Corporate America August by AI Global Media

AUGUST 2016

DR SEBASTIAN LONGREE

REGIONAL DISPUTE DISTINCTION AWARDS

Leading the Way in Defense Technology

PPI TECHNOLOGIES GROUP - CEO 100 Penta5 USA Drinking In Their Success

LINDSEY & LINDSEY - FINEST IN FINANCE Family ties in Full Force

WHITE HOUSE LAUNCHES $400M 5G NETWORKS RESEARCH

www.corporateamerica-news.com

EDITOR'S NOTE Welcome to the latest edition of Corporate America. The USA is, in the grand scheme of things, still a rather young nation. And yet its people and business leaders remain resolute in an undying vision to seek the American Dream. Around this time 116 years ago, the Chicago World’s Fair was giving birth to the idea of American Exceptionalism by showcasing the nation’s profound influence and embracing of architecture, sanitation, the arts and industrial optimism. Over a century later, those notions are no less defined – if anything, the advent of a truly international commercial environment, and the increasing influence of globalisation, has hardened the resolve of American businesses to retain their places as trendsetters, now and into the future. Increased competition both at home and abroad makes the job of any American entrepreneur a challenging one. The continuation of entrepreneurial ambition, coupled with the rapid expansion of new specialist markets, is best demonstrated through the rise of the middle markets; to date, more than 200,000 middle market companies based in the US offer a backbone to the success of the American economy, so much so that the GDP from US middle markets alone would equal the world’s fourth-largest economy. While these companies might go underrepresented on a policy-making level, where they risk being excluded from economic discussion, we at Corporate America make it our personal duty to highlight the efforts of some of America’s hardestworking businessmen and women. Whether providing retirement asset management, developing life-enhancing technologies or creating IT solutions for defence, federal, and intelligence community market spaces in defence of the Homeland, there are many unsung heroes striving for and achieving great success every day across the United States. We hope that this issue of Corporate America proves to be enlightening, entertaining, and most of all, informative. George Millar Contact Corporate America at: george.millar@ai-globalmedia.com 212 618 1855

CONTENTS MARKETING & PR

LEGAL 12

Kümmerlein Rechtsanwälte & Notare

Clowdis

DR. J. M. SEBASTIAN LONGRÉE

ACCOUNTING

CHARLES W. CLOWDIS JR

Wright IPTM & International Law

COLONY AMERICAN FINANCE APPROACHES $2 BILLION IN LOAN ORIGINATIONS

CSIM LAUNCHES NEW SUIT OF FUNDS WITH FOCUS ON RETIREMENT

ERIC G. WRIGHT

INVESTMENT 20

Lindsey & Lindsey Wealth Management

Sandlapper Capital Investments, LLC

IMI Asset Management

2016’S MOST INNOVATIVE HEDGE FUND MANAGER: USA/EUROPE

SOFTECH ENTERS INTO AGREEMENT TO SELL PLM PRODUCT LINE TO ESSIG RESEARCH INC.

FIDELITY ADVISOR GLOBAL REAL ESTATE FUND LAUNCHED

ALLISON+PARTNERS CREATES NEW MARKETING TOOL TO DEFINE EFFECTIVE INFLUENCERS

CORPORATE GOVERNANCE

JOHN LINDSEY

JANET YELLEN AT JACKSON HOLE: THE MARKETS REACT

TREVOR L. GORDON

SUPPORT SERVICES & TECH

KARLA M. LEONARD

RISK MANAGEMENT 64

PPi Technologies GROUP

Vykin Corporation

RIVADA MERCURY APPOINTS FORMER SPRINT WHOLESALE EXECUTIVES

CORPORATE DIRECTORS IDENTIFY FOUR KEY REASONS FOR STOCK BUYBACK PROGRAMS

M&A 68

MIDDLEFIELD BANC CORP. AND LIBERTY BANK, N.A. TO MERGE

NEW DEAL SET TO SHAKE-UP NORTH AMERICAN PLASTICS MARKET

LEADERSHIP 38

DEBIT BEGINS ITS SHIFT TO MORE SECURE TYPES OF TRANSACTIONS

R. CHARLES MURRAY

ED BACHL

CORP NEWS

ANTARES CAPITAL SUPPORTS ACCEL-KKR’S ACQUISITION OF SCIQUEST, INC. Antares Capital has announced it served as administrative agent, sole lead arranger and bookrunner on a senior secured credit facility to support the acquisition of SciQuest, Inc. by Accel-KKR. ntares Capital is the leading provider of financing solutions for middle-market, private equitybacked transactions with offices in Atlanta, Chicago, Los Angeles, New York, Norwalk (Connecticut) and Toronto. Antares has facilitated more than $120 billion in financing over the past five years.

customer relationships, so we’re pleased to have supported this next phase in their evolution, and we welcome them to our TMT portfolio,” said Matthew Fleming, managing director with Antares Capital. “We look forward to working with AccelKKR and SciQuest as they continue to grow and innovate.”

Based in Morrisville, NC, SciQuest, Inc., is a leading provider of end-to-end spend management solutions serving a wide range of industries and organizations including many of the Global Fortune 500.

SciQuest is a leading provider of endto-end spend management solutions delivering value beyond savings. Through the continued release of key innovative technology and a fanatical drive toward making customers successful, SciQuest delivers value in user experience, productivity and operational efficiency. The company’s cloud-based, mobileenabled, source-to-settle platform addresses all stages of procurement from the automation of core processes to enabling sophisticated, strategic and multifaceted sourcing solutions. They

“The Antares team delivered with a combination of software industry expertise, flexibility and customer focus,” said Dean Jacobson, managing director with Accel-KKR. “SciQuest has an extensive breadth and depth to their product offering and strong

specialize in handling simple procurement needs to the most advanced supplier and supply chain requirements. Its acquirer Accel-KKR is a technologyfocused investment firm with $4 billion in capital commitments. The firm invests in software and IT enabled businesses well-positioned for topline and bottomline growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions from minority-growth investments to buyouts, recapitalizations, divisional carve-outs and going-private transactions. The firm has offices in Menlo Park, Atlanta and London.

CORP NEWS

MARLETTE FUNDING CLOSES $205 MILLION SECURITIZATION TRANSACTION Marlette Funding, a leading marketplace platform, has announced that it has closed its first proprietary “MFT” securitization. Approximately $205 million of Best Egg collateral was financed via three classes of Notes and one class of Certificates with the loan sellers retaining a portion of Notes and Certificates. he Class A, B and C fixed-rate Notes were rated Single-A, Triple-B and Double-B by Kroll Bond Rating Agency (KBRA). The transaction was very strongly received by a broad swath of investors and was significantly oversubscribed. Amongst other factors that supported the rating KBRA noted that “Marlette’s business model ensures an alignment of interests among the Company, the originating bank and institutional loan buyers.”

The Marlette Funding “MFT” securitization is a significant milestone for the company, and a cornerstone of the company’s long-term capital strategy. “Accessing the securitization markets represents the third major component of a diversified funding plan, which also

includes building strong relationships with institutional investors and developing onbalance sheet asset backed credit facilities,” said Paul Ricci, CFO of Marlette Funding. The securitization, placed through Goldman Sachs, furthers Marlette Funding’s access to the broader ABS capital markets and sets a strong precedent for future transactions. The broadening of the investor base into institutional CUSIP-only buyers is a first step in building recognition in the brand, capital markets access and liquidity in the bonds. This transaction represents the second securitization collateralized by unsecured consumer loans originated by Cross River Bank using Marlette Funding’s Best Egg Platform. The first securitization, Citi Held for Asset Issuance 2016-MF1 closed on March 4, 2016.

“Our institutional partners value our ability and willingness to help them access the securitization markets,” said Jeffrey Meiler, CEO of Marlette Funding. “The elegance of this type of collaboration is it provides programmatic consistency in terms of structure, reps and warranties, and risk sharing.” The company continues to thrive under its leadership team which has deep consumer finance and banking experience and a strong corporate orientation towards compliance and business controls. More than $2B loans have been originated by Cross River through the Best Egg website since its inception in March of 2014.

CORP NEWS

WHITE HOUSE LAUNCHES $400M 5G NETWORKS RESEARCH PROGRAM FCC passes new rules on next-gen connectivity and the Obama Administration announces Advanced Wireless Research Initiative in order to keep promise on connectivity. n his 2015 State of the Union Address, President Barack Obama said, “21st-century businesses need 21st century infrastructure – modern ports, and stronger bridges, faster trains and the fastest Internet […] I intend to protect a free and open Internet, extend its reach to every classroom, and every community, and help folks build the fastest networks so that the next generation of digital innovators and entrepreneurs have the platform to keep reshaping our world.”

Now, in the White House seems set on delivering on these words, with the Obama Administration’s launching of a new $400 million Advanced Wireless Research Initiative

(AWRI) to develop new 5G networks across the USA. These efforts will be led by the National Science Foundation (NSF). This news follows the vote by the Federal Communications Commission (FCC) to open high-frequency millimetre wave spectrum for both licensed and unlicensed use. The FCC’s new guidelines aim to encourage new technology without letting unnecessary regulation hold up the process, serving as the foundation for companies and wireless carriers building devices and gear to run on the networks, and those that will provide the wireless service.

The new AWRI will facilitate the deployment and utilisation of four city-scale testing platforms over the next 10 years, with many high-profile associates pledging to make contributions to these platforms. Among these contributors are the Alliance for Telecommunications Industry Solutions, and the Telecommunications Industry Association, along with a number of prominent wireless provider companies, such as AT&T and Verizon. At present, 98% of US citizens currently enjoy coverage from 4G/LTE networks. However, the last couple of years have seen a lot of excitement generated over the prospects of pushing the boundaries of wireless connectivity. The advisory body 5G Americas, in particular, has played a role in this through the publishing of their whitepaper, Global Organisations Forge New Frontier of 5G, detailing several organisations – private, academic and government – across the world that making active progress towards developing 5G networks. This latest news from the Obama Administration is bound to come as good news to 5G Americas, among others. The prospect of faster speeds, lower latency and an increase in capacity for future wireless networks, are expected to positively impact not only consumer markets, but also first responders and emergency services in addition to business professionals of all trades. In addition, the broadening scope of technology across multiple industries means that a more developed wireless network is increasingly important – the development of ‘smart’ factories, of semi- or fullyautonomous vehicles, and of virtual reality training environments and simulators, will all be able

CORP NEWS

MORTECH ANNOUNCES REAL-TIME PRICING INTEGRATION WITH DARIC POINT-OF-SALE Partnership provides all-in-one Point-of-Sale (POS) solution to automate borrower verification, mortgage rate pricing, and loan production ortech®, a Zillow Group business providing mortgage technology solutions for mortgage bankers and secondary market teams, announced on August 23rd a new integration between Mortech’s product and pricing engine (PPE) and Daric, an online based mortgage application tool, to help streamline the loan origination process. The new integration provides mortgage lenders with a suite of web, mobile, and tablet-friendly tools to automate borrower verification, mortgage rate pricing, loan decisioning and servicing.

Mortech enhances mortgage pricing engine via integration with Daric point-of-sale & application automation software. The partnership streamlines the mortgage process by allowing borrowers to complete

their loan application via Daric’s online mortgage origination solution. Mortech’s Marksman® ensures customers receive accurate mortgage rate quotes and allows lenders automatic best execution from their portfolio of investor pricing. Mortech also provides the ability to route all borrower leads from consumer direct marketing websites such as Zillow, Bankrate, LendingTree, and QuinStreet, directly into the integrated application. “As more borrowers increasingly begin their mortgage shopping process online, we continue to strive to offer fintech solutions to meet these changing consumer demands,” said Doug Foral, general manager at Mortech. “Through Mortech’s extensive mortgage pricing, investor data and application program interfaces (APIs), we’re

able to create integrated custom solutions with leading mortgage technology partners like Daric, enabling lenders to close more loans in a fast and cost effective manner.” “Consumers are used to having everything they need at their fingertips, and providing an online service to initiate the mortgage borrowing process is essential for today’s mortgage lenders to stay competitive,” said Vasant Ramachandran, chief technology officer at Daric, Inc. “Having accurate pricing built into the application builds borrower trust and streamlines the lender origination process. By partnering with Mortech, we can provide a better online mortgage experience for both borrowers and lenders alike.”

CORP NEWS

OPUS BANK LAUNCHES PUBLIC FINANCE DIVISION Dmitry Semenov Joins as Senior Managing Director, Head of Public Finance pus Bank has announced the launch of its Public Finance division, which will provide senior financing solutions to municipalities including cities, counties, school districts, water and sanitation agencies, special districts, and charter schools; and essential service notfor-profit organizations in the healthcare, public services, and education sectors. Opus Bank additionally announced that Dmitry Semenov has joined Opus as Senior Managing Director, Head of Public Finance to launch and lead the new division.

