McKinsey & Company's Gary Pinkus will address one of the big and troubling questions on the minds of business leaders and policy makers on how to drive growth and renewal in the U.S. after the recession. He will share new research published by the McKinsey Global Institute which shows that in order for the U.S. to regain the GDP growth of the last two decades, it must accelerate labor productivity growth to a rate not seen since the 1960s. Mr. Pinkus will share highlights of the findings which detail the size of the U.S. productivity challenge and explore some of the opportunities to diffuse best practices, implement emerging business and technology innovations, and remove other barriers to meet that challenge. He will also offer a seven-point agenda for government and businesses to address broad, economy-wide issues that currently hinder our ability to fully capture our productivity and growth potential. Attendees will gain a better understanding of America’s productivity challenge, and the opportunities across government and industries to overcome it. Gary Pinkus is the Managing Director of McKinsey & Company's practice for the Western United States, which includes locations in Los Angeles, Palo Alto, San Francisco, and Seattle. During his 20+ years with the firm, he has also helped co-found and co-lead the firm's Biotech and Private Equity practices. Mr. Pinkus earned his B.A. in English and Quantitative Economics with Distinction from Stanford University and his M.B.A. with Distinction from Harvard Business School. He resides in Woodside, California with his wife and four children.
A look at how we live and work in the decades ahead including how economic and demographic trends may play out over the next several decades.
Peterson will address the most challenging global issues of our time, mapping long range demographic trends that will transform the opportunities and risks – as well as our capacity to address them. He traces the simultaneous and significant global shifts in the areas of demography, the environment, movement of data and the development of knowledge, the global economy, technological innovation and diffusion and the rapidly shifting geopolitics of major powers the world over. Peterson will untangle these complex trends and examine the real-world implications-present and future-of accelerating change, mounting complexity and abbreviated time frames. Presenter: Erik Peterson, Director of A.T. Kearney's, Global Business Policy Council, Senior Advisor at the Center for Strategic and International Studies (CSIS) Click here for more information on the Tuesday ACG InterGrowth macro sessions.
Our Global Natural Resources Presenter: Ian Bowles
Former Senior Director of Global Environmental Affairs at the National Security Council and Associate Director of the White House Council on Environmental Quality
Author: Footprints in the Jungle A strategic look at natural resource availability and regulation and how leading edge companies weave environmental thinking into core business strategies with a focus on green business, energy, water, key resources and sustainability. The discussion will include a five to ten-year outlook and the impact on society and business. Bowles explains how companies are obtaining "eco-advantage" in the marketplace and champions clean energy as an economic opportunity for business growth Click here for more information on the Tuesday ACG InterGrowth macro sessions.
Luncheon Keynote Presentation: How the Mighty Fall: And Why Some Companies Never Give In
Presenter: Jim Collins,
TechnoFutures: How Technology Will Revolutionize the Future of Business and Society
Presenter: James Canton, Ph.D.
Futurist, Author and Visionary Business Advisor
Author: TechnoFuture, and The Extreme Future
A provocative session with a leading futurist known for his accurate forecasts about future high tech trends and their impact on business and society. He provides deep insight and perspective on the imminent revolution in business as impacted by emerging technical trends and innovation. Canton demonstrates how the speed of disruptive innovation will impact markets, competition and our future. Click here for more information on the Tuesday ACG InterGrowth macro sessions.
What are the future paths for manufacturing in the U.S.? A provocative discussion with CEO's and leaders on how manufacturing firms succeed in the U.S. and globally, covering topics such as cost cutting and productivity, product invocation and pricing, human capital utilization, capital allocation, mergers and acquisitions, process improvements and new market development.
Do you currently make cross border deals or do you anticipate doing so in the future? If you answered yes to either of these questions, please join the ACG: Connecting Globally networking reception where the ACG global community will meet and find ways to connect.
