Middle Market Growth - October 2015

Growth MIDDLE MARKET

// OCTOBER 2015

PE’S NEW VIRTUAL REALITY: ONLINE DEAL SOURCING PLATFORMS A QUALIFIED OPINION: RICH KENNELLY, CHIEF EXECUTIVE OFFICER, CONNOTATE

IRI: CRAFTING A

CRYSTAL BALL

WITH CONSUMER SPENDING DATA

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

Big Data Equals Big Opportunity

T

his issue of the magazine is dedicated to some of the ways the middle market is capitalizing on the accelerated pace of data proliferation in our fast-moving information age.

The cover story focuses on IRI, a competitor to Nielsen and a once-

public company operating in the consumer research space. Taken private more than a decade ago, IRI is now firing on all cylinders following a majority capital investment in 2011 by New York-based private equity firm New Mountain Capital. To fuel expansion, the company, which already excels at researching how people spend money on consumer goods, is building out predictive analytics (read, figuring out what you’re going to buy before you actually buy it!).

In A Qualified Opinion, Rich Kennelly, CEO of Web information harvesting company Connotate, sheds light on some of the ways middle-market companies can make better use of the transactional information they collect on a day-to-day basis.

And it’s fitting to focus on the multitude of online deal sourcing platforms now serving the industry. It will be interesting to watch how middle-market investing—a handshake industry known for in-person networking—embraces digital sourcing and facilitation.

Speaking of face-to-face networking, many ACG members are heading to Amsterdam next month to partake in the third annual EuroGrowth® conference, a two-day event offering an inside track for international dealmaking. Back in the USA, it’s not too early to start thinking about warmer weather and the Big Easy, next year’s location for InterGrowth 2016 on May 2-4. The New Orleans conference will feature an incredible lineup of networking, education and recreation in one of the most culturally rich—and fun—destinations in the world. Registration opens in November.

To be sure, despite the sophistication of the virtual world, pressing the flesh is still important—whether negotiating deals or pushing middle-market issues to the forefront of the national agenda. That’s the main reason ACG is preparing to open a satellite office in Washington, D.C., this fall, marking a deepening commitment to legislative and regulatory matters. The move allows Amber Landis, vice president of public policy, proximity to make the voice of the middle market heard in the corridors of power.

Please enjoy this issue of MMG; in honor of the technology theme, I hope you’ll take advantage of our mobile app and read this issue on the go! //

MIDPOINTS RANDY SCHWIMMER // Founder and Publisher, The Lead Left

What’s Bugging You?

S

ay you’re driving along the highway in your brand spanking new Jeep Cherokee. It’s a bright sunny day. You’re going 65, maybe 70.

Listening to some Charlie Parker. Maybe headed to an ACG event.

Suddenly windshield wipers start flapping. The AC shuts off. Then so

does Charlie Parker. Accelerator starts racing. Steering wheel jerks out of your control. The Jeep veers sideways, headed into a ditch. Your life flashes before your eyes, including the life insurance policy you meant to buy. Worst of all, the last thing you hear before plunging off the road is the radio blaring Taylor Swift.

The latest Liam Neeson hijack thriller? Actually it’s similar to a car-hacking that made news in July. Two professional hackers named Miller and

BIO //

Valasek used a laptop to seize remote control of a Jeep and, yes, drive it

Randy Schwimmer is senior managing director and head of origination and capital markets at Churchill Asset Management LLC, a middle-market senior debt provider.

He is also founder/publisher of The Lead Left, a weekly newsletter about trends and deals in the capital markets.

into a ditch. The good news is that the driver was in on the experiment.

Cars are now “computers on wheels.” According to a KPMG study, new cars are equipped with as many as 50 little PCs operating millions of lines of code. Apparently that’s more than a Boeing 787.

Advanced models like Tesla get operating system updates directly online. This makes them particularly breach-prone. Chrysler’s Uconnect feature delivers smartphone-like capabilities—directing the car’s entertainment center, navigation and communication—and so was well-suited

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for cyberattack. Any black hat who can hack your IP address can autopilot your vehicle.

As consumers, we demand to be linked to our devices everywhere, 24/7. How systemic is the problem? At the urging of my periodontist, I just purchased an electric Oral-B. On page 10 of the operating manual, I read the following: “Connecting your toothbrush to your smartphone.”

The price of transportability is greater risk of invasion. As one cyber expert put it, “Connectedness begets vulnerability.” In a world where everything is wired, everything is hackable.

Continued on next page

MIDPOINTS RANDY SCHWIMMER // Founder and Publisher, The Lead Left “IN A WORLD WHERE EVERYTHING IS WIRED, EVERYTHING IS HACKABLE.”

Fighting cybercrime is a battle of wits between developers and hackers.

Big bucks are going to defenses against insidious bugs, viruses and malware. Black Hat USA 2015, the top security conference held in Las Vegas (where else?) showcased the latest strategies in the cyber arms race in a series of sessions: • “Can Your IaaS Workloads Take a Punch?” (The bad guys are winning. Learn how to implement fundamental security across all modern computer environments. All without breaking a sweat.)

• “Zero-Day Inferno: Aggressive Automated Privileged Identity Management for Cyberdefense” (How automated, aggressive PIM can stop intruders using zero-days.)

• “How Poorly Obfuscated Mobile App Code Leads to Vulnerable IoT Devices” (Will demonstrate reverse engineering and uncovering security flaws in mobile app code.)

Fear is certainly a motivating factor. One big bank CEO says only three things can take his firm down instantly: “Meteors, nuclear weapons and cybersecurity.” His cyber adviser calls the struggle against hackers “outrunning a really scary bear.”

As long as we elect to connect, this war will escalate. The genie of our wired society is out of the bottle, and we’ll just have to learn to live without secrets and with a sense of cyber insecurity.

Now if you’ll excuse me, I’ve got to go brush my teeth.

No help, please. //

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Growth MIDDLE MARKET

// OCTOBER 2015

Cover and above photos by Matthew Gilson

FEATURES

IRI’s Crystal Ball: Big Data Consumer research firm IRI is giving data about spending habits the 21st-century treatment. Backed by private equity firm New Mountain Capital, the Chicago-based company has doubled its revenue since 2010 by providing sophisticated analytics that help clients make informed decisions about sales, marketing and media buying.

Read more.

“WE’RE ABOUT GETTING MASSIVE DATA SETS, INTEGRATING THEM AND HAVING USEFUL INFORMATION. THAT IS SETTING US UP FOR OUR NEXT MAJOR GROWTH TRAJECTORY.” // ANDREW APPEL, CEO, IRI

PE’s New Virtual Reality: Online Deal Sourcing Platforms While still part of a relationshipdriven business, middle-market deals are increasingly being sourced through Web-based deal networks to enhance the efficiency of the process.

Read more.

TABLE OF CONTENTS

PRESIDENT & CEO

IN EVERY ISSUE

Gary LaBranche, FASAE, CAE glabranche@acg.org

Executive Summary

VICE PRESIDENT, COMMUNICATIONS & MARKETING

MidPoints

by Randy Schwimmer

Kristin Gomez kgomez@acg.org

Growth Economy

EDITOR-IN-CHIEF Deborah L. Cohen dcohen@acg.org

Face-to-Face Quick Takes B-Side The Ladder It’s the Small Things The Leadership

ASSOCIATE EDITOR

DEPARTMENTS

Kathryn Mulligan kmulligan@acg.org

THE ROUND

MANAGER, COMMUNICATIONS & MARKETING

• Watch for Unreported Middle-Market Breaches • Millennials by the Numbers Read more.

READ ONLINE Read additional content on the MMG website.

A QUALIFIED OPINION Rich Kennelly, Chief Executive Officer of Connotate, Explains Web Content Harvesting and How Companies Can Leverage Data Using the Internet.

Read more.

Larry Guthrie lguthrie@acg.org

VICE PRESIDENT, EVENTS & PARTNERSHIPS Christine Melendes, CAE cmelendes@acg.org

DIRECTOR, STRATEGIC DEVELOPMENT

ACG@WORK

Maggie Endres mendres@acg.org

• ACG Wisconsin’s Patio Series Promotes Summer Networking

BUSINESS DEVELOPMENT

• Connections, Knowledge and Motivation at Seattle Event • Technology Leader Sheds Light on Acquisitions at D.C. Breakfast Meeting

Albert Pereira apereira@acg.org Custom media services provided by Network Media Partners, Inc.

Read more.

2014 Association TRENDS All-Media Silver Award, Monthly Trade Publication 2014 Folio Eddie Digital Winner, Standalone Digital Magazine 2014 Apex Award, New Magazine, Journal & Tabloid

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

Read more.

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

“I am delighted that ACG is once again hosting EuroGrowth to help M&A professionals worldwide create cross-border opportunities–all in just two days.”

Pam Hendrickson, COO, The Riverside Company

1 6 – 1 7 NOV E MB E R 2 0 1 5 M Ö V E N PICK HOTE L AMS TE R DAM CITY CENT RE AMS TE R DAM, NE THE R LANDS

REGISTER THROUGH 11 NOVEMBER 2015 TO SAVE MORE THAN €240.

W W W. E U R O G R O W T H . O R G

#EUROGROWTH © 2015 Association for Corporate Growth. All Rights Reserved.

