Middle Market Growth Conversations

Two co-founders of Vertical Bridge, Alex Gellman and Bernard Borghei, join the podcast to discuss the pandemic’s impact on telecommunications infrastructure and on their company, which owns and manages 288,000 sites nationwide, including wireless and broadcast towers, rooftops, land parcels and billboards. A privately held company based in Boca Raton, Florida, and the focus of Middle Market Growth‘s January/February 2020 cover story, Vertical Bridge was founded in 2014, although Gellman and Borghei have been active in the space for much longer. They talk about the evolving state of wireless communications, recent M&A activity, threats posed by the “digital divide,” and opportunities for private capital to participate in the industry’s growth. The company also recently became carbon neutral, the first tower company to do so. Gellman and Borghei talk about how Vertical Bridge achieved that distinction, its philosophy around corporate citizenship, and its charitable giving through the Vertical Bridge Charitable Network. More info is available here: https://www.verticalbridge.com/vertical-bridge-charitable-network-0 Read the Middle Market Growth cover story featuring Vertical Bridge here: https://middlemarketgrowth.org/cover-bridging-the-21st-century/ **** The Middle Market Growth Conversations podcast is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

Kevin Depew, RSM's deputy chief economist and leader of the firm's national industry eminence program, returns to the podcast to discuss the state of the U.S. economic recovery, one that has revealed an underlying K-shaped economy. Depew also explains the impact of recent policy changes from the Federal Reserve, along with the top concerns weighing on middle-market business leaders. He assesses the federal policy response to the pandemic, including how the Main Street Lending program could be improved to better support midsize businesses. As business leaders think about the future, Depew recommends that they anticipate greater government involvement in the economy akin to that of the 1960s and 1970s—and why that might not be a bad thing. **** This episode is brought to you by RSM US LLP, a leading accounting, tax and advisory firm dedicated to the middle market. The Middle Market Growth Conversations podcast is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

In July, law firm Katten published a report about private equity activity in the animal care sector, based on survey responses from private equity investors and animal care operators. Kimberly Smith, a partner and co-chair of the Mergers & Acquisitions and Private Equity practice at Katten, joins the podcast to walk through those survey findings and what they reveal about how investors' outlook on the industry was impacted by the pandemic, and why animal care operators' sentiment toward private equity is changing. Smith also points to emerging opportunities in the animal care industry, what animal care practice owners say they want to hear from prospective buyers, and how an influx of investors is affecting the market. Katten's full report, "Pets a Good Bet: Private Equity Zeroed In on Animal Care, Survey Finds," is available here: https://katten.com/webfiles/PrivateEquityAnimalCareReport.pdf. Middle Market Growth magazine's September/October issue explored private equity's interest in a related industry, pet products. That article is available here: https://middlemarketgrowth.org/the-round-resilient-pet-industry-shows-private-equity-is-barking-up-the-right-tree/ The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

The economic crisis caused by COVID-19 has led many businesses to focus on challenges related to working capital, supply chain, or the accelerated shift from brick-and-mortar to e-commerce. Yet alongside these urgent priorities, talent planning continues to be important, particularly as companies position themselves for the post-pandemic future. Bob Ryan, a partner at Shields Meneley Partners, and Keith Goudy, the managing partner at Vantage Leadership Consulting, return to the podcast to discuss the pressing issues related to talent management and hiring that business leaders and private equity owners are grappling with today. Drawing on their experience working with clients, Ryan and Goudy describe how the COVID crisis has changed what companies are looking for in their leaders, and how to lead effectively when employees are working from home. They offer actionable tips for advancing diversity and inclusion initiatives in a virtual work environment, and they explain why succession planning is now more important than ever. Ryan and Goudy first appeared on the Middle Market Growth Conversations podcast last year, in an episode titled "How to Get Hired at a Private Equity-Owned Company," available here: https://middlemarketgrowth.org/podcast-get-hired-at-a-private-equity-owned-company/ The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

This episode is brought to you by QBE North America, part of QBE Insurance Group Limited, one of the largest insurers and reinsurers worldwide. *** Tom Fitzgerald, president of QBE North America’s Specialty & Commercial business, joins the podcast to discuss a recent survey that explores the risks and concerns facing midsize companies in 2020. Commissioned by QBE in partnership with the Association for Corporate Growth, the survey identifies which macro risks are weighing heaviest on the minds of middle-market leaders, along with their unmet risk-management needs. In the first of three podcast episodes, Fitzgerald outlines the top macro risks revealed by the survey, and he describes some of the specific risks related to the pandemic, including worker safety and rehiring processes. Check back in the coming weeks to hear the next two interviews with QBE and a further exploration of risk in the middle market. Find the full risk report on QBE's website: https://www.qbe.com/us/risk-report The Middle Market Growth Conversations podcast is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

