Middle Market Growth - January/February 2015 by Association for Corporate Growth

Growth MIDDLE MARKET

// JANUARY/FEBRUARY 2015

‘VETTING’ NEW TALENT, MIDSIZE FIRMS LOOK TO EX-MILITARY A QUALIFIED OPINION: NICK DILKS, MANAGING PARTNER, ECOSYSTEM INVESTMENT PARTNERS

The

Alchemists Biogenic Reagents Is Turning Discarded Wood into Black Gold

A publication of

NAVIGATING HOW TO USE THIS APP CONTENTS

BOOKMARK

View the current issue.

Save an article to read later.

LIBRARY

Return to the library to view past issues.

Easily search the issue for keywords.

Share an article via your social network.

COLORED TEXT

Colored text indicates a link.

NAVIGATOR

Navigate through the issue by page. Are you reading this on your desktop? Take Middle Market Growth on the go and download the app now from the iTunes Store, Google Play and Amazon Appstore.

INTERACTIVE BUTTONS MORE

SLIDESHOW

JOIN IN

PLAY

NAVIGATE

Tap to read more or go to a website.

Tap to pop up a slideshow of images.

Join the conversation on social media.

Send an email to the email address listed.

Tap to play a video or audio.

Tap buttons to navigate through a section.

WE’LL SHOW YOU THE WAY Follow our lead. Our brand reflects the direction we help investment companies move in their drive for success. Forward. The largest independent accounting firm in the Southwest and a top-40 firm in the U.S. Get to know Weaver.

Austin • Dallas • Denver • Fort Worth • Houston Los Angeles • Midland • Odessa • San Antonio • Stamford

weaver.com

EXECUTIVE SUMMARY GARY LABRANCHE // ACG Global President & Chief Executive, FASAE, CAE

Here’s to a Green New Year

n his 1994 book “Backing Into The Future,” author Bernard Knox explains that the ancient Greeks believed that they walked backward into the future. They reasoned they could visualize the

past but were blind to the future. Like a person walking backward, they had only the past to guide them on their journey. Knowable or not, the future reveals itself just one day at a time. But January seems to be an especially popular perch from which to look ahead to the coming year. Some people make resolutions and others make predictions. I won’t be so bold—or foolish—to make either, but I will attempt to forecast what you’ll find in this edition of Middle Market Growth. Sustainability is the theme of this issue, exemplified by the cover story about Biogenic Reagents. From its flagship plant in Michigan’s Upper Peninsula, the company produces wood-derived carbon products that clean air and water and control mercury emissions. Backed by MVC Capital, Biogenic has also devised a way to increase crop yields and reduce water requirements for agriculture using its carbon. This is a company on the leading edge of an exciting area of investment. To get an insider’s view of sustainability, see A Qualified Opinion featuring Nick Dilks from Ecosystem Investment Partners. His Baltimore-based PE firm focuses on using land-based environmental offset markets for projects such as wetland restoration. This issue also introduces a new regular section called Quick Takes. The inaugural “take” profiles Creation Investments, a Chicago-based PE firm that invests in microfinance lenders in emerging markets, including India and South America. Another innovative approach is detailed in the B-Side: Rob Cotter, CEO of Organic Transit, shines light on his firm’s solar-powered mini-vehicle for commuting. And, speaking of tiny, MMG’s section It’s the Small Things provides some interesting factoids on socially responsible and green investing. A different kind of impact investing is discussed in our second feature story: how middle-market companies are hiring veterans. Veterans represent a rich pool of talent that will help sustain and grow companies for decades to come. I can’t think of a better resolution for the new year than a commitment to give America’s veterans the opportunities they deserve. I can’t resist: just one little prediction for 2015—ACG and Middle Market Growth will provide you with the network, knowledge and insight you need to achieve your business goals this year. //

FROM THE EDITOR’S DESK DEBORAH L. COHEN // Editor-in-Chief, Middle Market Growth

MMG Website Gets Face-Lift for New Year Ready, set, re-launch! The ACG Global marketing and communications team has been working behind the scenes in recent months to deliver a new and improved Middle Market Growth website—www.middlemarketgrowth. org—for our readers. We’re very excited about the fresh design and enhanced capabilities of the site, which will provide new ways to engage on a variety of issues impacting the middle market. Not only will members and the public at large get access to the full range of stories offered in our digital magazine, Middle Market Growth, they will also find timely exclusives created just for this site. When important news breaks, we will offer ACG’s unique perspective, with insightful analysis, interviews, research and other important content targeted at middle-market professionals. You’ll find everything in one place: our signature growth stories on midsize companies, trend stories, interviews with middle-market movers and shakers, policy analysis, and of course, chapter news. We also hope to offer some lifestyle stories and interesting profiles. In addition, we will be providing more interactive content, including audio and video interviews with experts and some of the subjects featured in our stories, quick polls to track your opinion on important topics, and more ways for you to share our content and your thoughts about it on social media. We’ll also be aggregating news and research from other sources around the Web to save you time and to help you stay informed. In short, we want you to think of middlemarketgrowth.org as your one-stop shop for all things middle market. As we roll out the new site, I am happy to receive any constructive feedback readers would like to share at dcohen@acg.org. This site marks an exciting new opportunity for our readers and our editorial team. Happy reading! //

INTRODUCING MMG’S NEW WEBSITE NAVIGATING THE SITE

Editor-in-Chief Deborah Cohen talks about Middle Market Growth’s new website.

GROWTH STORIES

Advance through the slider to access recent MMG cover stories.

BREAKING NEWS

“Around the Web” features important news stories from a variety of outlets.

Christine Melendes, CAE cmelendes@acg.org

The Ladder

A QUALIFIED OPINION

B-Side

FOR ADVERTISING OPPORTUNITIES

The Leadership

Nick Dilks, Managing Partner of Ecosystem Investment Partners, Shares How His Firm’s Wetlands Restoration Projects Benefit Investors. Read more.

AWARDS

ACG@WORK

Custom media services provided by Network Media Partners, Inc.

It’s the Small Things

2014 Association TRENDS All-Media Silver Award, monthly trade publication 2014 Folio Eddie Digital Winner, Standalone Digital Magazine 2014 Apex Award, New Magazine, Journal & Tabloid 2013 Folio Eddie Honorable Mention, Best Digital Edition 2013 Association TRENDS All-Media, monthly publication

• ACG Holland Offers Something for Everyone

DIRECTOR, STRATEGIC DEVELOPMENT Meredith Rollins mrollins@acg.org

• Diversity Celebrated at Midwest ACG Capital Connection® • A Taste of Optimism in New Orleans • An Independent ACG Edmonton Expands Its Reach Read more.

THE PORTFOLIO The latest middle-market trends and thought leadership written exclusively by a team of expert ACG Global featured firms. Read more.

Association for Corporate Growth 125 South Wacker Drive, Suite 3100 Chicago, IL 60606 ACG Membership: membership@acg.org www.acg.org Copyright 2015 Middle Market Growth®, InterGrowth and the Association for Corporate Growth, Inc. All rights reserved.

RE C E P TI ON

C OM E S U PPO RT ACG’S P U B L I C PO LIC Y E FFORTS MOND AY, J A N U A RY 2 6 , 2 0 1 5 5:00 – 7 : 00 P. M . EST PARK HYAT T, WA SHIN GT O N, D.C.

PURCHASE TICKETS S PA C E I S L I M I T E D . P U R C H AS E Y O UR TI CKETS TO DAY.

FACE-TO-FACE CONNECT TO YOUR NEXT DEAL

InterGrowth® 2015. Who You Need to Meet. Where You Need to Be. For more than 40 years, middle-market professionals have relied on ACG’s InterGrowth conference as their primary source for networking and deal flow. The event consistently brings together M&A professionals from across the globe and all industry segments and offers attendees three key benefits—capital, connections and deals. Join the InterGrowth community in Orlando, Florida, on April 13-15, for the most productive three days you will spend in 2015—connecting with the people you need to know to create real dealmaking opportunities for you and your firm. Nearly 2,000 attendees will gather for 72 hours of deal discussions coupled with powerful speakers and commentary from leading M&A experts, including a riveting keynote presentation and interview with golf legend and successful entrepreneur Greg Norman. Here are some notable facts about your fellow InterGrowth attendees*: • InterGrowth attendees consistently account for one-third of total U.S. PE deals. • InterGrowth 2014 attendees have $145 billion in investable capital. • InterGrowth 2014 attendees deployed nearly $40 billion in 1Q 2014. • InterGrowth 2014 attendees are on pace to outperform 2013 totals. Early bird registration rates are now available at www.InterGrowth.org through Feb. 11. For complete details, including the marketplaces available this year, a detailed schedule and registration information, visit the event website today. *Data provided by PitchBook.

FACE-TO-FACE CONNECT TO YOUR NEXT DEAL

CHAPTER EVENTS Get involved! This winter, ACG chapters across the globe will host hundreds of local events. Check out what’s happening at your local chapter, register and join in on valuable educational and networking opportunities.

ACG Wisconsin Presents Outstanding Growth Awards at Milwaukee Athletic Club Left: ACG Wisconsin President-Elect Karin Gale with Ajita Rajendra of A.O. Smith (left) and Anthony Binsfeld of J.F. Brennan Company, both winners of the chapter’s Outstanding Corporate Growth Award. Right: Members of the A.O. Smith team with their firm’s award.

