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You are here: Home > Networks 4th Quarter 2004
Networks 4th Quarter 2004
Network Member Creates Successful Professional Sports Niche
The sports and entertainment business plays by its own set of rules. But one Network member has learned the ins and outs of professional sports and created a successful niche for his firm. Led by managing director Don Conway, The Mercadien Group’s Sports and Entertainment Consulting group provides a wide variety of services, including facility operations; construction management; valuation; acquisition and sale of minor league franchises; business plan development; corporate sponsorship and marketing agreements; and tax and financial planning.
Don began building his sports industry knowledge base back in the mid 1960s when one of his first clients was the then fledgling New York Mets. Don worked as a member of the audit team staff. He was then made manager of the Mets account and eventually became the team’s assistant controller.
In 1978, Don left the Mets to manage the National Tennis Center, a facility opened by the U.S. Tennis Association. He eventually became the USTA’s executive director.
In the early 1990s, a group of Trenton, NJ, investors learned about Don’s work with the Mets and engaged him to help secure financing needed to acquire and relocate a minor league baseball franchise from Ontario to Trenton. Don helped obtain the financing by developing projections that showed the proposed Trenton Thunder could command attractive revenues. His projections were right on the money. The Thunder drew more fans than any other AA-level franchise in the 90s and is still successful today.
The investment group for the Thunder was so pleased with Don’s work, it engaged him once again when it launched the BlueClaws, a Lakewood, NJ, minor league baseball franchise. Other projects that Don has been involved with include:
* Providing startup consulting services to the Trenton Titans, an East Coast Hockey League team;
* Advising the owners of a professional hockey franchise on the feasibility of operating in central New Jersey;
* Providing consulting services to an investment group looking to purchase the Kansas City Royals;
* Handling negotiations for a group seeking to buy a controlling interest in the Boston Red Sox;
* Providing valuation services in the sale of a minor league affiliate of the New York Mets; and
* Advising the Baltimore Orioles in the reorganization of it’s minor league operations.
Don said, “Baseball is a natural pipeline for business because it really is a small industry. Once you get known in it, you get referrals.” But even though the opportunity might be big, Don added, “The challenge to entering this area of work is acquiring the knowledge applicable to sports.”
To discuss opportunities in professional sports, contact Don at 609-689-9700 or dconway@mercadien.com.
Additions to Network Service Team
The RSM McGladrey Network is pleased to have two outstanding RSM McGladrey managing directors join the Network team. Tony Szczepaniak and Kaye Lauritsen have taken on roles with the Network Office and will be spending the majority of their time serving Network member firms.
Tony is stepping in for Todd Jackson as the tax managing director for the Network. Tony will be working out of our Minneapolis office along with Dean Sengstock to meet members’ tax needs. Tony will focus on proactively working with firms in the Central and West regions, while Dean will focus on the Northeast and Southeast regions. Both Tony and Dean will work closely together to continue to outstanding level of service members expect from the Network team.
Tony joined RSM McGladrey’s National Tax group in the fall of 2001. Prior to joining the firm, Tony gained extensive experience in the corporate tax departments of some very large companies. Since joining the firm Tony has brought a very high level of energy and commitment to his role in National Tax, but is excited to become more involved with our members and specific client service.
Kaye joined the RSM McGladrey Network team as a managing director on September 1 in the newly created role of Network Services Coordinator. Kaye’s role is to work with Network members to identify how they can receive more value from Network membership and better serve their clients through delivering more RSM McGladrey services. She will be responsible for identifying unique, high value, high margin, mobile services and designing the delivery models, the financial incentives and the teams who will deliver the services, along with helping Network members identify opportunities through greater product knowledge.
Although new to the Network, she is not new to RSM McGladrey. Kaye joined the Firm in 1994. Her background is in consulting, although early in her career she worked on the accounting side of the profession. Her consulting service focus was on strategic planning, general business consulting/planning and other generalist consulting services.
“I can’t tell you how excited I am to add these two excellent performers to our team,” said the Network’s executive director, Dan Brooks. “With Jim Fussell retiring December 31 and Todd Jackson assuming his new responsibilities with the Upper Midwest EU, this created some big gaps to fill. We are thrilled to add Tony and Kaye and are looking forward to the new ideas they’ll bring to our team and our Network members.”