Closing a deal in 2020 can be challenging, particularly when the parties involved operate in different countries. Yet HKW announced in July that its portfolio company Fresh Direct Produce, a fresh produce importer in Western Canada, had acquired Mike & Mike's Organics, a distributor of fresh certified organic fruits and vegetables headquartered in Woodbridge, Ontario. On the podcast, HKW Partner John Carsello and Vice President Tom Shaw describe how they moved the deal forward during the pandemic, despite restrictions on travel to Canada from Indianapolis, where HKW is based, and why Mike & Mike's was an attractive target. Carsello and Shaw are joined by Davis Yung, Fresh Direct Produce's president and co-founder. Yung describes his company's growth trajectory leading up to COVID-19 , and how it has dealt with supply chain and safety challenges. He also offers insight into the Canadian grocery market, and how it compares with its U.S. counterpart. The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

The COVID-19 outbreak has wreaked havoc on the consumer products industry, prompting apparel and beauty brands to find ways to remain relevant. Meanwhile, many food brands and grocery retailers have seen unprecedented demand from customers who are now eating more meals at home. In this episode of the podcast, Robert von Furth, a managing director in Stout’s Investment Banking group, discusses how various categories within the consumer product space are coping with disruption, and which will be most attractive to buyers. He also describes what he's seeing in the middle-market deal environment more broadly, including the availability of credit, valuation challenges, and how the pandemic is changing due diligence. The podcast interview expands on themes that von Furth writes about in the September/October edition of Middle Market Growth magazine, which ACG members will receive later this month.Access the archive here: https://issuu.com/middlemarketgrowth The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

Fewer than one-third of companies that come to market end up selling successfully. Deal-makers have long sought to improve the odds by adding to their contact lists, but Denise Logan argues that establishing deeper relationships is a better solution. Logan is the author of "The Seller's Journey," a book she wrote based on her work advising business owners and their professional teams as they navigate the complex emotional journey of selling a business. On the podcast, Logan describes how a lack of trust causes many deals to fall apart and offers tips for how private equity firms and investment banks can establish better working relationships. She cites examples of deals imperiled by family strife behind the scenes and professional vendettas between parties on both sides of the table. Ultimately, the trust required to close a deal successfully hinges on building stronger relationships, and Logan offers tips for how deal-makers can shift away from collecting new contacts and toward deepening their existing relationships. She suggests following the lead of basketball legend Michael Jordan, whose efforts to connect with referees paid off on the court. "The Seller's Journey" is available for purchase through Logan's website, deniselogan.com/the-sellers-journey. *** The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

Melissa Mounce, a managing director focused on leadership talent at private equity firm GTCR, discusses human capital management and recruitment strategies, and why this is an area where more and more private equity firms are focusing. During the conversation, Mounce describes GTCR's approach to talent within its portfolio, and she points to the attributes that make a portfolio company leader successful--and which qualities tend not to be a good fit. She weighs in on how the leadership skill set has evolved over the years as businesses adapt to new technology and digitization. Mounce also comments on current talent and workforce trends, including record-high unemployment, the shift toward more permanent remote-work arrangements, and the continued importance of diversity and inclusion initiatives. *** The Middle Market Growth Conversations podcast is brought to you by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.

This episode is brought to you by RSM US LLP, a leading accounting, tax and advisory firm dedicated to the middle market. Last week, the Labor Department published a jobs report that showed stronger employment numbers than expected. Yet soon after the report's release, it became clear that the unemployment rate was likely much higher than official figures suggested. Kevin Depew, RSM's deputy chief economist and leader of the firm's national industry eminence program, returns to the podcast to give an economic update for the second quarter, including a look at the labor market and why the most recent government unemployment figures were too low. He also explains why the stock market continues to reflect optimism despite pain in the real economy, and how that dislocation could impact economic growth. Depew goes on to describe sentiment among middle-market business leaders and how the crisis has hastened new investments in technology, and he offers his prediction for the shape of an eventual economic recovery.