Stephen H. Gordon, Founding Chairman, Chief Executive Officer and President of Opus Bank stated, “Opus has achieved considerable success developing relationships and providing banking deposit products, services, and solutions to local municipalities in and around our footprint and distribution. The formation of our new Public Finance division is a natural synergistic extension of that success.”

Gordon added, “We are pleased to welcome Dmitry as he joins Opus to lead our Public Finance division. Dmitry is a highly-regarded and experienced banker with unique expertise in structuring and delivering financing solutions to municipalities and government entities such as counties, cities, townships, housing authorities, community colleges, charter schools and school districts, as well as other public agencies and entities.” Gordon concluded, “We expect that under Dmitry’s leadership, Opus’ Public Finance division will achieve considerable success building and growing its client base as we further leverage our deep banking presence up and down the West Coast.” Mr. Semenov joins Opus Bank most recently from Umpqua Bank, where he served as Vice President, Public Finance and focused on developing client relationships with local municipalities and government agencies, and education and healthcare systems. From 2009 to 2011, Mr. Semenov served

as Assistant Vice President, Commercial Real Estate with River City Bank, where he managed a commercial real estate loan portfolio, managed work-outs, negotiated financing modifications, and performed in-depth analysis on a portfolio of special credits. Prior to Mr. Semenov’s banking experience, he spent over a decade working in finance and entitlement sectors of the real estate development industry with a focus on delivering public infrastructure and services to new communities, and was the planning director for a new city that was being designed to accommodate 150,000 residents and 60,000 jobs. Mr. Semenov holds a BA in Economics from the Plekhanov University of Economics in Moscow, Russia and an MBA from the University of California, Davis

CORP NEWS

A&A VENDING SERVICE GROWS RELATIONSHIP WITH USA TECHNOLOGIES Moves to Link 100% of its Machines to Cashless Payment Options; Signs on for Premium Support Service Offerings SA Technologies, Inc. a premier payment technology service provider of integrated cashless and mobile transactions in the selfservice retail market, has announced the expanded agreement with A&A Vending Services (A&A), a Canteen franchisee.

USAT is currently upgrading 1,200 of the company’s machines to its state-of-theart cashless technology platform and telemetry services, enabling the company to track the acceptance of cash, credit/ debit cards, and mobile wallet payments such as Android Pay and Apple Pay through its NFC-capable ePort Connect® cashless payment system. To date, with nearly 520 of the machines connected in four months, A&A is showing positive early results.

including its model market program, which provide companies access to a bundle of best-in-class support services including deployment planning, project management, installation support, training, the marketing of cashless, marketing support, mobile payment and loyalty programs and funding support. “A&A is a perfect example of the positive benefits retailers can realize as they move from a primarily cash-based

Established in 1995, A&A Vending Services has grown to become one of the largest vending service providers serving Augusta, GA and the surrounding cities operating 39 full-service vending routes, servicing thousands of vending, coffee and micromarket machines. “For the past 20 years, we have built our company name on providing outstanding service by listening to the needs of our customers,” said Les Perry, Owner, A&A Vending Services. “More and more of our customers are looking to make contactless purchases from our machines, so we realized that transitioning to cashless wasn’t something we could put off any longer. USA Technologies has been guiding us through the process, offering insight and support to ensure our financial commitment pays off as quickly as possible. We are excited by the early traction and look forward to continued results like these as we move to 100 percent cashless on every machine.” In addition, A&A has signed up for USAT’s Premium Support Service offerings,

business to cashless,” said Jim Turner, vice president of Deployment Services, USA Technologies. “Our approach insures that deployment is done in a way that makes sense based on the specific needs of the business. By implementing smart, strategic deployment programs through Premium Support Services, companies like A&A not only capture more purchases by consumers, but are running their business in a more efficient way.”

LEGAL

legal

SOLVING CORPORATE DISPUTES Kümmerlein Rechtsanwälte & Notare is a market leading law firm based in Essen. We caught up with Dr. J. M. Sebastian Longrée to learn more about the firm’s work in the region and how it supports clients with a variety of dispute cases.

Company name: Kümmerlein Rechtsanwälte & Notare Contact: Dr. J. M. Sebastian Longrée Address: Messeallee 2, 45131 Essen Email: Sebastian.longree@kuemmerlein.de Telephone: +49 201 1756-622 /-643 Website: www.kuemmerlein.de

legal

ümmerlein Rechtsanwälte & Notare was founded almost 90 years ago, and since inception has become a market leader in the Ruhr region. Sebastian outlines the secrets behind the firm’s success.

“With a strong partner focus Kümmerlein Rechtsanwälte & Notare offers a wide range of premium level legal advice in the field of business law. Presently, almost 50 lawyers work at our firm, of which 26 are partners. We distinguish ourselves, in particular, through consciousness of tradition, capacity for innovation and efficiency. We base our relations both among ourselves and with our clients on the values of trust and respect. We continuously complement the capacities grown within our firm by successfully integrating colleagues from large top law firms. With almost 50 lawyers our firm is large enough to successfully handle and execute also big and complex projects while, with this size, we still remain flexible enough to respond to the individual needs of our clients.” “Overall, we believe that successful business activities require a solid legal basis. All our colleagues stand for excellent legal expertise and flexibility.” “Our solutions are innovative and sustainable. They are fit for new challenges and opportunities. Our values are trust in the relationship with our clients and professional collegiality among the members of the firm. These values are the basis for long standing attorney-client relationships and highlight our attractiveness for excellent legal personalities and ambitious young talents.” Focusing on corporate law, M&A and litigation

and arbitration, the firm has built up a strong reputation for excellence in these fields, as Sebastian explains. “The core business of Kümmerlein is the general provision of legal advice on corporate matters to a wide range of clients on the basis of a lasting and trustful relationship. All advising partners can rely on longterm experience in the fields of formation of corporations and drafting of articles of association, disputes on shareholders’ level, restructuring and entity transformation, assistance with annual general meetings and other shareholders’ meetings, the conclusion of company agreements and measures for corporate financing, including capital increases. This also applies to the drawing up and negotiation of joint venture agreements. Moreover, we render comprehensive legal advice in the fields of corporate compliance and corporate governance.” “Within the litigation and arbitration space we also hold a strong reputation for excellence and have a great deal of experience in this sector. Apart from rendering advice in organisational and structural issues we also provide our clients with comprehensive advisory services in disputes, Kümmerlein has long-term experience in representing clients from various industrial and services sectors before state courts and arbitral tribunals. Here, our activities focus on conducting complex legal disputes for our clients in all matters of economic and corporate law. To this end, we are frequently engaged also in reviewing and analysing relevant facts, providing legal assessment and verifying opportunities of extrajudicial settlement in complex cases prior to proceedings. In arbitral proceedings

Regional Dispute Distinction Awards

our lawyers also act as arbitrators.” “Additionally, Kümmerlein has a long and comprehensive track record of advisory services for medium-sized national and cross-border M&A transactions with transaction volumes up to the upper tripledigit million range. Hence, all our team members can rely on long-term experience from rendering advice in numerous company transactions from drafting and negotiating preliminary agreements and performing legal due diligence up to drafting, negotiating and providing assistance for the execution of any kinds of company acquisition contracts, joint ventures and other cooperation agreements.” “In this field the advisory services we offer also include legal advice regarding antitrust notification obligations and, if appropriate, obtaining the necessary clearances from the European Commission, national cartel authorities or the Federal Ministry of Economics in compliance with the provisions of the German Foreign Trade Act.” “Moreover, we are engaged in disputes under the employment and antitrust law as well as in the field of protection of industrial property rights.” Being an increasingly competitive and client driven industry means that the legal sector can be highly challenging, but Sebastian views these challenges as opportunities, and his firm works hard to ensure that it always meets client’s needs. “Our clients increasingly demand fast and cost-effective advice. Thus, it remains our first concern to grow by integration of the best qualified young lawyers into our firm. We are convinced that, apart from necessary technologisation, our people are the most valuable asset of our firm, and remain committed to working with and supporting them so that they can provide the very highest quality of service to our clients.” Looking ahead, Sebastian believes that the firm’s focus will be firmly aimed towards building on its current success in the Ruhr region. “As a very strong player in our region, which is the basis of our success, we are going to work on and improve our national and international reputation and awareness. Thematically, our major focus will remain in our core business areas: corporate, M&A and litigation/arbitration. We look forward to the new experiences and opportunities we will enjoy as part of this strategy.”

LEGAL

CHARLES CLOWDIS: REACHING FOR THE SKY Charles Clowdis has over 30 years of experience in transportation, logistics, motor carrier transportation, air freight/cargo, railroad operations/admin/ marketing, fleet operations, and supply chain design and management. We profile Charles and showcase his dedication to the sectors he represents.

Company: Clowdis Name: Charles W. Clowdis Jr: Logistics Cost Specialist, Transportation Management Consultant Address: 2320 Clifftops Avenue Post Office Box 1178 Monteagle, TN 37356 Phone: 931.927.7280 Fax: 931.924.7279 Mobile/Cell: 704.578.4066 E-mail: chuckclowdis@aol.com

LEGAL

harles served as Senior Vice President of Marketing at TRANSCON, Inc., Sr. Vice President at TNT North America, and held executive positions at Sun (Oil) Carriers, Inc. and The Mason & Dixon Lines, Inc. He established his independent consulting practice in 1988, and has served as Executive Consultant since 1992 to Ernst & Young LLP, and since 2001, to KPMG and CSC Consultancies.

He joined IHS Global Insight, Inc. (July 12, 2016: IHS Markit Ltd.), in Lexington, MA, in 2008 as Managing Director-North American Trade & Transportation. In 2014 he was appointed Managing DirectorGlobal Transportation, IHS Economics & Country Risk sector. He in responsible for Transportation Consulting Services for private and public sector transport entities, service providers and buyers globally as well as governmental agencies and regulators. This sector is comprised of railroads, motor carriers, private fleets, barge lines, air cargo service providers, steamship lines, Third Party Logistics service providers, and select other domestic transport modes; as well as Federal, State and Local transport regulators, airports; as well as Shippers and Receivers of both international and domestic cargo. In addition, he also has responsibility for re-engineering and production of the

respected annual IHS TRANSEARCH© commodity flow data research project. He continues to offer litigation support services as an expert opinion witness on a limited, select basis to Attorneys and Law firms in the United States and Canada. Recent projects Charles has undertaken include working for leading high-tech firms and several major commercial insurance underwriters. The projects involved researching and compiling motor carrier industry data, as well as statistical analysis of entire U.S. trucks/trailer operations— by type, tonnage moved between major markets, segregated market analysis of target cities; routing and scheduling, economic impact analysis of growth potential in ocean ports, intermodal and air drayage, and air cargo. Another key aspect of his role is providing expert opinion witness reports and testimony in Federal, state courts as well as arbitration; in cases involving logistics and transportation issues. His major clients include Ryder System, Ringling Bros. Barnum & Bailey, Lukens Steel, Central Freight, Land Star Systems, Nautilus Group and others on transportation topics ranging from contract interpretation, systems integration and performance, administrative best practices, operations, marketing, and personnel issues; tracking and tracing systems, Brokerage operations and fraud,

as well as general transport operations and business practices. Charles was also instrumental in creating a national accounts marketing program for an international transport carrier’s North American land, sea, Rail Intermodal, Port and Port Drayage, and air divisions. The strategic system incorporated marketing and advertising plans, pricing and traffic issues, sales support and training, all rating and billing functions, and National Account bids and proposals. Alongside his services to clients, Charles also likes to give back to the industry as a whole, and as such he is Chairman and Past President of the Sales & Marketing Council – American Trucking Assns and the National Defense Transportation Association. He is also a frequent contributor to industry publications, speaker to industry groups, with over two hundred articles and white papers published, and author of three industry books, having contributed special chapters to several others. Charles released his first novel in July 22, 2011, with a sequel scheduled for release in December of this year, which will provide him with a number of exciting developments going forward.

EXPERT WITNESS OF THE YEAR

LEGAL

APPRECIATING THE REAL VALUE OF LEGAL SERVICES Wright IPTM & International Law offers legal services regarding intellectual property prosecution, litigation and investigations before the United States International Trade Commission. Wright IPTM prosecutes and litigates matters regarding patent law in all technologies, trademark law and copyright law.

Company: Wright IPTM & International Law Name: Eric G. Wright Email: Info@WrightIP.com Web Address: www.WrightIP.com Address: 1101 New Hampshire Ave, NW, Suite 612, Washington, DC Telephone: 001 202 822 4695

LEGAL

ric G. Wright founded Wright IPTM & International Law in 2012 as a nextgeneration law firm. His experience prior to becoming an attorney includes almost a decade of work in heavy industry and for the majority of that time worked for an international engineering and construction company which served a worldwide client base. Four years ago, Eric decided it was time to start his own firm to allow him to apply what he had learned in industry to assist clients to solve IP legal challenges in an internationally competitive economy.

