Contractors vs. Employees—Stepped-Up Enforcement In response to declining revenues, the government is targeting companies that employ contract workers in an effort to raise tax and benefit revenues. The Department of Labor (DOL) has been allocated $25 million to monitor and enforce penalties against companies who improperly misclassify employees as “independent contractors”. The New York Times reports that the IRS has begun auditing 6,000 companies to determine if they are in compliance. The government believes it will recoup $7 billion in fines and penalties over the next ten years. State governments are also joining the game. This heightened enforcement in the murky area of “independent contractor versus employee” has created an uproar. U.S.

companies are now unsure where to draw the line between regular employees and independent contractors. The U.S. Chamber of Commerce is protesting, arguing that the rules are so discretionary that employers may be penalized even when they have complied with employment laws in good faith. To be prepared for the “knock on the door,” many companies are reviewing job descriptions and conducting internal audits to confirm that they are acting in “good faith” to properly classify people as employees versus independent contractors. Companies may greatly benefit by taking such action to avoid harsh penalties for misclassifications. (Alan Gordon Immigration and Naturalization Law)

If you worked here, you’d be cool by now. Can your office space actually make you “cooler”? With an ideal South End location, a diverse mix of tenants and an inspired schedule of events and creative activities, the Design Center is showing that there’s merit to the famous saying “you are where you work.” OK, we made up that part–but the vintage vibe, inspired aesthetics and innovative environment that we call home are very real…and really cool. Want proof? Contact Meredith Dickerson at 704-971-6517 to see what makes us truly unique.

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designcentercarolinas.com

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THIS

[digitalbiz]

SOCIAL MEDIA – THE CONVERSATION PRISM

THIS

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Mapping the amorphous mass that is ‘social media’ is no easy task, particularly as it is so rapidly changing. Once visualized, however, it’s a lot easier to ‘get’ the size and scope of social media, and better understand the opportunities it presents brands, companies, and marketers. Brian Solis, principal of FutureWorks and prominent blogger, has, in conjunction with Jesse Thomas of JESS3, created The Conversation Prism in August 2008 showing graphically how online communities and networks connect to form the social Web. At the heart of the model sits ‘The Conversation—the art of listening, learning and sharing.’

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According to Solis, the conversation map is “a living, breathing representation of social media” that will “evolve as services and conversation channels emerge, fuse, and dissipate.” Solis has also written a couple of documents (one an e-book, the other a blog post ‘manifesto’) that serve as excellent book-ends to The Conversation Prism.

Recognizing that the act of categorizing social networks within a visually rich graphic would be momentary at best, their goal has been to observe, analyze, dissect, and present the dynamics of conversations, how and where they transpire.

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They knew the graphic would demand endless iterations in order to accurately document evolving and shifting online conversations as well as the communities that promote them.

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The Conversation Prism continues to rapidly evolve as social networks emerge, merge, and vanish.

Communities around the world have rallied to adapt The Conversation Prism to the reflect the social networks that thrive within each country. So far, those countries include France, Japan, and China. The latest localized Conversation to debut was published in Germany. The Conversation Prism continues to rapidly evolve as social networks emerge, merge, and vanish. In fact, Solis and Thomas are already hard at work mapping version 3.0.

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The evolution of The Conversation Prism demonstrates that the language of engagement is indeed international.

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[digitalbiz] “your business development advisors”

The Eloquence of the Conversation Prism According to Solis, the inspiration for the inception of The Conversation Prism derived from a consistent observation of top-down methodologies and practices of brands, professional and personal, employed to create a presence on the social Web. Simply stated, brands focused on building presences in the most popular communities without regard to how they would attract inhabitants and ultimately interact, let alone whether or not their core ambassadors were present. The Conversation Prism suggested a reversal in this approach, instead inspiring a bottom-up strategy that promoted social research, mapping, and ethnography. This inceptive sociological fieldwork would change everything and provide the insight necessary to develop an enlightened and cultured Social Media program that could potentially humanize the brand and foster relationships and engender emissaries to carry goodwill across the social Web.

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You + Me + Mutual Value = <3 People aren’t lured into relationships simply because you cast the bait to reel them into a conversation. Sincerity extends beyond the mere act of creating a profile on Twitter or forming a fan page on Facebook or a group on LinkedIn. The dual definition of transparency serves very different forms of both genuine and hollow separated by intent and impression. Relationships are measured in the value, action, and sentiment that others take away from each conversation. Talking “at” or responding without merit, Cont. page 20

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(l to r) Gary S. Hemric Pender R. McElroy William K. (Bill) Diehl Jr. Partners James, McElroy & Diehl, P.A.

“Common sense isn’t common.” So said Will Rogers. And so touts the law firm of James, McElroy & Diehl. To wit, their practice emphasizes practicality in using their legal education and experience in ways that makes sense for the client and the client’s objectives. If you are a lawyer who’s just discovered your opposing counsel is James, McElroy & Diehl (JMD), you’ve got a pretty tall mountain to climb. While the firm is recognized for its talented and accomplished attorneys, it also has a near-legendary reputation for its commitment to hard work and loyalty to its clients. Since JMD was established in 1959, Charlotte has sprouted office towers and welcomed sprawling national and regional law firms to accommodate its growing needs. Amidst the steel and flash, and arguably an excess

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of starched collars—the firm has cultivated a fearsome reputation built on passion and expertise. With 20 partners, 15 associates, and 3 attorneys serving of counsel, James, McElroy & Diehl is ranked in Charlotte as a mid-size firm. Initially founded as a business law practice, it has evolved into one of the most respected trial practice groups in the region. Its broad spectrum of legal expertise accommodates business law, family law, and civil as well as criminal litigation. JMD lawyers have been recognized on many ‘best-of’ lists—including North Carolina’s Super Lawyers, Business North Carolina’s Legal Elite, and The Best Lawyers in America. Yet its partners pride themselves more on their reputation, their long-term relationships with clients, and the personal, holistic approach they have to providing superior legal representation and results.

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by susanne deitzel

[bizprofile]

COMMON SENSE ISN’T COMMON James, McElroy & Diehl Applies Education and Practical Experience in Assessing the Big Picture

“As lawyers, we can read the same cases and legal encyclopedias, but how that translates into practical advice for the client will vary on the individual. Common sense takes into account the big picture to determine whether that means litigating, settling or otherwise. Often legal precedents are not what control the situation – what is best for the client controls the situation.” ~Pender McElroy Partner

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As a result, JMD tends to attract talented young attorneys that are looking for something more than financial success and name recognition. They are a little more independent, and ready to dive into practicing as soon as they can. Most importantly, they come ready to listen and work extra hard, and to learn a thing or two from the firm’s elder statesmen. COMMON SENSE APPROACH James, McElroy & Diehl, P.A. was formalized in 1971 as a more current iteration of its predecessor, Herbert, James and Williams, cofounded by partner Henry James in 1959. After serving in the infantry during the Korean War, James graduated from the University of Virginia Law School and practiced law for two years before beginning his own firm with another young lawyer. James’s timing was good—the city was growing, and his specialty was business, securities and commercial real estate. %

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James, now retired and serving of counsel to the firm, was known for his ability to create genuine relationships. He was a natural businessman with a knack for making people feel like they and their business mattered. In 1969, Pender McElroy joined the firm. McElroy grew up Marshall, N.C., close to Asheville, served in the U.S. Army as a Russian linguist and graduated from law school at the University of North Carolina at Chapel Hill in 1968. He served as a clerk under N.C. Supreme Court Justice William Bobbitt, and sought to practice business law in a small firm that he could play a role in growing. A gentleman in a bow tie, McElroy says of the firm’s founder, “Henry was gregarious, engaging, a great raconteur, bright and articulate, and a great rainmaker. He built real relationships with people. He also allowed me to be involved right away with the work he was doing—he let me swim by myself with no life preserver.” McElroy also says that the firm’s commitment to common sense is what attracted and kept him with the firm. He explains, “As lawyers, we can read the same cases and legal encyclopedias, but how that translates into practical advice for the client will vary with the individual. Common sense takes into account the big picture to determine whether that means litigating, settling or otherwise. Often legal precedents are not what control the situation—what is best for the client controls the situation.” Attorney Bill Diehl also joined the firm in 1969. Diehl confesses to wandering into the idea of law school after graduating from the University of North Carolina, when draft deferments were ending for the Vietnam War.

