Middle Market Growth Conversations

At a recent ACG event in Detroit focused on cross-border trade, Middle Market Growth sat down with leaders from ACG's Detroit, Western Michigan and Toronto chapters. They weighed in on how issues like tariffs and NAFTA renegotiation are impacting middle-market companies, and whether legalization of cannabis presents an investment opportunity for ACG members. The episode features interviews with Chris Letts, vice president at Morgan Stanley and president of ACG Detroit; Ben Gibbons, a partner with RSM Canada and a member of the ACG Toronto board of directors; and Eric Kamstra, a member of the board of ACG Western Michigan. It was taped during the Cross-Border Connections conference, an event hosted by ACG Detroit, Western Michigan and Toronto in March.

Joseph Comartin, Canada’s consul general in Detroit and a former member of Parliament, spoke with MMG on the sidelines of the recent Cross-Border Connections conference hosted by ACG’s Detroit, Toronto and Western Michigan chapters. He discussed the trade relationship between the U.S. and Canada, the impact of the steel and aluminum tariffs, and a collaborative infrastructure project that promises to yield economic benefits on both sides of the border.

Lower middle-market companies are increasingly attracting interest from private equity buyers. To hear what it takes to successfully partner with these businesses, MMG sat down with Matt Petrucci, a partner with Plante Moran’s transaction advisory services team, and Brett Holcomb, a principal with private equity firm Prospect Partners. Check out Part 2 of this interview to hear Petrucci and Holcomb discuss the role PE firms play in helping a company preserve its culture. They also describe the most innovative business models they’ve come across, and the broader trends they expect will impact middle-market investing.

In Part 2 of our interview with Matt Petrucci, a partner with Plante Moran’s transaction advisory services team, and Brett Holcomb, a principal with private equity firm Prospect Partners, the two discuss the role PE firms play in helping a company preserve its culture. They also describe the most innovative business models they’ve come across and the broader trends they’re watching. In case you missed it, check out Part 1 of the interview, featuring a discussion of what it takes to invest successfully in the lower middle market.

During the Atlanta ACG Capital Connection, MMG Editor-in-Chief Kathryn Mulligan sat down with Jim Douglass of Fulcrum Equity Partners and Scott Linch of DHG Private Equity to discuss dealmaking in the Southeast, industries to watch, and a new accounting change that’s impacting private equity portfolio companies.

Joe Brusuelas, chief economist for RSM, speaks with MMG's editor-in-chief about what U.S. middle-market managers should be watching as the economy slows and risk factors mount, notably the trade dispute with China. He weighs in on the likelihood of a 2019 recession in the U.S., the impact of the Fed's decision to pause its rate hikes, and how to plan for NAFTA modernization. Brusuelas also discusses his middle-market reading recommendations: a paper from the San Francisco Federal Reserve titled “How Much Could Negative Rates Have Helped the Recovery?”, and “Capitalism without Capital: The Rise of the Intangible Economy” by Jonathan Haskel and Stian Westlake.

Mark Heimbouch, president and chief operating officer of Worldpay, speaks with MMG’s editor-in-chief a year after Cincinnati-based Vantiv acquired Worldpay Group, based in London, in one of the largest transactions in the payment processing industry in the last several years. Heimbouch discusses how the deal came about and the post-close integration process at the combined company, named Worldpay. He also weighs in on how cybersecurity considerations factor into M&A decisions and the new opportunities presented by legalized gambling in the U.S.

Registration for ACG's annual InterGrowth conference is now open, so MMG sat down with two veteran attendees to hear about what first attracted them to the middle-market dealmaking event, how they maximize their time there, and InterGrowth's impact on their careers. Ramsey Goodrich, managing partner at Carter Morse & Goodrich, and Karin Kovacic, managing director for the East Coast region at Monroe Capital, also discuss which career level InterGrowth is best suited for, their favorite speakers from past years, and the worst mistake you can make when preparing for the conference. Learn more at https://www.intergrowth.org. Register by visiting https://www.mylibralounge.com/sites/ig2019/attendee.

This week's episode features Adrianna Czornyj, a partner with Persistence Capital Partners, the only private equity firm in Canada focused exclusively on health care investing. Czornyj addressed the question she's asked most frequently: How do you invest in health care in a country with a public health care system? She also spoke about the types of investments Persistence targets, the differences in health care regulations across provinces, and the growing number of U.S.-based private equity firms entering Canada to invest in the health care industry. This podcast episode was recorded during the Toronto ACG Capital Connection. Czornyj will serve as co-chair for the 2019 conference.

This week's episode features Chris Voss, the FBI's former lead international hostage negotiator and CEO of The Black Swan Group, which advises Fortune 500 companies on performing complex negotiations. He addressed the key elements that all negotiations share, from a middle-market M&A transaction to a high-stakes hostage crisis. He also suggested strategies for setting up a negotiation for success, red flags to watch for, and the best way to relay bad news. Plus, he shared real-world anecdotes from his time in the FBI. To learn more about the topic, pick up Voss' book, “Never Split the Difference: Negotiating as if Your Life Depended on It,” or subscribe to The Black Swan Group's newsletter, "The Negotiation Edge." Sign up for the free newsletter by texting fbiempathy to 22828, or subscribe online at https://blog.blackswanltd.com/the-edge.