Wright IPTM provides a variety of services associated with the valuation, monetization and management of intellectual property. These services include patent and trademark portfolio planning, research and development counselling, as well as licensing and risk management services. Wright IP’s Technoeconomics® products and services assist clients in monetizing intellectual property assets throughout the world. It was Eric’s interest in new technologies and their economic impact that led him to become an Attorney and then a Patent Attorney. As a result, every matter undertaken for any client is viewed through the filters of technology, business and law. His background in engineering has made quality the key principle to which Eric has always adhered in order to maintain success in this industry. This has been extremely helpful in competing in the legal environment. By striving for the highest possible quality in every work activity and truly understanding your client’s goals then success can be achieved. The value of legal services to clients, and clients’ perspectives regarding legal services, has changed in the last decade. Recognizing these new perspectives, Wright IPTM focuses on helping clients meet their commercial objectives in a highly engaged and cost effective manner. With the ongoing developments in technology and in the corporate landscape, the firm has had to embrace rapid changes in the intellectual property market. Clients’ needs are more international and products are distributed through more diverse channels of commerce than ever before.

technology, business and geography, such as considering where research & development is occurring, where prototyping and manufacturing will occur and where other economically significant commercial activities will be undertaken. All of these factors must be considered in developing IP strategic plans. Regarding trademarks, companies need to consider geography and developing an international trademark portfolio, as well as tailoring of international classes of goods and services for which marks are applied. The advance of technology has propelled the normal trademark owner’s uses beyond traditional channels of commerce and into cyberspace. The scope of activities undertaken by trademark owners can be highly diverse. Complex commercial activities marked by trademarks can involve multiple international classes which should be accounted for in developing trademark portfolios. Likewise, copyright owners have to be highly proactive in producing and distributing their works of authorship. A failure to prepare works to be monetized in advance of public distribution can lead to significant losses of revenue which cannot realistically be recovered. However, properly prepared authors who have taken the appropriate steps to protect their works of authorship prior to publication and distribution have tremendous access to highly profitable markets worldwide. The challenges Eric has faced in his career have only helped to motivate him, and helped him to build upon his success. “I have always been driven by a deep appreciation of technology in all fields and a hold great respect for the inventors, engineers and technologists who enrich all of our lives in this highly technological world.”

INTERNATIONAL IP EXCELLENCE

In the area of patent law, the economic and technological levelling which is occurring between advanced and developing economies has allowed rising nations to become more competitive and capable at a rapid pace. This means that companies must view their patent needs from multiple perspectives regarding

“Additionally, I have been fascinated by business and economics which explains my enjoyment of trademark and copyright law issues. I have also always been captivated by the opportunities which occur when different disciplines interface, such as the impact of technology on business and culture, the effect of trademarks on a commercial marketplace, or the economic value which can be derived from a musical work.” A versatile and integrated approach to executing legal work produces strategies and results that has set Wright IPTM apart from its competition. “The fact that every issue I consider passes through my engineering, business and law filters routinely allows me to advise clients in a manner which otherwise would not be possible. Motivation is easy. I am fortunate that intellectual property law, whether it is prosecution, litigation or ITC investigations, keeps me immersed in issues regarding invention, commercial competition and artistic works.” Wright IPTM officially opened a second office in Houston, TX in 2015. Eric’s focus for the next few years will be to carefully grow these offices by finding attorneys and staff who share his multidisciplinary perspective of the law and desire to serve clients at the highest level of quality. The future looks bright for Wright IP & International Law, and Eric cannot speak highly enough of his colleagues, saying, “I have the great privilege of working with some of the smartest and most creative people in the world. It is a great pleasure to do the work that I do.”

INVESTMENT

Investment

FAMILY TIES IN FULL FORCE Lindsey & Lindsey Wealth Management offer exclusively independent, objective investment advice dedicated to helping clients build wealth and protect their hard-earned assets. We invited John Lindsey, CEO and Founder, to talk us through the firm and its service offering.

Company: Lindsey & Lindsey Wealth Management Address: 4195 East Thousand Oaks Boulevard, Suite 125, Westlake Village, CA 91362 Phone: (805) 330-3700 Fax: (805) 379-0600 Email: john@lindseyandlindsey.com Website: www.lindseyandlindsey.com

Investment

wealth management market has helped him to steer the firm to its current success. He is a former apparel industry Senior Executive who worked for key brands such as Oshkosh B’ Gosh and Jantzen Sportswear. In addition, he was with Edward Jones for 16 years beginning in 1996. His office in Simi Valley was among the top 3% volume offices in the country for Edward Jones. He served as Regional Leader for 65 Edward Jones offices in the south central coast and southern central valley region of California. He founded Lindsey and Lindsey Wealth Management, Inc. in 2012 to better serve his client base with an expanded universe of investment offerings. indsey & Lindsey Wealth Management offers investment advice rooted in its core values which represent the firm’s highest priorities, guides its decisions, governs its behaviors, drives its actions and are the qualities and traits it treasures the most, as John explains.

“At Lindsey & Lindsey Wealth Management, we are committed to helping you work towards your unique financial goals. We know reaching your short and long-term financial objectives hinges on having the right plan - one that fits your unique circumstances and grows with you. “Planning your financial future can be a daunting task, and we understand that, which is why where we come in. Understanding your goals and objectives is the cornerstone to tailoring our services to meet your needs - creating a customized solution that’s right for you. While developing a customized, comprehensive and objective wealth management plan, we will walk you through a step-by-step process that will help make you feel confident in your decisions.

Alongside his experience in the market, John holds a Bachelor of Science and Master of Business Administration degrees from the University of Southern California. He studied and obtained his CFP® from the California Institute of Finance at Cal Lutheran University. Named a Limited Partner with Edward Jones in 1999 he also served as a General Partner from 20012006. He is a million-dollar producer and has been a perennial attendee to the top producers Managing Partner’s conferences. In 2010, John and his staff were named recipients of the very prestigious Peter Drucker award at Edward Jones. An award only given to the top 50 offices out of over 12,800 offices for the highest Client Service Excellences scores surveyed by J. D. Power. Another key member of the firm’s managerial team is John’s daughter Christina Lindsey Orta, who has been recognized in the Financial Services and Real Estate industries for over 10 years now. Most recently, Christina was a Vice President of Sales for Walton International Group, a Real Estate Investment and Development

“All of our staff are trained, licensed professionals, drawing on years of financial planning experience who take into account the full range of needs you have now, and those needs you may have in the future; periodically reviewing your strategy, consulting with you to make appropriate adjustments, and assisting you in keeping your plan on track. You are not limited to proprietary platforms, investment products, or research. We continue to remain forward-focused in every aspect to designing a plan for you.” John’s own personal experience in the

company. Since 2007 while working for Walton, she helped the company expand their distribution throughout the United States. Over the years Christina covered multiple sales territories, eventually to focus primarily on Central and Southern California. Serving roughly 1200 Financial Advisors and exclusively their high net worth accredited investors; from over 60 different Independent Broker Dealers and Registered Investment Advisory firms, she raised over $70 Million in securitized private equity capital. Christina qualified and was recognized in the President’s Council every year from 2007-2013, often the Top USA producer annually, and she was a member of the elite group of top producers globally. She also helped train and promote numerous other sales reps to become top producers in the company. Throughout her career, she spoke at various industry conferences, providing Advisors and Broker Dealers updates on the regional real estate economies and alternative investment strategies. Prior to joining Walton, Christina worked for Countrywide Home Loans for nearly three years as a Branch Manager in Chandler, AZ; running a nationwide full service home loans branch. Christina. Lindsey Orta started in the financial services industry in 2002 at Edward Jones working as a Branch Office Associate and on the Equity Marketing & Trading Desks while completing her degree. She received a Bachelor degree in Business Administration with an emphasis in Finance from Loyola Marymount University in Los Angeles. She currently holds the securities licenses 7 and 63. In 2013 after completing additional education, and passing the CFP® board exams, she has obtained the CFP® designation. She also holds a Series 24 license, allowing her to supervise other advisors.

Investment

Currently, the investment market remains strong, with the majority of the major economic reports from June and July having shown positive results – none more so than the June employment report from the Department of Labor. Second-quarter earnings were not as poor as anticipated, despite the post-Brexit uncertainty, and core economic indicators often matched or surpassed expectations. Working so closely within the market means that John often understands the way in which it operates better than most, and as such his firm, which is committed to supporting both clients and its industry peers, produces monthly economic updates. He discusses why these are so important for his clients and those working in the industry.

“Overall, what really sets our firm apart and marks us out as the best option for our clients is that we are committed to the highest standards of ethical conduct in everything we do and in all aspects of our business. The interests of our clients comes first, and our focus on full disclosure and the highest standards of fiduciary care ensures our interests our aligned with yours. We are not swayed by financial incentives for recommending, and as such we do only what is right for our clients.”

“Here at Lindsey & Lindsey Wealth Management we like to share the experience and knowledge we have gained through our many years of collective experience working in the wealth management sector. As such, we provide monthly updates on the state of the economy, as well as a blog on the latest financial matters, both of which are highly useful for anyone seeking to learn more about the current economic outlook. Also, we regularly comment on or contribute to articles in the press on the wealth management space so that we can showcase our talent and help the wider industry. “For clients, our website boasts a dedicated resource centre, and our blog regularly hosts articles on the finer points of investing in order to ensure that they have the knowledge and understanding to make informed decisions. This is particularly vital as we understand just how important wealth management and estate planning is.” Going forward, the firm has some exciting plans for expansion as it seeks to grow in order to work with a wider client base, whilst at the same time retaining the high standards of service which it has become renowned for, as John outlines. “Lindsey & Lindsey Wealth Management is hiring new staff in order to grow and be able to work with more clients. We are always looking for dedicated, hardworking staff to work with us and help us to continue to support our clients and integrate new ones into the business.” Ultimately, John is keen to emphasise the firm’s commitment to supporting client and providing the highest standards of service which are compliant with all relevant regulations, in order to safeguard returns for investors.

Investment

FINEST IN FINANCE

Investment

CREATING SMART, OPTIMUM VALUE Sandlapper Capital Investments, LLC (“Sandlapper”) is the investment banking and product sponsor arm within the SANDLAPPER Companies based out of Greenville, SC. We spoke to Trevor Gordon, Founder and CEO, to find out more.

Company name: Sandlapper Capital Investments, LLC Contact: Trevor L. Gordon, Founder and CEO Address 1: SANDLAPPER FINANCIAL CENTER Address 2: 800 e. North St., 2nd Floor Address 3: Greenville, SC 29601 Email: tgordon@sandlappercapital.com Telephone: 864-679-4701 ext. 101 Website: www.GoSandlapper.com www.sandlappercapital.com

Investment

andlapper was created to take advantage of opportunities brought about through the dynamic and ever-changing economic landscape. As Trevor relates, some of the greatest investment opportunities throughout history have often been missed by those who lack the agility necessary to seize them as they appear. “Our experienced team, however, has the skills, tools and resources necessary to identify, analyse and act upon timely opportunities across a vast universe of industries. Our principals collectively have decades of experience across a broad range of industries and investment vehicles, covering both the public and private markets”.

“S

These industries include packaged product analysis, commercial real estate equity and debt, tax credits and shelter programs, oil and gas and related industries, equipment leasing, corporate and municipal debt as well as other debt obligations and portfolio management. Since inception, the firm has syndicated 21 offerings raising over $85.2m for in excess of $155m of assets. Trevor has been in his current position since the inception of the business in March 2011. He is the Owner, Founder, Managing Member and CEO of Sandlapper Capital Investments, LLC. He is also Founder and CEO of SANDLAPPER Securities, LLC (member FINRA/SIPC), Sandlapper Insurance Services, LLC, Sandlapper Wealth Management, LLC, Sandlapper Student Housing, LLC, Sandlapper Natural Resources, LLC, TSWR Fund Management, LLC and TSWR Development, LLC (collectively “Sandlapper Companies”). In addition, Mr. Gordon is a shareholder and former President of TIC Properties, LLC, shareholder and formerly President of Capital Markets for Poinsett Capital Advisors, LLC, TIC Properties Management, LLC and the CapHarbor Group of Companies. “I began my career over 25 years ago,” Trevor recounts, “literally at the bottom of the industry as a mail distribution clerk with a regional financial services firm. My experience since then has included research, marketing, retail production, sales and communications. My product experience and knowledge includes mutual funds, stocks, bonds, insurance, derivatives, real estate and a broad spectrum of alternative investments. Today, Trevor primarily focuses on business

development; creating investment solutions for high-net worth accredited investors and capital formation, successfully raising approximately $550 million to acquire in excess of $1.2 billion in assets nationwide. “My goal is to craft and develop products, processes and services that create optimum value for clients.” Trevor has always been an entrepreneur at heart, possessing an eye for the “overlooked” opportunities. When the real estate industry began searching for new ways to obtain capital, he was at the forefront of turning these products into securities investments to reach wider distribution. When his competitors were seeking ways to raise even more revenues, he instituted a policy of transparency that changed the way revenues were reported across the board. When the market began to falter in the late-2000s, Trevor developed a highly successful product to exploit on this uncertainty. As the oil markets began to swing wildly, he then established a product to capitalize not on the oil itself, but on the processes behind the production of oil. “This intentional way of thinking about investments has helped thousands of investors,” Trevor acknowledges. “As the Founder, Managing Member, and CEO of the SANDLAPPER Companies, I help to do just that.” Currently managing eight separate businesses tied into the financial services arena, Trevor ensures that investors are offered opportunities at both the retail and institutional level, providing investment opportunities for those who are both risk averse and those seeking long-term results.