Henry James, Co-founding Partner, Of Counsel

“It has been a great downhill ride – it’s been work, but it has never felt like a job. I feel so fortunate that my work has been and is something that I always want to do.” ~Bill Diehl Partner

“I wasn’t particularly interested in fighting, I wasn’t going to go to Canada, and continuing school seemed like a good option,” he recalls. The son of a newspaperman, Diehl was immersed in language from an early age, and had what he calls “a lurking notion that law could be a possible career.” Three years later Diehl had a law degree from the University of Virginia School of Law, but not much more in terms of direction

until he met with Herbert, James and Williams. Like McElroy, he got the chance to get immediately involved in the important work of the firm, and showed that he had a gift and a passion for trial law. Diehl says the past 40 years since, has been a blur. “It has been a great downhill ride—it’s been work, but it has never felt like a job. I feel so fortunate that my work has been and is something that I always want to do.” It’s no secret that Diehl’s passion and willingness to take tough, high-profile court cases have won him considerable notoriety around town. From George Shinn to Gloria Pace King to Jeremy Mayfield—Diehl’s cases have generated a lot of ink. He is also not above a little personal outrage. In 2008, Diehl publicly championed the rights of volunteers to serve food to the homeless on north Tryon Street, and represented Jerry Reese in 2006 in the fight against plans to use government bonds to build a baseball stadium in Third Ward. But Diehl is unwilling to court the media at the expense of his clients. “I don’t believe in lawyers trying their case in the press. Lawyers don’t make the best PR people. I would prefer to offer ‘No comment’ and tick somebody off than to give the other side something to cross examine us on.” Diehl’s Sam Kinison resemblance and bleached-blond long hair, bluntness and stubborn loyalty to his clients may not have won him any popularity contests, but his legal finesse and hard work has—his courtroom record has been integral in the prominence of the firm. UNCOMMON COMMITMENT If the dynamic balance of James’ relationship-building, McElroy’s business expertise, and Diehl’s passion for litigation forms the backbone of the firm, its life blood is certainly the work ethic. All of the partners refer to hard work as the firm’s mantra, and it is the distinguishing characteristic of the firm’s culture. (l to r) Row 1: Jon Carroll, Amy Simpson, Preston Odom, Irene King, Casey Viser Row 2: Mickey Aberman, Beth Tate Hondros, Jared Gardner, Kris Finlon, Matt Covington Row 3: John Arrowood, Fred Monroe, Katie Holliday, Catherine Barnes, Jonathan Feit, Alex Heroy, John Paul Tsahakis Row 4: Adam Ross, John Beddow, David Kern, Claire Samuels, Rich Fennell Row 5: Bruce Simpson, Sarah Brady, Justin Bice, Bob Sheppard, Russ Kornegay, John Buric

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Senior partner Gary Hemric has been with the firm 36 years, and trained under Diehl’s prescription of hard work and diligence. The two of them have shaped the standard for the firm’s litigation attorneys. Hemric explains, “The definitive difference is hard work. I can’t tell you the number of times we have worked all weekend on a brief, only to go to trial on Monday and have opposing counsel show up after a golf outing asking us to ‘work things out.’ I don’t think so. Our concern is what’s best for the client—not whether or not you like us.” Hemric is a civil litigator whose experience has centered on problem-solving for people in business disputes, including construction, personal injury, product liability, employment, professional negligence and medical malpractice matters. Hemric is sharp, quick-witted, plain-spoken and confesses to being “adversarial by nature.” The son of what he calls an “Atticus Finchtype lawyer,” he admired what his father’s law practice brought to the lives of the people in Burlington, where he grew up. “My father was fair, he was respected, and the work he did built a lot of friendships—that was touching to me.” Hemric suited up as a trial lawyer and got immediately involved in litigation with Diehl. He says they travelled and worked night and day for years developing their art and sweating the details. “The hard work we put into finding and managing information has built the credibility of the firm over the years. When we walk into a courtroom, the judges know we have done our homework.” Hemric has also made a sterling name for himself as a mediator. Hemric pursued mediation 17 years ago as a pilot program when only six or seven North Carolina counties were using it. Since then, the need and demand for mediation has risen considerably. Since all state Superior Court cases must be mediated before going to trial, and more people are aware of alternative dispute resolution, many pursue a negotiated agreement without the financial and mental expense of a trial. In addition to civil litigation and business law, the firm has several talented trial lawyers. Among them is partner Ed Hinson who has been with JMD since 1981 after working as assistant district attorney for Mecklenburg County. In his capacity as lead counsel for the state in a number of jury trials, he tried several capital murder prosecutions, embezzlements, rapes, armed robberies and other serious crimes. Most recently The Charlotte Observer %

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“The definitive difference is hard work. I can’t tell you the number of times we have worked all weekend on a brief, only to go to trial on Monday, and have opposing counsel show up after a golf outing asking us to ‘work things out.’ I don’t think so. Our concern is what’s best for the client – not whether or not you like us.” ~Gary Hemric

Partner

has been following Hinson’s representation of Pastors Anthony and Harriet Jinwright in what has become a very public case of alleged tax evasion. In addition to white collar and criminal defense, Hinson maintains a heavy practice in complex civil litigation, primarily in the commercial and banking areas. Hinson is a member of the American College of Trial Lawyers, a small select group of litigators in the U.S.

As a rule, Hinson is very sensitive to the privacy of his clients, and admits he is one of the more conservative members of the legal team. He joined the firm for its excellent reputation for trial law, and because he thought he could learn a lot from Bill Diehl. “I haven’t been disappointed,” says Hinson. COMMON GROUND The senior partners have a markedly diverse set of political and ideological backgrounds, not to mention very different personalities. Hemric says that this is true throughout the firm as well. “I think that we have a microcosm of the world here. We encourage everyone to maintain their individuality and pursue the interests that appeal to them. We encourage our attorneys to do pro bono work and to be involved in the community, but it is their choice. We are open; we aren’t afraid to call each other out, or to defend each other to extremes,” he says. But there are things that are non-negotiable. Among them: hard work, ethics, client interests first, straight-talk, and a sense of humor. “We take our cases very seriously,” says Hemric. “We try not to take ourselves so seriously, though.” The partners also share views on how the

legal landscape has changed along with the economic and technological climate. McElroy says that in 40 years he has never seen a recession hit as hard this one. Diehl says that even clients with impeccable payment histories are behind, and that many businesses have scaled back considerably: “It is clear that decisions are being made based on financial realities as opposed to what they might have done under different circumstances.” Technology has also shifted the practice of law in many ways. Hemric says that keeping juries uncontaminated is practically impossible. “They won’t tell you that they are going back to their hotel room and Googling things—but many are. Their sources are often more biased than newspapers, and they often make judgments on sound bites concerning aberrant verdicts. It can be disheartening,” he points up. But Diehl says there are positive sides to the technology picture, too. “Our young lawyers can do in one hour what used to take me 10 hours in the library. Now they have better tools and new ways to use their talent.” He concludes with his characteristic (and charismatic) smile, “...And now they can work even harder.” biz Susanne Deitzel is a Charlotte-based freelance writer.

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James, McElroy & Diehl, P.A. 600 South College St., Ste. 3000 Charlotte, N.C. 28202 Phone: 704-372-9870 Principals: Pender R. McElroy, Managing Partner; William K. (Bill) Diehl Jr., Partner; Gary S. Hemric, Partner; Edward T. Hinson Jr., Partner Established: 1959 Personnel: 20 partners, 15 associates, 3 of counsel Honors: Numerous members of the firm have been selected as 2010 North Carolina Super Lawyers, 2010 North Carolina Rising Stars, 2010 Business North Carolina Legal Elite, and The Best Lawyers in America Practice: Full service law firm representing individuals and businesses in the areas of alternative dispute resolution, appellate advocacy, automotive / dealer advocacy, bankruptcy, business, civil litigation, criminal, domestic, estates, labor & employment, real property, securities and tax. www.jmdlaw.com

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[digitalbiz] Cont. from page 13

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intelligence, or quality grossly underestimates the people you’re hoping to befriend and influence. If participation were this simple, then perhaps everyone would excel as a Social Media “expert.” It’s the difference between community and a halfway house; one will flourish, while the other will shelter transients, never building a thriving citizenry. Identifying connected communities and observing the themes and culture of each provide entrée into the personification necessary to foster a genuine and equal ecosystem for dialogue. It’s about bringing information and solutions to people where they congregate before attempting to host their attention on our terms. The art of conversations is mastered through both the practice of hearing AND listening. I hear you. I’m listening to you. I understand. Drink it in… identify opportunities to engage, but more importantly, experience the nature, dynamic, ambience, and emotion in order to sincerely and intelligently empathize and converse as a peer. More information at www.theconversationprism.com and www.briansolis.com/2009/03/ conversation-prism-v20/.

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[digitalbiz] !Ghost Towns of the Internet Much like the physical structures in our cities that form along the horizons of our urban landscapes, the data structures inside today’s data giants represent some of mankind’s most remarkable feats.