In this interactive session we will learn about what constitutes a "securities transaction" and which activities trigger the need to register under the ’34 Act. We will discuss actual deals that have failed or been rescinded due to lack of proper registration; as well as the current focus of the FINRA, SEC and state regulators on private placements within the investment banking community. There will be plenty of time for questions. Focus Technology
Portfolio IT Initiatives: Common Stumbling Blocks and Tips for Ensuring A Successful Project
For many investors, IT initiatives can be daunting, expensive and disappointing. When done right, the implementation of new technology is a vital piece of profitability, increasing employee efficiency and management insight significantly. Yet IT upgrades and implementations rarely go smoothly. Timelines are extended seemingly indefinitely, features fail to work as promised or expected, budgets are stretched to the max and frustration becomes an expected part of the day. It is no wonder that many investors find it hard to justify further spending on new projects or recent implementations that still aren’t working properly.
There is no magic bullet that ensure the success of each and every initiative, but there are some key steps that can help. In this networking discussion forum we will discuss some of the most common project stumbling blocks and how to avoid them. We will share insights gleaned from our experiences and encourage attendees to share theirs. This is not meant to be a time of one-way communication, but an opportunity to both learn and discuss. We hope you join us.
Plex Systems, Inc. Plex Systems, Inc. and Revstone Industries LLC: "The Power of the Cloud for Private Equity-Backed Companies." 2011 Progressive Manufacturing award-winner Revstone Industries shares a compelling look at how innovative technology let them achieve a 456 percent return on investment (ROI) at a recently acquired foundry. This presentation showcases dramatic efficiencies and operational improvements Revstone achieved at the foundry, including inventory reductions of 30 to 50 percent.
A timely session providing an insider’s perspective on the status of discussions in Congress about pending tax changes, health care reform and more. An update on the new regulatory impact facing PE Firms and commentary as to evolving best practices for complying with new regulations. Private Equity leaders will receive an introduction to the Middle Market Private Capital Leadership Forum, a new initiative launched by ACG to communicate the attributes and advocate policy on behalf of middle market private equity in Washington, DC and beyond.
This first CORE Track session includes important dialog about the current state of the market for senior and subordinated lending. Topics to be covered include who is lending, metrics, pricing, syndication and discussion around the prognosis for the market in 2011 and much more.
Corporate Growth Track Developing a Strategy for Acquisitions
This full-day of content kicks off the process for strategic acquisitions. The early discussion will follow topics surrounding organic vs. acquired growth and will include discussion around timing, risk and returns as well as current strategic thinking related to identifying vertical, horizontal and market expansion.
* Evaluating organic growth versus acquired growth. - Best practices for development, measurement and evaluation tools (cost of capital versus time/value versus risk assessment, etc.). - Importance of developing strategy guidelines (i.e., low-cost manufacturer, third largest market share or better, etc). Moderator: Chuck Morton, Venable LLP and ACG Global Incoming Vice Chair Panelists: Pete Perrone, Goldman, Sachs & Co.; Ron Chang, UPS; Robert Uhlaner, McKinsey & Company; Matt Lockhard, Worthington Industries
Capital Strategies for Privately Held Businesses Track Conventional Debt Funding for Privately Held Business This new track, specifically designed and tailored to assist family and entrepreneurial owned businesses with short and long-term capital and ownership planning an strategies. The first session will begin with a market update for commercial lending to privately held businesses including mezzanine / subordinated markets and discussion around personal guarantees; the impact on family wealth, options and strategies. Moderator: Robin Engelson, Lazard Middle Market LLC
Best Practices for Structuring PE Funds
The focus will be on leading practices in structuring PE funds in order to attract and retain talent, and to plan for eventual future succession to ensure long term institutional survival. Both best practices to ensure the longevity of an organization, and various alternatives such as break-ups, spin-offs, or sale of the general partnership will be discussed.