“I am active within my professional industry as well as my community. I am a former Chair of the marketing committee for the Alternative & Direct Investment Securities Association, and a member of the Society for Financial Professionals. I also give my time locally – I am the current Chairman of the Board of Directors for The Center for Developmental Services in Greenville, SC.” Trevor explains these meteoric achievements in his professional career by addre his academic background. “I am a graduate of Kennedy Western University, earning both Bachelor and Masters of Business Administration degrees. I currently hold FINRA Series 7, 24, 31, 63, 65 and 99 licenses. I am also a Life Member of the Veterans of Foreign Wars of the United States (VFW)”. Sandlapper is set apart from others in the industry because they don’t try to be all things to all people, as Trevor elaborates. “I have a guiding philosophy that allows us to be nimble, decisive, but also smart. We do deals because we want to, not because we have to. I have spent the last decade plus making sure the overall SANDLAPPER Companies are a diversified mix of goals and objectives just to be able to achieve the calming, overriding philosophy to just do the deals that we want. “A common phrase I often say to my underwriters and analysts is ‘I never lost money on a deal I missed’. We work to find the right deals at the right time and never ‘make a deal work’ or get forced into doing a deal. If it means we miss something, that is ok because I would rather

Investment miss something today, then have to apologize for a bad deal tomorrow. “We adhere to a number of key principles in order to maintain success in this industry. These principles are; to verify assets, to under promise, to keep transactions simple, to take little to no debt, to never do a deal because you ‘have to’ and to communicate effectively. “The biggest challenges given the universe we have chosen to work within has to do with dealing with over-burdensome, and often unreasonable, over-regulation. We have to deal most with this through greater transparency, creating massive paper trails that could lead even Hansel and Gretel back home, and making sure that every decision very clearly puts the investor first, and to not just say that for lip service. “We look at each client as a partner, and in many cases, look to make every client a partner. We prefer to originate our own product, to maintain control of investor dollars, and in those areas where we may not have a

daily expertise, we seek partners who do have such. We put our money, and reputation, where our mouth is. “We read everything and keep up with industry trade associations. We try to understand our competition and operate from a reality that ‘there is enough business out there to go around’, and will even recommend a competing product to an investor when and where it makes sense to do so. That in and of itself provides a nice quality of life balance. “Our reputational management is what we pride ourselves on. Reputation is the only thing you can’t buy, so it has to be protected, and the best way to protect it is to make sure you are always doing right by the client, doing right by your employees and doing right by your partners, before you ever consider yourself. It is easier to be selfless rather than selfish.” Asked about the changes and challenges he sees coming for the industry in the next 12 months, Trevor believes that one of the biggest changes will probably be seen in regulation.

“We expect to see more constriction through more regulation, tighter credit markets impeding our ability to do more deals and shrinking ranks within the selling groups that specialize in the types of underwritings we put to market. “Some days are harder than others, but in general having the right work/life balance for myself and my staff helps to keep us motivated. Keeping the people around me invested in the vision of all the companies, giving them somewhere to grow and make more for themselves, goes a long way to creating an environment where people feel fulfilled, will give 110% every day, making the really tough choices fewer and far between. We are collectively motivated by the success of our investors, measured by hitting the investment goals we put out in the marketplace. “In the future, I would like to see us as the premier provider of alternative investments in a contracting environment, and create a brand so that when people hear the name they equate it to honor, integrity and reliability”.

Investment

FINEST IN FINANCE

INVESTMENT

PERFECTION IN PENSION PLANNING MI Asset Management Company specializes in addressing the sharp increase of concern of outliving income in retirement. We caught up with CEO and Asset Manager Karla Leonard to gain an insight into the firm and how it supports clients in this vital sector.

Company: IMI Asset Management Name: Karla M. Leonard â&#x20AC;&#x201C; CEO/ Asset Manager Address: 3200 Guasti Road Ste.100 â&#x20AC;&#x201C; Ontario, CA 91761 Phone: 909-456-8939 Email: kmld@imiassetmanagementco.com Website: www.imiassetmanagementco.com

INVESTMENT I Asset Management is committed to supporting clients with all of their retirement and pension needs, as Karla is keen to emphasize in her opening comments.

Business Elite 2016

“Retirement does not begin when you are 65, it begins the moment you start working. IMI Asset Management Company specializes in Retirement Planning. Retirement is not always defined by ones’ age. One can retire from a profession also [i.e. professional athletes retiring from their sport]. Whether retiring as a senior or retiring from a very high income profession what both parties have is reasonable expectations for what their life should be like for working the last 40 years or 10-20 years and saving. You want to be comfortable, you want to be happy and you want to be able to do those things you like, and as such planning is key. “In order to support clients with this we have partnered with the number one planner in the country and can now map out your entire retirement income on one easy to read page. Through the use of proprietary software, we are clearly able to illustrate how each guaranteed source of income (i.e. Social Security, Pensions, etc.) will interact under varying life circumstances such as inflation, layoff, loss of pension or the death of a spouse. “Through proper utilization and structure of life insurance, fixed annuities, fixed indexed annuities, long-term care, critical illness and non-market correlated alternative investments these issues can be resolved.” Prior to founding IMI Asset Management Company and entering the financial services//life insurance industry as an independent agent in 1991 with Primerica, Karla received a B.A. in Economics and a B.A. in Art History from the University of California, Riverside. She provides us with more details on her history and how she came to found the firm. “Since my graduation from university I have since worked on the Institutional Trading Floor with Loeb, Rhoades, Hornblower & Co. as an Assistant Trader, worked as an Administrative Assistant with Economics Systems Group, Inc. [Commodities Brokerage Firm- London/Paris Markets], an Administrative Assistant and Marketing Representative with the investment banking and asset management firm National Investment Development Corporation and worked as an Administrative Assistant with the American Federation of Teachers in Washington, DC. In 1993 I relocated from

Washington, DC to Novato, California [Marin County in Northern California] and went on to become Vice President/Life Insurance Service Agent with Investment Management International. I then relocated to Southern California in 1997 and became President and Retirement Specialist of IMI Financial Services. In 2006 I become CEO and Asset Manager of IMI Asset Management Company. “My responsibilities in this role are to oversee Marketing, Social Media Awareness, Budget, Advertising, Client Retention, New Client Acquisition, Product Portfolio Reviews, Network with Partner Team Associates, and Economist. I also conduct seminars, workshops, webinars and have been an exhibitor with Golden Futures 50+ Expos throughout Southern California to educate consumers on sound solutions on retirees’ greatest fear- running out of money in their retirement years.” In order to guard against this Karla takes a proactive approach to client service, as she explains. “My services entail securing a portion of my client’s portfolio with secured guaranteed income for life through their retirement years. The only way to achieve results such as this is through a Retirement Planning Analysis. What this entails is a full analysis of the client’s entire asset portfolio (stocks, mutual funds, pensions, IRA’s, 401k’s, real estate, real estate investments, band and savings accounts etc.) “Ultimately MI Asset Management provide a specialized service rare in today’s marketplace. Our purpose is to make sure you have guaranteed income for as long as you live.”

Looking ahead, Karla has a five-year plan which focuses on helping clients to plan for their retirement and therefore get the most out of their later years. “Over recent years, I have had a strong growing concern for professional athletes and their crisis of 78% having to file bankruptcy two to five years after leaving their sport. There is no reason any professional athlete should ever have to file bankruptcy or change the lifestyle they have become accustomed to living after leaving their special arena of sports. “With this in mind, my future aspiration over the next five years is to assist these athletes. What we are talking about here is setting goals, executing a plan to reach individual objectives, monitoring progress, and making any necessary adjustments on a timely basis. Planning is one common ingredient in successful ventures. I firmly believe if this concept and practice is instilled in professional athletes, the bankruptcy rate could be reduced substantially. “Alongside this, I also see my firm expanding growth for client assistance in non-market correlated alternative investments. These investments offer competitive guaranteed interest, and great tax-wealth strategies without having to be concerned about market risks. These aspirations should provide many opportunities for growth which I look forward to taking advantage of.”

INVESTMENT

BLACKROCK INVESTMENT SET TO POWER NEW YORK BlackRock invests in major electric generation facility planned for construction in New York

INVESTMENT

unds managed by BlackRock’s Alternative Solutions Group, in partnership with BlackRock Real Assets, entered an agreement to invest approximately 10% in the 1,100 MW combined cycle gas turbine (CCGT) Cricket Valley electric generating facility, utilizing proven General Electric 7FA.05 combustion turbine generators. Construction of the plant is expected to begin in Q4 2016 and is projected to be completed in Q4 2019. Once constructed, the project will benefit from an attractive location providing electricity to a supplyconstrained lower Hudson Valley and New York City markets.

“We’re pleased to partner with Advanced Power on Cricket Valley and we look forward to growing our relationship in the future,” states David Giordano, Head of the North American Renewable Power Infrastructure team. “This transaction represents the strong growth in natural gas investment opportunities given the increased retirements in aging generation facilities, and will bring much needed generation capacity to the supply-constrained Hudson Valley region.”

The firm is a global leader in investment management, risk management and advisory services for institutional and retail clients. At June 30, 2016, BlackRock’s AUM was $4.890 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of June 30, 2016, the firm had approximately 12,700 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa.

The developer of this project, Advanced Power (AP), seeks to develop, acquire, own and manage power generation and related infrastructure projects throughout Europe and North America. AP’s team has successfully developed over 15,000 MW of power generation projects, and subsequently closed $7 billion of limited recourse project financing. Said Advanced Power’s CEO, Tom Spang, “BlackRock’s investment in Cricket Valley represents a strong vote of confidence in a project that enjoys strong community support. We are delighted that BlackRock has joined the Cricket Valley project and we look forward to working together to see it through to construction and operation.” Advanced Power is a privately owned company that develops independent power projects in North America and Europe and has 7,000 MW in development or operation. Majority-owned by senior management, Advanced Power has offices in Boston and London and is headquartered in Zug, Switzerland. BlackRock operates one of the largest infrastructure investment platforms in the world with over $9 billion in investor commitments and invested assets as of June 30, 2016, and over 90 people located in Dublin, Mexico City, New York, London, Zurich, Hong Kong, Paris, Seattle, Chicago and Stockholm.

As the largest investment manager in the world BlackRock sits at the intersection of global capital and Real Asset investing opportunities. With deep industry expertise, demonstrated access to proprietary deals and a purely fiduciary mindset, the firm’s experienced investment professionals leverage BlackRock’s risk management capabilities, global reach and deep local presence to deliver compelling investment opportunities to meet its clients’ needs. BlackRock provides investors with Private Real Estate Debt & Equity, Real Estate Securities and Infrastructure Debt & Equity via funds, co-investments and managed accounts, and currently has over $30 billion in invested and committed Real Estate and Infrastructure assets and capital as of June 30, 2016.

investment

SOFTECH ENTERS INTO AGREEMENT TO SELL PLM PRODUCT LINE TO ESSIG RESEARCH INC. SofTech to focus on new product offering

investment

ofTech has announced that it has agreed to sell its Product Lifecycle Management technologies, including it ProductCenter and Connector product lines, to Essig Research Inc. in exchange for $3.25 million plus contingent payments based on revenue in the two years immediately following the closing of the transaction. The closing of this asset sale, which is subject to the approval of SofTech’s shareholders and other customary closing conditions, is expected to occur by October 2016. The transaction is not subject to any financing condition.

“In March 2011, the management team took a controlling equity stake in SofTech with a plan to implement operational improvements, develop new revenue streams, grow the revenue and reduce the debt while seeking opportunities to monetize the existing assets for the benefit of the shareholders,” said Joe Mullaney, SofTech’s CEO. “This transformative transaction will give the Company the liquidity we believe it needs to take advantage of a significant market opportunity with its newly released HomeView technology. We believe the transaction is beneficial to our shareholders, customers and employees alike and we look forward to a seamless transition,” he added. The PLM product line will complement Essig’s long standing engineering services business, which includes major multinational clients. Joe Daly, Essig’s president, said that “We are very excited about the growth possibilities from this transaction. In the past two years, Essig and SofTech have already successfully provided solutions to each other’s existing clients. Going forward we expect to accelerate this introduction of solutions to each other’s historical client base.”