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So what will happen to the likes of these ground-losing giants? !Second Life – Less than 3 years ago, this one-time buzz-dominator of the virtual world’s industry was the darling of media discussions, but has now been relegated to competing for mindshare with lesser contenders like video games and social media.

!Benchmarking for Success Are you competitive?

!MySpace – People are rapidly shifting from the chaotic page-building systems on MySpace to the cleaner look and interface on Facebook. !Plaxo – Starting off as a constantly updating business card service, Plaxo has lost ground to other mindshare grabbers like LinkedIn and Twitter.

Are your employees engaged?

!Monster.com – Monster suffered a 33 percent decline in revenues in 2009 compared to 2008 as the bad economy and lack of jobs drove many would be customers to CraigsList and other contenders.

Will they stay as business improves?

!Friendster – An early pioneer in social media, Friendster has lost its footing and remains a distant memory among the historians for social media.

Tools to compare on a local and national basis.

!PhotoBucket – Riding on the coattails of MySpace, this one-time darling of the photo hosting world has lost ground to companies like Flickr and Picassa.

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Life expectancy for modern day businesses, even the remarkable ones, is measured in decades, not centuries. The digital world as it exists today contains the keys to humanity, the raw essence of personhood, and in the long run, the future of our children’s children. Query what will happen to the data reserves and important scraps of our civilization that can be instantly erased with the flip of a switch rather than the erosion of time? Adapted from Ghost towns of the Internet by Thomas Frey, the executive director and senior futurist at the DaVinci Institute and currently Google’s top-rated futurist speaker; www.cobizmag.com/ articles/ghost-towns-of-the-internet/.

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“

Photo:Wayne Morris

<&=>%?@ABCDBCEF?@G%E%HCBEI%GCBJD%BK% DLBDML%HLAEJNL%OL=CL%?@%E%I?KKLCL@F% DPENL7%:L=CL%@BF%HJQ?@G%FP?@GN3%OL=CL% @BF%>LCG?@G%FP?@GN7%&F=N%E%DPENL%OPLCL% ?F=N%CLEMMQ%E@%BCGE@?A%GCBOFP%AB>DE@Q7% *B%?F=N%E%I?KKLCL@F%NLF%BK%AB@I?F?B@N7R Brian T. Moynihan President and CEO Bank of America

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by ellison clary

Clearly, Brian Moynihan hopes to follow a tough year with a much more solid performance. “We are a straightforward company,” he says convincingly. “We serve people, companies and investors. There’s nothing we need. It’s all here.” Moynihan, who took the Bank of America helm January 1, sat in a conference room on the 58th floor of the bank’s Corporate Center recently and discussed a wide range of topics. The nation’s biggest bank is a player at home and abroad, but travails related to what Moynihan calls the roughest recession in 70 years made 2009, as he wrote in the annual report, “a difficult year by almost any measure.” The bank’s net income was $6.3 billion, but after paying off its $45 million loan from the Troubled Asset Relief Program and dealing with other fiduciary obligations, its net loss was 29 cents a diluted share. Enumerating challenges, Moynihan first turns to fixing the credit environment. Prominent is taking responsibility. “We missed the mark and put out too much consumer credit,” he admits. “We kept offering credit to many consumers who were getting over-extended. Unfortunately, that led us to take a lot of charge-offs.” Provision for credit losses in 2009 was nearly $49 billion. Credit has been scarce because those companies whose leaders could have negotiated loans, he says, are not seeking additional credit and, in many cases, aren’t using the credit lines they already have. Simultaneously, those businesses who clamored for credit, couldn’t justify it. “For very small businesses, $2 million a year and under, our charge-off rate in third quarter 2009 was 17.5 percent,” Moynihan says. “That’s almost one in every five that failed that quarter. “It’s a mixed picture. Small manufacturing firms, along with accounting operations and law offices, are doing well, but companies in the restaurant, construction or small retail segments are gasping to stay afloat.” Economists have declared the recession ended, but Moynihan says, “There may be economic growth, but it may not feel good as long as unemployment remains high and consumers are still de-leveraging.” Positioned For Growth Moynihan has positioned his management team to better address future growth. Veteran Cathy Bessant now leads both technology and operations, reuniting those functions. Former chief financial officer Joe Price runs the consumer business that now also includes the credit card operation. Price oversees 58 million consumer and small business relationships. “We have all these customers, and they have a credit card,” Moynihan says. “With Joe, we’ve brought the credit card business and the products together. We’ve got charge-offs under control and that business is starting to heal.” For residential mortgage, Moynihan points to increased housing stability and adds that unemployment has stopped growing. “We’ve got a group of customers who over-leveraged,” he says. “For people who have to get out of a mortgage, we’ve got to figure out how, with dignity, to assist them as they transition into a housing arrangement they can afford and that they can stay in for the next 10 years.” Commercial mortgage is a better situation. “I’m not sanguine on it,” he says, “but I think we’ve done a good job there and I don’t think it is the risk for us that % other people think it is.” Charge-offs are dropping, he points out.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

[bizprofile]

!elcome

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One of four Raymond Kaskey sculptures at the corners of Trade and Tryon Streets; the figure of the woman holding a child represents the Future of the city.

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Summary

Solid Start to 2010 1Q10 Revenue (FTE)

Expense

32,290

Change from 4Q09

Change from 1Q09

3,951 1

(5,972) 1

17,775

1,390

773

Provision expense

9,805

(3,231) 1

(5,757) 1

Pre-tax income

4,710

5,792

(988)

Income tax expense (FTE)

1,528

2,416

Net income

3,182

3,376

(1,065)

348

(4,654)

(1,085)

Preferred dividends Net income available to common

Avg. diluted Shares Diluted EPS 1

2,834

10,005 $

0.28

8,030

1,370 $

0.88

20 3,612

(0.16)

Change is reported on a managed basis for credit card receivables returned to the balance sheet with the implementation of FAS 166/167 on Jan 1, 2010

# Credit quality trends improving # Capital and liquidity strong and growing # Capital markets and investment banking businesses performing well # Core consumer and commercial businesses still recovering, but improved # Wealth management business transitioning well # Customer-centric model progressing nicely # Managing balance sheet and company thoughtfully # Management team in place

:L%PEI%E%GCLEF%OLEMFP%>E@EGL>L@F%HJN?@LNNS%?F%TJNF%OEN@=F% H?G%L@BJGP7%-@I%@BO%OL%PEUL%FPL%FOB%MECGLNF%DMEQLCN%?@%FPL% ABJ@FCQ% E@I% OL% NF?MM% PEUL% CBB>% FB% GCBO% FPEF% HJN?@LNN7% &F% PEN%HCBJGPF%FPL%AEDEH?M?F?LN%BK%N?VL%E@I%NAEML%E@I%G?ULN%JN%E% APE@AL%FB%EII%HLFFLC%DCBIJAFN%E@I%HLFFLC%AEDEH?M?F?LN7 ~Brian T. Moynihan President and CEO

For wealth management, Moynihan’s bullish. “The two largest in the business were legacy Bank of America and legacy Merrill Lynch. We’ve put them together and it’s a business which is second to none,” he says of the controversial and expensive purchase of the giant investment firm. To those who complain about the subsequent slides in stock price and profit, as well as the federal bailout, Moynihan offers strong justification. “We had a great wealth management business; it just wasn’t big enough. And now we have the two largest players in the country and we still have room to grow that business,” he says. “It has brought the capabilities of size and scale and gives us a chance to add better products and better capabilities.” The company reported solid first quarter results, posting net income of $3.2 billion on declining credit costs and strong sales and trading results. In concert with the commercial and corporate banking units, Moynihan adds, product delivery synergies multiply. And on the investment banking front, the deal brought coverage of a wider range of industries. The other complication of Merrill Lynch was legal problems. “Our legal situation doesn’t preoccupy us,” says Moynihan, the bank’s former general counsel. “We will work with all investigations.”

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Discerning Its Role Does that signal Bank of America is ready to get along better with the federal government? According to Moynihan, “The bank will approach the government as ‘an expertise giver’ rather than taking the position that ‘what we are doing is right and everybody else is wrong.’ That’s not true, and it’s not helpful. It’s in our best interest if America works well. Our own success depends upon a healthy economy.” Moynihan’s strong on the bank’s global businesses—the corporate and investment bank, wealth management and capital markets. He sees upside to the bank’s opportunities in Asia, including in China where the investment in China Construction Bank has been successful for both companies. So how does the leader of an institution with more than $2 trillion in assets feel about the “too big to fail” doctrine? Moynihan points out that the recession’s initial casualties were investment houses rather than traditional banks. Still, he says, “Nobody should be too big to fail.” Then he extols the virtues of size. “What we can do at Bank of America is really helpful to our customers and clients,” he says, citing the bank’s recent decision to stop allowing debit card overdrafts, which often happen without the customer being aware and therefore incur a fee unnecessarily.