ACG Atlanta Chapter View Calendar

ACG China Chapter View Calendar

ACG Cleveland Chapter View Calendar

ACG Dallas/Fort Worth Chapter View Calendar

ACG Denver Chapter View Calendar

ACG Edmonton Chapter View Calendar

ACG Kansas City Chapter View Calendar

ACG Maryland Chapter View Calendar

ACG Minnesota Chapter View Calendar

ACG National Capital Chapter View Calendar

ACG Raleigh Durham Chapter View Calendar

ACG San Diego Chapter View Calendar

ACG San Francisco Chapter View Calendar

ACG Utah Chapter View Calendar

Had a newsworthy chapter event? Send a 150to 200-word summary and high-resolution photos to Associate Editor Kathryn Mulligan.

THE ROUND NEWS THAT MATTERS

For information on EuroGrowth 2015, please visit EuroGrowth.org.

UK Regulator Headlines EuroGrowth® 2014 A “paralysis of policy” is contributing to volatility in the European economy, a leading independent regulator in the United Kingdom told attendees at the second annual ACG EuroGrowth conference in London. Sir Winfried Bischoff, chairman of JPMorgan and chairman of the U.K.’s Financial Reporting Council, said that breaking down hostilities between international regulators could help counter economic instability throughout Europe. A careful analysis of proposed new regulations is also essential, added Bischoff, a longtime banker and former chairman of Lloyds Banking Group. “We are at the beginning of the end, per se, of regulation,” Bischoff, who headlined the conference, told 200 middle-market dealmakers at the Grange St. Paul hotel during the opening keynote presentation on Oct. 15. Along with analysis of the economy, EuroGrowth offered attendees a range of networking opportunities, including an Oktoberfest-themed ACG Capital Connection®—complete with beer tasting—and roundtable sessions on a variety of topics. Meanwhile, leading panelists tackled topics such as cross-border deals, the European private equity market, global IPO trends and the state of fundraising in the EU. The event brought together investment bankers, private equity firms, corporate development officers, attorneys and others in the middle-market dealmaking space. //

THE ROUND NEWS THAT MATTERS BIPARTISAN PANEL // Reps. Randy Hultgren (left) and Mike Quigley.

Politicians Meet in the Middle on Issues Impacting Midsize Cos. In the midst of a polarized national political climate underscored by a deadlocked U.S. Congress, some legislators are willing to reach across the aisle for common-sense solutions. Reps. Randy Hultgren, R-Ill.-14, and Mike Quigley, D-Ill.-05, demonstrated a spirit of compromise as they highlighted ways to draw attention to the middle market at “The Voice of the Middle Market: Focus on Chicago” event on Oct. 8. The congressmen—both members of the bipartisan Congressional Caucus for Middle Market Growth—noted job creation and corporate tax policy as issues ripe for cooperation between moderate members of the two parties. “There’s a new dynamic in D.C.,” Quigley, a Democrat, said during the event, which was jointly hosted by ACG and the National Center for the Middle Market. “We need to build a coalition between New Democrats and moderate Republicans.” To ensure the concerns of middle-market companies and capital providers are heard on Capitol Hill, Hultgren, a Republican, advised those in attendance to share their experiences about the effectiveness of current fiscal and tax policies with their representatives. Quigley expressed interest in a bipartisan infrastructure bill to create jobs while also “increasing the competitive qualities of this country.” Continued on next page

THE ROUND NEWS THAT MATTERS Hultgren concurred on the need for infrastructure upgrades, but stressed the need for a To learn more about ACG’s public policy efforts, please contact ACG Global Senior Director of Public Policy Amber Landis.

small business jobs bill as well. Elimination of the month-to-month uncertainty created by the inability to reach consensus on tax reform was another area where the congressmen were on the same page. Hultgren noted the importance of a carefully considered plan to “make sure it doesn’t do more harm than good.” “The Voice of the Middle Market” series is part of a broader ACG initiative to bring together congressmen and middle-market business leaders from their hometown districts to discuss policy issues. Hultgren and Quigley were special guests at the Chicago event, where they partook in a panel discussion moderated by Thomas Turmell, president of ACG Chicago and managing director of TMT Capital Partners. Following a networking breakfast, ACG Global President and CEO Gary LaBranche gave an update on ACG’s public policy efforts. “If you’re not at the table, you’re what’s for lunch,” LaBranche told nearly 100 members of the local business community at the University Club. Thomas Stewart, executive director of the National Center for the Middle Market, described middle-market businesses as the “unsung heroes of American capitalism.” Midsize companies are responsible for “one-third of jobs, one-third of GDP and most of the growth, yet they get 5 to 10 percent of the recognition,” Stewart said. Turmell ended the event on an optimistic note: “My takeaway is that there’s a lot more that the two parties agree upon than don’t. I hope that spirit of compromise continues.” // —Kathryn Mulligan, Associate Editor, Middle Market Growth

THE ROUND NEWS THAT MATTERS

Sustainability a Priority for Food and Beverage Sector Sustainability is now largely viewed as a competitive advantage by middle-market companies, particularly in the food and beverage sector, according to Grant Thornton. In its 2014 survey, the tax and advisory firm looked at attitudes toward sustainability and companies’ experiences pursuing eco-friendly initiatives. Sustainability often begins with the customer, “The State of Sustainability at Food and Beverage Companies” survey found, as consumers increasingly opt for green products. A company’s position in the supply chain matters: Suppliers and manufacturers, with their high energy use, have been early adopters of sustainability reforms; retailers, however, are beginning to catch up in an effort to meet customer demand for eco-friendly products. Wholesalers, meanwhile, lag in the sustainability arena, likely due to less public pressure to adopt such measures and whether there’s sufficient ROI to justify changes. The study featured 189 respondents from the U.S. food retail, food and beverage distribution, and consumer product goods companies. While over half of participants said they’ve found sustainable practices difficult to implement, the associated efficiency gains and cost savings act as strong motivators to adopt an eco-friendly strategy. Among the keys to success, the survey found, are a commitment to the sustainability program by top executives, focus on long-term profitability and an analysis of risks associated with changes made in pursuit of more environmentally friendly practices. //

THE ROUND NEWS THAT MATTERS

VERTICAL VIEW // INVESTING SUSTAINABLY U.S. PE fundraising in the clean tech space is trending downward: $39 billion was raised in 2013, compared with $63 billion in 2009.

Capital invested in the sustainability sector has increased dramatically since 2005, rising to $21.2 billion in 2013 from $9.2 billion.

$21.2 BILLION

$9.2

BILLION

Last year’s sale of Annie’s Homegrown, a line of natural and organic food products, to General Mills was one of the largest deals involving a sustainable brand, valued at $820 million.

The business-tobusiness sector leads in sustainability deals, with 54 completed in 2013. Energy followed with 42 deals that year.

DEALS

California consistently sees the most deal flow in the sustainability category with 24 deals completed in 2013, followed by Texas with 12 deals.

Denham Capital Management, an energy and resources private equity firm, is the top investor in the sustainability space, having completed 29 such deals since 2007.

$820 MILLION

“We see investment in sustainable consumer brands continuing to trend upward, while fundraising trends and overhang suggest a slowdown in clean tech investment in the next three to five years.” — Daniel Cook, senior data analyst, PitchBook

All stats are from PitchBook for the middle market (deal values between $25 million and $1 billion).

REGISTRATION IS NOW OPEN!

APRIL 13 â&#x20AC;&#x201C; 15, 2015 W A L D O R F A S T O R I A A N D H I LT O N B O N N E T C R E E K ORLANDO, FLORIDA R E G I S T E R T O D AY A N D S AV E $ 2 0 0 . W W W. I N T E R G R O W T H . O R G

The

Alchemists

BY KATHRYN MULLIGAN

Biogenic Reagents Is Turning Wasted Wood into Black Gold

Photos by Mike Roemer

BIOGENIC REAGENTS // Business: Activated carbon products made from woody biomass Flagship Plant: Marquette, Michigan Founder: Biofuels entrepreneur James Mennell Financial Support: MVC Capital, Michigan Strategic Fund, Chase New Markets Tax Credit Group, National New Markets Fund Product Applications: Water purification, emissions control, odor reduction, soil remediation, agricultural enhancement, metals production Website: www.biogenicreagents.com

t first glance, potable water, power plant emissions and cat litter don’t appear to have much in common. But upon closer examination, you’ll find a hidden product behind the purification of each of these substances—activated carbon. A type of charcoal, activated carbon behaves like a sponge, seeping up unwanted toxins and odors. Traditionally manufactured from coal, its production can create unwanted byproducts, namely high levels of emissions and water runoff. Recognizing this problem, James Mennell, a 46-yearold environmental energy lawyer turned biofuels entrepreneur, set out to develop a more sustainable and cost-effective method for producing the solid carbon product. In 2011, he founded Minneapolis-based Biogenic Reagents with his own money and funding from investors that had existing relationships with the Biogenic management team. Set to cash in on increasing demand for

CLEAN CARBON // CEO James Mennell (left) devised a way to produce activated carbon from wood rather than coal.

activated carbon, the company has since attracted more than $30 million in additional growth capital from both public and private sources. “Our technology takes wood and converts it through a process known as pyrolysis—heating a material up in the absence of oxygen and reducing it down to a very pure form of carbon,” says Mennell, Biogenic’s CEO and a former developer, adviser and investor with dozens of technology businesses, ranging from startups to large, privately held companies such as ethanol producer POET and agribusiness giant Cargill. The activated carbon produced by Biogenic has a host of uses: water purification, emissions reduction, odor control, soil remediation and as an agricultural soil amendment to increase crop yields—all markets set to grow in coming years in part due to tightening environmental regulations. “It’s important that we make a product that doesn’t create hundreds of millions of gallons of wastewater,” says Mennell, noting the bulk of the world’s activated carbon is still produced using “turn-of-the-twentieth century technology with large coal-fired processes.” “There’s a very unique opportunity to make a product that is consistent with one of its end-use applications, which is preserving and purifying water supplies,” he says.