More Attractive to New Investors: • Allows for streamlined, focused business plan to potentially attract new investors; Gain Sheltered from Taxation: •

Federal and state net operating loss carryforwards (“NOLs”) expected to be used to shelter realized gain from transaction for taxation before NOLs begin to expire

“There are more than 130 million residential properties just in the U.S.,” said Bob Anthonyson, President and CEO of HomeView. “Whether homeowners are aging in place seniors, tech savvy millennials or somewhere in between, we believe that HomeView can simplify day-to-day home management and also help reduce overall expenses. Moreover, at the point of resale, this information helps prospective buyers: a) know what they are getting, b) assume maintenance responsibilities more easily, and c) anticipate needs more accurately, which can all help increase the sales price. We are very excited about aggressively growing this business. We envision a day when no residential property will change hands without providing the buyer with a full record of the things within the home and we want to position HomeView to be the go-to technology for that purpose,” Bob added. If the transaction is completed, SofTech would receive approximately $1.3 million in cash at the closing and its outstanding short-term debt to Essig of $1,150,000

SofTech believes the benefits to its shareholders resulting from the sale of the PLM business will include the following: Improved Liquidity: • •

Debt free for the first time in nearly twenty years Projected cash per share of about $1.90 immediately following the transaction

Opportunity Focus: • •

HomeView market is large and growing rapidly Potential partnerships with larger entities facilitated by focus

would be extinguished. In addition, SofTech would repurchase the 110,000 shares (“Put Shares”) of the Company’s common stock it sold to Joe Daly, Essig’s president and primary shareholder, in June 2014 in a private placement at a repurchase price of approximately $6. 50 per share, or an aggregate of $715,000. The Put Shares when sold gave Mr. Daly the right to require SofTech to repurchase some or all of the Put Shares at $7.00 per share at any time between June 24, 2017 and September 24, 2017. As a result of the repurchase, this right would be extinguished and the Put Shares would be retired. Two additional contingent payments may be earned by SofTech over the two-year period immediately following the completion of the transaction. In the first twelve month period, if the revenue exceeds $3.2 million the contingent payment would equal $75,000 plus 12.5% of any amount in excess of $3.275 million. The same formula applies for the second year except the revenue threshold for that period is $3.75 million. The transaction is subject to the approval of the Company’s shareholders. The Company intends to file a proxy statement with respect to a special meeting of the Company’s shareholders to seek shareholder approval for the transaction. The Company’s Board of Directors has unanimously approved the transaction and recommended that the Company’s shareholders vote in favor of the transaction.

INVESTMENT

FIDELITY ADVISOR GLOBAL REAL ESTATE FUND LAUNCHED New Fund Broadens Fidelity Sector Line-up to Meet Demand from Intermediary Market as Investors Seek Exposure to Growing Global Real Estate Securities Market

INVESTMENT

idelity Investments®, a leading global asset management firm with $2.1 trillion in managed assets, has recently announced the launch of the Fidelity Advisor Global Real Estate Fund (FWRAX). The new fund, which is available exclusively to financial advisors and other intermediaries, is designed to invest in U.S. and international real estate securities.

Managed by 24-year Fidelity veteran Steve Buller, Fidelity Advisor Global Real Estate Fund uses fundamental research and leverages Fidelity’s global research platform to invest in real estate companies around the world. Steve has been in the investment industry for 24 years since joining Fidelity in 1992. He has managed a global real estate strategy for the Canadian market for the last decade, the Fidelity Real Estate Investment Portfolio since 1998, and a U.S. REIT Fund for Japanese investors since 2003. Buller holds degrees in finance and German literature, as well as his Master of Science degree in finance from the University of Wisconsin-Madison. He is also a Chartered Financial Analyst (CFA) charter holder.

The company’s other real estate mutual funds and ETFs include Fidelity Advisor Real Estate Fund Class A (FHEAX), Fidelity Advisor Real Estate Income Fund Class A (FRINX), Fidelity Advisor International Real Estate Fund Class A (FIRAX), Fidelity MSCI Real Estate Index ETF (FREL), Fidelity Real Estate Index Fund (FRXIX), Fidelity Real Estate Investment Portfolio (FRESX), and Fidelity Select Construction and Housing Portfolio (FSHOX). Another key announcement from Fidelity recently is the availability of a new thought leadership paper, “Overlooked Opportunities in Global Real Estate.” The paper offers insight into global real estate asset class and examines potential benefits for investors. With roughly half of the real estate opportunity set being outside the U.S., the paper outlines key market differences between the U.S. and international real estate, such as management structures,

“The global listed real estate securities market is an area where we’ve seen strong client demand and increased investor focus,” said Buller. “Roughly half the opportunity set for real estate is located outside the U.S. and, given that real estate companies are inherently driven by local supply and demand drivers, a global approach can make sense in identifying the best opportunities around the world. “In addition to offering potential diversification benefits, many areas of the global real estate securities market are still in their infancy and may offer compelling secular or long-term, growth opportunities,” added Buller. Fidelity is a pioneer in sector investing, launching its first sector mutual funds more than 35 years ago. Today, the company manages more than $85 billion in sector and industry mutual fund and ETF assets. This is the first time that GICS, a four-level classification system developed by MSCI and Standard & Poor’s, has created a new sector since the framework was established in 1999. Fidelity is well positioned to continue its focus on the real estate sector with a global team of more than 15 real estate research and investment specialists. Fidelity has a long history of investing in listed real estate markets with more than $20 billion in assets under management across U.S., international and global mutual funds and institutional accounts.

REIT adoption, and listed real estate levels. Other recently released Fidelity real estate related papers, “The New GICS Framework: Understanding the Impact” and “REIT Stocks: An Underutilized Portfolio Diversifier,” outline the differences among the investable universes for the financial sector and the real estate sector. Fundamentally, with the addition of Fidelity Advisor Global Real Estate Fund, Fidelity Institutional Asset Management SM further strengthens its offering of investment strategies to help advisors construct and refine portfolios that can best meet the needs of their clients. The team also offers advisors a variety of investment tools, thought leadership, and shareholder-approved materials to help support their business.

LEADERSHIP

leadership

PENTA5 USA DRINKING IN THEIR SUCCESS Penta5 USA is about to commercialize a wide range of innovative products that it has been developing. R. Charles Murray, CEO, says that the Company is committed to harnessing science to create products that improve the quality of life.

CEO 100

Company name: PPi Technologies GROUP Contact: R. Charles Murray Address: 1712 Northgate Blvd., Sarasota, FL 34234 Email: rcmurray@ppitg.com Telephone: 941-359-6678

leadership

e utilize a number of products in our industry to operate effectively within our market. Our PGS high speed machines, with high efficiencies and low waste, our ControlSmart™ technology for watching the process whilst away from the plant, and PLUM, in the plant, for troubleshooting and production. My son, Stuart Murray, is the President of PGS Machinery and the other divisions. Rob Libera, my nephew, is the Sales Director.

very interesting companies; Penta5 is the only company of its type in the world!

“We also have a range of Redi-2-DrinQ Group beverages in pouches, which don’t leave a carbon footprint behind, and an FPL program with WTE (waste-to-energy) plants, and pouches that are made from USA gas, converted into films to make the pouch. My daughter, Sandra Murray-Christensen is Marketing VP and is handling the Redi-2DrinQ Group division expansion into liquor distribution.

“The biggest challenge I have faced throughout my career has been in retaining and developing staff beyond what they thought they could achieve in life. They are an important part of operations, and I am proud of the retention and development rate of this company.”

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“Penta5 USA, the wellness company where the ‘package is the product’. Our MosquitoPaQ™ no-bite outdoor ZONE attractants use a pouch that provides a secure, no-bite ZONE around your home. The no-bite ANYTIME™ Lotion unique VialPaQ repellent allows you to carry protection with you at all times, so if you are outside and you encounter mosquitoes, you have an instant solution. We also offer HTWO Hydrogen water with an additional hydrogen atom, which increases energy in the body before and after exercise, and is packed in a side-gusset StandUp pouch. Another of my nephews, Jason Smith, is responsible for the Penta5 USA division. “As Chief Executive Officer, I am responsible for the PPi Technologies Group on the whole. I have been in this position for 20 years now, and had always aspired to have a company with several technologies and market segments.”

“In my experience, I have found that management by objective is a very efficient tool for managing staff. This means that my staff are given the task to do, and full trust is given to them to complete it; I do not use monthly reports. However, the moment that something goes wrong, we meet to discuss possible resolutions.

Mr. Murray is very proud of PPi Technologies Group, and of the industry leading innovations that they have developed. “Our innovation based strategy has led to a portfolio of 175+ patents, meaning we lead our category as innovators. We provide our clients with these solutions so that they too can lead their market segments. It is incredibly important in today’s environment to keep up to date technologically, because if you do not, you are almost planning the demise of your company. “We passionately follow the 28 market segments that we trade in, and ensure that we are part of new trends whenever possible. New technology releases from others ensures that our team is always thinking ahead, to what we can next develop to remain industry leaders.

We asked Mr. Murray more about his educational background and found out that he completed high school at the age of 17, before going to college on a part time basis to finish his degree as a Bachelor of Science. “My first job was with AECI, the world’s largest manufacturer of dynamite, as a chemical technician. After an explosion at the factory, however, I decided that I needed a change. I spent 15 years with SAB as Packaging Manager, and left there to join BarlowRand Nampak Division as Marketing Director at their new glass works. In the interim, my visa was approved for entry into the USA, and this lead to my present career, running three

“I believe that to be a successful business leader, one needs to instill a trust and a vision for your staff and family to believe in; without this culture and without this vision, you cannot be successful. I am a very handson manager, and walk through the plant daily. I am also involved in all R&D, and meet customers that visit as often as possible.” Thinking about the future, Mr. Murray plans to ensure that the PGS Machine division remains the industry leader and continues to innovate, and to develop 1,000 per minute plus pouch filling and sealing machines in a total system with end-of-line machinery. “In the other part of our Group, we have two other divisions, each one with a different focus. Our Redi-2-DrinQ Group liquor distribution mission is to increase sales of low alcohol and redi-2-drinq alcohol products, whilst under the clear culture of providing a safe, secure, sustainable pouch and product experience. “The new Penta5 USA LLC Wellness Division, which works closely with the PGS machine group, also contract packs for the Redi-2DrinQ Group, offers products that will have a profound effect on human health and well-being. The customers of Penta5 USA LLC operate in five market segments, and are offered 20 unique patented products from us, focused on the wellbeing of humans and pets. This company will be a dynamo, RTO, and will go public in the next eight weeks.”

Leadership

LEADING THE WAY IN DEFENSE TECHNOLOGY Vykin Corporation is a Florida based veteran-owned small business which combines expertise with innovation to produce successful solutions. We caught up with CEO Ed Bachl to learn more about the firm and how its dedication to excellence the real secret behind its success.

Company: Vykin Corporation Phone: (888) 809-0025 Fax: (866) 535-7954 Email: contact@vykincorp.com Website: www.vykincorp.com

leadership ykin Corporation specializes in Information Technology (IT) and Operational Intelligence within the Defense, Federal, and Intelligence Community market spaces. Headquartered in Tampa, Florida with offices in Reston, Virginia, Vykin currently provides IT, Cybersecurity, All Source and Geospatial Analysis support to defense customer’s world-wide. Vykin’s global presence includes eight African, European, and Middle Eastern countries. Ed explains how the firm aims to offer the very highest quality solutions which meet client’s individual needs.

“By delivering custom solutions, Vykin allows our customers to manage and control their entire information sphere. From our first contracts as the sole IT provider to Global Linguist Solutions in Iraq and on DIA’s Defense Counter Terrorism Center (DCTC) effort, we have continued to bring a track record of success in supporting IT and intelligence operations. Whether fielding and maintaining critical architectures or providing world-class analytical support, Vykin ensures our customers achieve maximum value from their investments worldwide.” Many of the firm’s staff, including Ed, are soldiers , sailors and airman whose experience

is extremely valuable to the company and its clients. Ed outlines his own personal experience, and how he came to be CEO of this dynamic and innovative company. “Personally, I graduated from college and went to straight into the military. My first role was leading a group of 25 or so people in a deployable engineering unit. I was fortunate enough to be sent overseas and had the chance to work all over Europe and the Middle East in a variety of leadership roles. From the military I worked as a government civilian overseas eventually transitioning to work corporately for several large defense businesses before joining Vykin. Originally, I wanted to become a teacher and high school sports coach after I left the military, however my path led me to Vykin and I became CEO around six years ago. “My main role as CEO is to put practices in place that ensure we have the corporate culture we want. Whilst I cannot dictate culture what I can do is work hard to make sure that the things that enable a good one stay in place. I also set the overall strategy that provides sustainable growth and linking that back into the operational day to day running of the company.”

In his final comments Ed is keen to expand the business and build upon its current success for the betterment of his staff, who are, ultimately, the true reason for the firm’s achievements. “Moving forward, my plan is to grow the business to a point where it is large enough where everyone is able to achieve their career goals with opportunities by staying with us their whole career. In five years’ time I would like to be leading a much bigger and more capable Vykin, and I am excited for the opportunities this aim will bring. “Overall I try to hire the best and most talented people I know and trust, tell them what we want Vykin to be and let them go. I believe if you can get people with talent and heart on your team the rest always takes care of itself. Our key principles are to be accountable, be a good teammate, have fun and win. I have always been fortunate to have people work for me who are extremely competent, capable and experienced, and I would like to thank my business partners, our senior leadership team and the rest of the operational staff for the hard work and dedication they have provided which has made Vykin the company it is today.”