Tax Services
Help Clients Reap Significant Tax Savings with R&D Studies
New federal rules make it clearer for businesses to qualify for research-and-development tax savings of up to 6.5 percent on “qualified research expenses.” And the easing up on reporting requirements makes this tax deduction one that businesses should look into.
You don’t have to be in the high-tech business to qualify — even a dairy processor that made improvements to its production line was able to reap more than $100,000 in tax savings in a single year by applying the R&D rules.
“The R&D credit is a great deal, and you’d be surprised how many different types of businesses qualify,” said Tony Szczepaniak, Network tax managing director.
Many companies qualify
Examples of other companies that have reaped substantial savings by leveraging the “credit for increasing research activities” are:
* A manufacturer that made improvements to radar equipment used by law enforcement and sports facilities obtained $130,000 in tax savings.
* A business that created a new type of packaging that dissolves in water to allow the release of detergent had tax savings reaching $150,000 in a single year.
* A furniture manufacturer that made improvements to its production line recovered more than $300,000 in tax credits.
Although the R&D tax credit has been part of the federal tax code for several years, many companies are either unaware of it or don’t claim as much of the credit that is available because they lack a full understanding of the complex set of rules and reporting requirements.
“They think they need a bunch of people in white coats to qualify,” said Tony. “That’s a misperception we’re trying to correct.”
Getting started with the RSM McGladrey Network R&D program
RSM McGladrey professionals with R&D expertise have developed a program to leverage their knowledge and service capabilities to your professionals. They have worked successfully with several Network firms on engagements that present a win, win, win situation (win for the client, win for the Network member and a win for RSM McGladrey).
First, learn the workings of R&D tax credit and how to identify target clients by participating in an RSM McGladrey Web seminar. Next, review your current client base and find eight to ten clients that could benefit from an R&D study. Once you’ve identified several likely candidates, a professional from RSM McGladrey will visit your office, meet with your clients, gather information and prepare proposals.
Contact Tony or Dean Sengstock if you are interested in learning more about this program.
Providing a Higher Level of Service
How confident are you in your ability to provide a higher level of service to your clients? You may have a successful career in assisting clients because of your strong technical expertise, but are you able to and comfortable with asking your clients the right questions, even when answers aren’t readily available?
Skillfully managing the questioning process is important. We can too often focus on the symptom of a problem or an incorrect assumption, missing the critical, top-level issue. As a trusted business advisor, your clients look to you to provide a fresh perspective, challenge their assumptions and help them better understand situations and options.
RSM McGladrey has two premier training programs to assist partners, directors, and managers significantly expand their knowledge and ability to develop value-added services to clients.
CFO Program
Presented by a world-class faculty through the Executive Development Center of the University of Minnesota’s Carlson School of Management, the CFO program encompasses 18 days of training over three years. The content focuses on competencies in nine key topical areas from a CFO’s perspective. Those areas are general business; risk analysis and management; shareholder value planning; mergers and acquisitions; business financing alternatives; pricing of products and services; e-business; performance measurement systems; and the finance department.
“The CFO Program has been much more than a lesson in corporate finance,” stated Paul Kiel, Network A&A director and current CFO participant. “Because it focuses heavily on business strategy, it has helped me develop the skill set and confidence to discuss broader business issues with clients on a tactical level.”
Network members have the opportunity to join McGladrey peers in the CFO program — 70 qualified participants will attend the first CFO session next May/June 2005.
Business Advisor Program
Business advisors have an opportunity to attend a rigorous program specifically developed for RSM McGladrey by the prestigious University of Chicago Graduate School of Business, a world leader in graduate business programs. This program will equip business advisors with strategic knowledge and techniques they can use to critically examine their clients’ corporate strategy and help them achieve long-term profitable growth.
The curriculum includes coursework in corporate strategy, marketing management, organizational behavior, negotiations, decision-making, operations, high performance leadership, human resources management and the strategic role of the CEO. The program involves nine sessions over a three-year period.