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“Our size allows us to do that,” he says. “We are the largest bank in the largest economy,” he adds. “If we are going to be successful in the worldwide stage, America is going to have to have large financial institutions.” Moynihan arrived at Bank of America through its purchase of FleetBoston Financial Corporation in 2004. He lives in Boston with his wife, a former lawyer, and three children in high school and middle school. He recently rented living quarters in Charlotte, but plans no move. The oft-asked question arises: Will Charlotte retain the bank’s headquarters? “I think I’ve answered the question on numerous occasions,” he says firmly. “Charlotte will be important in terms of headquarters and in numbers of employees,” he says, with a caveat. “There is also an employee base and clients everywhere. And if you’re sitting in St. Louis, you want to know what we’re doing for St. Louis. In Chicago, it’s Chicago; Dallas, Dallas.” He speaks of supporting Charles Bowman, the bank’s North Carolina and Charlotte market president, then mentions the Charlotte Chamber’s annual educational visit, this year to Boston. He and Dick Spangler co-chair the mid-June trip. Prominent in the excursion is David Darnell, the bank’s president of Global Commercial Banking, who leads the Charlotte Chamber, and Bob Gallery, the bank’s Massachusetts president, who chairs the Greater Boston Chamber. The situation cheers Bob Morgan, Charlotte Chamber executive. “Boston is a Bank of America town,” Morgan says. “Who better than Brian and his team to open doors to help us learn from this great city?” Culture, Morale Remain Strong Some observers speculate that the bank’s culture and morale have sustained harmful hits during recent hard times. Moynihan sees a different picture. After adding 60,000 associates from Merrill Lynch and 40,000 from Countrywide Mortgage, total bank employment pushes 300,000. Though the culture evolves, it’s firmly grounded in “doing the right thing, trust and teamwork,” he says. “The associates are in the game,” he says of morale. “They’ve done tremendous work for us in tough circumstances. What they are doing is what they do best, and that’s take care of clients. The customer focus is absolutely critical because that’s all we have to do. There is nothing left for us but to execute for each customer and client and deliver all we are capable of providing them.” Moynihan grew up in Ohio, graduated from Brown University and got his law degree from Notre Dame University. His grandfather was a lawyer and he always thought he would be, too.

/PECMBFFL% O?MM% HL% ?>DBCFE@F% ?@% FLC>N% BK% PLEIWJECFLCN% E@I%?@%@J>HLCN%BK%L>DMBQLLN7%+PLCL%?N%EMNB%E@%L>DMBQLL% HENL%E@I%AM?L@FN%LULCQOPLCL7%-@I%?K%QBJ=CL%N?FF?@G%?@%*F7% .BJ?N3%QBJ%OE@F%FB%X@BO%OPEF%OL=CL%IB?@G%KBC%*F7%.BJ?N7% &@%/P?AEGB3%?F=N%/P?AEGBS%(EMMEN3%(EMMEN7 ~Brian T. Moynihan

President and CEO

He joined FleetBoston in 1993, coming over from a Boston legal firm that served the bank. He almost left Bank of America a couple of years ago. “We had to downsize the bank,” he jokes matter-of-factly. “I was going to help do that.” Instead, he took the general counsel role offered by ex-CEO Ken Lewis. Until recently, he didn’t give much thought to being chief executive. “I always thought I had to do a good job of leading and managing the group I had,” he says. “If you try to plan your career from start to finish, you will be disappointed 99.9 percent of the time. Just take what comes to you.” At 50, Moynihan figures to enjoy a long run at leading Bank of America. He doesn’t comment on the bank’s messy process for finding a successor for Lewis, who announced his retirement abruptly in September 2009. But he acknowledges his responsibility to identify successor candidates. ‘All Things in Moderation’ Moynihan readily admits to having benefited from mentors. He mentions former FleetBoston CEOs Terrence Murray and Chad Gifford, as well as Lewis. All helped him form a set of principles. The first is, “All things in moderation. Never lean the company too far one way or the other.” Then he lists others: “Never believe in yourself too much, and be dispassionately objective.” He calls that “a tricky thing,”

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balancing enthusiasm and optimism with the responsibility to say no to trusted lieutenants when plans don’t measure up. He moves on. “You have to be flexible. I’m facing a different task than Hugh McColl faced or Ken Lewis faced.” Contrasting his style with that of Lewis, he calls his predecessor “very disciplined.” Then he speaks of the difference. “I’m incorporating a broad group of people because we’re in a different phase. We’re not buying things, we’re not merging things. It’s a phase where it’s really an organic growth company. So it’s a different set of conditions.” Lest that sound insular, Moynihan transitions to helping the country out of its unemployment funk. “The dialogue is not always about that,” he says. “We’ve got to get that dialogue focused. It’s surprising to me how needed it is to have the right kind of leadership in all arenas to actually get Americans back to work. That ultimately will stabilize the economy.” And it will help the bank. “This has always been a great company,” he says. “As the economy heals, you’ll see that come through in terms of dollars and cents.” Applying that thought locally, he leaves a message for the greater Charlotte business community: “We are here to serve business people’s needs. If we aren’t doing that, they should let me know.” biz Ellison Clary is a Charlotte-based freelance writer.

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[bizmarketing]

Maximize Marketing; Magnify Impact

TOP Reasons to Advertise in Magazines

Magazines and magazine ads garner the most attention: BIGresearch studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the internet. According to research from JackMyers, when consumers were asked to rate media based on how likely they are to pay attention to the advertising messages, magazines ranked at or near the top of the list.

Magazine advertising is valuable content: Consumers value magazine advertising, according to numerous studies.Yankelovich and Dynamic Logic both report that consumers are more likely to have a positive attitude toward advertising in magazines compared to other media. In addition, consumers are more likely to turn to magazines to search for information across a variety of categories compared to the Internet, based on research from MediaVest.

3 4 5 6 7 8 9

Magazines supply credibility: Consumers trust and believe magazines and magazine advertising more than other media. Simmons Multi-Media Engagement Study shows magazines score higher on being “trustworthy” than TV or the Internet. Multiple other sources also indicate that consumers place significant trust in magazine advertising. !!! Magazine print and digital audiences are growing: The number of magazine readers as well as the average number of magazine issues read in the past month has grown over the past five years. In addition, magazine Web site usage is growing faster than Web usage overall. Magazine advertising is relevant and targeted: Consumers consider magazine advertising more relevant than advertising in other media.With a range of titles that appeal to a wide variety of demographics, lifestyles and interests, advertisers can hone in on targets that fit their needs.

Magazines are a leading influence on word-of-mouth:Magazine readers are more likely than users of other media to influence friends and family on products across a variety of categories.Magazines are also most likely to complement the Web in reaching social networkers,whom marketers increasingly favor in generating buzz.

&' % $ # !"

magazines magazines lead in ad influence A MRI MediaDay analysis of ad influence of a medium relative to time spent with that medium, the Time-Ad Impact ratio, shows that magazines are more than twice as effective as the Web in ad influence.

magazines boost the power Dynamic Logic’s analysis reveals that magazines play a leading role in boosting overall advertising effectiveness. The combination of television and magazines provided significantly more lift in brand favorability and purchase intent than did television plus Web.

magazine ads build web traffic An analysis by Marketing Evolution shows more than a 40% lift in Web traffic occurred after consumers were exposed to magazine ads. Magazines contributed to building Web traffic at each stage of the purchase funnel, especially excelling at influencing purchase intent.

Consumers Trust Magazine Advertising the Most Magazine advertising is more trusted than advertising in other media, regardless of age Percent of Adults Age 18 to 54 Who Trust Advertising in Medium

Magazine audiences accumulate faster than you think—and with lasting impact: The average monthly magazine accumulates approximately 60% of its audience within a month’s time, and the average weekly magazine accumulates nearly 80% of its audience in two weeks.

Magazines 40%

Internet

40% Source: Time Inc. “Storytelling in a Multiplatform World,” 2008

Magazine advertising sells: Several studies demonstrate that magazines are generally the strongest driver of purchase intent. Perhaps this is because more than half of all readers act on magazine ads, according to Affinity Research.

Percent of Millennials* WhoTrust Advertising Magazines

20%

Television

Magazines improve advertising ROI: Based on a recent analysis of cross-media accountability studies,Marketing Evolution found magazines most consistently generate a favorable cost per impact throughout the purchase funnel. Allocating more money to magazines in the media mix improves marketing and advertising ROI across a broad range of product categories.

Magazine advertising drives Web search, traffic and action taking: BIGresearch proves that magazines lead other media in influencing consumers to start a search for merchandise online. Studies from Marketing Evolution, JupiterResearch and the OPA show that ads in magazines or on magazine Web sites boost Web traffic, spur online purchase and offline behavior.