CEO 100

leadership

RIVADA MERCURY APPOINTS FORMER SPRINT WHOLESALE EXECUTIVES Four senior executives to apply unparalleled experience to developing first wholesale wireless network

leadership

ivada Mercury has announced the appointments of four former Sprint executives to its senior leadership team. Pierre Elisseeff, Peter Campbell, Bill Esrey, and Todd Rowley bring a track record of wholesale-market and operational success to Rivada Mercury.

deals and working with the business units to develop strategic direction and new business models and opportunities. He has also led Sprint’s strategic efforts to develop and execute a rural LTE coverage strategy through partnerships with rural and regional carriers across the country.

Rivada’s Open Access Wireless Marketplace allows bandwidth to be bought, sold, and traded at the wholesale level, lowering barriers to entry into wireless and ensuring that no mobile network capacity is wasted. Rivada’s efficient, transparent approach is made possible by the company’s patented Dynamic Spectrum Arbitrage (DSA) technology, which allows buyers to acquire wireless bandwidth for a specific period of time in a specific location. Having built a successful wholesale business at Sprint, Rivada Networks’ new hires will leverage the company’s technological advances to transform the mobile broadband industry. Elisseeff is Rivada Mercury’s chief financial officer. He was previously vice president and wholesale business unit CFO at Sprint, where he successively oversaw the Enterprise/Wholesale and Postpaid Consumer businesses.

The appointments follow the recent announcement that former Sprint CFO Joe Euteneuer joined Rivada Mercury as CEO. Rivada Mercury is the company formed by Rivada Networks, Fujitsu, the Harris Corporation, Nokia and Black & Veatch to offer to build out FirstNet’s nationwide publicsafety broadband network. Euteneuer also serves as co-CEO of Rivada Networks.

Campbell will join Rivada Mercury as chief information officer. He has more than 30 years of experience in the telecommunications sector, and joins Rivada after holding the same post at Sprint, where he recently led the deployment of OSS and BSS systems in support of Sprint’s multi-billion-dollar National US LTE Network Upgrade covering tens of thousands of cell sites.

Rivada Mercury CEO Joseph J. Euteneuer added his comments on the appointments.

Esrey joins Rivada Mercury as senior vice president of wholesale and business development. Bill has more than 20 years of senior management experience in sales, operations, product management, marketing, strategy and customer management. Before joining Rivada, Bill was with Sprint where he was responsible for the growth and retention of Sprint’s largest business customers selling cloud, wireline, wireless, M2M and various mobility applications. He served in Sprint’s Global Wholesale organization as vice president of operations, product, marketing and global sales. Bill brings over 27 years of experience in the telecom industry working for Sprint, Ameritech, and CentelCorporations. Rowley joins Rivada Mercury as senior vice president of business development. He most recently spent the past 16 years serving as vice president of business development at Sprint. There he was responsible for leading certain strategic partnering and commercial

Commenting on the appointments, Rivada Networks Co-CEO and Executive Chairman Declan Ganley said: “Rivada is building the best wholesale and network operations team in the industry as we move to disrupt the way wireless works. Pierre, Peter, Bill and Todd are second to none at what they do. I look forward to working them as Rivada drives the commoditization of mobile bandwidth.”

“I am delighted to welcome Pierre, Peter, Bill, and Todd to the team here at Rivada Networks. I consider myself privileged to have worked alongside these four leaders at Sprint, and I am certain that the peerless leadership and experience they bring will serve Rivada Networks well as we continue to expand our capabilities and team. “Rivada is working with its partners to deliver a solution that will power a purpose-built, reliable, secure, resilient, dedicated and selffinancing public safety network to America’s first responders. This mission, which only Rivada’s patented Open Access Wireless Marketplace for excess bandwidth can truly enable, is an idea that Peter, Bill, Todd and Pierre have completely embraced. I am looking forward to reuniting with them, as we continue to build the strongest possible team here at Rivada Networks.” Rivada Mercury CFO Pierre Elisseeff stated: “The transformational idea of applying a dynamic, transparent pricing model to wireless bandwidth will call for an equal measure of financial ingenuity. I’m thrilled to help spearhead Rivada Networks’ approach to financing this revolutionary wireless offering.”

The firm’s CIO new Peter Campbell was enthusiastic about his new role and keen to join such a dynamic business. “I am tremendously excited by the opportunity to join Rivada at this critical stage in its growth, and look forward to joining Joe and his team at Rivada Networks. Great businesses are built by great people, processes and systems. Rivada has the people and the technology to transform wireless. This is an exciting moment in this industry, and I am very proud to be part of building a great new player in the wireless business.” Equally, the firm’s new SVP Bill Esrey was proud of his new role. “Rivada Networks’ technology, and its vision for how that technology will change the face of the wireless industry, grabbed my attention immediately. When this opportunity became available, I did not hesitate. I am delighted to join Joe and his team, and look forward to the challenge and the opportunities ahead.” Finally, Rivada Mercury SVP Todd Rowley expressed his pride at joining the firm. “I am honored to join Rivada Networks and eager to get to work. What Rivada offers this industry is unique and timely. The opportunities the Open Access Wireless Marketplace will provide to not just public safety, but the industry at large, are almost too great to be fully understood at this time. This is a fascinating and, for me, unmissable opportunity to work with some of the most innovative and visionary people in the wireless industry, and at the same time to help deliver a pioneering and sustainable solution to America’s first responders.” Ultimately, Rivada Networks is a leading designer, integrator and operator of wireless, interoperable communications networks, and these new appointments highlight the firm’s continued success. The firm’s technology, Dynamic Spectrum Arbitrage-Tiered Priority Access (DSATPA), allows wireless broadband capacity to be dynamically bought and sold in a fully competitive on demand process to competing commercial entities. DSATPA is a game changer for the way in which spectrum is consumed, maximizing the efficiency of radio spectrum bandwidth and unlocking the potential for more extensive, higher capacity broadband networks.

MARKETING & PR

Marketing & PR

ALLISON+PARTNERS CREATES NEW MARKETING TOOL TO DEFINE EFFECTIVE INFLUENCERS Allison+Partners defines what it means to be an effective influencer with launch of “Influence Impact Score”. The launch of a new scoring system, developed in conjunction with data scientists and mathematicians, ranks most influential American gold medal.

Marketing & PR

lobal marketing communications firm Allison+Partners has created a proprietary scoring system, developed in conjunction with data scientists and mathematicians, to measure the potential impact influencers can have on consumer decision-making. To harness the power of influence effectively, one must first understand the potential influencers have to make an impact. Allison+Partners worked in conjunction with data scientists and mathematicians to develop a proprietary scoring system to evaluate and measure the potential impact influencers can have on consumer decision making.

The firm, an MDC Partners company, is a global communications firm driven by a collaborative approach to innovation and creativity. Allison+Partners is organized around seven practices: consumer marketing; corporate; global China; health and wellness; public affairs; social impact; and technology, with has offices in San Francisco, New York, London, Tokyo, Hong Kong, Bangkok, Beijing, Shanghai, Chengdu, Paris, Lyon, Berlin, Munich, Singapore, Chicago, Boston, Washington D.C., Silicon Valley, Seattle, Dallas, Los Angeles, Atlanta, Phoenix, Portland and San Diego. The agency also has a network and deep affiliations with firms worldwide through MDC Partners, a progressive marketing and communications network, championing the most innovative entrepreneurial talent.

The score takes into account three key factors: • Reach: a multi-point quantitative indicator of an individual’s personal network and includes the number of channels they utilize to communicate a message and/or narrative.

their engagement metrics,” said Corey Martin, managing director, consumer marketing at Allison+Partners. “This allows Allison+Partners to determine the most impactful influencers for brands, whether they are a journalist, celebrity, politician or PTA member.”

•

Authenticity: the qualitative evaluation of bias, or lack thereof, and an assessment of original content. It is a multi-point determination of the credibility of the source and quality of content.

•

Power: the X-factor that relates directly to net potential impact based on a number of variables, ultimately determining strength and expertise. It is an evaluation of quality and the cascade of influence from one influencer to another. It has a premium value attached to it.

While the new scoring system is already being implemented with clients, the agency is officially launching the ‘Influence Impact Score’ by identifying which top-of-thepodium athletes from the summer games hold the greatest potential for influence. Allison+Partners has released the results in a new report, “The Golden Influencers: A Ranking of the Summer Games Most Influential American Athletes.” The findings can be used by brands seeking to understand the potential effectiveness of America’s top athletes.

This approach is grounded in the belief that anyone who has the ability to carry a brand’s message, regardless of channel, is an influencer and someone who warrants engaging. “We’ve developed a data-driven solution to influencer identification that includes digital and offline sources, and evaluates influencers with variables beyond just

The new scoring system goes beyond digital and social channels to allow marketers to more effectively target those who activate and inspire others throughout the process of consideration, purchase or advocacy. The new measure is expressed with the equation (Reach + Authenticity) x Power. The Influence Impact Score is based on proprietary data from Allison+Partners’ 2016 Influence Impact Report, which uncovered which channels influence consumers the most. Developed to identify, qualify and rank influencers based on potential impact, the Influence Impact Score is used as both a diagnostic tool for evaluating existing programs and a means to benchmark the effectiveness of future influencer relations programs. At the core of the efforts is a holistic view of managing media and influencer relations programs called Influence 360.

Alongside this, Allison+Partners’ inaugural Influence Impact Report explores how influence works within this complex environment and offers new insight into which voices are the most important for brands to activate. The study reveals that influence is more than the effect media and digital influencers have on consumers, or a one-way channel to deliver information. In fact, influence only begins when consumers make a decision to move toward purchase.

ACCOUNTING

accounting

COLONY AMERICAN FINANCE APPROACHES $2 BILLION IN LOAN ORIGINATIONS As part of strategy the firm adds three strategic hires to support growth across sales, marketing and finance

accounting

olony American Finance (“CAF”) has announced several recent strategic hires to support continued growth across product lines as it approaches $2 billion in originations. Grace Soueidan joined CAF as Senior Vice President of Single Asset Lending; Tuan Pham is Senior Vice President of Marketing; and Fred Mahintorabi is Vice President of Finance.

Colony American Finance is the leader in term financing for single family rental portfolios and acquisition financing for both value-add investors and buy-andhold investors in the single family investor market. “As we close in on another strategic originations milestone, we are extremely pleased to announce the hiring of three new members of the senior management team,” said Beth O’Brien, Chief Executive Officer of CAF. “Grace, Tuan and Fred will be integral in helping us drive and manage our continued growth. We are witnessing steadily increasing demand for acquisition capital and long-term financing among non-institutional investors in single family homes, and we look forward to supporting that demand through ongoing growth within the company.” Soueidan will be based at CAF’s offices in Los Angeles. Pham and Mahintorabi will be based at CAF’s Irvine offices. More about the three recent hires: Ms. Soueidan has over 20 years of experience leading teams in the commercial, construction and single family rental mortgage space. She is responsible for all aspects of single asset sales, including retail, wholesale and correspondent channels. She also manages the day-today operations for the single asset business line. Immediately prior to joining Colony American Finance, Ms. Soueidan was Senior Vice President of rental property financing at FirstKey Lending. Other prior positions include Chief Operating Officer at Peak Corporate Network and Chief Lending Officer at IndyMac Bank.

com, a rapidly growing marketplace lender. Prior to that, he led the marketing team at Strategic Storage Trust, a successful billiondollar REIT. He also helped publicly-traded CB Richard Ellis solidify its leading position atop the commercial real estate space. Fred Mahintorabi, also joins as Vice President of Finance. Mr. Mahintorabi has extensive leadership experience in finance, including 20 years in publicly held banks, specialty finance companies and private mortgage lenders. He will be responsible for enhancing the financial planning and analysis function, leveraging his skills in balance sheet planning, performance measurement, and analytical reporting. Prior to this role, Mr. Mahintorabi was Executive Vice President of Finance at Banc of California, leading the development of their corporate finance function in a fast-growth and transactionoriented public company setting. His previous experience also includes senior finance roles at Carrington Mortgage Holdings and CapitalSource Bank. “We are very excited to have Grace, Tuan and Fred join our senior executive team. They each bring a tremendous amount of energy and expertise to their respective roles at CAF, and we look forward to having them help us further expand our rapidly growing platform. Each has worked in start-

The firm also adds Tuan Pham. as Senior Vice President of Marketing. Mr. Pham is a data-centric and multi-dimensional marketing leader, hired to grow and develop the marketing team. For nearly two decades, Mr. Pham has managed marketing teams, channels, and budgets for a diversity of brands, from young startups to Fortune 100 companies. Previously, Mr. Pham was Vice President of Marketing at RealtyMogul.

up companies and large scale industry participants. It is this unique combination that will help us to continue driving growth at CAF,” said Ryan McBride, Chief Operating Officer. CAF has issued loans across 16,000 properties to more than 1,200 investors in 42 states, including California, Georgia, Florida and Texas. CAF specializes in loans to smaller-scale investors in the market, with an average loan size of just over $2 million. This is an exciting time for Colony American Finance, a specialty finance company that provides a range of debt products to residential real estate investors. The company offers portfolio and single asset term loans for stabilized rental properties as well as short term credit lines for acquisitions. CAF was founded in 2014 to finance single family, town home, condo and small multifamily properties for customers nationwide. Its products are tailor-made for investors and it provides attractive rates, rapid timelines and closing certainty. The company works directly with borrowers as well as with brokers and correspondent partners.

