Don’t Miss ACGPortland’s February Event featuring Hope Cochran – Director, Hasbro & former CFO, King Digital Entertainment

Wednesday, February 15th 5:30 PM, Bridgeport Brewery, Portland, OR 

Hope Cochran – Director, Hasbro & former CFO, King Digital Entertainment

Read More and Register on ACGPortland’s web site.

Hope Cochran’s industry experience spans Telecom, Software and Mobile gaming, all with the consistent theme of intense growth and change.

She and her family recently returned to the Seattle area from London where Hope was the Chief Financial Officer for King Digital Entertainment, developer of hit mobile game franchises including Candy Crush and Farm Heroes.  Hope experienced serious fun with King as she brought the company through the IPO process to a $6 billion acquisition by Activision. At King, she was widely known for being a legend at playing Candy Crush Saga.

In June, Hasbro, Inc. announced Hope’s appointment to Hasbro’s board of directors as a Director and member of the Audit and Finance Committees. Previously she served as the Chief Financial Officer of Clearwire Corporation and was with the company from 2005 to 2013, when it was sold to Sprint.  Hope is credited with raising about $6.5 billion in capital for the firm, including handling the $3.2 billion deal that involved a merger with Sprint Nextel's (NYSE:S) WiMAX business and investments from firms such as Intel, Google, Comcast, Time Warner and  Bright House Networks.

Some of Hope’s other notable accomplishments include recognition as one of 40 Under 40 in 2009 (Puget Sound Business Journal), acknowledgement by FierceWireless.

RECAP: “The Future of Health Care – Post-Election Reality”

shutterstock_516085015This week, ACG Portland brought together a panel of health care industry experts and local health care executives to uncover how the election could change health care in America.

Long before the results were in, experts across the country predicted that health care reform would be a major component of the next president’s agenda. Rising premiums, uncertainty about the future of the Affordable Care Act (ACA), and the possible collapse of individual insurance exchanges loomed large in the minds of industry executives and policy makers.

In the weeks leading up to November 8, the results of the presidential battle seemed like a forgone conclusion to many Americans. Then, against the odds, Donald Trump won.

Many of us in the northwest and around the country, regardless of the color of our stripes, are very interested to know how Trump’s presidency will change our world. Uncertainty abounds and very few of us like uncertainty.

The panel of experts took on the task of offering some predictions about what the future might hold in these uncertain times. In case you missed it, here are a few highlights from the lively discussion.

The Panel

 JJulie Barnesulie Barnes – Director of Health Care Policy; Cambia Health  Solutions, Washington, D.C.

katherine

 

Katherine Kohatsu – Principal Strategy & Health Industries Advisory; PricewaterhouseCoopers, Chicago

luisLuis Machuca – CEO Enli Health Intelligence, Portland

dusty

 

Dusty Lieb (Moderator) – Principal and Assistant Director, Strategic Investments; Cambia Health Solutions, Portland

 

What can President-Elect Trump do right away to make good on his promise to dismantle the ACA?

Trump could by Executive Order advise the IRS that it need not enforce the individual mandate.

Though he has the power to do so on Inauguration Day, immigration and international trade may be higher priorities on day-one. Trump likely will look to more comprehensive approaches to his ACA agenda.

It could end up that a judicial process ends Obamacare, not a legislative one.

There are several court cases lined up challenging different aspects of the ACA, including the legality of subsidies. They are vulnerable because Congress did not authorize the requested funding, and subsidies funding was technically misappropriated from other government program accounts. The ACA relies upon subsidies to individual premiums and subsidies in the form of cost sharing reductions to insurance companies. Without subsidies, the individual markets will fail.

We could see two Budget Reconciliation Bills put before Congress, unprecedented in the history of the Budget Reconciliation Act.

House Speaker Paul Ryan has clear sailing for broad changes or repeal with an easy, partisan, supermajority. Senate Majority Leader Mitch McConnell does not enjoy a similar majority. But for certain tax, spending, and debt limit legislation, the Budget Reconciliation Act of 1974 allows for expedited process and only a simple majority. The ACA, with its trillion-dollar budget and taxation features, qualifies. A second challenge to the Medicare Expansion provisions under ACA could be similarly handled.

There are lots of ACA alternatives

The White House will not have a lot of work to do to prepare a replacement proposal. Several significant players have already written alternative plans that are ready to go, notably Paul Ryan’s Better Way.