GROWTH ECONOMY THE IMPACT OF MIDDLE-MARKET PRIVATE EQUITY

VIRGINIA // 1995-2013 Virginia has seen tremendous jobs and sales growth driven by private equity-backed middle-market businesses, including a jobs growth rate more than three times that of other businesses in the state.

152.2% JOBS GROWTH IN PE-BACKED BUSINESSES

43% JOBS GROWTH IN ALL BUSINESSES

VA

31,477

+100+T 177.3%

SALES GROWTH IN PE-BACKED BUSINESSES

51.9%

ACG RICHMOND

JOBS CREATED BY PE-BACKED BUSINESSES

SALES GROWTH IN ALL BUSINESSES

See the impact of middle-market private equity on your state at GrowthEconomy.org.

JOBS GROWTH % BY SEGMENT 16.8%

SALES GROWTH % BY SEGMENT

MM Seg 1: $10-50M in sales

29.7%

8.8%

MM Seg 2: $50-100M in sales

8.9% 31.8%

0%

Small: Less than $10M in sales

4.9% 42.6%

56.5% 0%

KEY

MM Seg 3: $100M-1B in sales Large: More than $1B in sales

All stats are from PitchBook and the Business Dynamics Research Consortium at the University of Wisconsin-Extension.

FACE-TO-FACE CONNECT TO YOUR NEXT DEAL

REGISTER TODAY // Take advantage of discounted advance pricing at EuroGrowth.org.

Don’t Miss EuroGrowth 2015 Next Month in Amsterdam

Global M&A Goes Dutch EuroGrowth® 2015, the go-to cross-border dealmaking conference for middle-market professionals, is fast approaching. Held Nov. 16-17 at the Mövenpick Hotel Amsterdam City Centre, the event combines highly efficient networking and deal flow with the latest intelligence on industry trends and best practices.

Join the gathering of 200 private equity professionals, intermediaries, lenders, advisers, corporate executives and development officers from across the globe for an event that consistently yields tangible results. “EuroGrowth is the only forum for middle-market executives with global companies to meet, develop and deepen longstanding relationships,” said Martin Okner, managing director of global strategic advisory firm SHM Corporate Navigators and chairman of ACG New York. “Last year, two of our clients realized crossborder joint ventures because of the relationships formed at EuroGrowth.”

Continued on next page

FACE-TO-FACE CONNECT TO YOUR NEXT DEAL

Watch 3i’s Menno Antal discuss his firm’s acquisition of Action. Video courtesy of Privcap.

In addition, attendees have access to topical, relevant analyses of what’s happening in the world of global M&A. Keynote speaker Menno Antal, managing partner and cohead of private equity with investment firm 3i, will share three powerful stories of his firm’s investment success in Europe.

EuroGrowth panel sessions will focus on a variety of topics, including: •• Energy Update: Emerging Markets, Geopolitical Concerns and the Impact on Private

Equity Investing •• European IPO Roundtable: Navigating the Current Marketplace •• Cybersecurity: Issues & Opportunities for Investment in the Middle Market •• Evolution in the European Lending Landscape •• And more To view the latest schedule, along with participating firms and attendees, and to register

today, visit EuroGrowth.org. Plus, you can still save more than €240 with special advance pricing available through Nov. 11. //

FACE-TO-FACE CONNECT TO YOUR NEXT DEAL

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

ACG Orange County’s 20th Annual Awards Gala at the Island Hotel Newport Beach Left: Outgoing ACG Orange County Board President J. Michael Issa (right) and event co-chair Samantha McDermott onstage at the sold-out event, which honored the highest performing companies in the region. Right: Issa addressed the crowd from the podium.

ACG Calgary Chapter View Calendar

ACG Central Texas Chapter View Calendar

ACG Dallas/Fort Worth Chapter View Calendar

ACG Denver Chapter View Calendar

ACG Detroit Chapter View Calendar

ACG Holland Chapter View Calendar

ACG Los Angeles Chapter View Calendar

ACG New York Chapter View Calendar

ACG Orange County Chapter View Calendar

ACG Philadelphia Chapter View Calendar

ACG South Florida Chapter View Calendar

ACG St. Louis Chapter View Calendar

ACG Toronto Chapter View Calendar

ACG Wisconsin Chapter View Calendar

Had a newsworthy chapter event?

Send a 150to 200-word summary and high-resolution photos to Associate Editor Kathryn Mulligan.

H O U S I N G A N D R E G I S T R AT I O N O PE N S I N N OV E M B E R .

W W W. I N T E R G R O W T H . O R G

#INTERGROWTH © 2015 Association for Corporate Growth. All Rights Reserved.

THE ROUND NEWS THAT MATTERS

Watch for Unreported Middle-Market Breaches

By Sean Curran, West Monroe Partners With recent news reports outlining the breaches of well-known brands and now government departments, it’s easy for midsize companies to downplay the risk. The term “breach” has become synonymous with the concept of data loss at these big organizations, resulting in a growing risk being overlooked—direct financial loss stemming from wire transfer fraud.

The Internet Crime Complaint Center, or IC3, is a partnership between the Federal Bureau of Investigation and the National White Collar Crime Center, known as NW3C. It received more than 2,000 complaints stemming from victims in every U.S. state and 45 countries during the 13-month period of Oct. 1, 2013, to Dec. 1, 2014. These complaints indicated a total loss of almost $215 million, or an average loss of about $100,000 per organization.

How These Attacks Occur • Social media: Through searches of popular information shared online and social media websites such as LinkedIn and Facebook, attackers can typically gather an understanding of the key people they should target within an organization—whether it’s the CFO, CEO, HR lead or other financial staff member. Social media sites can also indicate when a key executive is traveling, not necessarily because he is posting information about his trip, but increasingly because family members or other travel buddies are unwittingly sharing too much information. Did you ever think the picture your son posted of the family by the resort pool might lose your organization $1 million?

• Email phishing: Attackers will register an email domain name similar to that of an organization. The longer and more complex their email address is, the more likely they’ll succeed at breaking into the company’s system. Take the email address jdoe@company. com. An attacker could register the domain c0mpany.com, compamy.com or any other iteration with subtle changes that most people wouldn’t identify immediately.

A simple but urgent email is sent from the CEO using the false email address indicat-

ing a need to transfer funds to an account designated in the email message, e.g., that of a creditor, new hire, etc. The desire to help leads the finance team to make a decision and ignore established controls and protocols to make the CEO happy. Self-preservation typically kicks in and the team performs the transfer. By the time everyone realizes they were duped, the money has been transferred to an offshore bank or withdrawn, making recovery next to impossible.

Continued on next page

Sean Curran

THE ROUND NEWS THAT MATTERS How Mid-Market Firms Can Prepare These attacks are happening more regularly than the larger breaches and are typically focused on companies within the middle market. Because of their nature, they are not typically considered by IT teams when they think about security, and they’re very difficult to prevent. The only solution is to implement appropriate procedures within the finance team related to wire transfers.

• Make transfers more secure. There’s no such thing as being too safe. Ensure all wire transfers require two people to complete the transaction: one to stage and the other to approve. On top of that, companies should require any login with the ability to conduct a wire transfer to have multifactor authentication—both a password and a device with a rotating password, also known as an RSA token. If your bank doesn’t support multifactor authentication, reconsider your financial institution.

• Provide limitations. Companies should define specific limits for transfers, especially international wires and daily total limits. Doing this will make it easier to manage and monitor transfers.

• Require validation. Companies should consider implementing a process to validate transfers through a second channel (e.g., phone call, instant message or text), preferably a channel the attackers cannot spoof. Typically no transfer is so urgent it can’t wait for verification.

• Prepare staff. It’s important to instill a culture of trust, but verify that employees are aware that these situations are a risk and should be looked at very carefully. Or better yet, define that they aren’t acceptable. Companies should hold training sessions so employees have a strong understanding of phishing schemes and their dangers, as well as the warning signs to look for. // — Sean Curran is a director in West Monroe Partners’ Technology Infrastructure & Operations practice. He has more than 20 years of business consulting large-scale infrastructure experience across a range of industries and IT domains, including extensive work in data and information security.

THE ROUND NEWS THAT MATTERS

Millennials by the Numbers

By Elise Chowdhry, Optimum Advisors LLC Millennials surpassed Generation X to become the largest contingent of the American workforce earlier this year. Pew Research indicates they now constitute more than a third of American workers, so it’s no surprise they are filling an increasing number of seats at private equity and other investment firms. The industry is still primarily led by baby boomers and Gen Xers, who often scratch their heads trying to understand this younger generation.

The more we know about millennials, the better we can motivate and retain them.

Increased engagement will drive greater firm productivity. Employee retention is a must for successful leadership transition.

Researchers have undertaken numerous studies to help corporate leaders worldwide demystify this generational cohort. Survey findings help us drill down not only on what members of this generation think, but what drives and motivates them: • In Deloitte’s 2015 global survey of more than 7,800 millennials, traits of “true leaders” included strategic thinking, being inspirational, strong interpersonal skills, vision, decisiveness, passion and enthusiasm.

• A 2014 SuccessFactors/Oxford Economics survey of 1,400 millennials found roughly 65 percent want feedback at least monthly. The study also found that while millennials consider their manager the primary source of development, more than half felt that they are not provided enough feedback.