11 12

Magazine advertising drives effectiveness throughout the purchase funnel: Magazines generally contribute more than other media when looking at consumers’ purchase decision-making process. As a result, magazines boost the effectiveness of other media at all stages of the funnel. Magazines deliver reach: Across major demographic groups, the combination of the top 25 magazines delivers considerably more rating points than the top 25 TV shows.

Content from MPA’s The Magazine Handbook 2009/10 published by Magazine Publishers of America, Inc.; www.magazine.org. Sources of information cited.

48%

Television

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13%

Radio

11%

Internet

6% *Consumers born between 1977 and 1996 Source: MORI Research, 2006

Magazine Advertising Motivates Readers to Action More than half (56%) of readers took action on magazine ads or had a more favorable opinion about the advertiser because of magazine advertising, according to the latest research from Affinity’s VISTA Print Effectiveness Rating Service.

Actions Readers Took or Plan to Take as a Result of Exposure to Specific Magazine Ads

Similarly, more than two out of three (68%) readers took action based on editorial content. The research shows that magazine engagement goes far beyond just “feeling”—it prompts consumers to act.

Actions Taken as a Result of Reading Specific Features/Articles Passed article along to someone

29 %

Saved article for future reference

Gathered more information about the topic

Visited a related website

Took any action (net)

Consider purchasing the advertised product or service

21%

Have a more favorable opinion about the advertiser

Gather more information about advertised product or service

Visit the advertiser ’s website

Purchase the advertised product or service

Vi s i t a s t o r e , d e a l e r o r o t h e r l o c a t i o n

S a ve t h e a d fo r f u t u re re fe re n c e

Recommend the product or service to a friend, co ll ea gue o r f am ily m e m be r To ok any ac tion (net)

5 56

Base: Actions taken based on respondents recalling specific ads Source: Affinity’s VISTA Print Effectiveness Rating Service, 2007

Source: Affinity’s VISTA Print Effectiveness Rating Service, 2008

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(l to r) Keith Hendrix, CPA Audit Shareholder Dan Warren, CPA Charlotte Office Managing Shareholder Richard Battle, CPA Tax Shareholder Elliott Davis, PLLC

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by ellison clary

or an upbeat financial story in a down economy, look no further than the shiny office building on East Morehead Street that houses accounting firm Elliott Davis, a regional powerhouse that specializes in closely held business clients. The Charlotte office of the firm which is based in Greenville, S.C., has more than doubled its revenue in the 2.5 years that it has been part of Elliott Davis. “We’ve ramped up,” says Dan Warren, managing shareholder of the Charlotte office. “We’re focused on middle market companies and seizing new opportunities every day.” He’s happy to have merged his former firm with Elliott Davis because it brought more resources to concentrate on those targeted companies, many owned by families or in other closely held arrangements. Warren and partner Bo Elliot ran a coincidentally named outfit— Elliot & Warren—that they started in 1997. They’d built it to 23 employees. Now, as the Charlotte office of Elliott Davis, it boasts 60 associates and is the fastest growing and third largest of the 10 Elliott Davis offices strung out from Augusta, Ga., to Galax, Va. Warren points out that while the appeal and opportunity in Charlotte lured several shareholders from the firm’s Greenville and Columbia offices, the other additions are hires made by the Charlotte office. He notes that Elliott Davis takes great pride in hiring top caliber talent, and many of the firm’s professionals have backgrounds as CFOs or controllers within key industries, like construction and manufacturing. “We think of ourselves as industry insiders. We speak our clients’ language; get to know them personally; and anticipate their needs,” says Rick Davis, managing shareholder, who runs the regional empire from his downtown Greenville office. “We have developed a fully engaged team with the resources to take care of virtually all needs of a privately held, closely held business,” Davis adds as he explains the formula for success. Elliott Davis has enjoyed impressive success. “We’ve had good growth during the last four or five years,” Davis says. For 2009, it’s about a 10 percent rate, he adds, but previously it was in the 15 percent to 17 percent annual range. With about 400 employees firm-wide, Elliott Davis is the largest Certified Public Accountant firm headquartered in South Carolina. It ranks among the top 60 CPA firms nationally. And it is one of the five largest servicing Securities and Exchange Commission registrants in the Southeast, excluding the Big 4 international accounting outfits. Elliott Davis is a member of the Leading Edge Alliance, an association of similar-sized accounting firms from across the country and around the world. The members hold periodic get-togethers for leadership % development, training and industry updates.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

[bizprofile]

DEEP ROOTS NEW GR WTH Elliott Davis Thrives Through Helping Clients Succeed

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Branching Out Into Charlotte Davis, 48, a native of Bishopville, S.C., joined Elliott Davis straight out of Clemson University in 1984. He is as delighted to be in Charlotte as Warren is to have him. “We see Charlotte as the major market to be in as a Southeastern accounting firm,” Davis says. “We are very comfortable and proud that we made that decision because we see vast opportunity here today and for many years to come.” The firm picked Warren’s legacy accounting outfit because the culture seemed similar. “We always look for the fit,” Davis explains. “We want everyone to be a part of the team. That’s why the right attitude toward teamwork is important, as is the commitment to taking care of our clients.” Davis met Warren and Elliot, who remains with the firm, and felt the fit was there, he said. “The niche of closely held businesses appeals to the firm because,” Davis says, “we find that closely held businesses and middle market companies provide lots of challenges and lots of opportunities. They tend to be entrepreneurial and that creates a fun working environment for them and for us.” But the firm is serious about helping those it serves. “We’re going to talk to potential clients only when they’re the type of client that we can take care of,” Davis adds. In Charlotte, Warren professes to enjoy business pleasures similar to those of Davis. “Every day is a little different,” he says. “I might meet with a restaurant owner this morning and a construction owner this afternoon—and a banker tomorrow. I like variety.” Sweet spots for the Charlotte office are audit, accounting, consulting and taxes, which are Warren’s specialty. He feels the Elliott Davis affiliation has especially helped him better serve clients in the tax area. More Strength for Charlotte By example, he mentions a client who is starting a $40 million business that will operate in 20 states. Warren connected him with a Charlotte office specialist in state and local taxes—a SALT person—who can apprise him of numerous potential pitfalls regarding income taxes, franchise taxes, local taxes, city taxes and state credits. It’s something Elliott Davis can do that Elliot & Warren couldn’t do,” he says. “We’ve got the strength now. We can compete with the Big 4. We give the same service at a competitive price.” In fact, the Big 4 is where many of Elliott Davis’ professionals got their starts.

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“We’re proud to be a personal firm that takes care of its employees,” says Davis, we attract solid people. In addition to hiring seasoned professionals, the firm hires graduates straight off campuses such as UNC Charlotte, Appalachian State, the University of South Carolina, Clemson University, and the University of Georgia. “We want people who are technically sound,” Davis says, “but we also want people who are very good in terms of communication capa-

years, that it won’t leave. He and The Leatherheads are pushing football tickets, but there is a larger goal. “We’re selling Charlotte,” he says. It’s logical, then, that he knows lots of business folks, but many of them had needs that were too big for him before the Elliott Davis hookup. Now he can serve them, and he has top notch associates to help out, he says. Warren tells his story in a conference room

“The niche of closely held businesses appeals to the firm because we find that closely held businesses and middle market companies provide lots of challenges and lots of opportunities. They tend to be entrepreneurial and that creates a fun working environment for them and for us.” ~Rick Davis Firm Managing Shareholder

bilities. We like to see people with leadership experience too.” Warren is a Charlotte native whose grandfather was C.C. Warren, long-time pastor of First Baptist Church. He earned his bachelor of science in Business Administration at the University of North Carolina at Chapel Hill and returned home. “I love Charlotte,” he professes. At 51, he’s built a track record in civic activities and currently is a member of The Leatherheads, a group trying to make such a success of the Atlantic Coast Conference Football Championship game, which will be in Charlotte the next two

with a Chamber-of-Commerce-quality view of the center city skyline. It’s on the top floor of the fourstory Elliott Davis building at 700 East Morehead Street. It’s a former Longhorn Steakhouse location that now features pristine offices and a covered parking deck. Warren along with other investors bought the land before the Elliott Davis merger. The structure was erected last year. The firm occupies the top two floors of the 35,000-square-foot building. In the Charlotte area, Warren competes mostly against national and regional firms. Growing a Network Warren’s advantage? “With me, it’s more of a relationship,” he says. “I want you to be as successful as possible. To be a good accountant, you have to be thinking about all the areas you can help your client. Treat him or her like a friend. Most of my clients, I call them friends.” Dan Cottingham, principal with Charlotte’s Cottingham Chalk Hayes Realtors, has done business with Warren for 20 years. “Dan has a calmness about him,” Cottingham says. “We find him able to explain very complex things in very simple ways. That’s a wonderful strength.” Warren tells a tax anecdote. An acquaintance sought his counsel regarding the deduction