How big of a problem would ACA repeal be?

 More than half of the country’s insured are publicly supported. The employer mandate may not survive.

150 million people are covered under company plans; 50 million are covered by Medicare; 13 million were previously under individual plans and that number has swelled to 70 million under the ACA. The loss of funding or a mechanism for public support, combined with the elimination of the employer mandate, could quickly leave many uninsured.

Where will a replacement or revision take us?

We are in the early innings of what will be a very short game in which employers get out of health care. Employers will start throttling back and will have a head wind.

Large numbers of employers are expected to stop providing health benefits and turn their employees to the individual marketplace.

What will be the biggest thing in health care in the next 10 years that will affect everyone? MACRA. It’s all about the value equation.

Medicare Access and CHIP (Children’s Health Insurance Program) Reauthorization Act of 2015 — or MACRA —is already a part of the ACA and has tremendous bipartisan support. It passed 92 to 8 in the Senate and 392 to 7 in the house. This level of bipartisan interest virtually assures MACRA’s survival in whatever revisions or replacements happen to the ACA.

Medical professionals only get paid when you are sick and stay sick. We need to incentivize providers financially to heal people so as never to see them again.

The current fee for service model of paying providers for the number of ill patients that appear before them is a huge impediment to cost savings. The trend toward scalable consumerism and value-based reimbursement models will enable implementation of the principles and changes established under MACRA. This approach will be the big step in fixing health care.

Where is there consensus?

Everyone is Interested in lowering cost and improving results.

There is strong bi-partisan support for improved reimbursement models based upon favorable healthcare results and providing greater transparency and a focus on consumerism. By consumerism, the panel was referring to initiatives of cost and service transparency and financial incentive that bring individuals to shop more thoughtfully for value in their health care choices and engender value competition among providers.

There is much in this area of bipartisan agreement that could form the basis of positive reform rather that abrupt repeal with its attendant transitional vacuum if a healthy negotiation can be established.

Interested in attending other ACG Portland events? Thinking about becoming a member? Visit our website for more information about upcoming events and the benefits of becoming a member of ACG Portland today.

Operator, Investor and Advisor Profile Successful M&A

For the October 2016 M&A panel, ACG Portland and D.A. Davidson brought together a group of industry veterans representing different sides of the deal to talk about the state of M&A today and what makes a successful deal. In case you missed it, here are some highlights.

The State of M&A

brad-gevurtzBrad Gevurtz, Managing Director Investment Banking for D.A. Davidson, kicked off the event with a brief overview of M&A activity in the country and the Northwest.

2015 was the industry’s biggest year ever, and while deal volume and size are still healthy in 2016, the industry has seen a decline in most categories this year. Gevurtz pointed out that some of the slowdown is to be expected after a record-breaking year like 2015.

Election year uncertainty and the slow global economy also bear some responsibility for the softness so far this year.

The bright spot in Gevurtz’s comments was reserved for Oregon. Oregon’s M&A activity is nearly on par with Washington’s for the first time, thanks to our state’s healthy and growing economic base in the consumer discretionary and technology sectors (favorites in M&A regionally and nationally).

Inside the Deal: Alpha Media Group

The three panelists discussed in detail the transactions they had done together founding and capitalizing Alpha Media, which began with just 6 stations in 2009 and has grown into a new network of 251 stations today.

On why he and his team would want to plunge into a saturated, mature industry, fighting new technologies with a growth strategy.

bob-proffittBob Proffitt, President and CEO of Alpha Media, LLC:

“Pandora is not profitable… They lost $169 million last year.”

“Radio is really only 30 to 40% concentrated… Every market is different.”

Proffitt said he doesn’t worry too much about the “background music” satellite channels that are hemorrhaging money. He described the way the company embraces social media as a tool rather than a threat with streaming, podcasts, and social media listener engagement.

Alpha Media leverages the company’s “Live and Local” strategy to take on less concentrated, second-tier cities. They embrace the quirky, local, differentiating bits of culture that resonate with listeners in order to demonstrate the company’s focus on local brand.

On what attracted Endeavor Capital to Alpha Media.

Mark Dorman, Managing Director of Endeavor Capital:

mark-dorman“The team. We were very impressed with Bob and the team. As middle market investors, you don’t often get the chance to work with the best in the industry.”