Continued on next page

• A 2012 Adecco survey identified “opportunities for growth and development” as a top professional priority for 68 percent of recent graduates. When asked to prioritize their life, an INSEAD Emerging Markets Institute survey found that “grow and learn new things” was second only to “spend more time with my family” for North American millennials.

• In their third annual study on the state of Gen Y, Gen X and baby boomer workers, Payscale.com and Millennial Branding found that most millennials aren’t much interested in long-term employment with one employer—only 13 percent think workers should stay with an employer for at least five years before looking for a new job, compared with 41 percent of boomers.

What Does All of This Mean for PE Industry Leaders?

Millennials coming up the ranks in private equity firms are getting phenomenal work experience, a significant career opportunity and extremely good pay. Many of their peers are struggling to make ends meet with low-paying or dead-end jobs and are burdened by student loans. But that may be where the differences end.

Given their numbers, millennials are now instrumental to your firm’s success. Soon enough you’ll be looking to pass the reins to this generation, but first you need to retain them. This is no small feat when dealing with those apparently more prone to leaving than staying. According to the think tank Center for American Progress, the median cost of turnover for most jobs is roughly 21 percent of an employee’s annual salary. Even more costly, turnover throws your succession planning off track.

Give them a vision, a plan and a role in it. For a generation that admires strategic thinking and yearns for purpose, leaders should establish a clear firm vision (“North Star”) and make employees feel as though they are an integral part of realizing that vision. It’s important to give them the “why,” not just the “what” of their performance goals and responsibilities.

Walk the talk. A firm’s culture should reflect the core values of its leadership and become the heart and soul of the organization. Firm values should not just be words on a poster in the kitchen or copy room but demonstrated daily by leadership—it’s not just what deals get done but how leadership leads, manages and interacts externally. The message to your millennials: “Do as I do, not just as I say.”

Provide consistent and balanced feedback. Millennials grew up with intense parental coaching, lots of encouragement and real-time feedback, so it is not surprising they have a strong interest in hearing how they are doing and a desire to get feedback much more often than the rest of us. Leaders should not wait for the annual review process at year-end to provide them performance feedback. “Consistent” does not mean constant—the goal is to find a practical middle ground that responds to their needs and works for you.

Continued on next page

Be open to their ideas. On topics ranging from firm strategy and execution to marketing materials and employee benefits, your millennial employees have ideas and opinions they may be looking to share. They likely have creative ideas about how your firm could function better or compete more effectively—if they don’t offer, ask them!

Think outside the box re: compensation. Millennials love to make money like the rest of us, but for them it’s most likely not only about the cash compensation, benefits package and carry. The definition of compensation should be expanded to include other factors that are also important to them, including: • Training and development. Surveys indicate “training and development” is a hot button for millennials and many aren’t happy with the level they receive. They must understand that they are in charge of their own development, but it is a shared responsibility. You may find opportunities to provide formal training programs, but nothing beats on-the-job training and senior managers are best equipped to provide it.

• Work/life balance. The PE industry’s workload demands much more than the average 47-hour U.S. full time work week determined by Gallup. Millennials have always been, and still are, more “wired” than we are—they want and can work anywhere. Making sure we put in “face time” was something that was important when we were their age.

In this technological environment, it shouldn’t be an issue as long as your expectations are clear and they get the job done. // — Elise Chowdhry is the founder and managing principal of Optimum Advisors LLC, a management and strategic consulting firm partnering with senior leadership of middlemarket private equity and finance firms to achieve organizational alignment and create high performance cultures. This article is condensed from “Understanding and Leading Private Equity’s Millennial Generation,” available at optimumadvisors.com.

Elise Chowdhry

THE ROUND NEWS THAT MATTERS

VERTICAL VIEW // TRENDS IN TECH Among the largest middlemarket technology buyouts in the last two years was Warburg Pincus’ purchase of Electronic Funds Source, a provider of corporate payment systems, for approximately $1 billion.

$1 BILLION

109

ACQUISITIONS Strategic acquisitions consistently outnumber secondary buyouts and IPOs as private equity exits in the tech sector: In 2014, there were 109 strategic acquisitions, compared with 68 secondary buyouts and five IPOs.

$900

$6.8

MILLION

BILLION

66% OF DEALS Software provider ION Trading and its private equity owner TA Associates in 2013 acquired Triple Point Technology, a provider of business information solutions for trading and risk management of commodities, for $900 million in one of the year’s priciest tech add-on investments.

71

DEALS

The share of add-on investments in the tech sector continues to grow, rising to 66% of deals in 2015 from 53% in 2010.

Vista Equity Partners and ABRY Partners are among the most active PE investors in the space, having each completed 71 tech-related deals since 2010.

All stats are from PitchBook.

SaaS was the leading technology subsector last year in terms of capital invested and deal count, with $6.8 billion invested across 181 deals. Security followed for capital investment with $1.4 billion, while clean tech saw the second-highest deal count at 67.

“A lot of portfolio companies struggle to drive organic growth, and in the tech sector you find a company is able to innovate a new technology and patent it, or have a new type of software that another company can leverage, so you end up with consolidations.”

—Daniel Cook, data analyst, PitchBook

Find your ideal candidate without sorting through hundreds that aren’t.

Post your job opening today jobsource.acg.org

INDUSTRY INSIGHTS // Robert Tomei oversees IRI’s consumer and shopper data offerings

IRI: CRAFTING A

CRYSTAL BALL

WITH CONSUMER SPENDING DATA

BY S.A. SWANSON

Photos by Matthew Gilson and Alyssa Schukar

IRI // Business: Consumer research Growth engine: Predictive analytics, software licensing Private equity owner: New York-based New Mountain Capital Sales: Nearly $1 billion Website: www.iriworldwide.com

I

n the loft-style Chicago headquarters of consumer research firm IRI, a brick wall hints at the company’s past, present and future. It displays a dozen patents, spanning 1990 to 2014. Four involve an updated technology platform called IRI Liquid Data. If you’re not fluent in data science speak—“perturbation of non-unique values,” anyone?—the patent specifics can induce eyeglazing. Clients usually aren’t interested in the “how” behind IRI Liquid Data, but they care deeply about the “what.” As in, what can it do to make sense of big data?

Andrew Appel, IRI’s CEO, knows this well. “We are in the middle of the single largest change in consumer buying in 100 years,” he says, noting that companies that have existed for decades are trying to reinvent themselves, and they’d like help. “They want their market research providers to have a significantly greater impact on the business,” Appel says. “‘Stop telling us what happened, and help us take actions to differentiate our business.’”

For nearly 30 years, IRI—formally Information Resources Inc.—gave clients plenty of “what happened” by studying buying behavior using consumer panels and point-of-sale, or POS, data from retailers. Now the data IRI collects is getting the 21st-century treatment. Thanks to a majority-interest investment from private equity firm New Mountain Capital, the company can provide more sophisticated analytics. It integrates massive data sets and spews out reports within seconds, helping businesses make decisions about sales, marketing and media buying. “We use the term ‘prescriptive analytics,’” Appel says. “The analytics have to prescribe an outcome that drives growth.”

That focus has led to IRI’s growth as well. Through organic sales increases and acquisitions, revenue has reached $1 billion and earnings have more than doubled since 2010, the year prior to New Mountain Capital’s acquisition.

“WE ARE IN THE MIDDLE OF THE SINGLE LARGEST CHANGE IN CONSUMER BUYING IN 100 YEARS.” Andrew Appel CEO, IRI

“THE COMPANY’S HERITAGE IS AROUND INNOVATION AND TRANSFORMING THE INDUSTRY.” Robert Tomei President, Consumer and Shopper Marketing, IRI

INNOVATIVE HERITAGE Founded in 1979, IRI was one of the original big data companies, as Appel likes to say. In the early ’80s, the company started collecting POS information and selling it to consumer packaged goods companies. It used test markets to experiment with new products before companies attempted a nationwide rollout and created a service to show different versions of a TV commercial— then tracked how those ads affected buying behavior.

“The company’s heritage is around innovation and transforming the industry,” says Robert Tomei, IRI’s president of consumer and shopper marketing.

By 2000, IRI needed a transformation. Between 2000 and 2003, the company’s revenue declined about 3 to 5 percent annually. During that time, IRI also filed a lawsuit against rival market research firm A.C. Nielsen, now known as Nielsen, claiming anti-competitive practices and seeking $350 million in damages; the suit went to court and a settlement was reached. After 20 years as a public company, IRI was purchased in 2003 by Symphony Technology Group, a Palo Alto, California-based private equity firm.

By 2010, another private equity firm expressed interest. New York-based New Mountain Capital was seeking companies for its third fund, $5 billion in size. The firm focuses on business and technology-enabled services with growth potential. “When we identify the best companies, we proactively reach out to them,” says Mathew Lori, managing director. “That’s exactly how we found IRI.” When New Mountain bought IRI in 2011, it was “a good stable business,” says Lori, noting low single-digit increases in annual revenue. IRI had started developing a new technology platform for better analytics, and New Mountain calculated that a substantial investment could make that product a competitive advantage. It’s tough to pinpoint the platform’s total cost (development began in 2008), but Lori estimates hundreds of millions were spent prior to the official 2013 rollout. “That’s helped us take the company from more of a traditional market research business to a big data analytics business,” he says.