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Elliott Davis Charlotte Office (Carolina Digital Photo)

of a charter boat from his taxes. Typically, vessels are considered entertainment faculties and are hard to write off. Warren stressed to him the importance of setting up the boat as a business, including instituting a charter fee, advertising and keeping books, records and logs. At a chance meeting recently, the boat owner told Warren the Internal Revenue Service audited

his return and sought a six-figure payment regarding the boat. “I’m thinking, ‘Where are we going here?’” Warren chuckles. The boat owner learned the IRS sent out 35 similar notices to other boat owners and that 28 recipients returned a check for the amount sought. Six others hired attorneys, but Warren’s

acquaintance met with the IRS alone, armed with a shoebox loaded with the proper paper work. The upshot: the IRS wrote Warren’s acquaintance a check for $1,900. “I just really wanted to thank you,” the boat owner told Warren. That kind of story keeps Warren in high gear as he works 70-hour weeks heading up to the April 15 tax deadline. It also illustrates what Elliott Davis sets out to do every day. “We don’t just churn out tax returns or audits. We give individuals and businesses advice and tools to make them smarter, more confident and able to capitalize on the opportunities that a changing world brings,” says Warren. Further, he looks forward to a vacation he and his wife, a CPA with another Charlotte accounting firm, traditionally take the week of April 16. Meanwhile, Davis monitors the economy in such Southeast hotspots as Columbia, Charleston and Myrtle Beach, in addition to Charlotte. “There’s more optimism out there,” Davis says, assessing the business climate. “We’re seeing some things in the professional services area, like architecture. Some of the contractors are getting more looks at work.” But in real estate development and commercial real estate, he acknowledges, a rebound still hasn’t happened. % Specific to Elliott Davis clients, Davis says

Leadership Insights 2010 Spring Sessions | By Invitation Only This is an exclusive series of roundtable discussions for CEOs, CFOs and business owners who are looking to bring creative solutions to business problems. Come build relationships with each other.

May 26, 2010

3:45-6:00 PM

Maximizing and Preserving Business and Personal Wealth Robert Norris, MBA, JD | Law Firm of Wishart Norris Henninger and Pittman

Location: Elliott Davis, PLLC | 700 East Morehead Street Suite 400 | Charlotte, NC 28202 Please contact Dana Williams of Knauff Insurance at 704.405.0076 or dwilliams@knauffins.com for more information

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â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t just churn out tax returns or audits. We give individuals and businesses advice and tools to make them smarter, more confident and able to capitalize on the opportunities that a changing world brings.â&#x20AC;? ~Dan Warren

Charlotte Office Managing Shareholder

most of them have taken steps to weather the financial storm and are getting through the worst times. Some might even be thinking of expansion, but Davis cautions that is a decision that depends largely on individual circumstances. â&#x20AC;&#x153;Every situation is different,â&#x20AC;? he says. For the Charlotte perspective, Warren agrees. â&#x20AC;&#x153;The well-established, well-run companies, they know how to go with the flow,â&#x20AC;? he says. â&#x20AC;&#x153;A lot of my clients have been successful for years. Their sales are down, their margins are down, but theyâ&#x20AC;&#x2122;re not going broke. They know how to adapt.â&#x20AC;? Nurturing the New Growth Elliott Davis expects more growth, both organically and geographically, in the next two or three years, Davis says. Any additional offices will be in the Southeast, possibly in Raleigh or the Triad.

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a really good climate for business in the Southeast,â&#x20AC;? Davis says. â&#x20AC;&#x153;The people we have on board love living here. Thatâ&#x20AC;&#x2122;s a great combination.â&#x20AC;? In Charlotte, Warren has observed a shifting of the economy, with lesser reliance on financial institutions and a growing emphasis on energyrelated firms and health care providers and allied companies. Then he offers a surprise. â&#x20AC;&#x153;There seems to be good activity in the manufacturing and distribution sector. I think the fear is fading. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a wonderful work force,â&#x20AC;? he says. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s an extraordinary place to live and work. Companies are seeing that and they want to be here.â&#x20AC;? Warrenâ&#x20AC;&#x2122;s vision of the future is as bright as the view out his conference room window. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m very optimistic that things will continue

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to be great here in Charlotte,â&#x20AC;? he says. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d like us to be the largest office of Elliott Davis.â&#x20AC;? biz Ellison Clary is a Charlotte-based freelance writer.

Elliott Davis, PLLC Elliott Davis, LLC 700 East Morehead St., Ste. 400 Charlotte, N.C. 28202 Phone: 704-333-8881 Principal: Richard E. Davis, Firm Managing Shareholder; Daniel E. Warren, Charlotte Office Managing Shareholder Offices: Headquartered in Greenville, S.C.;10 offices in the Southeast Established: 1925 Revenue: $54 million (2009) Employees: About 400; 60 in Charlotte Rankings: Largest CPA firm headquartered in South Carolina; among top 60 CPA firms in United States; Best Places to Work, Charlotte Business: Accounting, tax and consulting services firm providing clients with smart solutions and their people with rewarding opportunities. www.elliottdavis.com

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[bizprofile]

by zenda douglas

Going The Extra

DEGREE Tri/Meck Mechanical Takes the LEED in the New Economy

ill Miller Jr. has been walking around with a number in his head for over a year now. His employees have been seeing it, too—on walls, hardhats, even in their paychecks. 212: the number that makes the difference. “I read this little book,” says Miller, “and it made so much sense, I thought it could make the difference here.” The book is 212 Degrees, The Extra Degree, written by Mac Anderson and Sam Parker. The book’s premise is that water at 211 degrees is hot; water at 212 degrees boils. Boiling water produces steam and steam can power a locomotive. The book likens this “extra degree” to making all the difference in business pursuits, athletics and life. Miller is a firm believer. As president and CEO and now owner of Tri/Meck Mechanical, Inc., Miller encourages each of his employees to go the extra degree. Like most businesses, Tri/Meck, an HVAC and plumbing company whose mainstay is building schools, has had to employ innovative tools in order to survive the economic downturn that has hit the construction industry hard. The company, which had averaged $10 million in revenue in the past three to four years, is experiencing a decline in revenue and profits.“Revenue-wise we had a pretty good year last year,” says Miller, whose firm completed two of it’s largest projects—Cuthbertson High School and Cuthbertson Middle School located in Waxhaw, N.C., worth $6.7 million. “Revenue was good but profits were down; this year revenue will go down,” he added with stoic acceptance. “Construction industry unemployment is 27 percent!” Miller exclaims. “I don’t think the majority of people know this. We’ve been hit very, very hard by this economy.” Miller says he continues to hear that things are improving but that he doesn’t see those

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signs as of yet. “We’ve gone from 75 employees to 23.” Nevertheless, Tri/Meck is stable, has several projects underway and is planning for the future, not only in broadening the types and locations of projects it takes on, but also in education and training to be competitive and prepared for new opportunities. Current contracts include HVAC and plumbing work for an educational building and residence hall at Appalachian State University in Boone, N.C. ($3.5 million); an elementary school in Blythewood, S.C. ($750,000); a middle school in Fort Mill, S.C. ($650,000); the Jail Annex in Cleveland County, N.C. ($560,000); and a medical office building for Piedmont Behavior Health in Kannapolis, N.C. ($220,000). Taking the LEED Though rooted in Charlotte, one of the ways Tri/ % Meck is weathering the economic downturn is by

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William S. (Bill) Miller Jr. President and CEO Tri/Meck Mechanical, Inc.