“2008 and 2009 was an opportunistic time to get back into the market (after the 2001 sale of Citadel Broadcasting).”

“It took a couple of years to find add-ons before sellers awoke to reality.”

“Citadel sold at 16 times trailing cash flow and we are now buying at six to seven.”

Dorman portrayed an effective cocktail of the best operating team: market timing, well-structured and adaptable capital, and patience waiting for the right opportunities and prices.

How Sellers Can Be Seen as Valuable

Brad Gevurtz:

“Barriers to entry, differentiated product or service, top line growth, margin, and an experienced management team”.

All of these need to be there to draw broad interest and command good multiples because at the end of the day:

“Buyers are numbers people.”

 

Want more opportunities to get an inside look at the M&A industry from leaders in the industry? Looking for opportunities to meet other M&A professionals? Visit ACG Portland’s website at www.acg.org/portland and see what’s coming up on our events calendar.

 

Stoller Vineyard Nominated for Best Tasting Room

Best Tasting Room_USA TODAY_Stoller

We’re excited to share some great news from one of ACG Portland’s long-time sponsors and members. Stoller Family Estates has been nominated for Best Tasting Room by USA Today!

There are only four days left to help Stoller achieve the top spot. Visit USA Today’s voting page and cast your vote for Stoller today.

Stoller’s tasting room sits in the middle of its 373-acre vineyard on the edge of Oregon’s Dundee Hills. The tasting room combines environmental sustainability and high-efficiency design, harvesting 100 percent of its energy through a 236-panel solar panel installation.

The winery joins progressive, environmentally-friendly design with gentle, traditional winemaking practices that minimize its environmental impact. They are one of the premiere sustainable wineries in the Pacific Northwest, and the first LEED Gold Certified winery in the world.

Visit the official voting page to cast your vote for Stoller before voting closes on August 15 (12PM EST).

To experience the Stoller Family Estates wine selection and tasting room yourself, visit their tasting room website and make a reservation.

August Board Message – Membership Committee Chair

Help grow the Portland ACG Chapter, bring a guest who might be interested in joining.

In 2005, I applied for membership to ACG at the suggestion of some close friends who thought it would be a good fit for me. I was doing business almost exclusively in the greater Portland community as the new owner of Executive Forum; a significant change from my prior career in which I traveled for my work. Now eleven years later, I can extend a shout out to those that introduced me to ACG. It has been everything they had represented it to be and more.

I’m sharing my experience because I believe there are many others who are seeking the same opportunity to develop rich, collegial relationships and connect with other professionals in the Portland business community. In addition to networking with other leaders, ACG provides a wealth of corporate growth experiences aimed at personal development. At our Peer Growth meetings, a CEO typically shares their growth story with aha moments, successes and the challenges experienced on their watch.

As a member of the Board and membership chair for 2016, it is obvious to me that the Board identified growing membership and engagement as top priorities. To that end, over the past year, membership categories were simplified and clarified to embrace growth in number as well as diversity. One significant initiative is the creation of a new membership category with an eye to succession for young professionals. Our new Excelling Leaders category welcomes under 40 professionals into ACG to participate in general membership activities as well as those design specifically for EL members.

For the past four years, our membership has hovered around 120. Starting in early 2016 the membership committee adopted a goal of adding 30 Excelling Leader members in addition to 40 new corporate and/or business advisory members. In order to accomplish these goals before year end, we need every member’s participation.

Our primary way to grow membership is through membership candidates attending ACG as a guest to experience the value of membership first-hand. We welcome potential new members and allow two visits at no charge to those who seriously want to check out ACG membership. So far this year, we are only averaging 12 guests at each regular meeting and we need upward of 25 at every remaining meeting this year to support our 2016 membership goal.

We have nine very committed membership committee members. But as an all-volunteer organization, membership growth takes everyone’s helping-hand. Bring a friend, business associate, or a high performer in your organization who meets the Excelling Member category and share the experience. If you make a commitment to bringing just one guest to any of the three remaining meetings, we will attract the new members we need.

I’ll be looking forward to seeing you in September at the Moda Center and be sure to bring a guest.

See you there.

John Cochran

June President Message

Mark your calendars for March 2nd 2017!dave-porter

Thanks to the tireless efforts of Cordell Berge and the ACG Cup committee, the Portland Chapter of Association for Corporate Growth® (ACG) is pleased to announce ACG Cup® Northwest, a “real world” finance-related competition that will present up to $10,000 in awards to the winning teams of MBA students representing the top MBA programs in Oregon, Washington and Idaho.