“IT’S JUST AN ALLAROUND WIN FOR US AS A STATE HAVING BIOGENIC HERE AND INVESTING IN MICHIGAN.” Michael Finney President and CEO, Michigan Economic Development Corporation

Sustainable production is core to Biogenic’s mission. The process begins by using wood chips or sawdust—the waste products of lumberyards—as raw material instead of coal. The company requires suppliers be certified sustainable by independent third parties, guaranteeing that trees are replanted and other best practices are followed. The production process itself, which creates no wastewater, uses minimal energy. Biogenic’s commercial facility in Marquette, Michigan, processes about 20,000 tons of feedstock each month. Its system was designed to recapture gases released during the wood-to-carbon conversion process; those gases are then incinerated, generating heat to further treat the carbon. By essentially recycling the energy it creates, Biogenic has an air emissions profile about one-tenth of competitors’, Mennell says. Cabot Corporation and Calgon Carbon, both publicly traded entities, are among the firms Biogenic competes with in the activated carbon space.

INVESTING IN SUCCESS

“BASED ON THE WAY BIOGENIC MAKES ITS PROPRIETARY PRODUCT, THE COMPANY CAN DELIVER A VERY PURE AND HIGH QUALITY ACTIVATED CARBON FOR A THIRD OF THE COST OF THE COMPETITION.” Michael Tokarz Chairman and Portfolio Head, MVC Capital

What’s good for the environment is also good for business. Biogenic’s production costs are substantially lower than those of coal-based carbon producers, partly because the company doesn’t need to invest in ancillary equipment to control hazardous byproducts such as wastewater, says Chief Financial Officer Doug Rohall. Devising a business model that pairs sustainable practices with lowest-cost production was the work of an experienced management team, including Mennell and Rohall. Both men have a track record of building successful businesses: Rohall served as corporate vice president at Nextel Communications during its launch and rapid growth— Nextel was subsequently purchased by Sprint. Meanwhile, Mennell founded and led several companies, including renewaFUEL, a biofuel producer bought by Cliffs Natural Resources, a publicly traded natural resources company. Cliffs later sold the unit in 2012. Getting in on the ground floor of an environmental startup with proven management was attractive to Michael Tokarz, chairman and portfolio head of MVC Capital, a Purchase, New York-based publicly traded business development company. In 2013 MVC committed $9.5 million to boost capacity at Biogenic’s Marquette production plant. Completed in May 2014, expansion included the fabrication and installation of a new 120-foot-long reactor system, along with associated systems and controls, and facilities for finished product handling and storage. Tokarz is an experienced investor with an eye for growth companies, having served 18 years as a general partner at private equity giant Kohlberg Kravis Roberts & Co. As chairman of leading coal producer Walter Energy, he was already familiar with the activated carbon market when he learned Biogenic was seeking financing.

QUALITY CONTROL // Biogenic tests its finished products to ensure they meet customer specifications.

“Based on the way Biogenic makes its proprietary product, the company can deliver a very pure and high quality activated carbon for a third of the cost of the competition,” Tokarz says, noting the end product is “super efficient.” Early on, the State of Michigan also recognized Biogenic’s potential. It granted the company a $2 million loan in 2012 through the Michigan Strategic Fund to finance construction of its first commercial pilot facility, located on Michigan’s Upper Peninsula on the site of a former Air Force base. Michael Finney, president and CEO of the Michigan Economic Development Corporation, oversees the fund with the goal of supporting businesses and fostering job growth. “It’s just an all-around win for us as a state having Biogenic here and investing in Michigan,” Finney says. He points to some 40 plant jobs Biogenic has created in Marquette—all local hires—and the funding the company has brought with it. That includes MVC’s financing and nearly $22 million from the Chase New Markets Tax Credit Group and the National New Markets Fund, an investment partnership leveraging the federal New Markets Tax Credit to finance projects in low-income communities. “They’re bringing tens of millions of dollars of additional investment to continue to build up their technology,” Finney says.

“MEGASACKS” // Mennell (right) and VP of Operations Todd Smrekar with 1,000pound bags of finished product.

QUALITY PRODUCT Biogenic’s customer base is comprised of dozens of end users, including both municipal and industrial entities, along with a handful of so-called channel partners, which in turn serve their own customers. One channel partner is Thatcher Chemical, a Utah-based chemical manufacturer and distributor that entered into a strategic partnership with Biogenic in 2014 in the water purification space. “We’ve gotten business because they have a very high quality product that’s performing really well in the field and against our competitors,” says Thatcher Chemical CEO Craig Thatcher, noting that product tests with customers—both municipal and industrial—have been positive. Biogenic’s ability to adapt to market conditions as they evolve provides a competitive advantage. If demand shifts among its product offerings— between activated carbon for water purification and for emissions control, for example—it can alter its output in a matter of hours.

A blend of activation gases is used to achieve the desired pore size and structure of the carbon, but this blend varies depending on the carbon’s end use. The consistency, too, can differ—carbon for mercury control is pulverized to a fine powder with performance-enhancing additives included; water purification products can be either granular or powdered, depending on customer specifications. Currently the company’s largest segment for activated carbon is water purification. That market has an estimated value in the United States of approximately $500 million per year, according to Bob McIlvaine, president of the McIlvaine Company, a consulting and technical research firm in suburban Chicago. The market includes municipalities looking to purify their wastewater as well as industrial facilities meeting discharge requirements. However, new Environmental Protection Agency mercury reduction regulations may soon foster enough demand in the emissions control space to make it Biogenic’s largest market. The new rules, first issued by the EPA in 2011, require U.S. coal-fired power plants to reduce mercury emissions by April 2015—although a number of plants have received extensions allowing them an extra year to comply. Given that these regulations for controlling mercury are the first of their kind in the country, they’ve essentially created a new market for activated carbon, which can be used to remove the toxic chemical. As plants rush to become compliant, McIlvaine expects the activated carbon market in the emissions control space “will be around half a billion dollars a year” in the United States, reaching or exceeding the size of the water purification market in just a short timespan. In 2005, he says, that market was barely existent.

“WE’VE GOTTEN BUSINESS BECAUSE THEY HAVE A VERY HIGH QUALITY PRODUCT THAT’S PERFORMING REALLY WELL IN THE FIELD AND AGAINST OUR COMPETITORS.” Craig Thatcher CEO, Thatcher Chemical

CONVERSION // Biogenic’s process takes woody feedstock (right) and converts it into activated carbon (left).

NEW OPPORTUNITIES Since its establishment in 2011, Biogenic has grown rapidly; CFO Rohall estimates its annual revenue growth to be in the triple digits. Still, as a new entrant going head to head with well-established market players, Biogenic is challenged with building awareness of its brand and demonstrating to customers the advantages of using its activated carbon over competitors’. Through extensive product testing, customer trials and support from its technical team, the company is making significant strides in the marketplace. MVC’s Tokarz, for one, believes the management team is equipped to overcome the common hurdles that face a growing business, namely managing working capital. “Many companies that have a great product fail because they’re not managed well in that regard. That’s one of the advantages here—the Biogenic team has experience managing rapid growth within a young company,” he says.

Biogenic’s savvy development of strategic relationships illustrates that capacity. In June of last year the company entered into a new partnership with West Fraser, a wood products company headquartered in Vancouver, British Columbia. The arrangement is expected to broaden Biogenic’s production footprint. With 40 lumber mills across the continent, West Fraser is positioned to offer Biogenic both a secure stream of raw material, as well as an opportunity to reduce its logistics costs. “When you ship feedstock, you’re shipping a significant percentage of water, and obviously for finished products you want to be close to your customers,” Rohall says. “Part of the intent behind the strategic relationship with West Fraser would be to locate in places where we have a good feedstock supply and good availability of either existing or prospective customers.” The partnership also enables Biogenic to meet the scalability requirements to take on an untapped market segment that both management and investors agree is exciting—agricultural carbon. Using Biogenic’s carbon as a soil amendment can help crops retain nutrients while also reducing water runoff, contributing to higher yields and potentially addressing the challenges of drought and population pressure on the global food supply. Biogenic appears to be the first to deploy this type of carbon for agricultural purposes on a large scale. Says Tokarz: “If you can produce more crop from the same land while absorbing harmful things and allowing plants to absorb nutrients, it’s a real win.” // Kathryn Mulligan is associate editor for Middle Market Growth.

BIOGENIC REAGENTS

MADE IN MICHIGAN // When considering where to expand a business, the heart of Michigan’s Upper Peninsula may not spring to mind for many executives. Biogenic Reagents CEO James Mennell, however, saw the region’s potential and selected it as home for the firm’s first commercial-scale reactor. In 2012 construction commenced in Marquette County on the site of two former B-52 hangars, once the property of K.I. Sawyer Air Force Base, a facility decommissioned in 1995. Due in large part to the closure, the county’s population fell to 64,634 in 2000 from 70,887 a decade earlier. The State of Michigan has been building up struggling regions such as Marquette County by incentivizing companies to locate there with tax benefits and loans. Biogenic, a growing clean-tech operation positioned to take advantage of the heavily forested U.P., was a perfect candidate, according to Michael Finney, president and CEO of the Michigan Economic Development Corporation. “It was a great location, a great potential fit, and of course they were going to bring a lot of private investment along with them,” says Finney, who helped Biogenic secure a $2 million loan from the state. “They ended up being a fairly significant employer in the U.P.” Biogenic has so far created 40 jobs at its Marquette plant, 10 of which are filled by veterans, who have assumed roles including plant manager, electrician, control room operator and laboratory technician. Continued on next page

To read more about midsize firms hiring veterans, click here.