“The Business Advisor Program was the best professional education I have had since my undergraduate days,” commented Deb Lockwood, Network managing director. “It gave me a knowledge base and the tools and framework to discuss critical issues with business owners and key stakeholders in many different areas — strategy, market positioning, culture, role of a CEO, etc. The University of Chicago professors are top notch in their fields and dedicated to this corporate education program with RSM McGladrey. This knowledge base gives one a skill set and the confidence to use it!”
Only 35 individuals are selected for this Business Advisor program; a new class will begin in June 2005. Network members are welcome to take advantage of this premier training opportunity. Contact Joy Reutter for nomination forms for these programs. Specific questions about the program can be directed to Jeanine Hansen.
Strategic Alliances
Bayshore Partners
In 1989, RSM McGladrey engaged Bayshore Partners, a corporate real estate service provider, to assist with the relocation of its Chicago offices. Since then, Bayshore Partners has grown into the exclusive real estate service provider for RSM McGladrey nationwide. The organization specializes in transaction services, site analysis, lease and database administration, and strategic planning. Because Bayshore represents only tenants, the firm’s work focuses solely on the clients’ portfolios and in their best interests.
Bayshore has also handled a diverse range of real estate needs on behalf of RSM McGladrey Network members. When Bruner•Cox, LLP was relocating its offices from downtown to a suburban setting, David Anastos from Bayshore diplomatically handled negotiations throughout the transaction. David helped Bruner•Cox with a thorough market analysis, financial modeling, architectural planning and construction management. Throughout the leasing process, David was inherently sensitive to the impact of abandoning the downtown setting. Robert Carr (retired) from Bruner•Cox said, “My partners frequently tell me how fortunate we are that we engaged Bayshore’s services to assist us in finding a new location and negotiating a lease. David provided a very steadying influence and helped keep us on a businesslike course.”
In a similar transaction completed for Berberich Trahan & Co., P.A., it was decided that a relocation from downtown to new suburban premises could yield better space at a savings on a per square foot basis. Bayshore exceeded Berberich Trahan’s expectations by recognizing and creating real estate opportunities for the firm.
Creating real estate opportunities is only possible with extensive market knowledge and a proactive approach to each transaction. For example, Bayshore identified market changes that would impact RSM McGladrey’s 60,000 square foot lease on its Minneapolis offices. After Bayshore researched all alternatives in the downtown Minneapolis market, RSM McGladrey renewed early on its existing lease of space, creating savings in excess of $1 million.
Research is the key
Understanding market dynamics is a key ingredient to Bayshore. Research for each transaction begins at Bayshore’s corporate office. Bayshore’s internal research department conducts a comprehensive analysis within the subject markets through insights gained from brokers, developers, building owners and centers of influence. Bayshore’s experience has shown the most relevant market information is gleaned from in-person field inspections and tours conducted by transaction specialists. This step yields invaluable information for clients in the site selection process.
“Our research goal is to leave no opportunity unexamined as we investigate all existing alternatives and create new opportunities wherever possible in order to make solid facility recommendations,” said David. “Achievement of this goal will allow our clients to make the informed decisions required for strong portfolio management.”
Strategic Alliance Stats
Firm Name: Bayshore Partners
Location: Orange, CA
Services: Nationwide Real Estate Services
Contact: David Anastos, partner
Email: danastos@bayshore.com
Phone: 714-532-7300
Business Development
RSM McGladrey Increases Business Development Resources
Similar to most of our member firms, RSM McGladrey has been emphasizing growth. To facilitate growth goals, RSM McGladrey hired Bob Filice as the firm’s first executive vice president of business development; he has been implementing many changes within the business development area. Here are some ideas from Bob that you might find helpful when considering hiring a business development director for your firm.
RSM McGladrey has had business developers (BDs) before; this time, the Firm has structured the position differently.
BD role redesign: In the past, BDs were only lead generators, creating a “who gets the credit” competition between partners and BDs. This tends to be ineffective and can result in growth restrictive behavior and activity. Today, BDs are positioned as sales process professionals who strive for a market focus and one-firm approach.
BD skills shift: In today’s new people model, BDs are internal and external recruits with proven solution sales skills. The BD team is an intentional mix of people with traditional professional services backgrounds plus a variety of different business services and industries so we can learn from each other and drive change.
Sales process shift: BDs no longer simply tell our “credentials and capability story”; this strategy focused mostly on selling products. Today, they lead a consultative sales process and focus on RSM McGladrey’s core services, our people and our tools.