This wasn’t IRI’s first foray into analytics. Like the rest of the market research industry, IRI had provided insights for past performance, Appel says. But that’s like gazing into a rearview mirror, he says—and companies want to look ahead for trends and opportunities.

The new Liquid Data platform helps corporate customers understand how thousands of specific actions may affect sales, Appel says. It addresses companies’ need for speed too. Years ago, if customers wanted complex data analysis for a report, it could take days. By 2011, reports took a few minutes, but many still considered that sluggish. IRI’s technology team optimized the platform so customers can now obtain reports in mere seconds.

IRI has also diversified the fuel for its analytics engine.

Three years ago, data was mainly related to sales. Now it reflects an array of shopping influencers, including social media data from Oracle (with more than 700 million messages daily), weather, gas prices, macroeconomic feeds, MasterCard’s worldwide transactions and Datalogix’s loyalty card information.

“WHEN WE IDENTIFY THE BEST COMPANIES, WE PROACTIVELY REACH OUT TO THEM. THAT'S EXACTLY HOW WE FOUND IRI.” Mathew Lori Managing Director, New Mountain Capital

It’s all part of the booming market for business analytics software, which totaled $40 billion in 2014 and will likely reach $59 billion by 2019, according to technology research firm IDC. “Everything is being tracked and resold— but as raw data, it has limited value,” says Dan Vesset, IDC’s program vice president for business analytics and information management. “When you add analytics, it becomes much more valuable. And with providers like IRI, there’s a different relationship you can have with your customers.”

CROSS-FUNCTIONAL SERVICE Tomei notes that IRI now engages with many job functions at its clients’ organizations. “If you look back at our industry 20 years ago, we serviced one function, and that was the market research function,” he says. “Today, we service virtually every function: sales, category management, shopper marketing, media, brand management.”

Such specificity is made possible with significant improvements to IRI’s data presentation. A decade ago, customers received information in Excel spreadsheets, and a client service representative would customize it with charts. IRI Liquid Data creates automated charts, and last year IRI optimized the platform for use on smartphones and tablets.

As of August 2015, IRI had 180 clients on the new platform, including Ferrara Candy Company, the maker of Jujyfruits, Chuckles and other candies. Ferrara wanted real-time analytics to analyze current performance and emerging trends in the non-chocolate candy category, and implemented the IRI Liquid Data platform in June 2014. About 100 employees use the platform, including the senior management team, sales, marketing, category management, demand planning and finance. “The retail world has moved from monthly static reports to real time,” says Todd Siwak, Ferrara’s CEO. “We wanted to create a higher level of insight.”

The real-time analytics help Ferrara monitor performance and make modifications more quickly. That’s particularly useful with new product rollouts, of which there are more than 100 annually.

When Ferrara redesigned packaging for its Brach’s brand last year, IRI Liquid Data helped track which graphics worked best. Ferrara discovered the entire Brach’s collection showed improvement in sales velocity, with the leading SKUs increasing by 15 percent. “It further emboldened us as a company to pursue that path very aggressively,” Siwak says. Within several months, the company redesigned packaging for 170 SKUs. That would

SEASONED LEADERSHIP // Nathan Lucht, IRI’s senior vice president, corporate strategy (left) with CEO Andrew Appel at the firm’s office.

PRIVATE CLOUD // IRI began licensing its Liquid Data platform to other companies this year.

have taken longer without the test-and-learn ability of real-time analytics, Siwak says, adding: “It’s not something we would just immediately embark on. It’s a big investment, as you can imagine, but the ROI is easy to calculate with improvements like that.”

IRI is also entering markets beyond manufacturing and retail, with a new service called Private Cloud introduced this year, which licenses the IRI Liquid Data platform to other companies. Those companies can then implement the platform behind their own firewall and keep internal data within their own data centers, while integrating it with IRI’s data and tools.

As of August, IRI had four clients licensing the platform and was in discussions with at least two dozen others. The first licensing client—a large credit card company—had considered spending millions to design its own data analytics platform. “As companies are trying to get into big data, we’re saying, ‘Why build your own?’ License our software,” Appel says. “It comes preinstalled with all the data we already have and has thousands of pre-built templates for reports.”

The licensing approach benefits IRI too. “With our core legacy model, we buy all the data from retailers, we run it through our sophisticated software platform and resell the data analytics back to the manufacturers,” Lori says. “We’re doing that better today than we ever have before because we have more advanced analytics that make it more valuable. But on top of that, we are now licensing out our core platform. The attraction for us is that we don’t need to own the data.” And that makes it a much higher margin business. For a typical license model, gross margins are 80 percent to 90 percent compared with 50 percent for the core business, says Lori, who notes IRI’s Private Cloud licensing capability also gives the firm an extra edge over competitors; as far as he’s aware, none have yet begun offering a similar service.

In a way, the company’s big data evolution has returned IRI to its roots.

“Many clients tell us that IRI is back innovating and transforming like it originally did when the founders first started the company,” Tomei says.

Data will remain a key driver of the company’s growth. “We’re about getting massive data sets, integrating them and having useful information,” Appel says. “That is setting us up for our next major growth trajectory.” // S.A. Swanson is a business writer based in the Chicago area who frequently writes about technology.

PE’S NEW VIRTUAL REALITY:

Online Deal Sourcing Platforms

BY MYRA THOMAS

P “WHEN IT COMES TO BEHAVIORAL CHANGE, WE REALIZED EARLY ON THAT THE HUMAN TOUCH IS CRITICAL TO GET PEOPLE TO TRY SOMETHING NEW.” Tony Hill Director, Intralinks Dealnexus

rivate equity is known as a high-touch, relationshipdriven business. The biggest transactions are parceled out to a few choice players—the Goldman Sachs and KKRs of the world—with many deals struck after just a few calls to select deal participants. But middle-market deals require a bit more legwork, with many more private equity firms and investment advisers in the mix.

The bulk of middle-market deal flow is spread out over hundreds of intermediaries. Now a number of online private equity deal sourcing platforms are cropping up to make the process more efficient. Not unlike online relationship matchmakers such as Match.com, these sites provide buyers and sellers with online tools to connect to one another virtually. Platforms run the gamut, offering everything from deal listings research and due diligence to networks of buyers, sellers and advisers. Fees differ depending on the customized service, and a few of the platforms allow free subscriptions for access to the network.

According to Tony Hill, director of Intralinks Dealnexus, a New York City-based global deal sourcing platform for M&A professionals, the middle market is the “sweet spot” for new entrants in the online space; they typically target deal-makers working with companies that have less than $100 million in revenue. “We’re talking about deals that appeal to a wide range of buyers,” Hill says. “But with the push of a button, we can supercharge the ability to narrow that buyer list.”

Intralinks features about 7,000 member firms and 12,000 M&A professionals on its network. “We have one- and twoman advisory firms, M&A boutiques, and Goldman is registered,” he says. “But it’s the smaller boutiques that use us the most frequently.” Besides matching buyers and sellers, Intralinks also offers research, deal management and deal sourcing tools.

BROADENING DEAL OPPORTUNITIES

“THERE’S NO DEPARTURE FROM THE IMPORTANCE OF RELATIONSHIPS, BUT THE INTERNET IS A WONDERFUL TOOL TO CONNECT INTELLIGENTLY AND AT A GREATER SCALE.” Peter Lehrman CEO, Axial

Online platforms are one easy way for private equity firms to scale up their business, says Urs Haeusler, CEO of Zurichbased DealMarket, a global fundraising and deal flow management platform. “It’s about efficiency and leveraging the business model,” he says. DealMarket’s online global marketplace connects business owners, brokers and investment advisers. About 15,000 investment professionals have joined the network and more than 3,000 deals have been listed since the company’s launch. The company also offers a cloud-based solution for deal management, as well as research and due diligence tools. “Midsize to smaller investment firms can get access to services that they wouldn’t normally have,” he adds.

While Haeusler concedes some deal-makers may not want to advertise online, including those involved in minority equity investment and debt financing, a virtual platform provides access to a wide network of interested buyers and sellers, he says.

Peter Lehrman, CEO of New York City-based Axial, an online network and M&A marketplace for company owners, advisers and PE firms, dismisses skeptics who worry that his firm eliminates the critical face-to-face element of dealmaking. Buyers and sellers connecting online are still meeting up and performing due diligence after the virtual introductions, says Lehrman, whose company has about 20,000 members on its network and has logged $500 million worth of deals.

“There’s no departure from the importance of relationships, but the Internet is a wonderful tool to connect intelligently and at a greater scale,” he says. “All of the deals on Axial are ultimately completed offline.” Axial sponsors conferences and events to facilitate deeper relationships, in addition to providing its online networking and marketing platform.

Thomas Courtney Jr., a member of ACG Orange County and president of The Courtney Group, a Newport Beach, California-based investment banking firm, says online platform providers offer a complement to traditional ways of doing business. “As an investment banker, it’s a great way to find capital sources or buyers, or companies to invest in or acquire,” says Courtney, whose firm is an Axial client.

“There are just so many people out there. You can’t make it to every town in America or speak to every CEO.” Even online deals that don’t pan out still provide opportunities to connect with a bigger network of investors and advisers, and possibly lead to other traditional or online deals down the road, he says.