“We have a strong preference for hiring veterans where they satisfy the requirements of an open position,” says CEO Mennell. Customers in the state, too, are seeing the benefit of Biogenic’s Marquette operation. Michael Adsit, a farm adviser with Plymouth Orchards, an East Michigan cider mill and organic producer, began using Biogenic’s agricultural activated carbon in late 2013 after meeting the company’s representatives at a trade show. “They were marketing the concept of carbon for agricultural crops. They were using a Michigan product and were operating in Michigan, so it piqued my interest,” Adsit recalls. Attracted in part by the potential for lower shipping costs associated with an in-state producer, Adsit experimented with the product and has so far seen impressive results, including a “pretty dramatic increase in foliage and production” across Plymouth’s 2014 pumpkin crop. “I think it has a lot of promise,” Adsit says of activated carbon. “It’s the new frontier in agriculture.” // —Kathryn Mulligan, associate editor, Middle Market Growth

Midsize firms are turning to military vets for talent

Veterans ENLISTING

TO BOLSTER EMPLOYEE FORCES BY JUDITH NEMES

t a veterans-only hiring event in the Chicago suburbs last October, some 40 companies were on hand to size up prescreened military officers and enlisted personnel on their way back to civilian life. The job fair was put together by Orion International, a recruitment firm that specializes in helping companies identify and recruit former service members into their workforce. â&#x20AC;&#x153;Patriotism is a very strong part of our culture here and we want to give back to our country by hiring (veterans),â&#x20AC;? says Nancy Mora, a corporate recruiter at Integrated Project Management, a Burr Ridge, Illinois-based project management consulting firm with 125 employees that was scouting talent at the job fair. She brought along one of the firmâ&#x20AC;&#x2122;s consultants, a former Air Force officer, to help in the hiring process. IPM has hired about 20 junior officers from the military over the last six years and expected to bring on two more by the end of 2014, Mora says. The midsize company interviewed 11 candidates that day, calling back five for a second round.

Middle-market companies—often lacking the extensive human resource machines of their larger rivals—are especially keen on hiring veterans. Their strong work ethic and ability to operate within structured systems make them good bets. Many have sharp leadership skills honed under stressful conditions; others have technical skills in short supply in the general labor pool. Most have worked in highly collaborative situations and are used to culturally diverse environments. They include men like Joe Shupe, a 33-year-old junior officer who was counting on his military background to ensure a smooth transition. “I have real-world leadership and management experience, and I worked in an environment where individual failure is not an option,” says Shupe, who spent 11 years in the U.S. Navy and U.S. Army. “There’s no such thing as an excuse when we have to show results. All employers can relate to that.” Shupe, most recently stationed at Fort Carson in Colorado Springs, Colorado, was willing to move anywhere in the country. His resume includes completion of the prestigious Navy Nuclear Power Program, service on the USS Ronald Reagan nuclear-powered aircraft carrier and training as an engineering lab technician and communications officer. He was interviewed by seven companies from the Orion job fair and called back by four at the time of publication.

GLUT OF CANDIDATES Some 1.5 million military personnel will retire from the U.S. Armed Forces in the next five years as the United States winds down military initiatives in Afghanistan, Iraq and elsewhere, according to the U.S. Department of Defense. Even without the huge drawdown, an estimated 200,000 military personnel exit the service each year. The tremendous rush of returning American troops presents terrific opportunities for U.S. companies, including many that complain there aren’t enough skilled workers to fill job vacancies. “An officer might have an engineering degree, but it’s their skill set as project leaders that gets them the job,” says Mike Starich, president of Raleigh-based Orion. “A lot of these people have been battle-tested … you’ll find very young people that are a notch or two above civilians their age in maturity, decision-making, judgment and accomplishing a mission under stress.” Depending on the health of the economy and other factors, Orion installs between 1,500 and 3,000 veterans in the civilian workplace annually. As of mid-fall, the firm was on track to place about 3,000 in 2014. Fifteen percent are women, mirroring the percentage of females currently serving in the military. “We start working with people about one to 1.5 years before they’re actually discharged, so they’re in good shape to translate their military experience to the civilian workplace when they’re just about to leave the service,” says Starich, who served as a Marine from 1985 to 1992.

“THROUGH OUR VAST NETWORK OF LOCAL CHAMBERS, WE SAW THAT WE COULD TAP OUR RESOURCES TO CONNECT THE TWO GROUPS.” Eric Eversole Executive Director, Hiring our Heroes, U.S. Chamber of Commerce Foundation

“PATRIOTISM IS A VERY STRONG PART OF OUR CULTURE HERE AND WE WANT TO GIVE BACK TO OUR COUNTRY BY HIRING (VETERANS).” Nancy Mora Corporate Recruiter, Integrated Project Management

BATTLE-TESTED HIRING PROGRAMS Middle-market companies interested in hiring veterans can turn to several resources. Besides Orion International, recruiting firms specializing in matching businesses with military personnel include Lucas Group and Bradley-Morris. Meanwhile, the U.S. Chamber of Commerce has a robust program called Hiring Our Heroes run by its foundation. And the International Franchise Association’s VetFran program introduces vets to franchisers looking for potential operators or owners of franchised businesses. Uncle Sam, for its part, is also trying to ensure that returning veterans have more civilian opportunities. Under new federal guidelines, American companies awarded at least $100,000 in business from the federal government are now obliged to benchmark their progress in hiring veterans.

MANY PROS, BUT SOME CONS Orionâ&#x20AC;&#x2122;s staffâ&#x20AC;&#x201D;comprised entirely of military vetsâ&#x20AC;&#x201D;helps candidates write and refine their resumes, conducts mock interviews and coaches them on what to wear and how to comport themselves during an interview. Each year the firm holds 55 to 60 hiring events across the country. All of the officers and many of the enlisted personnel Orion places have college degrees, says Starich. Most officers have between five and 10 years of military service and are in their mid-to-late 20s or early 30s. Some are older. At vet-oriented hiring events, employers can expect to find officers with skills that translate to three major job categories: engineering, operational leadership (supervisors in all sorts of industries) and sales (often for highcaliber products requiring technical proficiency), according to Starich. Enlisted personnel are primarily technicians, many with electrical or mechanical specialization. To be sure, there are also challenges for veterans interviewing for positions in the mainstream workplace. Starich cautions that some struggle to abandon military terminology while others can come off as a bit stiff and take longer than non-military peers to adjust to a new environment.

Photo by Jeb Wilson/Nashville Photography Group

BRIDGING THE GAPS In 2011, the U.S. Chamber of Commerce launched the Hiring our Heroes program to address concerns of its member companies over the growing U.S. skills gap in areas such as transportation and logistics. It also aimed to reverse the escalating unemployment rate—as high as 30 percent—among young military veterans, recalls Eric Eversole, executive director of the program. “The military does a tremendous job for them when they come in but not so good when they get out,” says Eversole, an active Navy reservist. “Through our vast network of local chambers, we saw that we could tap our resources to connect the two groups.” The program is already producing great results for midsize companies. Local chambers, with assistance from federal and state government partners, have been sponsoring hiring fairs nationwide. Member companies have so far snapped up about 25,000 vets and their spouses from contact begun at these fairs, Eversole says.

The program is expanding to military bases in Europe and elsewhere because more vets will be transitioning to civilian life directly from overseas locations in the years ahead. Last November, Eversole traveled to Ramstein Air Base in Germany with representatives from more than 20 companies with U.S. operations keen on recruiting military personnel. He organized panel discussions and workshops to coach vets on resume writing, interviewing and Internet jobhunting strategies. The U.S. Chamber launched a more recent campaign called Hiring 500,000 Heroes, which asks American business owners and corporations to pledge employment to qualifying vets and military spouses in the near future. More than 2,000 businesses of all sizes have committed to hiring 474,000 military veterans and spouses as part of the campaign. Eversole says that to date more than 300,000 hires have been made and thousands more are currently in the pipeline.

â&#x20AC;&#x153;I HAVE REALWORLD LEADERSHIP AND MANAGEMENT EXPERIENCE, AND I WORKED IN AN ENVIRONMENT WHERE INDIVIDUAL FAILURE IS NOT AN OPTION.â&#x20AC;? JOE SHUPE Veteran, U.S. Navy and U.S. Army

KEEP ON TRUCKIN’ PGT Trucking Inc., a Monaca, Pennsylvania-based flatbed carrier, has for years hired veterans to haul steel, building materials and other industrial supplies across the country, says Rachel Stewart, a recruiting manager with the company. The midsize firm has nearly 1,000 drivers, including more than 150 with military backgrounds. The company recently pledged to hire more vets through the Hiring 500,000 Heroes program. It has already made good on that commitment, bringing 15 new drivers on board in the fall. And PGT expects to hire more soon. “Right now, the trucking industry is facing a driving shortage and (it is expected) to get worse,” Stewart says. “The majority of the younger generation seems to be heading toward college training and office careers. However, we need technically skilled individuals to become professional drivers.” The company’s president, Gregg Troian, is a military veteran, but Stewart says that isn’t the main reason PGT has a policy of recruiting vets. “The commitment, dedication and passion they show to our country are the same qualities you want in someone who works for your company,” she says. //

THE FRANCHISE WORLD // ANOTHER OPTION FOR VETS The International Franchise Association, a trade group, created an innovative program within its nonprofit Educational Foundation in 1991 that specifically targets veterans to consider buying or operating a franchise. In general, veterans are particularly well-suited to run franchises because of their training and experience working within structured systems, says Kevin Blanchard, project coordinator for research and strategic initiatives with the IFA. “In the military there’s a standard operating procedure for everything you do,” explains Blanchard, who served in the Marine Corps and was discharged in 2006. He adds, “There’s a playbook for franchises— they have a system that’s been proven and tested because some entrepreneur already figured out the best way to do it. You buy into a system and you’re expected to follow their operating procedures. Military vets seem to make a smooth transition to this type of business.” Participation in the IFA’s initiative, called VetFran, has skyrocketed in recent years, in part because the IFA boosted the resources it is spending on running the program, Blanchard notes. Between 2011 and 2013, VetFran assisted nearly 151,000 vets in either starting a franchise, getting hired by one or securing a job at the corporate level of a franchise operation. Among that group, close to 5,200 vets actually launched their own franchise, Blanchard says.