ACCOUNTING

CSIM LAUNCHES NEW SUIT OF FUNDS WITH FOCUS ON RETIREMENT Schwab launches target date mutual funds constructed with Schwab ETFsâ&#x201E;¢ and priced at new industry low

ACCOUNTING

ounded in 1989, Charles Schwab Investment Management, Inc. (CSIM), a subsidiary of The Charles Schwab Corporation, is one of the nation’s largest asset management companies, with more than $280 billion in assets under management as of 6/30/16. It is among the country’s largest money market fund managers and is the third-largest provider of index mutual funds. CSIM currently manages 88 mutual funds, in addition to two separate account model portfolios and 21 ETF offerings, and provides non-discretionary advisory services to the Charles Schwab Bank Collective Trust Funds.

The firm, which is also a leader in both target date funds (TDFs) and exchange-traded funds (ETFs), has just announced the launch of Schwab Target Index Funds – a new series of index-based target date mutual funds constructed with low-cost Schwab ETFs™ as underlying investments. The new funds are the lowest-cost target date mutual funds available to employer-sponsored retirement plans, with an across-the-board expense ratio of just eight basis points (0.08%) and no minimum investment requirements regardless of plan size. Until now, receiving the most competitive pricing on target date funds could require a $100 million minimum investment or more from retirement plans. Outside of retirement plans, Schwab Target Index Funds are also among the lowest-cost target date mutual funds available to individual investors at 13 basis points (0.13%) with only a $100 minimum investment. The new series includes funds with target retirement dates between 2010 and 2060 in five-year increments.

Schwab Target Index Funds are an important addition to Schwab’s well-established TDF suite, first launched in 2002, which includes mutual funds and collective trust funds, open architecture construction and active and passive strategies. “Today marks an important day of democratization for employers, retirement plan participants and self-directed individual investors,” said Marie Chandoha, president and chief executive officer of Charles Schwab Investment Management. “With Schwab Target Index Funds, every retirement plan gets the same low price with no investment minimums. That means plan participants no longer have to pay for a more expensive target date fund just because they work at a smaller company. On the retail side, we’re proud to offer individual investors a professionally managed retirement solution at an exceptionally low price. As the latest example of Schwab’s long history of driving down costs, these new funds are important milestones for our industry, and great news for retirement savers.” The underlying assets in Schwab Target Index Funds are primarily Schwab’s market-cap index ETFs, each of which has the lowest operating expenses in its respective Lipper category2. It is the result of this construction that allows CSIM to offer the new funds at such low prices. The impact of keeping expenses down is enormous, especially for products designed to be held over a long period of time. To demonstrate that point, CSIM has released a short motion graphic illustrating how lower fees alone can mean a significant increase in savings at retirement. Retirement

plan

participants

appear

understand the impact of cost. New data from Schwab finds fees are top of mind when workers choose to invest in their plan’s TDFs, second in importance only to the fund’s 5-year performance record3. “At a time when some asset managers are inundating investors with confusing, complex products, we’re experiencing greater demand for our straightforward, transparent products that deliver great value on their own or with professional management built in,” said Chandoha. “Schwab ETFs function as key ingredients we draw on to develop affordable managed solutions like Schwab Target Index Funds. We think this is uniquely powerful and relevant against the backdrop of changing client expectations.” The asset allocations in Schwab Target Index Funds are adjusted annually and become more conservative over time according to a predetermined “glidepath.” This reflects both the need for reduced investment risk as retirement approaches and the need for income after retiring. Since CSIM launched its first set of target date funds in 2002, all Schwab TDFs, including this new series, have used a consistent glidepath approach that continues not just to – but through – the anticipated retirement date. At its starting point, the glidepath for the longest-range fund (Schwab Target 2060 Index Fund), begins with an asset mix of approximately 95% equity, 5% fixed income, cash and cash equivalents. At their target retirement dates, each fund reaches approximately 40% equity, 60% fixed income, cash and cash equivalents. Each fund then continues reducing its equity allocation for an additional twenty years to reach its most conservative and final allocation of approximately 25% equity, 75% fixed income, cash and cash equivalents. “Our new Schwab Target Index Funds provide automatic diversification and ongoing professional management at remarkably low prices,” said Jake Gilliam, senior multi-asset class portfolio strategist at CSIM. “Coupled with our long track record, we believe these new funds will have strong appeal to employers, retirement plan participants and individual investors.” Schwab also offers TDFs as collective trust funds (CTFs), and makes them available exclusively to 401(k) plans and other qualified retirement plans through Charles Schwab Bank. Among them are Schwab Indexed Retirement Trust Funds™ (SIRT), which offer passive,

CORPORATE GOVERNANCE

corporate governance

JANET YELLEN AT JACKSON HOLE: THE MARKETS REACT Economist and Chair of the Board of Governors for the Federal Reserve System Janet Yellen set to chair conference on how markets will implement the Federal Reserveâ&#x20AC;&#x2122;s statutory goals of maximum employment and price stability as it nears the limit of this vital policy

corporate governance

he US economy is nearing the Federal Reserve’s statutory goals of maximum employment and price stability. At this important juncture, central banks around the world turn once more to the USA, in particular to the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming.

On August 26, a symposium sponsored by the FRB, entitled “Designing Resilient Monetary Policy Frameworks for the Future”, spelled out the nitty-gritty details of implementing policy in financial markets, and how that policy would affect the economy, both at state and national level. Chaired by Janet Yellen, economist and Chair of the Board of Governors for the Federal Reserve System, this seminal event has triggered an instant reaction across global markets. Having stated that the case for an interest hike has strengthened, the FTSE 100 turned positive, with the British Pound Sterling steadying above $1.32. By close of play, DAX were also up by 0.6 per cent, CAC 40 by 0.98 per cent and IBEX by 0.75 per cent.

While the international reaction to the speech has been a positive one, the reaction from within the States has ranged from lukewarm to sceptical. With second-quarter GDP in the USA revised slightly down from its original expectations, questions have been raised as to the points made at Wyoming Hole, particularly centring around Janet Yellen. Viktor Nossek, Director of Research at WisdomTree Europe, said: “Jackson Hole has done nothing to trigger a rate hike in the US. While Janet Yellen has said the case for an increase in the federal funds rate has “strengthened”, demand-led data spurring inflation – which has been one of the causes of the delay to further hikes – continues to be soft and tepid, and therefore there is little reason for the Fed to act in September. “There is no longer robust economic growth or population growth to support tighter monetary policy action in the West and this increases the stakes when it comes to plotting the route back to normalisation through setting higher rates of inflation and interest rates. Indeed, with policy

rates so low, the weak growth figure – which today was revised down to 1.1% for Q2 - means the downside risk of hiking too early is simply too great. “What needs to change to prompt a hike? The missing driver for sustainable inflation is labour market tightening and that hasn’t happened because wage growth - at 2.6% yoy - is still falling short of the levels seen prior to the financial crisis when it was well above 3% yoy. Until the labour market in the US turns red-hot, the risk of inflation weakening following a rate hike would put the Fed in the difficult position of having to fight it with less room for policy easing. It is therefore better to delay and risk high inflation that leads to subsequent further rate hikes than pre-emptively trying to contain current price pressures that so far have posed little to no risk to the US economy. “With Kuroda, the head of the Bank of Japan, also present, the meeting at Jackson Hole concluded with one important lesson from Japan: It is easier to fight inflation than it is to fight deflation.”

SUPPORT SERVICES & TECH

Support services & tech

DEBIT BEGINS ITS SHIFT TO MORE SECURE TYPES OF TRANSACTIONS The 2016 debit issuer study details the evolution of chip cards and mobile payments

Support services & tech

he 2016 Debit Issuer Study, commissioned by PULSE, takes stock of the debit industry’s shift to chip (EMV) cards and mobile payments. As a result of the October 2015 liability shift, financial institutions have begun their chip debit card roll-out in earnest with optimism about the technology’s potential for enhancing the security of payment card transactions.

The study also details financial institutions’ move to support more mobile payment options as competition grows among mobile wallet providers. “In this sea of change, core debit performance metrics remain strong, with debit use growing with each installment of the study,” said Steve Sievert, Executive Vice President of Marketing and Communications for PULSE. “This year’s results provide key facts behind the shift to chip debit cards and mobile payments, two of the most significant developments within the payments industry.” Issuers rapidly upgrading to chip technology The October liability shift marked a key milestone for issuers’ transition to chip card technology. By the end of 2015, almost half (45%) of issuers had begun issuing chip debit cards, although this is much lower than the 90% of issuers that indicated in the prior year’s study that they expected to have chip cards in the market by the end of 2015. Based upon issuers’ actual card migration, the study estimates that one-third of all debit cards featured a chip by year-end 2015. The study forecasts that approximately three in four debit cards will be chip-enabled by year-end 2016. Chip usage is limited, growth surging Largely due to the slower-than-anticipated pace of merchant adoption, the use of chip cards at chip-enabled terminals remains limited. Even among consumers using chip debit cards, only 11% of their chip card transactions were at chip-enabled terminals. The remaining 89% were processed as traditional magnetic stripe or card-not-present transactions, such as online purchases. When taking into consideration all debit card transactions, chip debit transactions (chip cards used at chip-enabled terminals) accounted for only 4% of total debit transactions.

Nonetheless, chip debit transactions are growing at triple-digit rates year-over-year. Issuers view the shift to chip debit cards as a critical step toward increasing the security of card-based transactions and reducing fraud loss rates. Mobile payments gaining traction but usage is limited More financial institutions are supporting the ability to pay at the point of sale with a mobile phone. By the end of 2015, twothirds of issuers had debit cards eligible to be loaded into a mobile wallet. The previous Debit Issuer Study found fewer than onethird had that capability, signaling a yearover-year increase of more than 100%. The 2016 Debit Issuer Study notes that mobile wallets have greater adoption with financial institutions than with cardholders. Apple Pay dominates the market, with approximately 3.5% of eligible debit cards loaded, compared to 0.2% each for Samsung Pay and Android Pay. Cardholder usage was higher for Samsung Pay and Android Pay in January 2016, averaging 1.8 and 1.7 transactions per enrolled card per month, respectively, compared to 0.7 transactions for Apple Pay. Combined, the three “Pays” generated approximately 8 million debit transactions per month at that time. “Despite limited usage, mobile payments have now become a table-stakes offering for financial institutions,” said Tony Hayes, a partner at Oliver Wyman who co-led the study. “Issuers foresee a near-term boom in mobile payments – nearly half of issuers project mobile payments to make up over 25% of debit transactions in five years’ time. That would make mobile a primary payment method.” Debit continues to grow and maintain topof-wallet status Issuers saw sustained growth in penetration, activation and usage metrics in 2015. On consumer debit cards, transactions per active card increased 4% year-over-year to 22.1 per month. The penetration rate ticked up slightly from 76% to 77%. Business debit also saw similar gains, with transactions per active card per month growing from 14.5 in 2013 to 15.0 in 2015.

Fraud continues to challenge issuers Data breaches remained the most common source of fraud but accounted for 33% of fraud losses in 2015, a decline from 57% in 2014. This was offset by an almost threefold increase in skimming – from 7% to 20% of all fraud losses. The increased skimming – and related rise of in-footprint fraud (i.e., fraud within a financial institution’s primary market, which requires more sophisticated techniques to mitigate) – led to a tripling of PIN POS fraud to $0.008 per transaction. By contrast, when a debit card is used without the added security of a PIN, the loss rate is three times higher, averaging $0.026 per transaction. “Issuers expect that broader adoption of chip cards, and the tokenization of transaction data that is tied to mobile payments, will help to mitigate against losses resulting from debit card fraud in the future,” said Jim Lerdal, PULSE Vice President of Fraud Operations. “It’s never been more important to have access to experts who can track fraud in real time, enabling rapid response and minimal impact on cardholders.” Ultimately, the 2016 Debit Issuer Study, which is the 11th installment in the study series and was conducted by Oliver Wyman, an independent management consulting firm, provides an objective fact base on debit card issuer performance and financial institutions’ outlook for the debit card business. Seventy-two financial institutions – including large banks, credit unions and community banks – participated in the study. Collectively, the participants issue approximately 153 million debit cards and operate about 77,000 ATMs. These cards represent approximately 48% of total U.S. debit transactions. The sample is representative of the U.S. debit market in terms of institution type, geography and debit network participation.