Moderator: Olga Loy, Jones Day
ACG Core Track Capital Markets Update: From Leverage to IPO An important update on the current Capital Markets environment. Is the Capital ready, willing and available for middle market companies? What can be done today to prepare for the next leverage cycle? Also included is a special update on the capital markets in Canada from the Toronto Stock Exchange. Moderator: Brett Paschke, William Blair & Company Panelists: Timothy R. Curry, Jones Day; Pam Buchanan, NASDAQ; Duff Anderson, Solebury Capital; Janice Koyanagi, Toronto Stock Exchange, TSX Venture Exchange
Corporate Growth Track Best Practices for Finding Acquisition Opportunities A portion of the strategic acquisition process naturally includes how to find and win deals. There are opportunities with every approach and those will be considered in this session. * The integration of efforts between corporate development and operating units. * Effective use of buy-side brokers and searches. * Networking with small and middle market investment banks. Moderator: John McPhee, KPMG LLC Panelist: M. Scott Ulnick, Ducker Worldwide; Randal Stephenson, Duff & Phelps Securities; Jason Fischer, Underwriters Laboratories; Andreas Lederer, Worthington Industries
Capital Strategies for Privately Held Businesses Beyond Borrowing: An Overview of Three Tools for Funding Growth, Liquidity and Exits Starting with the basics of PE Fund structures and an overview of the U.S. market this session will showcase the various options available to private businesses. PE markets and sub-markets including minority transitional equity investments will be discussed. A second option includes discussion around ESOPs, how they work, benefits, drawbacks and possible uses. Finally public equity markets will be considered including IPO and maintaining family control with public shareholders. Moderator: Michael Carr, ACG Chairman, BAC Investments LLC and ACG Global Board Chairman Panelists: Mary Sullivan Josephs, Verit Advisors; Duane Tyler, RSM McGladrey; Bruce Lipian, StoneCreek Capital; Patrick Jensen, Duff & Phelps Securities, LLC
What PE fund member should be on boards? How many portfolio company board members from a PE fund? Limitations and restrictions on the conduct and activity of PE fund representatives with respect to the "corporate veil" of lender liability. The panel will share the evolving practices for use of outsiders on boards of portfolio companies considering compensations, governance and more.
This session will also include a special update on the performance of PE funds, the number by category, amount of funds raised and a forward forecast for the PE marketplace for the next 5 years. A comparative commentary of PE returns vs. returns for other investment strategies combining investor expectations will also be shared. Moderator: Jack DiFranco, Grant Thornton Panelists: Denise Carkhuff, Jones Day; Al Stanley, Morganthaler Private Equity; John Gabbert, PitchBook Data, Inc.; Scott Smith, Lazard Middle Market LLC; Jeff Sanders, Heidrick & Struggles
A combined session first covering due diligence including quality of earnings analysis, antics and arm wrestling! Seller- and buyer-generated products will be explored including how and when they work, scope and cost. Data room software capabilities, seller and buyer management including best practices, opportunities and traps including disclosure nuances and best practices. Part two includes discussion around IPO vs. M&A and deep discussion around "exclusivity" or "dual-ivity" or the "dual exclusivity" approach that sellers are taking with increasing frequency.
This session will focus on the Best Practices for Strategic Acquirers to Navigate the Sell-Side process. Key topics to be covered in this session include how to compete with Private Equity with understanding of PE’s primary advantages and shortcomings; Valuations and negotiation with from the initial indication of interest to management presentations with discussion around hot to maximize timing, build chemistry and optimize the "certainty to close" factor. Finally, discussion around the (dreaded) dual track including parity vs. first / second structures, legal guidelines and an overview of best practices.
- Competing more effectively with Private Equity; PE’s advantages and shortcomings - Valuation and negotiation strategies throughout the process including how to maximize timing, build chemistry and optimize the "certainty to close" factor - Exclusivity vs. dual-track processes including consideration for first / second structures, legal guidelines and an overview of best practices Moderator: Michael Rosenthal, SNR Denton Panelists: Rob Aikman, Odyssey Investment Partners LLC; Stephen Guy, KPMG Corporate Finance; Buddy Blaha, Newell Rubbermaid; Denise Tormey, SNR Denton
Capital Strategies for Privately Held Businesses
All privately held businesses will experience one of the three ownership outcomes: (1) Sell (to a third party or employees), (2) Transfer to family, (3) Close or dissolve. What are the relevant criteria / factors in choosing between sale and family success? Discussion around financial/wealth desires, values, governance, legacy and defining success. Moderator: Mike Trueblood, Cal State Fullerton Panelists: Stephen L. McClure, Ph.D. Family Business Consulting Group; Dr. Thomas V. Schwartz, Cal State Fullerton; Stacy Eastland, Goldman, Sachs & Co.