FINDING AND RETAINING VETERANS // As associate vice president for innovation and policy at the nonprofit Council for Adult and Experiential Learning, Amy Sherman travels the country, working closely with employers on strategies for hiring veterans and keeping them happy on the job. “Hiring and retaining veterans can provide companies with mission-oriented employees who have developed strong skills in leadership, problem-solving and teamwork—all qualities that contribute to a company’s success,” she says. She offers some tips on veteran recruitment:

Conduct targeted outreach • Set up a dedicated page for veterans on your company website. • Establish incentives for employees to find veteran job candidates. • Train personnel on how to translate military skills to civilian jobs.

Create a veterans-supportive environment • Establish a veterans employee resource group that also engages military spouses and families.

Identify and link with community resources They may include: • Workforce system representatives (known as Local Veterans Employment Representative and Disabled Veterans Outreach Programs) • Local Veterans Affairs office • Community service providers • Local colleges and student organizations • Military bases or installations

Track your progress

• Recognize your employees’ veteran and military family status on appropriate days of reflection and holidays.

• Document your recruitment efforts.

• Train supervisors about potential challenges such as reintegration and post-traumatic stress.

• Track hiring and advancement of veteran employees.

• Ask on job applications if applicants have ever served in the military.

QUICK TAKES PATRICK FISHER // Founder and Managing Partner, Creation Investments

Creation Strives for Good Returns—and a Better World

mall things do add up. Or so it seems for Patrick Fisher and his growing team at Chicago-based Creation Investments Capital Management. The private equity firm aims to marry healthy investor

returns with a social impact mission to provide microloans to the working poor. In countries such as Sri Lanka, Albania and Mexico, Creation is scooping up small private financial services organizations to fill in the

BIO //

A former banker with JPMorgan, Patrick Fisher founded Creation Investments in 2007. He is responsible for overall management of the firm, including deal generation, due diligence, deal structuring and negotiation, along with fundraising, investor relations and portfolio oversight. His background includes work in international banking and global treasury and trade services.

gaps where traditional lenders don’t have the inclination to tread— providing needed financing to struggling entrepreneurs. “Big banks have thought, there’s not a lot of money in making a $100 dollar loan because it costs $20 to $50 to make that loan,” says Fisher, the firm’s 36-year-old founder. “If you do it in a certain model, it’s actually very efficient.” Creation acquires nongovernmental organizations and charityowned lenders with solid foundations that lack expertise in back-office systems, human resources and business development. “There’s a need for investors like us that have the real focus and the next skill set,” he says. Fisher is a former banker whose passion for emerging markets was fueled by a stint in China for JPMorgan. His co-founder, Ken Vander Weele, had nearly two decades of experience in microfinance when they started the firm in 2007. The Chicago staff has grown to eight; in addition, the firm employs representatives in Eastern Europe, Mexico and India. Creation’s portfolio companies typically help individuals and small businesses obtain working capital—money for purchases that can make a big difference: a tractor to speed harvest, a motorcycle to deliver goods, sewing machines to mechanize production and the like. “One of the key things here is that these aren’t consumer loans,” Fisher says. “These are loans to individuals and small businesses that are going right into their business.” Continued on next page

QUICK TAKES PATRICK FISHER // Founder and Managing Partner, Creation Investments Besides loans, Creation’s portfolio companies offer services such as remittances, microsavings and microinsurance. They operate on nine platforms, serving some 4.5 million entrepreneurs with roughly $1.1 billion in loans outstanding.

“THESE ARE LOANS TO INDIVIDUALS AND SMALL BUSINESSES THAT ARE GOING RIGHT INTO THEIR BUSINESS.” Patrick Fisher Founder and Managing Partner, Creation Investments

Fisher, whose firm has raised $140 million in equity plus debt funding, says his returns are comparable to those of traditional private equity funds. Despite higher levels of risk, the funds are backed by some heavy-hitting institutional investors that decline to be named, as well as families and family offices. Return on equity at Creation’s companies averages about 20 percent. And Creation is far from finished. Globally, says Fisher, there are thousands of additional financial services organizations ripe for consolidation and capital injections to get to the next level. The firm is looking primarily at growth in “core emerging markets,” such as Brazil, that have stability and a regulatory regime, he says. “Charities still need to do the early work,” Fisher says. “After a certain point in time, these things do become very compelling investments.” —Deborah L. Cohen, Editor-in-Chief, Middle Market Growth

K NO W A N EXCE PTIONAL ACG LE A D E R ?

2015

RECOGNIZING LEADERS IN ACG WHO HAVE CONTRIBUTED THROUGH EXTRAORDINARY VOLUNTEER SER VICE AND ACHIEVEMENT. 2015 NOMINATIONS ARE NOW BEING A CCEPTED.

LEARN MORE

A QUALIFIED OPINION NICK DILKS // Managing Partner, Ecosystem Investment Partners

ick Dilks is a managing partner with Baltimore-based Ecosystem Investment Partners, a private equity firm with $207 million under management established in 2006. The firm capitalizes on land-based environmental offset markets that drive revenue to the restoration of wetland, stream and endangered species habitat throughout the United States.

SELECT ABOVE TO SEE Q&A

WHAT IS MITIGATION BANKING AND HOW DOES IT APPLY TO YOUR FIRM’S BUSINESS MODEL?

itigation banks are land conservation and restoration investments that provide Clean Water Act compliance to infrastructure, mining and development projects with unavoidable, permitted impacts to wetlands and streams. When our firm acquires, restores and permanently protects wetlands and streams in advance of permitted impacts, we are awarded credits that are sold to entities in need of compliance in private, “willing buyer, willing seller” transactions. EIP operates at a large scale, buying and restoring thousands of acres at a time, providing significant savings to our mitigation credit buyers while also creating regionally significant ecological benefits. Since the early ’80s, mitigation banking has resulted in more than a million acres of wetland and stream habitat restored and protected with private investments on private land. Our investments can also help companies or public works projects that have compliance obligations associated with impacts permitted under the Endangered Species Act or natural resource damage provisions of other environmental laws.

Photo by James Kegley

A QUALIFIED OPINION NICK DILKS // Managing Partner, Ecosystem Investment Partners

SELECT ABOVE TO SEE Q&A

HOW DO YOU FIND PROJECTS AND WHAT KINDS OF SCREENS DO YOU APPLY TO DEEM A PROJECT WORTHY OF INVESTMENT?

emand for mitigation is created by normal business activity that has unavoidable impacts on wetlands, streams and endangered species habitat. Public works projects like highways and levees have to mitigate their impact, as do private energy, mining and development projects. These projects must minimize impacts to the greatest extent possible, but as America continues to strive for energy independence and our population expands, there will be significant impacts that must be offset. We buy land that can provide meaningful benefits to water resources and to local communities if itâ&#x20AC;&#x2122;s restored properly; the benefits are greatest if we locate projects in regions where economic development is moving quickly. We work closely with the countryâ&#x20AC;&#x2122;s leading nonprofit conservation groups; they bring tremendous expertise about regional conservation priorities, and we bring new financial resources.

Photo by James Kegley

A QUALIFIED OPINION NICK DILKS // Managing Partner, Ecosystem Investment Partners

SELECT ABOVE TO SEE Q&A

WHO ARE YOUR INVESTORS AND IS IT BECOMING EASIER TO GET BUY-IN FOR YOUR FUNDS NOW THAT PUBLIC AWARENESS FOR SOCIAL RESPONSIBILITY SEEMS TO BE ON THE RISE?

hile we certainly appreciate developments in “impact investing,” our investors are first and foremost motivated by fiduciary considerations. Our investment strategy is focused on delivering market-rate, risk-adjusted returns offering attractive diversification from other real asset opportunities. There is proven long-term demand for the mitigation credits we sell, and at the scale we operate, we’re developing efficient and cost-effective ways to generate these credits. There’s a fundamental value proposition quite apart from the social and environmental benefits. Our current $181 million fund includes a mix of investors with real asset, natural resources or real estate mandates including public pension funds, leading endowments and family offices. While it’s fair to say that our investors as a group appreciate the meaningful environmental benefits resulting from their investment, they are generally not in a position to accept below-market returns or to take higher risks.

Photo by James Kegley

A QUALIFIED OPINION NICK DILKS // Managing Partner, Ecosystem Investment Partners

SELECT ABOVE TO SEE Q&A

IS THERE A HOLDING PERIOD FOR INVESTMENTS AND HOW DOES YOUR FUND STRUCTURE COMPARE TO TRADITIONAL PRIVATE EQUITY FUNDS?

eâ&#x20AC;&#x2122;re structured quite conventionally for a PE fund in the real asset and natural resources sector, even though what we do is somewhat unconventional. Our two funds have a standard investment period and term, and our fees and terms are all well within ordinary ranges. From the outset, our objective has been to show that land-based environmental offset markets have matured to the point that they can be considered an asset class alongside other real asset categories. It was important for the basic structure of the investment vehicle not to be a distraction. The fundamental characteristics of our investments fit quite well into a conventional private equity model. Because of the way the entitlement process for our mitigation banks works, the projects can self-finance construction costs to some extent, which reduces the concentration of investment capital. The projects also begin to generate cash flow early on and throughout the investmentâ&#x20AC;&#x2122;s life, a positive characteristic that reduces reliance on the final exit or disposition of each property.