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sending its 17 field employees on the road. “Unfortunately, there’s not a lot of work going on in the Charlotte metro region right now; so we had to go out of town,” explains Miller. “If someone asked me two years ago where we worked, I would have said within a 50 to75 mile radius from Charlotte; now we’re going where we need to go.” In addition to current projects, Tri/Meck is bidding on work in Pinehurst, Raleigh and Camp Lejeune. Tri/Meck has submitted a bid for the HVAC and plumbing work for the renovation of the Charlotte Area Transit System administration building. If approved by the Charlotte City Council, it will be the first time Tri/Meck feels impact from the federal stimulus package. “There’s lots of money going to roads but that’s not what we do,” says Miller. “It’s good for the construction industry as a whole but it doesn’t impact us so much.” Still, Miller, who has been president of the company since 2008, looks to the future with great interest and excitement. “The biggest thing that I want to be a part of in this area is a LEED program for retrofits.” He explains that while new construction will continue to be depressed for a while, renovation of existing buildings is where the industry is headed. Miller is one of only a handful of subcontractors in the Charlotte area that has become a LEED Accredited Professional. LEED stands for Leadership in Energy and Environmental Design, a program administered by the U. S. Green Building Council. Its certification is the recognized standard for a sustainable or “green” building. Miller expects that within five years, virtually all building will be LEED-certified. Though he expects that the construction industry will never return to what it was economically two years ago, Miller plans to be ready to partake of the new construction economy. “We’ve got an objective for members of our executive team to become Green Associates and to spend time working on LEED projects, the first steps in becoming a LEED AP. All three of Tri/ Meck’s current school projects are seeking LEED (Silver) certification. “It’s a big deal to us,” says Miller. Because LEED projects are seeking energy savings, HVAC plays a large role. Tri/Meck is also planning to include its field staff in lunch-n-learns and other training settings. As LEED criteria have developed, more emphasis is being placed on water conservation, which is another of Miller’s chief interests. Tri/Meck plans to venture into energy and water audits and members have taken a number of educational courses to learn about water conservation. “We want to conduct audits and then look at fixtures and see if improvements in choices can be made—and, we want to promote water conservation,” Miller explains. He cautions, “When water

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starts getting priced like gasoline, people will start paying attention.” Miller was annoyed during the Charlotte region’s last drought when the City first asked residents to conserve and then, when reduced usage lowered revenues, raised the water rates. Miller believes a better perspective is to conserve water so you can satisfy more customers—and maintain or increase revenue—without having to build more infrastructure. Designing and Building “There are always new technologies coming at us,” says Miller, who adds that he is looking forward to working with the new Building Information Modeling (BIM) which allows contractors to develop a set of 3-D drawings. “When they have inserted the planned structure, pipes, conduit and ductwork, they can see if there are any conflicts,” explains Miller. “This will save money down the road by discovering any problems before the building is built.” For large projects, such as hospitals, BIM is the way to go, according to Miller. For design/build projects, Tri/Meck maintains relationships with outside engineers, especially a close friendship with Professional Engineering Associates. Inviting different perspectives, Miller prefers not to have a professional engineer on staff. “We like how we do things; we think it’s the best

!Coddle Creek Elementary

!Cabarrus County Youth Development

!Union County High School

### 212 Degrees: The basic premise is that water at 211 degrees is hot; water at 212 degrees boils. Boiling water produces steam and steam can power a locomotive. The “extra degree” makes all the difference in business pursuits, athletics and life. !Rosewood Condos

but maybe something’s (technology) changed and a new set of eyes will be good.” Components of design may include LEED criteria, different kinds of systems (chiller and boiler or rooftops systems, for example) and will be contingent upon the construction envelope and budgetary considerations. Tri/Meck’s most unique project to date was part of the renovation of The Grove Arcade in Asheville, N.C. With a $4.5 million contract, Tri/Meck

completed all of the HVAC and plumbing work. The Arcade was started by E. W. Grove of Grove Park Inn fame around the early 1920s. Four stories were built before the Great Depression hit. It represented the first indoor mall in the United States and took up an entire city block. The renovated complex has retail on the first floor, business and office space on the second, and condominiums on the upper floors (the towers). “We had never done a mixed-used project until

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then; it was a great project,” relishes Miller. Tri/Meck’s 212 degrees ethic is witnessed in the community. “I think a business needs to give back to the community, particularly today,” shares Miller. “There are a lot of people having a tough time out there including some of our former employees.” Tri/Meck’s staff, clients and vendors all donated toys for Toys for Tots last holiday season and teamed with Ferguson Enterprises to provide material and labor to the Salkehatchie Summer Service Project in conjunction with the Huntersville United Methodist Church. This project renovated five homes in Huntersville.

A Good Fit A native of Hickory, N.C., Miller was wellprepared to become the president and owner of Tri/ Meck. After graduating in 1985 from N.C. State with a degree in mechanical engineering, Miller went to work as a project engineer for John J. Kirlin, Inc., a mechanical contracting firm in Rockville, Md. Eight and a half years later, the Millers moved from suburban Maryland, deciding that they wanted to raise their one daughter in the Charlotte region. Miller speaks fondly of his previous employer: “I like to say that in eight years I got 15 years of experience. They were very good at making your job seem like running your own little company—

### “Now Tri/Meck Mechanical uses the 212 degrees concept as a goal and measure to identify not only the employee of the month but to evaluate all of the company’s endeavors. We’re all doing better when the water is boiling and the steam is rising.” ~Bill Miller Jr. President and CEO !Rosewood Condos

!Union County High School

monitoring payments to come in, bidding jobs and managing them.” It was once he came to Charlotte that Miller became vice president in charge of plumbing at Tri/ Meck Mechanical, in operation since 1983 by Pat and Brenda Garrison. “We were very fortunate. A month after selling the house and quitting our jobs, I was working here as an estimator and my wife was working uptown,” says Miller. In 1999, Miller purchased a minority interest in Tri/Meck from the Garrisons. Pat passed away in 2005, and a few years later Miller bought out his wife’s shares to become the sole owner of the company. Coming full circle, now—17 years later—his first boss, whose advice he sought when buying Tri/Meck, is one whom he occasionally bids against for projects. While most of Tri/Meck’s employees are too new to have known Garrison, he still influences the company’s work and is memorialized in the logo. Tri/Meck prides itself on being a “Professional Accountable Team” (PAT) with “Productive Able Tradesmen” (PAT). “The acronyms were serendipity at first,” confesses Miller. “Now we try to come up with little PATs.” The latest PAT: “Planning Ahead Together”.

Miller enjoys giving the recognition. “I wouldn’t be here if it weren’t for him. It means a lot to me.” Incorporated in North Carolina, Tri/Meck holds a number of licenses including general contractor in both North and South Carolina. Miller attributes Tri/Meck’s success and endurance through tough economic times to its very good relationships with general contractors and architects. According to Miller, Tri/Meck clients include 15 of the top 20 general contractors and 8 of the top 10 architects in the Charlotte metro region. For an upcoming project in Avery County, four of the bidding general contractors asked Tri/Meck to participate. “We generally do very well when prequalification is required,” says Miller. Miller also believes that the 212 degrees philosophy that the company has embraced has had a lot to do with the company’s stability. Referencing the book, Miller maintains that very small margins win races and tournaments and achieve high goals. “Now Tri/Meck Mechanical uses the 212 degrees concept as a goal and measure to identify not only the employee of the month but to evaluate all of the company’s endeavors.” “We’re all doing better when the water is boiling and the steam is rising,” concludes Miller. biz Zenda Douglas is a Charlotte-based freelance writer.

Tri/Meck Mechanical, Inc. 3400 North Graham Street Charlotte, N.C. 28206 Phone: 704-376-9924 Principal: Bill Miller Jr., President and CEO, LEED Accredited Professional; Pat McNeely,V.P. HVAC; Pender Newman,V.P. Plumbing; Commie Pendergrass, Corp. Secy.; Linda Baker, Off. Mgr. Founded: 1983 by Pat and Brenda Garrison; now owned by Miller Revenue: $10 million Employees: 23 (6 office; 17 field) Industry Associations: ABC, AGC, ASAC, ASPE, ASHRAE, and CPNC Awards: CPN’s Star Award (2002) and CAGC’s Pinnacle Award (2003) for The Grove Arcade Historic Restoration project in Asheville, N.C. Business: Full service mechanical contractor with HVAC, plumbing, and service departments. Projects include high-rise condominiums, K-12 educational facilities, university/college educational facilities, health care facilities, office buildings, churches, retail centers, and hospitality facilities in North and South Carolina. www.trimeck.com

m ay 2 0 1 0 !Foundation for the Carolinas

[bizprofile]

by heather head

Above BEYOND 75

HF FINANCIAL CELEBRATES 75 YEARS OF SUSTAINABLE SERVICE

Five years ago, Tim Flanagan, general agent of Hinrichs Flanagan Financial, was riding high on the wave of Charlotte’s economic boom. “Everyone wanted to talk about what they were doing in the stock market and how much money they were making,” he smiles. Today, his newly re-named company HF Financial, still a general agency of Massachusetts Mutual Life Insurance Company, is on what he terms the more “staid” side of business, the side where all you have to talk about is spending less than you make, reducing debt, and dealing with investment volatility. But a look into what HF Financial has contributed to the community for the past 75 years is far from boring. It’s a story of success not only of the company, but also of the individuals who have grown with the company and the clients whose personal and business lives have been enriched by their work. It’s also the story of Charlotte, and of all the individuals and businesses that make up this community that HF Financial helps to find sustainable opportunities for growth.