The ACG Cup® is a case-study competition where MBA students solve real-world situations in a high-pressure setting.  The students are challenged to find solutions for a finance-related case in the field of mergers and acquisitions, investment banking, financial advisory and private equity. After the teams analyze the case and agree upon a course of action, the students make presentations to a panel of judges comprised of successful corporate executives in the field of finance.

The ACG Cup® Northwest competition has attracted significant interest from leading MBA schools in the Northwest.  MBA programs that have made early commitments to the program include the Foster School of Business (University of Washington), the Lundquist School of Business (University of Oregon) and the MBA Program at Portland State University.

Michele Henney, Program Director of the University of Oregon Finance Securities Analysis Center stated, “The UO’s Lundquist College of Business is excited to be part of the ACG Cup® Northwest – a premier opportunity for students to showcase their knowledge in the area of corporate mergers and acquisitions.  These sorts of experiential activities help students apply their classroom knowledge and interact with industry professionals in a very realistic setting.”

Dan Poston, Assistant Dean for Master’s Programs at the Foster School of Business, University of Washington, stated, “We enthusiastically support and look forward to participating in the ACG Cup® Northwest case competition.  For many years, the University of Washington’s Foster School of Business has sent student teams to intercollegiate case competitions at both the undergraduate and graduate level.  We believe events such as the ACG Cup® challenge our students to pull together all the things they have learned in a program to address an intriguing problem with a team of classmates, come up with a creative solution, and experience the thrill of presenting and defending a complete proposal to judges who are industry professionals.”

The competition is modeled after other ACG Cup® programs that are hosted each year by ACG chapters in major markets throughout North America.  The case study that is used is written annually for the competition by the investment banking firm Houlihan Lokey in Los Angeles.

First-round competitions are held on campus at each school in early 2017.  Each team will analyze and present their solutions and recommendations to a complex business case that requires a combination of corporate strategy, finance and management skills.

The semi-final competition will be held by the Washington and Idaho schools in Seattle and the Oregon schools in Portland in February 2017.  The finals will be held in Portland on March 2, 2017, and will consist of the top two Washington/Idaho schools vs. the top two Oregon schools.

The final competition will be held prior to an evening social event consisting of ACG and FEI (Finance Executives International) members, final team participants, judges, business school professors, sponsors and guests from the financial community.  A keynote speaker will headline the evening’s dinner event prior to the presentation by Umpqua Bank to the winning teams.

ACG Portland is pleased to host the competition in partnership with other organizations, including FEI chapters in Seattle and Portland as well as ACG Seattle.  The ACG Cup® Northwest committee is accepting volunteers from the corporate community as mentors and judges.  Please call Steve Babcock at (503) 650-0834 for information.

FOR FURTHER INFORMATION REGARDING THE ACG CUP, CONTACT:
Cordell Berge
Acquisitions Northwest, Inc.
(503) 225-0479

While you are penciling the ACG Cup into your calendars, don’t forget the upcoming wine social at Stoller Vineyards on June 23rd, the golf outing at Langdon Farms on July 27th and the Timbers match on August 7th. There is also an Excelling Leaders (members and prospects under 40) Kick-Off event on June 16th and newly added are T3 monthly no-host happy hour events (Third Thirsty Thursday). There is no registration required for T3 events. All other events require registration.

Lastly, the next Peer Growth event will be on July 12th with Nat Parker, CEO, Moovel (formerly GlobeSherpa).

Be sure to check the ACG website to catch up on all of the latest news and events.

David Porter, Partner, Geffen Mesher
ACG Portland 2016 President

ACG Intergrowth 2016: Tales of the Deal

Casey Boggs, President LT PR
Casey Boggs, Pres. LT PR

Contributed by:  Casey Boggs

New Orleans, Louisiana marked the location of the 2016 ACG Intergrowth conference—hosting more than 2,000 middle-market dealmakers for three days of, well, dealmaking. With 57 ACG chapters (representing 14,500 members) present, there were plenty of opportunities to network—even for those non-dealmakers like me.

As the lone ACG Portland ambassador at Intergrowth, my objective in attending was to 1) connect with other ACG members and dealmakers, 2) assess and report back on the latest trends and issues in the middle-market, and 3) enjoy the sights, sounds and eats of N’awlins.