Photo by James Kegley

A QUALIFIED OPINION NICK DILKS // Managing Partner, Ecosystem Investment Partners

SELECT ABOVE TO SEE Q&A

CAN YOU WALK US THROUGH ONE OF YOUR MORE NOTABLE PROJECTS AND HOW YOUR INVESTMENT HAS MADE AN IMPACT?

he Chef Menteur Pass Wetland Mitigation Bank started with our acquisition of more than 16,000 acres on the land bridge just east of New Orleans separating Lake Pontchartrain from the Gulf of Mexico. Like much of the Louisiana coast, that property is badly in need of restoration due to subsidence and erosion. We’re over halfway through restoration of the first 1,000 acres, where healthy marsh had disappeared entirely into pockets of open water. Restoration of coastal marsh is technically challenging and expensive, but also incredibly rewarding. Wetlands provide an important buffer from storms, and the land bridge we’re restoring is the last piece of remaining ground between the open Gulf and the communities in the Lake Pontchartrain basin, including New Orleans. When we bought the property we didn’t realize it was within the jurisdictional boundary of the 9th Ward that was so badly impacted by Hurricane Katrina. We’re glad to be using mitigation banking to provide capital and jobs resulting in both coastal protection and return on investment. Photo by James Kegley

THANK YOU ACG GLOBAL PARTNERS ACG Global thanks the following Partners who play a critical role in supporting ACG’s mission of Driving Middle-Market Growth.SM OFFICIAL SPONSOR OF GROWTHSM PARTNER

GROWTH LEADER PARTNER

GROWTH CHAMPION PARTNER

GROWTH SUPPORTER PARTNER

For information on becoming an ACG Partner, download the ACG Global Partnership Program Prospectus or contact Meredith Rollins, mrollins@acg.org/312-957-4260 or Christine Melendes, cmelendes@acg.org/312-957-4277. ©2014 Association for Corporate Growth. All Rights Reserved.

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE

EDMONTON

HOLLAND

CHICAGO LOUISIANA

TAP CITIES TO NAVIGATE TO ARTICLE

ACG HOLLAND

ACG Holland Offers Something for Everyone Middle-market dealmakers in Europe chose from a host of events in recent months, thanks in part to Amsterdam-based ACG Holland, which offered a wide variety of networking opportunities for members. Events ranged from relaxed affairs—a golf outing and wine tasting—to the more insightful, including a luncheon presentation from a leading private equity executive. Pamela Hendrickson, COO of the Riverside Company and immediate past chairman of ACG Global, in September shared her perspective on private capital’s positive impact on midsize firms during the chapter’s lunch meeting. Earlier in the summer, ACG Holland offered members the chance to network outdoors during its second annual golf outing and clinic. Several months later, those looking to sample fine wines were treated to a tasting in August at the offices of Van Lanschot, a Dutch banking firm, which co-sponsored the event alongside Dataroom Services. //

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE MINORITY FINANCE FORUM // MBDA leaders from across the country participated.

ACG CHICAGO

Diversity Celebrated at Midwest ACG Capital Connection® Expanded programming highlighting women and minorities enhanced ACG Chicago’s annual Midwest ACG Capital Connection in October. Over 1,100 attendees representing 450 firms participated in the conference, which featured a women’s breakfast and a forum for minority middle-market business owners. The ACG Chicago Women’s Network hosted a pre-conference breakfast, welcoming women from private equity and investment banking firms along with lenders and advisers. JoAnn Price, founder of Connecticut-based private equity firm Fairview Capital, and Alejandra Castillo, national director of the Minority Business Development Agency, spoke at the morning event. Designed to increase involvement of women in the middle market, the breakfast drew over 100 registrants and contributed to a record-high proportion of women at the conference—women comprised 13 percent of attendees, compared with 1 or 2 percent only a few years ago. The Minority Finance Forum, too, was a new addition to the conference. Hosted in conjunction with MBDA Business Centers from around the country, the forum is part of a larger initiative to increase access to capital for minority-owned businesses. Continued on next page

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE PROGRAM // Business owners and professionals at the â&#x20AC;&#x153;Access to Capitalâ&#x20AC;? session.

Over 100 minority owners of midsize businesses, MBDA leaders and advisers gathered for networking and panel discussions, which addressed how to increase revenue, the best uses of debt and equity, and CEO war stories. Following the forum, participants joined the Midwest ACG Capital Connection, allowing them to connect with leading capital providers and intermediaries from around the country. The conference, now in its 15th year, continues to serve as an important means for middle-market professionals to drive deal flow, with nearly 200 firms hosting private meeting areas. Approximately 1,500 one-on-one meetings took place over two days, connecting capital with growing companies, including minority-owned businesses. //

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE LOCAL FLAVOR // A New Orleans brass band entertained attendees.

ACG LOUISIANA

A Taste of Optimism in New Orleans Nearly a decade after the devastation of Hurricane Katrina, panelists at ACG Louisiana’s Taste of New Orleans conference expressed optimism about the future of midsize companies in the state. Now in its fourth year, the one-day conference featured back-to-back panel sessions that addressed both local market conditions and national issues, including public policy. Private capital and public initiatives are working in tandem to attract and grow companies in Louisiana, according to panelists who spoke during the opening session. Louisiana is using tax credits, including those targeting the film and television industries and incentivizing R&D, to attract companies to the state. Another tax credit aimed at angel investors is creating momentum for family offices and high net worth individuals to provide capital to local businesses. Private equity firms, too, are increasingly getting in on the action as they see companies ripe for growth. “The private equity money will find itself here if there’s the right opportunity,” said panelist Gay LeBreton, managing director of Chaffe & Associates, a New Orleans-based investment bank. Continued on next page

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE Three Louisiana-based executives underscored the point while sharing their firms’ growth stories during the conference’s closing panel session. Participants included presidents of the beverage chain Smoothie King and Intralox, a maker of conveyor belts, along with a managing partner of Audubon Engineering, an energy consulting firm. The three agreed that the business environment has changed dramatically, in part due to the state’s effort to clean up corruption after Katrina and to improve its reputation as a place to do business. “We were very concerned eight to 10 years ago about recruiting executive talent, but we feel very good about it now,” said Intralox President Edel Blanks. The conference addressed national issues as well. J.B. Dollison, managing director of Crutchfield Capital and co-chairman of ACG Global’s public policy committee, provided an update on the legislative issues facing middle-market private capital investors and emphasized the need for a presence on Capitol Hill. Jay Jester, managing director of the private equity group Audax, gave a luncheon keynote address targeting local and national investors alike. He outlined the lessons he’s learned during his career at Audax and shared his confidence in the country based on the midsize companies he visits. “If anyone is having questions about the strength of the U.S. economy, follow me around for a week,” Jester challenged. //

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE PRIME LOCATION // The Edmonton Petroleum Club, where the breakfast event was held.

ACG EDMONTON

An Independent ACG Edmonton Expands Its Reach In its first month as a standalone chapter, ACG Edmonton hosted an event designed to engage a new audience segment, C-level executives. In October, the chapter partnered with TEC Vistage, a group that facilitates peer-to-peer networking among executives, for a breakfast meeting featuring a leading economist. Alan Beaulieu, president of New Hampshire-based research and consulting firm ITR Economics, shared his firmâ&#x20AC;&#x2122;s insight into current market conditions and expectations for the future, including a prediction of another Great Depression by 2030. TEC Vistage, which secured Beaulieu as speaker, brought its own members to the event, held at the Edmonton Petroleum Club. The opportunity to engage with senior executives and business leaders was well received by ACG Edmonton members, who shared their positive feedback about the collaboration in a post-event survey. In addition to coordinating a future event in conjunction with TEC Vistage, ACG Edmonton is planning its Northern M&A Conference, to be held March 4-5, 2015. Last year the event attracted 225 attendees, a number the chapter hopes to exceed this spring. //

THE PORTFOLIO INSIGHT FROM THE EXPERTS

SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

IN THIS ISSUE SOUND DECISIONS

MID-MARKET TRENDS

Private equity groups pursuing a unionized acquisition should understand the regulatory and structural nuances of the transaction.

At the behest of limited partners, private equity groups are adopting ESG programs and improving their bottom lines as a result.

Virtual data rooms smooth the due diligence process, making it both easier and more transparent.

COMING SOON Check out the Portfolio section of the March issue for more on the latest middle-market trends, written exclusively by our team of expert ACG Global featured firms. To learn more about contributing to this section, please contact Meredith Rollins, (312) 957-4260. These articles are brought to you by ACG Globalâ&#x20AC;&#x2122;s featured firms.

THE PORTFOLIO SOUND DECISIONS // George J. Nemphos and Thomas G. Servodidio, Partners, Duane Morris LLP SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

When Your Deal Includes A Unionized Workforce

Q With legal understanding, PE firms can embrace businesses with unionized labor.

