Middle Market Growth Conversations

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.

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.