Thomas Courtney Jr. President, The Courtney Group

BEYOND BUY AND SELL These virtual communities are not only facilitating buyers and sellers. Some platforms are connecting qualified investors to private equity firms looking to raise funds. New York City-based Artivest, for example, is a digital platform matching private investment managers with qualified investors. James Waldinger, the platform’s founder and CEO, says investors and advisers can access a network of private equity and hedge funds online. Artivest, a FINRA member and registered broker-dealer, uses its own feeder funds to lower investment minimums.

Artivest’s workflow tools provide a breakdown of the private equity funds, and qualified investors can access them entirely online. “There are subscription documents online, and then we do monitoring and reporting, capital calls and updates on any given fund, and it all lives on our site,” Waldinger adds. One of Artivest’s first fund partners was the investment firm KKR. “Private equity firms were finding more and more that the private banking industry was becoming a bigger part of their portfolio,” he says. “If you combine this with the growth of RIAs (registered investment advisers) and family offices, we came along at the right time.”

James Waldinger Founder and CEO, Artivest

“THE CHALLENGE ON THE DEAL MARKET SIDE IS THE SUPPLY OF DEALS AND THE NUMBER OF DEALS RUNNING THROUGH THE PLATFORM, AND GETTING ATTRACTIVE ENOUGH DEALS ON THAT PLATFORM.” Adley Bowden Senior Director of Market Development and Analysis, PitchBook

The stage might be set for online dealmaking, but to attract new users, platform providers need to be able to deliver an ever-growing selection of data-driven products, in addition to a growing base of buyers and sellers. Deal-makers sometimes need help due to competition in the market, and online platforms offer an additional avenue to see deal offerings that might go undetected. “It’s simply hard to find high-quality deals,” says Adley Bowden, senior director of market development and analysis for private equity and venture capital research firm PitchBook. He notes that PitchBook clients sometimes use online private equity networks alongside PitchBook’s services. “The challenge on the deal market side is the supply of deals and the number of deals running through the platform, and getting attractive enough deals on that platform,” Bowden says.

For now, getting a handle on the number and types of online private equity deal sourcing companies is difficult.

The industry is fragmented, and the technology is still relatively new. “The market’s not there just yet in terms of the size and complexity of the transactions,” Bowden says. But he notes the websites are gaining traction and the larger companies are getting some name-brand recognition.

A number of the investment bankers interviewed declined to offer opinions on the platforms, with a few citing a general lack of knowledge about the technology providers.

And that’s the rub, so to speak. Intralinks’ Hill says having salespeople on the ground, as well as a superior product, is the best way to get more players at the table. “We have people on three continents,” he says. “When it comes to behavioral change, we realized early on that the human touch is critical to get people to try something new.” // Myra Thomas is a freelance writer based in northern New Jersey.

P A R T N E R S I N D R I V I N G M I D D L E - M A R K E T G R O W T H .® To d a y ’s f a s t - p a c e d m a r k e t r e q u i r e s a n e d g e . A C G G l o b a l P a r t n e r s prov ide y o u wit h t h e e x pe r t is e a n d be s t pr a c t ic e s n e e de d t o c l o se t he d e a l .

L E A R N M O R E A B O U T A C G PA R T N E R S H I P S , V I S I T A C G . O R G / PA R T N E R S H I P S © 2015 Association for Corporate Growth. All Rights Reserved.

QUICK TAKES ROSHAN GUMMATTIRA // Managing Director, GulfStar Group

A

s the technology sector heats up, one Houston-based investment bank is attuned to the opportunity and actively working to increase its focus within the industry.

As proof of its commitment, middle-market investment

bank GulfStar Group last year added Roshan Gummattira, a member of ACG Houston, to lead the firm’s technology practice.

“We’ve done technology deals in the past as they’ve been referred into the firm,” says Gummattira, a managing director at GulfStar.

“So I really joined to help expand and more proactively lead our technology efforts.”

A Texas Instruments software engineer turned investment banker, Gummattira advised technology companies, including enterprise software firms, at JMP Securities, where he worked with both private

BIO //

and public companies and advised on mergers and acquisitions, capi-

Roshan Gummattira is managing director of Houston-based investment bank GulfStar Group, which he joined in July 2014 to focus on the technology sector.

Previously, he was vice president in the technology investment banking group at JMP Securities in San Francisco. He also spent six years as a software engineer at the semiconductor company Texas Instruments.

tal raises and IPOs prior to joining GulfStar. Gummattira notes his current firm has done technology work in the past at a pace of two or three deals each year, including in the areas of software, IT services, hardware, Internet and technology-enabled businesses. However, until recently GulfStar didn’t have someone focused exclusively on the sector.

GulfStar advises businesses in the middle market with values between $25 million and $350 million. The majority of its work is with founder-owned and -operated businesses. Often the acquisitions and recapitalizations GulfStar helps facilitate are clients’ first transactions with an outside party. According to Gummattira, the experience guiding founders and entrepreneurs is part of what sets his firm apart from other investment banks.

Illustrating this expertise is a recent deal involving GulfStar’s client CDB Software, which provides data management solutions and mainframe utilities. CDB was founder-owned with several generations of family involved in the business. As the firm looked for a partner to take its offerings to the next level, it worked with GulfStar, which ultimately connected CDB with its buyer, BMC Software. The deal closed in January.

Given its Houston location, GulfStar’s business has in large part centered on the energy sector, alongside industrial and manufacturing, business services, consumer and specialty distribution. It provides Continued on next page

QUICK TAKES ROSHAN GUMMATTIRA // Managing Director, GulfStar Group M&A advisory—primarily on the sell side, but some buy side as well— and assists with capital raising.

Looking at the technology sector as a whole, Gummattira emphasizes that software is the subsector seeing the most activity.

“WE’VE DONE TECHNOLOGY DEALS IN THE PAST AS THEY’VE BEEN REFERRED INTO THE FIRM, SO I REALLY JOINED TO HELP EXPAND AND MORE PROACTIVELY LEAD OUR TECHNOLOGY EFFORTS.”

“Delivering computing infrastructure and software applications over the Internet has been a predominant area of investment and acquisition activity over the last decade,” he says.

He names security, data and analytics, software as a service and business-to-consumer as specific areas within software and tech experiencing high levels of investment and acquisitions.

Within the software subsector, Gummattira sees a growing trend in applications targeted for specific vertical end markets—for example, construction or mortgage finance. He notes that it’s more effective to create specialized solutions for a specific industry today due to lower costs of developing new software and marketing it digitally. As more data and analytics are used across industries, he sees software designed for a particular vertical market—as opposed to a horizontal solution, like customer relationship management software used across various industries—as a way to manage more complex information.

“Whereas maybe 20 years ago someone would have taken a generalpurpose software application and then customized it for a particular end-market application, now it’s more viable for companies to build software that’s specific to certain markets,” Gummattira observes.

GulfStar is celebrating its 25th anniversary this year. Looking to the future, Gummattira hopes to see even more activity and a continued expansion of services.

“We’ll hopefully keep expanding the capability set here, and keep helping companies in the middle market achieve what they’re looking for, and achieve the next step in the evolution of their businesses,” he says. // —KMM

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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BIO //

W

ith 25 years of experience in the high-tech industry, Rich Kennelly has built a track record growing companies that leverage data using

the Internet. He led the file transfer division for software developer Ipswitch, returning the business to sustained growth. At cloud services provider Akamai Technologies, he helped boost revenue nearly sevenfold to more than $1 billion by transforming the firm’s media business into a leader delivering high-quality video and software downloads over the Internet. He was an early member at networking startup New Oak Communications, which created the first switch for virtual private networks, or VPNs, allowing users to securely log on to corporate networks over the Internet. Kennelly sits on the board of American Business Media’s content and information services division and holds five industry patents.

Photo by Jack Ramsdale

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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WHAT IS WEB CONTENT HARVESTING, AND ARE ALL SOLUTIONS THE SAME?

W

eb content harvesting involves monitoring and extracting content from the world’s biggest store of open source content—the Internet. Enterprises can turn that content into business insights, high-value data products and innovative data services. For businesses to be competitive today, the ability to tap into and leverage this resource is paramount.

Harvesting Web content is a major challenge: It is constantly updated, and the volumes are enormous. Also, the really valuable content is often hidden. It’s dynamic, so you have to fill in forms and search boxes to gain access to it rather than just collecting what you see on the surface.

Traditionally, people have tried to use Web scrapers or custom scripts to collect Web content. However, Web scrapers are indiscriminate—they don’t target the content you want, and they’re not intelligent enough to search sites. Scripts are more focused, but they break when website formats change. That’s why we’ve taken a different approach. Our technology targets content precisely, extracts dynamic content and adapts easily to website format changes.

Photo by Jack Ramsdale

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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HOW CAN COMPANIES BENEFIT FROM WEB CONTENT HARVESTING?

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he possibilities are almost limitless. Let’s start with information providers. News and information aggregators harvest Web content from thousands of niche sites. This enriches and differentiates the news and information products and services they provide, adding value for their audience. Company information providers monitor key company data, including financials, company news, organizational changes, market-moving events and more. There are many more examples, including market research, pricing intelligence and financial services, to name a few.

However, you don’t have to be an information provider to benefit from Web content harvesting. By harnessing the Web, you can gather competitive information, track key events in your industry sector and drive revenue by increasing your sales intelligence. Compliance and risk management is another major focus, particularly for financial companies. They can monitor thousands of court sites, watch lists and social media forums, thus reducing their exposure to fraud and ensuring compliance with terrorist-financing laws. And let’s not forget the independent software vendors, or ISVs, building amazing apps that are fueled by near real-time Web content.