Do you think there’s a reluctance

NLRB, these “laborized” transactions can

on the part of private equity firms to

be profitable ventures for private equity

consider unionized acquisitions?

firms if they are aware of the issues they

A: That’s probably true, but there is a way

will be confronting and structure and

to do these deals that will be successful

manage their acquisitions accordingly.

for the PE shop, the targeted business and the unionized workforce. Obviously there can be challenges to an acquisition of a

In exploring such an acquisition, what are some of the signposts of a

unionized company: On the cost front,

manageable union situation? Conversely,

unionized companies generally have higher

what circumstances might suggest that a

wages (likely to accommodate the union

buyer should walk away?

dues structure) and more costly benefits—

A: In order for a successful deal to take

including pension funds (sometimes

place, it’s important that both the buyer

underfunded)—as well as less flexible work

and the union be realistic and willing to

rules than nonunion operations.

collaborate in working through issues.

On the regulatory front, the National

Unions need to recognize that the

Labor Relations Board has become

company being sold may potentially not

somewhat more supportive of unions

have another option because it may be

and has been considering ways to limit

in distress. There could be a succession

what employers can do to address union

issue affecting its owners or there may

influence. Unionized companies can also

not be another party willing to allocate

pose a management challenge when a

the funding required to enable it to grow

private equity firm is the acquirer and

or even continue to operate.

wants to operate two related businesses

Especially in scenarios like these, a

separately as a “double-breasted”

private equity fund can represent a viable

enterprise—that is, one company remains

option, and possibly the only realistic

nonunion after the unionized company is

solution. However, a labor union that files

acquired by the private equity firm and is

a grievance and pursues arbitration—or

operated separately. While such parallel

alternatively files a complaint in court

arrangements may be challenged by the

seeking to extend its labor contract to

THE PORTFOLIO SOUND DECISIONS // George J. Nemphos and Thomas G. Servodidio, Partners, Duane Morris LLP SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

George J. Nemphos

cover the related, nonunion operation

Private equity operators who have

or the parent corporation—presents a

availed themselves of legal counsel to

clear warning signal. Private equity

structure and run their businesses in

management should hesitate if a union

compliance with these requirements have

calls a strike or other type of job action

found there is no reason to shy away from

against the company, or engages in

such a “laborized” acquisition, and that

handbilling (passing out messages to

they can realize significant returns. //

nonunion employees) or picketing as a

Thomas G. Servodidio

means of pressuring the acquirer to force

George J. Nemphos is the chair of Duane

the nonunion company to recognize and

Morris’ Global Corporate Practice Group

bargain with the union.

and managing partner of the firm’s Baltimore

office. He has extensive experience in What are some of the management

mergers and acquisitions, and securities

techniques and approaches that allow a

law, representing both private and public

union shop, or a mixed, “double-breasted”

companies, venture capitalists, angel investors

company, to be run profitably

and private equity firms.

by its new private equity buyer? A: The “double-breasted” company

Thomas G. Servodidio chairs Duane Morris’

can withstand a union challenge and

Employment, Labor, Benefits and Immigration

be run profitably if it establishes that

Practice Group and serves on the firm’s

its operations are not integrated, and

executive committee. For more than 20 years

that decision-making for each entity

he has represented corporate clients and

is separate, even if there is common

individuals in all aspects of employment law

ownership. The NLRB and the courts

and labor relations.

will carefully examine several factors: integration of operations; centralized control of labor relations; common management; common ownership and financial control; and motive, or whether one of the companies is being established for antiunion reasons or to divert work from the unionized company.

THE PORTFOLIO SOUND DECISIONS // Bryan Brighton, Regional Director, Merrill DataSite SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

Easy-to-Use VDRs Essential for Smooth Due Diligence

he due diligence process is an essential part of any M&A transaction; it allows a potential buyer to determine whether or not a would-be purchase is a good fit. The execution of due diligence is not a negotiation or an investigation, but rather a review of extensive amounts of data. It is a fact-finding mission.

Virtual data rooms can eliminate surprises before a merger.

As such, the seller can put the best foot

340 days. Where we have seen a change,

forward by using a virtual data room, or

however, is in the number of users, which

VDR, to facilitate the process. A VDR lets

has been progressively increasing. This

the seller package and present the asset in

indicates that the core parties working

the most effective way, so that information

on a deal may be inviting more people to

is easy to find and the disclosure process

review information more intensely during

is as simple as possible for all parties,

due diligence—making transparency and

including legal teams, advisers and banks.

ease of use even more important during

The research provided ensures there are

this critical time period. //

no surprises before a merger decision is made. Everything that could affect integra-

Bryan Brighton is a

tion—from financial records to human

regional director with

resources policy—must be scrutinized.

Merrill DataSite in the

The time frame for due diligence varies

firm’s London office where

enormously, depending on the size and

he is responsible for

complexity of a deal. Merrill DataSite

international sales in the

has observed that the average number of

United Kingdom.

days for a project is relatively static, with our VDRs staying open for an average of

THE PORTFOLIO MID-MARKET TRENDS // Daniel Galante, National Managing Partner, Grant Thornton SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

ESG Takes Center Stage

T Efficiency gains and LP interest are leading more PE firms to adopt ESG programs.

here’s no question that environmental, social and corporate governance issues have become more important to limited partners over the years. Tragic accidents such as fires in factories in Bangladesh and Vietnam have increased scrutiny on how private equity firms’ portfolio companies conduct business. Faced with the prospect of potentially losing limited partners, private equity firms are taking notice. The issue of safety at factories is just

social and environmental, the reality is

one of many that have brought ESG to

that significant bottom-line improvement

the forefront for U.S. private equity firms.

often materializes at firms with sound ESG

With limited partners being very selective

practices,” says Josh Sobeck, a partner at

about which funds they invest in, they are

747 Capital, a fund of funds that regularly

considering firms that take ESG issues

reviews ESG policies at the private equity

into account before sending dollars out the

firms in which it invests.

door. General partners are taking notice.

Various groups are helping private

Consider this: When PitchBook conducted

equity firms meet the challenge of becom-

its inaugural ESG survey of private

ing ESG aware. For example, a network of

equity professionals in 2012, 49 percent of

the world’s largest institutional investors,

general partner respondents did not have

in conjunction with the United Nations,

an ESG program at the firm and had no

has released “Integrating ESG in Private

plans to create one. However, just a year

Equity,” a guide published earlier this

later, 60 percent of GPs reported working

year as part of the network’s Principles

at a firm with an established ESG program

for Responsible Investment initiative. The

and another 26 percent either have an ESG

guidelines were put in place to help private

program in development or a plan to cre-

equity firms integrate ESG considerations

ate one in the near future.

into their dealmaking practices.

“Private equity firms are starting to

On the institutional side, the guide-

focus more intensively on ESG issues,

lines help LPs more easily identify private

which is a positive development for both

equity firms that think about ESG issues

economic and social/environmental rea-

when they are investing—a fact not lost on

sons. While much of the perception of

GPs. According to PitchBook’s survey, 69

ESG is that the benefits are primarily

percent of GPs said they are paying more

THE PORTFOLIO MID-MARKET TRENDS // Daniel Galante, National Managing Partner, Grant Thornton SOUND DECISIONS

MID-MARKET TRENDS

TAP BUTTONS TO NAVIGATE COLUMNS

attention to ESG as a result of LP pressure. What’s more, contrary to a belief that tak-

ESG DEFINED //

ing ESG issues into account will hurt mar-

Environmental: Waste, water, electricity, transportation, fuel, toxic chemicals, paper

gins, many find the opposite. Private equity firms report reduced costs related to workDaniel Galante

ers’ compensation, fewer safety incidents and an overall better governance system when ESG practices are implemented. “An example of the dual benefit of a sound implementation of ESG is an empha-

Social: Diversity, human rights, supply chain, employee engagement Governance: Policy, management structure, board-level oversight

sis by private equity firms and their management partners on workplace safety, particularly in manufacturing environments,” Sobeck says. “Organizations with better workplace safety, and thus lower overall recordable incident rate statistics, generally operate more efficiently and generate higher profit margins than those businesses that place a lower emphasis on safety. ESG is a win-win in such a scenario.” // Daniel Galante is Grant Thornton’s national managing partner of transaction advisory services. He has extensive experience serving as an adviser to companies in the United States and Europe in buy-side and sell-side transactions with private equity investors.

Source: PitchBook

Want to tap into the middle market? LEARN ABOUT ADVERTISING OPPORTUNITIES IN MIDDLE MARKET GROWTH AND REACH 30,000+ MIDDLE-MARKET PROFESSIONALS. CONTACT US OR DOWNLOAD THE MEDIA KIT TO GET STARTED TODAY.

DOWNLOAD MEDIA KIT Contact Meredith Rollins at mrollins@acg.org // 312-957-4260

The official publication of

THE LADDER ACG MEMBERS ON THE MOVE

Charles R. (Chas) Eggert

Charles R. (Chas) Eggert has

CohnReznick, an accounting,

joined Chicago-based private

tax and advisory firm, has

equity group Akoya Capital

merged with Bethesda-based

Partners as managing director

accounting, tax and consulting

and the new leader of the firm’s

firm Watkins Meegan LLC,

specialty chemicals sector.

bolstering CohnReznick’s presence in Washington, D.C.

Stephen Chipman has assumed

Stephen Chipman

the role of senior vice chairman

Bridge Industries, an Ohio-

at tax and advisory firm Grant

based holding company,

Thornton, where he will lead

announced the acquisition of

international and public policy

Tubular Structures International

operations. Michael McGuire has

by a subsidiary of TransTech

succeeded Chipman as CEO.

Energy, a Bridge Industries portfolio company. Both firms

Ben C. Wallace and M. William

service the oil and gas industry.