RISK MANAGEMENT

CORPORATE DIRECTORS IDENTIFY FOUR KEY REASONS FOR STOCK BUYBACK PROGRAMS IRRCi Report shows that buybacks are at highest level since financial crisis, with S&P 500 Companies repurchasing $166.3 billion of shares in first quarter of 2016

RISK MANAGEMENT

s large American public corporations repurchase company shares at historic rates, corporate directors cite four key reasons for buybacks: to return capital to shareholders; invest in the company’s shares; offset dilution from using equity as currency; and/or alter the company’s capital structure. The directors generally disagree with widespread criticism of corporate stock buybacks, and say that companies need to better disclose the reasons for undertaking buybacks.

These findings are showcased in a new report, Buybacks and the Board: Director Perspectives on the Share Repurchase Revolution, from the Investor Responsibility Research Center Institute (IRRCi) and Tapestry Networks. The research notes that Standard & Poor’s (S&P) 500 companies acquired $166.3 billion of their own shares in the first quarter of 2016, more than in any other quarter since the financial crisis. For the past nine quarters, more than 370 S&P 500 companies repurchased shares, and S&P 500 companies spent over $1.5 trillion on buybacks during the past three years. Between 2003 and 2013, S&P 500 companies doubled their spending on share repurchases and dividends. But, at the same time, companies cut spending on investments in new plants and equipment. “A trillion and a half dollars in buybacks over three years certainly returns capital to shareowners and reduces the number of shares outstanding. That’s why buybacks are popular,” says Jon Lukomnik, IRRCi executive director. “But, some view buybacks as financial engineering to juice short-term corporate performance at the expense of investments that would better grow companies and the economy over the long-term.” Lukomnik added, “Corporate board directors are charged with making sure buyback programs are well-designed and well-executed. However, there was little information available about how directors themselves analyzed buybacks. Not surprisingly, the research finds that directors believe they do a good job, but they also admit that they could do a better job disclosing the specific reasons for each buyback program to investors.” The Investor Responsibility Research Center Institute is a nonprofit research organization that funds academic and practitioner research enabling investors, policymakers, and other stakeholders to make data-driven decisions. IRRCi research covers a wide range of topics of interest to investors, is objective, unbiased, and disseminated widely.

“Decisions about capital return and allocation are among board members’ most important responsibilities,” says Richard Fields, report author and Tapestry Networks principal. “The 44 directors we interviewed take these decisions seriously to ensure share repurchases occur only when in the company’s best interest. But, we find that few companies effectively disclose the strategies and thinking behind buybacks. As a result, few companies get credit for the rigor of their buyback decision-making.” Tapestry Networks helps corporate leaders become more effective and more confident in carrying out the challenging task of governing and leading the world’s largest companies. The firm achieve this by bringing together nonexecutive directors, regulators and executives from North America and Europe, to learn from one another and to discuss their role. For well over a decade the firm’s cross-sector networks of audit committee chairs, compensation committee chairs, lead directors, and our networks of top leaders in banking, insurance and healthcare, have been advancing the state of the art of governance and leadership. The key findings of these two organisation’s’ report show that companies repurchase shares for four main reasons – to return capital to shareholders; invest in the company’s shares; offset dilution from using equity as currency; and/or alter the company’s capital structure. Directors define what constitutes a successful buyback program differently depending on the reason(s) the buybacks were initiated. Additionally, most directors disagree with criticisms of buyback programs. The two most common criticisms are that buybacks jeopardize corporate growth and that they lead to large, unjustified pay packages for executives. Directors, with few exceptions, say that their companies can afford both buybacks and adequate investment. Directors also reported

that buybacks do not unjustly enrich senior executives, as compensation plans are adjusted for buybacks. Another key finding of the report was that there is room to improve corporate disclosures about share repurchase programs. Few companies publicly disclose details about buyback decision-making and very few state the reasons for a specific buyback program. With regard to executive compensation, though a number of directors mentioned that their companies project how buyback activity will affect earnings per share and adjust targets accordingly, only 20 S&P 500 companies disclose that they do so. Alongside this, the report highlighted the fact that macroeconomic factors make share buybacks attractive. Monetary and fiscal policies and macroeconomic forces have encouraged repurchase programs. Many directors said that they would be unlikely to find enough good opportunities to invest all their companies’ available capital in today’s low- growth, lowinterest-rate environment, and that it was often better to return capital to shareholders than to hoard capital or invest in projects with lessthan-desired projected returns. Directors also said they tend to prefer buybacks to dividends because they believe a buyback program offers greater flexibility over time. Finally, the report showed that U.S. tax policies that discourage companies from repatriating foreign cash have also spurred buyback activity. The large build-up of capital in non-US affiliates means that companies have an emergency fund to draw upon should it become necessary. As a result, creditors offer very attractive loans to companies, meaning some corporations are able to engage in almost costless borrowing to fund buyback programs. To conduct this study on how companies make decisions about share repurchases, Tapestry

M&A

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MIDDLEFIELD BANC CORP. AND LIBERTY BANK, N.A. TO MERGE The deal increases Middlefieldâ&#x20AC;&#x2122;s asset base approximately 28% to $970 million, and is expected to be accretive to earnings in year one, meaning it could earn back of tangible book value dilution in less than four years

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iddlefield Banc Corp. the bank holding company for The Middlefield Banking Company, and Liberty Bank, N.A. has announced that Middlefield has entered into an Agreement and Plan of Reorganization with Liberty.

Under the terms of the Agreement, Liberty shareholders will have the option to receive either 1.1934 shares of MBCN stock or $37.96 in cash in addition to receiving a special dividend immediately prior to closing of approximately $3.13 a share. Based on the 20-day average stock price of MBCN as of July 26, 2016, the indicated transaction value would be approximately $40.8 million (cash consideration of approximately $20.0 million plus an indicated stock consideration of $16.6 million plus a $3.0 million special dividend plus $1.1 million paid to option holders). On a per share basis, the indicated value to Liberty shareholders is $41.09 for those receiving cash and $3.13 plus 1.1934 shares of MBCN for those receiving stock (together, $41.68 based on the 20-day average). In aggregate (subject to proration), 45% of Liberty’s shares of common stock will be converted into Middlefield’s common stock. “We are excited to announce this merger with Liberty, as both banks share common community banking values, compelling financial models, and outstanding management teams,” stated Thomas G. Caldwell, President and CEO of Middlefield. “Liberty’s strong management team and three

highly productive Northeast Ohio branches will enhance Middlefield’s growth opportunities. We are pleased to welcome Liberty’s customers to The Middlefield Banking Company family, while extending our reach to Cuyahoga and Summit Counties. As a community oriented bank, we believe customers in these markets will benefit from Middlefield’s customer focus and leading financial products. We look forward to a prosperous partnership with Liberty and creating value for our shareholders.” William Valerian, Chairman, President and CEO of Liberty stated, “Middlefield understands the value we place on our customers. Their leadership team and banking infrastructure create the perfect merger partner for Liberty. This merger will bring together two financially strong community banks with a long history of serving customers in Ohio. Collectively, we will serve the Northern Ohio market with the same dedication and attentiveness, while providing a broader range of products and increased lending capabilities. We are enhancing value for our shareholders, while building a compelling and growing community banking franchise.” Pursuant to the Agreement, William A. Valerian and Thomas W. Bevan, two current directors of Liberty, will be appointed to the Board of Directors of Middlefield. Simultaneously upon entering into the Agreement, Middlefield also entered into voting agreements with Liberty’s directors in which they agree to vote the Liberty common stock they own in favor of the Agreement.

Upon completion of the transaction and after adjusting for the special cash dividend paid to Liberty shareholders and purchase accounting, Middlefield will have approximately $970 million in total assets, approximately $820 million in total deposits, and 13 branches in the state of Ohio among a seven county operating footprint. Middlefield’s branch network will expand in the Cleveland MSA by adding Liberty’s three branches located in Beachwood, Twinsburg, and Solon. Middlefield expects the transaction to be accretive to earnings in year one and to earn back the tangible book value dilution created from the transaction in less than four years. After completion of the transaction, Middlefield anticipates it will remain well-capitalized. The transaction has been approved by the Boards of Directors of both Middlefield and Liberty. Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and the approval of both Middlefield’s shareholders and Liberty’s shareholders. Donnelly Penman & Partners, Inc. is serving as financial advisor to Middlefield Banc Corp. and Grady & Associates is serving as legal counsel to Middlefield on the transaction. Boenning & Scattergood, Inc. is serving as financial advisor to Liberty Bank, N.A. and Tucker Ellis LLP is serving as legal counsel to Liberty Bank, N.A. on the transaction.

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NEW DEAL SET TO SHAKE-UP NORTH AMERICAN PLASTICS MARKET Berry Plastics Group, Inc. announces agreement to acquire AEP Industries Inc.

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erry Plastics Group, Inc. and AEP Industries Inc. have entered into a definitive merger agreement under which Berry will acquire all of the outstanding shares of AEP in a cash and stock transaction. Aggregate consideration will be $765 million, including AEP’s net debt. The new deal adds highly complementary products and customers in North America, allows for significant cost savings opportunity with more than $50 million of annual cost synergies, and is accretive to adjusted net income and adjusted free cash flow, while deleveraging Berry’s balance sheet.

According to AEP, a number of benefits of the deal include: “Highly complementary fit: together we will be able to optimize complementary production capacities, reduce material and conversion costs, and better serve customers from an expanded North American footprint with a portfolio of products that is one of the most comprehensive in the industry. “Additionally, there are significant, clearly identifiable cost synergies: Berry expects to realize cost synergies of $50 million or more annually, in line with previous Berry acquisitions of a similar nature. Berry also expects to realize these cost savings through procurement initiatives, operational improvements, sharing of best practices, improved asset utilization, and logistics optimization across the combined plant network.

of Berry’s stock, the blended value of the merger consideration represented $109.12 per AEP share. AEP is a leading manufacturer of flexible plastic packaging films in North America. The firm manufactures and markets a diverse line of flexible plastic packaging products for consumer, industrial, and agricultural applications. Headquartered in Montvale, New Jersey, AEP operates 14 manufacturing facilities in the United States and Canada and has approximately 2,600 employees. For the four quarters ended April 2016, AEP generated net sales of $1.1 billion, net income of $39 million, and adjusted EBITDA of $103 million. “We respect and admire the impressive company Brendan Barba has built over the last 40 years and look forward to welcoming AEP employees into Berry’s organization,” said Jon Rich, Chairman and CEO of Berry Plastics. “AEP, together with Berry’s Engineered Materials Division, creates an impressive packaging film producer serving

“Finally, there are attractive transaction economics: the transaction is expected to be accretive to Berry’s adjusted net income and adjusted free cash flow by more than 10%, after expected synergies. On a pro forma basis, Berry’s four quarters ended June 2016 adjusted free cash flow would increase by approximately $85 million to $560 million. The transaction will be deleveraging to Berry’s balance sheet after synergies.” Each AEP shareholder will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration. Upon closing, AEP shareholders will own approximately 5% of Berry on a fully diluted basis. Based on Berry’s closing stock price on August 23, 2016, the date the exchange ratio was set, the blended value of the merger consideration represented $110 per AEP share. Based on yesterday’s closing price

the North American market. This unique combination offers the opportunity for significant value creation for Berry and AEP shareholders alike, as we realize procurement and operating cost savings across the two organizations.” J. Brendan Barba, AEP’s Chairman and CEO, commented, “We are excited to announce this compelling transaction with Berry, which delivers substantial value to our shareholders, while providing the opportunity to participate in the upside of the combination. We believe Berry is the right partner to expand our product portfolio to deliver high quality packaging films to even more customers around the world. Berry shares our commitment to teamwork and success, and we are confident our valued employees will benefit from the opportunities that come from being part of a larger company. We look forward to working with Berry to plan for a seamless integration for our customers and employees and to begin the next chapter in the company’s history.”

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I N T E R N A T I O N A L Richard Tyler - Best-Selling Author, Top Sales and Management Expert and Entrepreneur Richard Tyler International, Inc.® is one of the world’s top Sales Training and Management Consulting firms. Richard Tyler International, Inc.® has been profiled on national television, in articles, magazines and newspapers. Richard Tyler International, Inc.® has earned a worldwide reputation for delivering powerful sales education programs and management consulting services. Richard Tyler International, Inc.® teaches success philosophies and techniques in such areas as Sales, Leadership, Management, Customer Service and Quality Improvement. At the heart of Richard Tyler International, Inc.® is a group of proven professionals with extensive experience ranging from Fortune 100 companies to business start-ups. Our team can increase growth and sales for large corporations as well as , small to medium-sized businesses. We can help you to drive your business in a more profitable direction.

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