Photo by Jack Ramsdale

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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HOW DOES CONTENT HARVESTING ENHANCE DECISION-MAKING?

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eb content harvesting gives you near realtime visibility of your markets, customers and competition. By collecting and analyzing constantly changing content from thousands of sites, you create a differentiated view of your business landscape—a view that you just can’t get any other way. This helps you make better, more informed decisions and respond more quickly to rapidly changing markets.

I’ve already touched on competitive, market and sales intelligence, so let’s look at another example: retail and distribution chain monitoring. You can track your competitors’ pricing by monitoring their online distribution channels. You can also defend your pricing power by monitoring for unauthorized flash sales and shopping cart discounts. This is just the start—you can also monitor illegal sales of counterfeits and “overseas only” goods, track inventory levels on e-commerce sites, and even track your product placement on these sites.

Photo by Jack Ramsdale

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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THE WEB CHANGES ALL THE TIME; HOW CAN CONTENT HARVESTING TECHNOLOGIES KEEP UP?

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raditional methods can’t keep up. Web scrapers create a torrent of irrelevant data and still can’t collect dynamic content. With scripts, the hurdle is development and maintenance. It typically takes one full-time programmer to maintain just 200 scripts—that’s 500 programmers for 100,000 websites.

To keep up, you need a different approach. Obviously you need a massively scalable architecture, but you also must dramatically reduce the development and maintenance effort. At Connotate, we use what we call visual intelligence to do this. To set up ongoing harvesting, a nontechnical person simply has to navigate a site to identify the type of content he wants. We also use machine learning to adapt automatically to updated website formats, which means that a single user can typically maintain harvesting for 5,000 websites, not just 200. It’s also important to deliver easily digestible content; for instance, we can report content changes down to the character level (in any language), rather than delivering the same old content again and again.

Photo by Jack Ramsdale

A QUALIFIED OPINION RICH KENNELLY // Chief Executive Officer, Connotate

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CAN YOU GIVE AN EXAMPLE OF HOW COMPANIES CAN MONETIZE WEBSITE CONTENT?

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ne way is to enrich existing information products or services. By harvesting unique Web content, you can differentiate your offerings and increase their value.

For example, assume you’re running a consumer health site. When someone looks up a medical condition, you need to give her more than just static information. By adding a customized news feed for major conditions, you can add value that keeps your audience coming back.

Another way is to fuel a sticky app with Web content.

By giving your audience members relevant, up-to-date information on their mobile devices, you keep them engaged. You can monetize this directly, for example, by providing a subscription service to an investment news app.

However, there are other ways to drive revenue. For example, if you’re in the fashion business, creating a sticky app that holds users’ attention with the latest fashion and lifestyle news is a great way to build brand awareness and loyalty.

The possibilities are endless. //

Photo by Jack Ramsdale

P A R T N E R S I N D R I V I N G M I D D L E - M A R K E T G R O W T H .ÂŽ Yo u on

can all

rely

on

aspects

operations,

ACG of

Global

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taxation,

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transactions, regulatory

as

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including issues

advisers financing,

and

more.

L E A R N M O R E A B O U T A C G PA R T N E R S H I P S , V I S I T A C G . O R G / PA R T N E R S H I P S Š 2015 Association for Corporate Growth. All Rights Reserved.

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE

SEATTLE

WISCONSIN NATIONAL CAPITAL

TAP CITIES TO NAVIGATE TO ARTICLE

ACG WISCONSIN

ACG Wisconsin’s Patio Series Promotes Summer Networking ACG Wisconsin members and guests gathered in July at the popular Milwaukee landmark Pizza Man as part of the chapter’s annual Summer Patio Series.

“Summers in Wisconsin are too short, but mixing ACG members and an outdoor patio allows members to enjoy a late afternoon mixer,” said Karin Gale, president of ACG Wisconsin and shareholder at Schenck SC. As a membership initiative, the Summer Patio Series is designed to bring members and prospects together at different outdoor locations around Milwaukee.

“The drinks and appetizers ensure a free flow of ideas. We have found it a great way to explore our community, develop new relationships and stay connected in a relaxed atmosphere while allowing our members plenty of time to spend with their families,” Gale said.

In addition to ACG Wisconsin’s monthly member meetings, Corporate Development Series and its Growth, Leadership and Human Capital Conference, the chapter annually hosts two Patio Series events, effectively keeping members and prospects involved year-round.

“Now if only we could find a way to lengthen our summers,” Gale quipped. //

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE

GO ONLINE // Read additional content on the MMG website.

ACG SEATTLE

Connections, Knowledge and Motivation at Seattle Event The Northwest Middle Market Growth Conference brought together a broad range of M&A professionals in July for a program of networking, learning and inspiration.

Hosted by ACG Seattle, the event attracted more than 300 executives from across the country to the Fairmont Olympic Hotel. It featured networking opportunities, including an ACG Capital Connection® private equity marketplace, along with expert panels discussing specific industries and strategic buying.

Attendees got an inside look at the state of the restaurant industry during a panel session.

Business leaders discussed the outlook for growth, workforce challenges and cost management, and shared views on the middle-market industry segment. Another panel featured deal specialists from four different industries discussing how they identify and pursue acquisitions.

“The conference provided middle-market business owners and deal professionals with an in-depth look at the national and regional M&A landscape and key insights from thought leaders on today’s ever-changing marketplace,” said ACG Seattle Board President Cameron Hewes.

Among the highlights was the conference’s keynote speaker, world champion adventure racer Robyn Benincasa, who inspired attendees with her stories of tackling challenges, staying motivated and achieving success through teamwork. //

ACG@WORK CHAPTER NEWS FROM AROUND THE GLOBE ACQUISITIVE GROWTH // William Van Vleet described building his firm through acquisitions.

ACG NATIONAL CAPITAL

Technology Leader Sheds Light on Acquisitions at DC Breakfast ACG National Capital hosted William Van Vleet, founder and CEO of Haystax Technology, during its July breakfast meeting. As the Washington, D.C., event’s speaker, Van Vleet drew on more than 30 years of experience as he spoke about founding and growing his company, a provider of analytics and cybersecurity solutions.

With a background in the defense and commercial technology industry, Van Vleet founded Haystax in 2012 with a very specific objective: to create a next-generation mid-cap technology business. He has since acquired three companies—Digital Sandbox, FlexPoint Technology and NetCentrics, all of which have developed disruptive technologies in analytics, cloud computing and cybersecurity.

With these new offerings, Haystax is able to provide advanced services to both government and commercial customers with a focus on defense, safety, intelligence and law enforcement. During his presentation, Van Vleet discussed his acquisition strategy and described how the integration of new businesses has shaped Haystax as a company.

Following the presentation, attendees had the opportunity to ask questions of Van Vleet, who offered additional insight into his company’s operations and the industry it serves. //

THE PORTFOLIO INSIGHT FROM THE EXPERTS

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

IN THIS ISSUE SOUND DECISIONS Debt and the Middle Market: Necessary Evil or Strategic Blessing?

Midsize companies need capital to grow, but regulation and other trends are changing how they borrow. A new report looks at how middle-market companies are financing expansion in today’s market.

Don’t Forget the Human Side of M&A While M&A deals fail for many reasons, don’t let cultural fit and human capital be among them.

Take steps to ensure that merging companies share the same values and that information is communicated effectively to employees.

COMING SOON Check out the Portfolio section of the November/December issue for more on the latest middlemarket trends, written exclusively by our team of expert ACG Global featured firms. To learn more about contributing to this section, please contact Albert Pereira, (416) 560-6455.

These articles are brought to you by ACG Global’s featured firms.

THE PORTFOLIO SOUND DECISIONS // Thomas A. Stewart, Executive Director, National Center for the Middle Market

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

Debt and the Middle Market: Necessary Evil or Strategic Blessing?

C

A new report looks at midsize companies’ borrowing habits amid changing market conditions.

ompanies need capital to grow. They get it from public markets or private sources like banks, private equity firms, pension funds, family offices and others. Meanwhile, regulatory regimes try to keep financial markets liquid, honest and fair. As the market evolves in the face of new rules for capital provision, midsize companies are adapting their approach to financing growth.

Much regulatory change followed the fi-

Funding Their Futures,” the two organiza-

nancial crisis. This summer marks the fifth

tions surveyed more than 600 owners and

anniversary of the Dodd-Frank Act, for

C-suite executives from a near-equal mix

example, but capital markets have changed

of small businesses (with less than $10 mil-

in other ways as well. The so-called shadow

lion in annual revenue) and middle-market

banking system has grown, made up of

companies ($10 million to $1 billion). These

hedge funds and other providers of capital

are users of capital, not providers: The data

less regulated than banks. Government

provide unique insight into how executives

programs, such as those run by the Small

think about their balance sheets and ap-

Business Administration, have undergone

proach finding capital to fund their growth.

change, and Internet-based platforms have developed to provide new ways for investors and executives to discover each other and do business.

How have these shifts affected access to

There were five important findings: 1. Small and midsize businesses don’t like debt. Nearly half (47 percent) say the “right amount” of debt is none; 46

capital? To find out, the National Center

percent want “little debt.” Across the

for the Middle Market joined forces with

board, companies prefer to finance

the Milken Institute to study the real-world

expansion with cash on hand. This is

experience and preferences of decision-

especially true of family-owned firms.

makers in small and midsize companies.