Lucas, both members of ACG

Bridge Industries was profiled in

Charlotte, have been promoted

MMG’s March 2014 issue.

within Greenville, South Ben C. Wallace

Carolina-based private equity

Cardlytics closed a $70 million

firm Azalea Capital. Wallace has

round of financing in October.

been named partner and Lucas

The Atlanta-based company

is now a senior associate.

targets ads based on consumer buying behavior and was honored by ACG Atlanta at the chapter’s 2014 Georgia Fast

M. William Lucas

40 Awards. Sally Glick, president of ACG New Jersey and principal at Sobel & Co., was named one of 25 of the 2014 Most Powerful Women in Accounting by CPA

Sally Glick

Practice Advisor.

To submit your promotions, job changes and other accomplishments, please send information and a color photo (hi-res 300 dpi or above) to Associate Editor Kathryn Mulligan.

B-SIDE ROB COTTER // Founder and CEO, Organic Transit

READING THAT RESONATES... “‘Mission in a Bottle’ by Seth Goldman and Barry Nalebuff, the founders of Honest Tea. I found it to be straight from the heart. It’s in graphic-book format and it covers all the trials and tribulations of building up the company.”

PAYING ATTENTION TO... ROB COTTER // Following a successful Kickstarter campaign, Cotter is drawing on his experience with both race cars and humanpowered transport to scale up production of Organic Transit’s solar- and pedal-powered vehicles, which aim to bridge the gap between bicycles and automobiles.

BEST BEVERAGE... “I love a nice hoppy IPA. It trumps everything else. I drink local when I can.”

“DRIVING A CAR IS THE MOST POLLUTING THING EACH OF US DOES EACH DAY BY FAR.”

INSPIRATIONAL FIGURE... “Anita Roddick, founder of The Body Shop. In a short amount of time, The Body Shop grew from a couple of stores to being in 33 countries. It’s also about how they did it. She found a way to take up a cause and bring it right to the counter.”

TRAVEL DESTINATIONS... “Fiji and Hawaii are places that will need help kicking off our products and I would love to be the person who goes there. I love sailing and kayaking. They take me into the salt water almost anywhere. I also love cycling and backpacking.”

—Liza Roche Gratama

“Environmental prosperity—we can get to where consumers are healthier, the global environment is healthier, and we can improve the economy.”

EATING ON THE GO... “I like good, healthy foods. I try to start off with a good breakfast. That might mean an omelet with organic vegetables, or a smoothie. I have a policy that I don’t eat foods I can’t pronounce. My one exception to that is quinoa.”

IT’S THE SMALL THINGS SUSTAINABILITY TRENDS // Keep On Keeping On

GO GREEN–IT’S A GAS! Working with the Environmental Defense Fund, KKR’s Green Portfolio Program has added a cumulative $1.2 billion to its portfolio companies’ bottom lines while avoiding more than 2.3 million metric tons of greenhouse gases.

MAKING THIRD WORLD NUMBER ONE Development finance institutions help establish private equity markets in the developing world. The Emerging Market Private Equity Association, set up by a DFI, now has more than $1 trillion in assets across 300 member institutions.

ESGs: THE NEW ABCs OF INVESTING 92% of respondents to a Malk Sustainability Partners survey cited the relevance of ESG during due diligence and 85% during ownership. 92% also expect their organization to expand its use of ESG metrics and processes in the future.

LAW OF DIMINISHING RESOURCES 76% of surveyed executives and thought leaders in corporate environmental strategy anticipate natural resource shortages will affect their core business objectives over the next three to five years.

READ MY LPs According to a 2012 PwC survey, 88% of respondents believe that limited partner attention to environmental, social and governance issues is set to increase in the next five years.

SOME TLC FROM PEGs The market for social impact investing by private equity funds stands at $4 billion in the United States.

THIS I BELIEVE 87% of Fortune 1000 CEOs believe sustainability is important to a company’s profits, with 73% of CEOs reporting a belief that sustainability results in cost savings.

—Larry Guthrie, manager, communications and marketing, ACG Global

THE LEADERSHIP ACG DIRECTORS ACG BOARD OF DIRECTORS //

CHAPTER REPRESENTATIVE DIRECTORS //

DIRECTORS AT LARGE //

Chairman Doug Tatum* Newport Board Group ACG Atlanta Term expires 8/31/2015

Brent Baxter Clayton Capital Partners ACG St. Louis Term expires 8/31/2017

Jason Brown Victory Park Capital ACG Los Angeles Term expires 8/31/2016

Bradford Adams TM Capital ACG Boston Term expires 8/31/2015

Jason Byrd The Charter Group ACG Western Michigan Term expires 8/31/2017

Robert Brighton Shutts & Bowen, LLP ACG South Florida Term expires 8/31/2017

Greg Cinnamon Kilpatrick Townsend & Stockton LLP ACG Atlanta Term expires 8/31/2015

Roy Graham Corporate Finance Associates ACG Central Texas Term expires 8/31/2015

Mike Ehlert Capital One Leverage Finance Corp. ACG Dallas/Fort Worth Term expires 8/31/2015

Karen Grexa KeyBank Business Capital ACG New Jersey Term expires 8/31/2017

Brian Gilbreath Merrill Corporation ACG Nebraska Term expires 8/31/2015

Jay Hansen O2 Investment Partners ACG Detroit Term expires 8/31/2017

Ramsey Goodrich Carter Morse & Mathias ACG Connecticut Term expires 8/31/2016

Patricia King Bank of America Merrill Lynch ACG Tennessee Term expires 8/31/2015

Don Lipari McGladrey ACG New York Term expires 8/31/2017

Robert Napoli First West Capital ACG British Columbia Term expires 8/31/2015

Angie MacPhee RGL Forensics ACG Denver Term expires 8/31/2016

Walter Oâ&#x20AC;&#x2122;Haire Valuation Research Corp. ACG San Francisco Term expires 8/31/2017

Gretchen Perkins Huron Capital Partners ACG Detroit Term expires 8/31/2016

Steve Peterson Brass Ring Capital, Inc. ACG Wisconsin Term expires 8/31/2015

Karen Tuleta Morgenthaler ACG Cleveland Term expires 8/31/2017

Hans-Josef Vogel Beiten Burkhardt ACG Germany Term expires 8/31/2015

Tom Washbush Bricker & Eckler LLP ACG Columbus Term expires 8/31/2015

Vice Chairman Richard Jaffe* Duane Morris LLP ACG Philadelphia Term expires 8/31/2015 Chairman of Finance Stephen Prostor* Citi Private Bank ACG New York Term expires 8/31/2015 Secretary J.B. Dollison* Crutchfield Capital Corporation ACG Houston Term expires 8/31/2015 Immediate Past Chairman Pamela Hendrickson* The Riverside Company ACG New York Term expires 8/31/2015 President & Chief Executive Officer Gary A. LaBranche, FASAE, CAE* ACG Global

ACG HONORARY DIRECTORS // Robert G. Coffey Alan B. Gelband *denotes member of Executive Committee

ACG NEAR YOU ACG CHAPTERS ACG 101 Corridor acg.org/101

ACG Detroit acg.org/detroit

ACG Orlando acg.org/orlando

ACG Arizona acg.org/arizona

ACG Edmonton acg.org/edmonton

ACG Philadelphia acg.org/philadelphia

ACG Atlanta acg.org/atlanta

ACG France acg.org/paris

ACG Pittsburgh acg.org/pittsburgh

ACG Austria acg.org/austria

ACG Germany acg.org/germany

ACG Portland acg.org/portland

ACG Barcelona acg.org/spain

ACG Holland acg.org/holland

ACG Raleigh Durham acg.org/raleighdurham

ACG Boston acgboston.org

ACG Houston acg.org/houston

ACG Richmond acg.org/richmond

ACG Brasil acg.org/brazil

ACG Indiana acg.org/indiana

ACG San Diego acg.org/sandiego

ACG British Columbia acg.org/bc

ACG Kansas City acg.org/kc

ACG San Francisco acg.org/sanfrancisco

ACG Calgary acg.org/calgary

ACG Kentucky acg.org/kentucky

ACG Seattle acg.org/seattle

ACG Central Texas acg.org/centraltexas

ACG Los Angeles acgla.org

ACG Silicon Valley acg.org/sv

ACG Charlotte acg.org/charlotte

ACG Louisiana acg.org/louisiana

ACG South Florida acg.org/southflorida

ACG Chicago acgchicago.com

ACG Maryland acg.org/maryland

ACG St. Louis acg.org/stlouis

ACG China acg.org/china

ACG Minnesota acg.org/minnesota

ACG Tampa Bay acg.org/tampabay

ACG Cincinnati acg.org/cincinnati

ACG National Capital acgcapital.org

ACG Tennessee acg.org/tennessee

ACG Cleveland acg.org/cleveland

ACG Nebraska acg.org/nebraska

ACG Toronto acg.org/toronto

ACG Columbus acg.org/columbus

ACG New Jersey acg.org/newjersey

ACG UK acg.org/uk

ACG Connecticut acg.org/connecticut

ACG New York acg.org/nyc

ACG Utah acg.org/utah

ACG Dallas/Fort Worth acg.org/dfw

ACG North Florida acg.org/northflorida

ACG Western Michigan acg.org/wmich

ACG Denver acg.org/denver

ACG Orange County acg.org/occ

ACG Wisconsin acg.org/wisconsin

WIN N E R OF TWO 2014 PUBLI SHI N G AWA R DS

WINNER

S TA N D A L O N E D I G I TA L M A G A Z I N E F O L I O

E D D I E

A W A R D S

S I LV E R

M O N T H LY T R A D E M A G A Z I N E

ASSOCIATION TRENDS ALL MEDIA CONTEST

THANK YOU TO THE STAFF AND PARTNERS WHO MADE THIS POSSIBLE.

@ACG_MMG