A popular InterGrowth staple, focused on EBITDA < $10million and deal size typically < $50million. The focus of this panel will include the unique differences with deals in this range including sell side process, pricing, valuation, financing, underwriting, PE and due diligence. An update for SBIC’s and best practices for dealing with pledge funds are other relevant topics planned for this core track panel. Moderator: Kenneth Csapler, BDO Capital Advisors, LLC Panelists: George Nemphos, Duane Morris; Scott Becker, Northstar Capital LLC; Ted Chasanoff, CBIZ MHM, LLC and Shareholder Mayer Hoffman McCann P.C.; Gary T. O'Brien, Quetico Partners LLC
Capital Strategies for Privately Held Businesses The Family Business Alternative For those who are leaning toward the family business alternative, what are the considerations, issues and best practices for executing a multi-generational and ownership plan? Key topics will include: Adopting and communicating a family constitution; defining success; governance best practices; factors and considerations in executing ownership transfers; ESOPs to facilitate transfers, financing and recapitalization. Moderator: Melinda Kleehamer, Goldman, Sachs & Co. Panelists: Stephen L. McClure, Ph.D., Family Business Consulting Group; Mary Sullivan, Josephs Verit Advisors; Randy Abeles, RSM McGladrey
A must-attend session at InterGrowth, this powerful session will include discussion around organic vs. add-on growth; Sourcing add-on's, financing add-on's, integrating add-on's and how to maximize the value exit.
In this final session for the day, we will round out the discussion with comparing and contrasting integration philosophies behind what can be two materially different approaches – fast and complete vs. gradual and soft. Which approaches apply best to various scenarios to maximize transaction value while managing execution risk? Panelists will also discuss how to make the most of pre-completion time preparing for day one, the first 100 days and beyond.
Balancing and coordinating three factors: Economic cycle, business cycle and personal goals and timeline. The key "how" challenges of preparing the estate, the business and executing the process. Key options will be explored including the strategic buyer. Moderator: Jack Helms, Lazard Middle Market LLC Panelists: Stacy Eastland, Goldman, Sachs & Co.; Bob Jensen, RSM McGladrey: Jay Thompson, Freeman Freeman and Smiley; and panelists from earlier sessions
The Big Picture: Strategic Opportunities in and from Asia for U.S. Dealmakers
Our experts will kick off our discussions on doing business in Asia and provide their unique insights throughout the workshop. We will explore Asia as an end market for U.S. companies and expect considerable discussion around the global cost efficiencies of doing business in Asia while considering Asia as a potential source for U.S. R & D. In a global market that is increasingly Asia-focused, Gupta and Wang’s expertise and insight on strategic direction in the East is undeniably valuable and not to be missed. Both Gupta and Wang have compelling presence and definitive answers to looming question on these growing global economies. Topics to include: - Understanding the unique aspects of various geographies with focus on emerging markets such as China, India, Korea, Vietnam and Asia-centric areas; Sourcing Products and Services - Highlight business activities in each geographic area including sourcing products and services, selling/distributing products, labor and investing in the region - Case studies and examples from those who are doing business Asia with participants from all key disciplines In a global market that is increasingly Asia-focused
Keynote Presenters: Dr. Anil K. Gupta and Haiyan Wang
Ancient Chinese Secrets and Other Insights for Sourcing, Structuring and Executing Deals in (and from) Asia From buyouts from Asian family-owned conglomerates to state-owned enterprise carve-outs to Asian buyers looking for growth in the US, M&A activity in and from Asia continues to gain momentum. So how can you catch the surging wave of Asia deal making to find and win deals? Topic to include:
- Strategies being employed by Asia’s smartest PEGs to take advantage of Asia’s exponential growth
- Navigating the multiple peaks and valleys of Asia’s cultural and regulatory landscape
- Is Asia’s continuing stock market rally the road to quicker exits for PE-backed companies?
- Strategies for the land-locked, middle-market buyout fund to get a piece of the action
Program Chair and Moderator: Clifford Ng, K&L Gates, LLP Panelists: Ronald Chang, United Parcel Services; Bruce Allen, Baird Capital Partners; Andrew W. Rice, The Jordan Company
This panel will explore the myriad financial and accounting issues faced by private equity investors in Asia, including: - how to conduct effective financial and accounting due diligence - identifying key accounting issues that are unique to Asian investee companies - verifying key P&L and balance sheet items (when debt is not really debt) - fixing the problems, bridging the gap or walking away?