Private equity-backed companies are

To develop the report, “Access to Capital:

most likely to take on debt to fund

How Small and Mid-Size Businesses Are

expansion. They have larger growth

THE PORTFOLIO SOUND DECISIONS // Thomas A. Stewart, Executive Director, National Center for the Middle Market

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

appetites than the average small or

Thomas A. Stewart

3. The bigger the company, the more

midsize business and are more likely

financially sophisticated it is likely to

to invest in technology, systems and

be. Middle-market firms are more

R&D; add a new plant or facility; ex-

likely than their smaller siblings to set

pand internationally; or conduct an

targets for debt loads, prepare annual

IPO in the coming year.

budgets and follow formal processes for evaluating debt strategies, projects

2. Higher interest rates won’t derail most

and investments. They are willing

companies’ growth plans. Fifty-six

to carry more debt, perhaps because

percent of executives say the cost of

they are likely to have larger and more

capital will not affect expansion plans;

predictable cash flows with which to

another 28 percent say only a signifi-

pay it off. While unsurprising, this

cant increase would deter them. This

has significant implications for both

might be because they expect to fund

lenders and executives, each of which

their own growth rather than pay a

might benefit from building a maturity

bank or other lender and discount

model that identifies transition points

the cost. However, the data as a whole

in companies’ capital needs.

create the impression that many small and middle-market companies seek

4. Price, access, speed and certainty—

capital in an opportunistic rather than

and a positive relationship—win the

strategic way—which is to say, when

outside funding race. Firms of all

they need it, they need it. A majority

sizes cite the same factors as impor-

say they have no debt or borrow only

tant when deciding the type of outside

when necessary; as many say they bor-

capital to pursue: cost (usually the in-

row on a project basis as on a strategic

terest rate), ease of access, and speed

one. If capital is cheap (they seem to

and certainty of execution. Capital

be saying), they won’t use more; if it’s

options with those characteristics

expensive, they won’t use less.

where relationships are strong attract customers, while those without are seldom used. Just 5 percent of companies say they have sought a loan from the Small Business Administration.

THE PORTFOLIO SOUND DECISIONS // Thomas A. Stewart, Executive Director, National Center for the Middle Market

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

5. Banks and other traditional

lead the U.S. economy in growth. It is also

providers have inherent advantages in

clear that a subset of small and midsize

serving small and midsize companies,

companies stunts its growth by being

but they must not be complacent about

too reluctant to employ outside capital.

them. Executives are three times more

Executives and managers smart enough

likely to seek a loan from a bank than

to identify those opportunities can earn

from the next-most-likely source—a

outsize returns. //

nonbank lender. The reason, 77 percent say, is a strong previous rela-

Thomas A. Stewart is executive director of

tionship. (Only 19 percent say banks

the National Center for the Middle Market,

provide better terms.) Recent business

a collaboration between GE Capital and

history is rich with stories of success-

The Ohio State University Fisher College

ful disintermediating upstarts and the

of Business, which provides knowledge,

financial services sector is full of new

leadership and innovative research on the

competitors, often housed on the In-

U.S. Middle Market.

ternet rather than a building on Main Street. Banks would be smart to act now to leverage their powerful relationships into new arenas rather than take them for granted; disruptors, for their part, might explore how to collaborate with traditional providers.

“Access to Capital” fills out a portrait of the middle market that the NCMM has described before. Financially conservative and ruthlessly pragmatic, middle-market executives want to keep it simple where capital is concerned. That attitude serves them well for the most part; quarter after quarter, the NCMM’s Middle Market Indicator shows that midsize companies

THE PORTFOLIO SOUND DECISIONS // Kristine Gunn, Human Capital Consultant, Insperity

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

Don’t Forget the Human Side of M&A

Y

ou’re considering a merger or acquisition with a high-performing organization that has a solid leadership team. But what about the company’s culture and human capital? Mergers and acquisitions can fail for a variety of reasons, but two you can’t afford to ignore are poor cultural fit and human capital issues.

Cultural fit and human capital issues are key considerations during a merger.

An experienced employee management team plays a key role in successfully

the plug at the last minute because you overlooked this aspect of the deal.

navigating a merger or acquisition. From cultural integration to effective communi-

Build a Communication Plan

cation, don’t forget the human side of the

Just as critical as planning for cultural fit

enterprise. There are things you can do to

is the need to communicate throughout

help prevent the deal from becoming an

the merger process. A clear and thought-

M&A statistic.

ful communication plan can go a long way toward easing concerns, distrust and

Determine the Cultural Fit

resistance as employees are challenged

Successful mergers are often ones where

to go from the known to the unknown.

the companies’ cultures and values

The HR team can help develop a timeline

are similar.

of what will happen, and what will be

While every business will have its own company culture, this is one area that will make a difference if the two firms are a

communicated and when. Questions that should be addressed include: •• Who needs to know about the merger

close match. If they are not similar, is one

or acquisition? Employees, customers,

company or the other willing to change to

channel partners, vendors, media, etc.

make things better?

Cultural alignment isn’t a step you can

•• Who needs to buy into the changes resulting from the acquisition? There

afford to ignore in the merger process.

should be a core team of early adopt-

Remember, many mergers fail because

ers who will be the champions of

what looks great on paper may not always

change, and the leadership team

add up if the two cultures simply aren’t

should be unified.

compatible. You don’t want to have to pull

THE PORTFOLIO SOUND DECISIONS // Kristine Gunn, Human Capital Consultant, Insperity

SOUND DECISIONS TAP BUTTONS TO NAVIGATE COLUMNS

•• Who will be impacted and how?

Consider who will be affected by

enced service provider can take over the

decisions to change processes and

day-to-day human capital administration

deadlines or to reassign job roles.

such as payroll and benefits administra-

•• How will each piece of information be Kristine Gunn

the human capital services. An experi-

tion, or go a step further to help develop a

communicated? The type of medium to

strategic plan that focuses on the human

use—print, email, general announce-

capital aspects of a merger. //

ment, formal letter, press release, website or social media—will depend on

Discover how ACG members can tap into

the audience and the formality of the

the depth and breadth of experience of

announcement. Some communication

Insperity’s business performance consultants

will have to be vetted by legal counsel to

at insperity.com/acg.

ensure the information is accurate and aligned with the merger agreement.

Kristine Gunn is a human capital consultant at Insperity, the human capital solutions

Having a communication plan and a

provider for ACG. An executive coach and

timeline provides vision and clarity, and

organizational consultant, Gunn works

assures employees that attention is being

with executive teams, senior staff and line

given to how the merger or acquisition

managers facing diverse strategic business

affects them.

challenges such as fast growth, market shifts, mergers and acquisitions, and developing the

Human Capital Counts While you may be focused on the financial and legal details of a merger or acquisition, remember there needs to be a strong human capital infrastructure. A communication plan, timeline and transition road map that keep the workforce in mind can help things go more smoothly.

Because workforce management within an acquisition can be a delicate venture, you may want to outsource all or part of

next generation of leadership.

P A R T N E R S I N D R I V I N G M I D D L E - M A R K E T G R O W T H .ÂŽ ACG

Global

network,

Partners

providing

help

valuable

expand

your

connections

middle-market with

corporate

clients and a consistent source of deals for capital providers.

L E A R N M O R E A B O U T A C G PA R T N E R S H I P S , V I S I T A C G . O R G / PA R T N E R S H I P S Š 2015 Association for Corporate Growth. All Rights Reserved.

B-SIDE AMANDA NEVINS // Chief Financial Officer, CSID

TAX IN THE DIGITAL AGE...

“I’m not a tax expert, and due to the specialized nature of tax, I tend to bring on an expert. The biggest challenge is that many states are inconsistent with their tax treatment of e-commerce, especially with regard to electronic services.”

MOZART-MINDED… “Growing up, I was a pianist and did some concerts around the country.

“I REALLY FOUND A As I got older, I continued to love LOVE FOR AUTOMATION, music, but my parents were focused SYSTEMS AND ONLINE on me pursuing a career in math or science. Turns out they knew me CAPABILITIES PRETTY fairly well, and it was a good fit.”

EARLY IN MY CAREER.”

AMANDA NEVINS // Nevins is CFO of CSID, a provider of global identity protection and fraud detection technologies, which she joined in 2011. She has 20 years of experience in executive finance and accounting leadership positions, including at the cloud-computing firm Rackspace and online retailer Zappos.com. In 2015, CSID was named an ACG Central Texas Growth Award finalist.

ON THE SLOPES… “Early in my career, I used to work weekends as a ski instructor. I love snow skiing and I used to race and jump off of cliffs. I think knowing me now, I still enjoy skiing, but I’m not doing any cliff jumping or things like that.”

GOING PUBLIC… “(Working at Zappos.com), we originally thought we would take the company public; I was hired to get us ready for an IPO. But Amazon came across with an offer that we really just couldn’t pass up.”

CYBERSECURITY… “(CSID’s) main goal is to alert consumers when there’s been a change in their identity status, and then support them through any fraud that might occur through our restoration services.”

TEAM BUILDING… “I really like to build great teams and I’m not afraid to hire people around my strengths and weaknesses. Hiring employees with varied experience makes a more well-rounded team.”