“What we do is back in vogue now,” Flanagan adds. “In an economy like this, people have a true appreciation of the conservative advice we give them.” Beyond Charity The most obvious manifestation of HF Financial’s contribution to the community is also their least advertised. Whether it’s building yet another Habitat for Humanity house (they’ve built one each year for 11 years now), sponsoring a Disability Awareness night, or purchasing bicycles for needy children, HF

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Financial, as an organization and through its employees, quietly makes substantial contributions to our community. But their commitment runs deeper than charitable giving and volunteering. Their very business model is based on a sense of community. It all starts with hiring and training individuals to become entrepreneurs with a sustainable approach to balancing work, personal, and spiritual lives. “It’s not about making a lot of money,” says Flanagan. “It’s about being as well rounded as you can be: family, faith, financial % life, community, work, physical health.”

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“

“It’s not about making a lot of money. It’s about being as well rounded as you can be: family, faith, financial life, community, work, physical health.”

Tim Flanagan General Agent HF Financial

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When HF Financial hires an individual, they look for specific attributes that indicate the person will make a successful entrepreneur: Dogged determination in the face of adversity, the ability to formulate a vision of success, dedication to that vision, commitment to doing the right thing, and a strong work ethic. Even so, Flanagan says, “Until the work starts, you really don’t know whether someone will succeed.” But for those who do, HF Financial provides a level of training and support that is unique in the industry. “Individuals who succeed in this business are thirsty for knowledge,” says Flanagan, “and that’s key—even for advisors who have been in the job for a long time. Without it, you lose your edge.” The company makes it easy for individuals to quench that thirst by providing training, mentoring programs, and support for all the stages of an advisor’s career. As an advisor gains experience and builds a client base, HF Financial encourages each to find a niche and supports them as they grow into it. Often, those advisors form their own divisions and even their own companies either within HF Financial or independently. As a result, HF Financial boasts true expertise in wealth management, retirement planning, and corporate benefits, as well as some unique specialties such as financial planning for physicians (SpaughDameronTenny; www.sdtplanning.com) and also for families with special needs dependents (www.aspecialneedsplan.com). These fully formed divisions have their own teams and their own Web sites, but operate under the umbrella of HF Financial and MassMutual.

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(l to r) Jason R. Goldy Agency Director of Financial Planning Becky Thompson Recruiting Director Lou Galletto Jr. Director, Wealth Management Services

Beyond Profits A Special Needs Plan highlights another unique aspect of HF Financial’s community commitment. In its infancy five years ago, no one was certain whether the special needs market could be profitable. But Ryan Platt dreamed of helping families with special needs children, and HF Financial stood behind his dream, because they believe that if you do the right thing, it comes back to you in the long run. In the five years since then, Platt has become one of the only special needs planning experts in the nation. And yes, it has proven profitable—for the company, for Platt himself and, especially, for the families he helps. For families of children (or other dependents) with special needs, financial planning is both more important and much more daunting than for most families. Faced with the reality of a child who may need care well beyond the parent’s ability to provide it, as well as the costs associated with providing for a special needs child, these families can’t afford not to plan. But for the same reasons, they also often can’t afford professional help with their planning. The families must learn to access community, state, and national resources that are complex in their requirements and often in conflict with other aspects of financial planning. They must simultaneously stretch already-thin dollars to cover medical, educational, and therapeutic care now and also in the future. Because resources are often thin in this market, few financial services experts have bothered to try to tap it. Platt is the exception. Today, A Special Needs Plan serves families of all economic levels through a Web site and educational materials that walk

families through the complexities step by step, giving them the resources they need to make the plans that will sustain their family. For a fee, they can hire Platt for personalized, expert assistance. Flanagan says the biggest challenge for A Special Needs Plan right now is that the demand for its services outstrips Platt’s ability to meet it. Flanagan himself has begun the training to become certified in the specialty in order to better help Platt identify and recruit new candidates to better serve the market. Beyond Economic Stimulus While serving families and small to medium% sized businesses is core to HF Financial’s

HF Financial’s

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SUCCESS

# Spend less than you earn # Minimize debt # Save 10-20% of your income # Think and act long term # Give 10-20% back

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mission, providing jobs and economic stability is important too. Flanagan says he’s never received nor even applied for economic stimulus package money. But he had to laugh when his collegeaged son recently asked him what he would do if he received the $40 million recently awarded a larger company for the purpose of creating 300 jobs: “Probably create a lot more jobs than that!” But he knows he doesn’t need government money in order to create jobs, because his associates, with the company’s support and resources, create their own revenue and their own their jobs in a way that is unique in the industry. So it was only a small stretch to realize that the same spirit of entrepreneurship that drives successful HF Financial advisors also uniquely qualifies them to counsel small business owners in their financial planning. Although the group isn’t formalized yet in the way that SpaughDameronTenny and A Special Needs Plan are, HF Financial currently supports a small group of dedicated professionals who are focusing their efforts on addressing that market. “I had an a-ha moment,” explains Flanagan, “when one of my advisors asked me to sit down with him in a meeting with another business owner. As talented as the advisor was, he was relatively inexperienced in our business and he couldn’t connect with the client because he’d never had employees, never had to make those kinds of decisions. So I started having that conversation with the business owner about the highs and lows and made some comments that he connected with, and he’s now a client of ours. And I realized I could teach my people how to have that same conversation. We already teach them to be really good business owners, and now they can take that knowledge and bring it to the table with other business owners.” Hopefully, Flanagan adds, the work HF Financial is doing with small businesses will mean that more of those companies will be around 25 years from now, which means more jobs and more stability for the community as a whole. Principles and Values Being around for the next 25—or more— years is a matter of interest for HF Financial, because they have every intention of doing it themselves, and they have a 75-year history to prove they have what it takes. During those 75 years, the firm has continuously maintained

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many of the same values and practices they employ today. They are the same values and practices they advocate to their customers, whether individuals or businesses, in order to help them remain sustainable too. “The financial formula is pretty simple actually, and nothing at all new. In fact, it’s a tradition as old as the Bible, and it consists of five simple principles: Spend less than you earn, minimize debt, save 10 to 20 percent of your income, think and act long-term, and give 10 to 20 percent back,” says Flanagan.

“Individuals who succeed in this business are thirsty for knowledge, and that’s key—even for advisors who have been in the job for a long time. Without it, you lose your edge.” ~Tim Flanagan

General Agent

He shrugs slightly when he talks about small businesses following these same principles, because he says giving is such a personal decision. “There are successful companies who give nothing back, and successful companies who give a great deal. Interestingly, it’s those that do give that are usually most successful in the longterm,” he comments. In addition to the strict financial strategy, HF Financial adheres to five core values that also have not changed in 75 years: integrity, accountability, service, professionalism, and conviction. Although the fundamentals remain the same, no company can survive long without learning to change and adapt to circumstances. In recognition of that fact, Flanagan recently added a new value to the company’s mantra: Growth. “Because,” he explains, “if you’re not growing, then you’re not going to survive.” To Flanagan, the term growth means much more than revenue, profit, or number of clients. It also means personal and expertise growth among HF Financial advisors, and it especially means

growth within the company to meet new realities and new challenges. One relatively new initiative is HF Financial’s efforts to recruit and train female advisors. The industry is traditionally heavily occupied by white males, even though in the U.S. women make about 80 percent of the financial decisions for families. It just made sense to Flanagan to address the disparity. First he formed an advisory panel of female financial professionals to help him gain some insight into the issue. When he began hiring new women advisors, he quickly realized that they did not have a role model within the company to look up to, so he brought on Ellen Linares, a woman with 12 years in the industry and several years of experience before that in the banking industry, who could serve as a role model for female recruits. Despite his self-deprecating comment about the current economy representing the “staid” side of the business, talking to Flanagan is anything but. His passion for Charlotte, his commitment to growth, and his excitement about the power of entrepreneurship are inspiring. “There’s something about going back to timeless principles,” he concludes. “It’s fun. It’s hard work. It’s rewarding. And it’s not just a business—it’s a mission.” The economy may not be providing a lot of opportunities for celebration, but 75 years of giving back to the community certainly does, and Flanagan intends to do his part in ensuring that his company will be celebrating again in another 75 years—and beyond. biz Heather Head is a Charlotte-based freelance writer.

Flanagan Financial Group, LLC dba

HF Financial a General Agency for Massachusetts Mutual Life Insurance Company 6000 Fairview Road, Suite 400 Charlotte, N.C. 28210 Phone: 704-557-9622 Principal: Timothy C. Flanagan Jr., CLU, ChFC, CFP, General Agent In Business: 75 years (formerly Hinrichs Flanagan Financial) Employees: 70 in Charlotte; 105 total Business: Specializes in financial services and comprehensive strategies for individuals, families and businesses for risk management, asset allocation, estate planning, cash flow and wealth accumulation; serves clients in North and South Carolina. www.hffcarolinas.com

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