Middle Market Growth Conversations

Two technology experts sat down with MMG Editor Kathryn Mulligan at the Toronto ACG Capital Connection conference to discuss innovation in artificial intelligence and fintech. The first half of the episode features an interview with Shelby Austin, managing partner at Omnia AI at Deloitte Canada, who discusses middle-market companies’ adoption of artificial intelligence, how AI will alter employment, and the role governments and corporations play in shaping the future of work. In the second interview, Christine Ing, co-lead of the technology practice at McCarthy Tetrault, talks about financial technology, including how fintech companies should weigh cybersecurity and regulatory risks, and new ways private equity firms can leverage big data to enhance their due diligence.

Frank McGrew, managing partner at McNally Capital, returned to the podcast to discuss new guidance from the U.S. Treasury Department for investing in opportunity zones, including how to file, the time period in which investments must be made, and stipulations for investing in operating businesses. The 2017 Tax Cuts and Jobs Act created the opportunity zone program, which incentivizes investors to deploy capital gains into economically disadvantaged areas. McGrew provided an overview of opportunity zones in an earlier episode of this podcast. ** McNally Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.**

Joe Brusuelas, chief economist for RSM, joined MMG Editor Kathryn Mulligan to provide an economic update for the middle market, including how the tight labor market, trade tensions and monetary policy will impact midsize companies. Brusuelas expects the labor shortage will lead to production bottlenecks next year, prompting companies to substitute robotics and automation for human labor, and he outlined why it's essential that middle-market participants closely watch moves from the Federal Reserve. Additional insight into these topics is available in RSM's latest Real Economy report, available at https://rsmus.com/economics/the-real-economy.

Matt Sondag, leader of West Monroe Partners' M&A practice, and Brian Jacobsen, managing partner of West Monroe Capital, joined MMG Editor Kathryn Mulligan to discuss the business and technology consulting firm's new co-investment strategy, including how it began and the types of deals the firm looks for. They also weighed in on trends impacting middle-market M&A heading into 2019.

Frank McGrew, managing partner at McNally Capital, spoke with MMG Editor Kathryn Mulligan about a provision of the 2017 tax reform legislation designed to attract capital to economically disadvantaged communities. Investing in opportunity zones can benefit family offices and private equity firms from a tax perspective, and McGrew weighed in on how his firm is approaching the program. ** McNally Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.**

Orin Winick, national director of investment advisory for Aspiriant, spoke with MMG Editor-in-Chief Kathryn Mulligan about the increase in entrepreneurs selling their businesses and emerging trends in wealth management—from using storage facilities as a means of generating cash flow, to investing in the nascent cannabis industry. This episode was recorded onsite at the annual ACG Los Angeles Business Conference.

Langston Emerson, a partner with The Cypress Group, spoke with MMG Editor-in-Chief Kathryn Mulligan about current legislative proposals relevant to the middle market. He also offered insight into the upcoming midterm elections, including key races to watch and how a shift in control of the House of Representatives could impact the legislative agenda. To learn more about ACG's public policy and advocacy initiatives, visit acg.org/public-policy.

Chris Jackson, Deloitte Private technology leader and managing director of Deloitte Consulting, spoke with MMG Editor Kathryn Mulligan about his firm's recent 2018 Mid-Market Technology Trends Report, which examined the intersection of talent and technology at middle-market companies.

Darin Brock, head of business development for Toronto-based TorQuest Partners, spoke with MMG Editor Kathryn Mulligan about the M&A environment in Canada, attractive investment areas for TorQuest, and several of the firm's recent investments, including A&W's Canadian franchise.

Jennifer Fondrevay, founder and chief humanity officer of Day1 Ready, spoke with MMG Editor Kathryn Mulligan about her research into why so many mergers and acquisitions fail, and how acquirers and investors can address workforce considerations earlier in the M&A process. Fondrevay has interviewed a number of C-level leaders, HR professionals and PE investors, and she's written on the topic for Harvard Business Review and in a forthcoming book. Learn more about her writing and research at jenniferjfondrevay.com.