“I ENCOURAGE MY TEAM TO SHARE KNOWLEDGE WITH EACH OTHER AS WELL AS WITH ME, AND VICE VERSA, SO WE CAN ALL GROW.” Content sponsored by

THE LADDER ACG MEMBERS ON THE MOVE

Kenneth Berryman

Kenneth Berryman, a member

Jack Finlayson has joined

of ACG Kentucky, announced

Star Mountain Capital, a New

he is starting a new Kentucky-

York City-based alternative

based private equity firm, Weller

asset management firm

Equity Partners, which will focus

focused on small and midsize

on majority and minority equity

Jack Finlayson

businesses, as senior adviser

investments in lower middle-mar-

and strategic investor. Finlayson

ket companies in the state and

brings technology and

the MidSouth region. Berryman

telecommuniations expertise and

was previously a director with the

relationships to Star Mountain,

investment firm Capitala Group.

having previously served as CEO of Layered Technologies and

Katina Curtis, president of

president of Savvis Inc.

ACG Utah, was promoted to

Katina Curtis

audit partner by Grant Thornton

Michael Gold has joined law firm

LLP, a tax, audit and advisory

Saul Ewing LLP as partner in the

firm, in its Salt Lake City office.

venture capital/private equity and

Curtis joined Grant Thornton in

mergers and acquisitions prac-

2005, building on more than 10

tices in the firm’s Washington,

years of experience in public

Michael Gold

D.C., office. Gold was previously

accounting, managing financial

a partner in the D.C. office of law

statement audits and integrated

firm Baker Botts.

audits for public and private clients. She became president of

Jessica Mead, a member of

ACG Utah earlier this year.

ACG Dallas/Fort Worth, was recognized by The M&A Advisor as

Kerry Lennon was promoted

part of the organization’s annual

to senior manager, chapter ser-

“40 Under 40 Awards” in the

vices, by ACG Global, which she

Kerry Lennon

Jessica Mead

Service Professional category.

joined in 2012. Lennon supports

Mead is director of buyer ser-

ACG’s 57 chapters and created

vices at Generational Equity, a

the firm’s back-office administra-

Dallas-based M&A advisory firm,

tion program. She acts as a key

where she manages client

team member on technology

marketing and oversees

initiatives, including a new asso-

administration and training of

ciation management system and

the firm’s Salesforce platform.

an ACG website upgrade.

THE LADDER ACG MEMBERS ON THE MOVE

Daniel Moss

Aaron DiCenzo

Daniel Moss, a member of ACG

Peter Tsang was promoted to

Los Angeles, was promoted to

partner by private equity firm

principal by Avante Mezzanine

The Riverside Company, which

Partners, which he joined in

he joined in 2004. Based in the

2012. Moss has contributed to

firm’s San Francisco office, Tsang

the marketing, execution and

Peter Tsang

has helped lead teams on more

portfolio management efforts of

than a dozen platform acquisi-

the firm. Aaron DiCenzo joined

tions, more than 20 add-ons and

Avante as vice president in the

several outstanding exits. He cur-

firm’s Los Angeles office, hav-

rently sits on the boards of four

ing previously served as vice

Riverside portfolio companies

president at American Capital. In

and leads the firm’s Education

addition to personnel changes,

and Training specialization.

Avante announced a unitranche debt and equity co-investment to

AUA Private Equity Partners

support the acquisition of Com-

completed a recapitalization of

munity Psychiatry Management

Tijuana Flats Holdings LLC, a

LLC by Chicago-based private

fast-casual Tex-Mex restaurant

equity firm New Harbor Capital.

chain based in the southeastern United States, in partnership

Christine Nowaczyk

Christine Nowaczyk, a member

with the company’s owners.

of ACG Arizona, was named one

New York-based AUA focuses

of the “Most Influential Women

on investing in family-owned

in Arizona Business for 2015”

businesses and companies

in July by Az Business maga-

benefiting from the growth of

zine, whose list included women

the U.S. Hispanic population.

from a variety of business seg-

Its strategic partnership with

ments. Nowaczyk is senior vice

Tijuana Flats will help fund the

president of Bank of Arizona, a

company’s expansion into new

division of BOK Financial, which

markets, enhance its brand and

she joined in 2006 to grow busi-

promote further development.

ness serving the middle market, mid-corporate and Native American segments.

To submit your promotions, job changes and other accomplishments, please send details and a high-resolution color photo to Associate Editor Kathryn Mulligan at kmulligan@acg.org.

IT’S THE SMALL THINGS BIG DATA TRENDS // Go Big or Go Home PUTTING MARKETING ON CRUISE CONTROL

6

HOLY ZETTABYTES, BATMAN!

2

LOCKING IT DOWN

7

YUAN BIG DATA’S RADAR

3

A SHOT IN THE ARM FOR HEALTH CARE

1

Marketing automation drives a 14.5% increase in sales and a 12.2% reduction in marketing overhead; 84% of top-performing companies are using, or plan to start using, this technology between 2012 and 2015.

According to a Ponemon Institute survey, a whopping 61% of respondents believe big data analytics can solve pressing security issues faced by companies and government.

The big data phenomenon has promised the health care industry superior clinical results and $300 billion to $450 billion in savings, according to global management consulting firm McKinsey & Company.

4

LET ME LOOK INTO MY CRYSTAL BALL…

The market for predictive data—the art of making big data work by using past data to forecast future behavior—is set to grow at an annual rate of 34% from 2012 to 2017, eventually reaching $48 billion.

(See our cover story profiling consumer research firm IRI, which demonstrates how one company is leveraging the opportunity.)

5

2020: A BIG DATA ODYSSEY

By 2020, information will be used to reinvent, digitalize or eliminate 80% of business processes and products from a decade earlier.

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

Experts now predict that 40 zettabytes of data will be in existence by 2020. Three years ago, the entire World Wide Web is estimated to have contained approximately 500 exabytes—which is 5 billion gigabytes, but only half of one zettabyte!

Beijing’s financial supervision agencies are using big data to crack down on illegal fundraising. From January to May 2015, 51 cases emerged involving 3.3 billion yuan, a 65% increase from the same period in 2014.

THE LEADERSHIP ACG DIRECTORS ACG BOARD OF DIRECTORS //

CHAPTER REPRESENTATIVE DIRECTORS //

DIRECTORS AT LARGE //

Chairman Richard Jaffe* Duane Morris LLP ACG Philadelphia Term expires 8/31/2016

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

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

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

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

Steve Castino Vestal & Wiler CPAs ACG Orlando Term expires 8/31/2018

Mark Hollis Centerfield Capital Partners ACG Indiana Term expires 8/31/2016

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

Jay Jester Audax Group ACG Boston Term expires 8/31/2018

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

Scott Linch Dixon Hughes Goodman ACG Charlotte Term expires 8/31/2018

Karin Kovacic Alcentra Capital ACG Connecticut Term expires 8/31/2018

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

Mark Lehman Parsons Behle & Latimer ACG Utah Term expires 8/31/2018

Cassandra Mott Thompson & Knight LLP ACG Houston Term expires 8/31/2016

Mike McVey Hylant Group ACG Columbus Term expires 8/31/2018

Martin Okner SHM Corporate Navigators ACG New York Term expires 8/31/2018

Walter O’Haire Valuation Research ACG San Francisco Term expires 8/31/2017

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

Titus Schurink HPE Growth Capital ACG Holland Term expires 8/31/2018

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

Mitch Woolery Kutak Rock LLP ACG Kansas City Term expires 8/31/2018

Thomas Turmell TMT Capital Partners LLC ACG Chicago Term expires 8/31/2018

Vice Chairman Jason Brown* Victory Park Capital ACG Los Angeles Term expires 8/31/2016 President & Chief Executive Officer Gary A. LaBranche, FASAE, CAE* ACG Global Chairman of Finance Angie MacPhee* RGL Forensics ACG Denver Term expires 8/31/2016 Secretary J.B. Dollison* Crutchfield Capital Corporation ACG Houston Term expires 8/31/2016 Immediate Past Chairman Doug Tatum* Newport Board Group ACG Atlanta Term expires 8/31/2016

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

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

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ACG Philadelphia acg.org/philadelphia

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ACG France acg.org/paris

ACG Pittsburgh acg.org/pittsburgh

ACG Austria acg.org/austria

ACG Germany acg.org/germany

ACG Portland acg.org/portland

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ACG Holland acg.org/holland

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ACG Boston acgboston.org

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ACG Los Angeles acgla.org

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ACG Chicago acgchicago.com

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ACG National Capital acgcapital.org

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ACG North Florida acg.org/northflorida

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ACG Denver acg.org/denver

ACG Orange County acg.org/occ

ACG Wisconsin acg.org/wisconsin

P A R T N E R S I N D R I V I N G M I D D L E - M A R K E T G R O W T H .ÂŽ F r o m c o n s u l t a n t s t o C PA s a n d a h o s t o f o t h e r a d v i s e r s a n d specialists, ACG Global Partners guide the success of more than 90,000 professionals in the middle market worldwide.

L E A R N M O R E A B O U T A C G PA R T N E R S H I P S , V I S I T A C G . O R G / PA R T N E R S H I P S Š 2015 Association for Corporate Growth. All Rights Reserved.