The overarching theme for this year’s conference centered around where lending is heading, M&A activity and strategy, and the evolution of private equity (PE). The buzz surrounding Intergrowth 2016 also focused a lot around the political landscape and the upcoming elections.

I was fortunate to have a front seat (yes, I was “that guy” who rushed in early to get a close seat) to the keynote presentation with speakers David Axelrod (former senior advisor to President Obama), Chuck Todd (Host of Meet the Press) and Ana Navarro (political analyst for CNN and CNN En Español).

No doubt that the “Clinton/Trump” debate is inevitable; the speakers spent the majority of their 0:45 minutes discussing what the country and world might look like if either of the candidates were to be elected.  Specifically, the speakers attempted to translate how these candidates might affect the economic well-being and the private equity market.  I didn’t get a clear consensus on the where each presenter stood on the topic, but it was clear that “economic anxiety is the fuel for both political campaigns.”

Other breakout sessions were very niche in focus, including a look at global capital availability, last year’s (certainly not the beginning of 2016!) M&A success and an interesting panel on the PE landscape. A bit too much “inside baseball talk” to offer any real valuable analysis on my end.  However, I did get a relatively favorable (fairly bullish) impression that M&A activity will be good for the remainder of 2016. Although, M&A was relatively slow in Q1 2016.

Networking and connecting is clearly the name of the game at ACG Intergrowth. If you’re not on one side or the other on a deal—you’re a service provider offering something of value to the deal.  While many areas of professional and corporate growth strategies were not relevant to bring back to my brethren of Portland business leaders, if you’re a “player” in the PE world or an M&A dealmaker, ACG Intergrowth is a MUST conference to attend. The access to intel and connections to be made is worth the price of admission.

Casey Boggs is an ACGPortland Board Member, immediate Past-President and serves on the Chapter’s Sponsorships Committee. He is the founder and President of LT Public Relations.  Read more from Casey at LT Public Relations’ blog.

May Board Message – Communications Committee Chair

I open my address to you with an apology for the mysterious anonymity.  The Chair-of-Communicationsextensive regulation of my industry places oversight and record-keeping responsibilities upon firms for broad distributions and social media that would impair my ability to reach you in a timely manner.  So, for the foreseeable future, my e-mails to our membership and occasional ACG Portland Blog posts will be faceless, nameless offerings, “from the Chair of the Communications Committee”.  We can at least chuckle at the irony.

I first became acquainted with ACG on the east coast in the mid-1990s finding it a wonderful means for knowing and being involved with the broad business community.  At the time I was a founding shareholder and President of an independent commercial finance company serving small to middle-market, rapidly growing businesses. Activating a company succession plan and pursuing a different environment for my family, I moved to Portland in 2006.  My positive experience with ACG back east naturally turned me to the organization to engage and learn about business in my new home. I am in a very different part of the financial industry now and I am involved more than ever with ACG.

ACG Portland enjoys a talented, diverse and activist Board of Directors.  In the board’s quest to meaningfully enhance value to members, sponsors, and community, it has demonstrated a remarkable openness to experimentation and change.  All recognized the importance of getting out the word of positive changes and in January of this year, The Communications Committee was launched.

In its infancy, the new committee has just three new members.  We have commenced a program of regular blog posts to recap presentations by CEOs and other notable business speakers at our monthly Peer Growth events and we are exploring expanded use of social media, community outreach, and website functionality to better reach you and other business leaders.

One of our agenda items for this series from the committee chairs is to share an amusing or different thing about our experience with the chapter.  When I first joined the board in January of 2015, we were planning an event to feature three of the early chapter leaders, Cordell Berge, Lee Koehn and Spencer Brown.  I suggested effort to produce an amateur video featuring each of the three that we could use to promote the event.  It worked!  It was a fun project, the video was amusing and effective, and I came to know three terrific business leaders I know I can turn to when I need them.

I strongly believe that membership offers its greatest rewards through involvement.  As human beings, we come to understand and trust each other most quickly and deeply when we are engaged with each other to common, valuable purpose.  If you share that belief or would like to explore it, if you have expertise and/or interest in Marketing and Communications, I encourage you to become involved by joining our committee.   We meet once monthly for 60 to 90 minutes and members should expect to invest another three hours per month on committee activities. Please contact any board member to learn my name and reach me.  I look forward to working with you.