Sales management addition: Today, regional directors of business development (RDBD) manage each BD team. They do not sell directly themselves. Their role is to coach their teams to success. They collaborate with partners, coordinate growth activities with the marketing team, coach and educate the EU team and manage the direct selling resources by driving team results.
We expect our business development team to:
• Work with partners when asked to add value to an existing prospect sales cycle;
• Help improve partners’ sales skills while making calls together (a watch, learn, do philosophy);
• Convert prospects into clients, specifically in the segment 3 and 4 areas, using a dynamic prospect list;
• Drive growth in our core services and emerging businesses;
• Guide and co-own the selling process from beginning to end to improve our win rate;
• Focus on the “gain” component of our “serve, gain and grow” annuity-based growth model; and
• Act as a catalyst for change by using consultative selling skills, process discipline and a “managing for results” focus.
BDs fit into RSM McGladrey’s current structure in different ways:
With partners and managing directors: They will work as a team to capture new clients. Once the prospect turns into a client, the account relationship transitions to partners and managing directors to serve and grow the account.
In monthly growth meetings: RDBDs and in some cases BDs will participate with partners and managing directors in monthly growth meetings, a new growth and accountability process introduced by firmwide business development.
With the marketing organization: To be most effective, BDs and marketing teams develop a “one-two punch” by closely aligning on proposals and drive campaign readiness. In fact, this month new procedures in these two areas will be rolled out to further the collaboration between marketing and business development efforts.
Wherever and whenever they’re needed: When asked, BDs will also serve in a sales assurance oversight role — as advisors for recognizing and pursuing opportunities.
For more ideas on how to transition your sales team to a successful business development model, contact Bob Filice.
Fully Engaged for High Performance
It’s not about me!
At Network Forum ’04, Kathy Anthony of O’Sullivan Creel, LLP heard Jim Loehr’s inspirational message of being fully engaged in life. Viewing the video two weeks later at the HR Administrator’s Workshop, Kathy was again reminded of the need to take time to refuel her energy – physically, mentally, emotionally and spiritually.
The message was especially timely. Kathy struggled in disengaging from her busy life for oscillation between work and rest. On New Year’s Day 2003, a beloved nephew, Stevie Walker, had climbed into the passenger seat of a Corvette and was killed when the drunken driver lost control of the car. “It was easier to keep running on the treadmill of life than to stop and face the pain of losing Stevie,” said Kathy.
Buoyed by Dr. Loehr’s challenge, Kathy spent a week at the beach for personal renewal and reflection. She was disturbed by the attitude “it’s all about me” displayed all around her on clothing, TV, magazines, and radio. In her oscillation time at the ocean, an idea began to shape to get the message out to young people that life is not found in being focused internally but on others.
As a testimony to the faith she and Stevie shared, Kathy put up a billboard depicting a crown of thorns piercing Jesus’ forehead and had 500 T-shirts printed with this message of hope: “It’s not about me – it’s all about Him.” Kathy commented, “People need to realize life does not revolve around them but in reaching out to others.”
Sharing this message of hope has been a means for Kathy to channel her energy and get past the anger and despair over Stevie’s death.
“It has taken away what has happened to me,” Kathy said. “Each day I continue to take my few minutes of oscillating time to do one thing to keep the mission alive.”
Hurricane Ivan brought down the billboard, but Kathy emphatically stated, “The billboard is going back up — this message is too important!” The mission continues to impact not just Pensacola, but has far-reaching impact: T-shirts have been sent around the country to groups raising money for mission-related activities around the world. For more information, email itsallforhim@bellsouth.net.
How does your firm practice full engagement?
Not everyone’s story will be as dramatic as Kathy’s, but practicing full engagement can positively affect each of us personally and professionally. We’d like to know how you and your firm are more fully engaging in life. Share your story with Joy Reutter.
Rainmaker Academy Announces Top Performers
Following are award winners for the Rainmaker Academy portion of the Partner Development Program from June - October, 2004.
PDP 2005 (year 2)
Sales to Current Clients
1. Sean Weaver - Allen, Gibbs & Houlik, L.C.
2. Dave Holt -Brady, Martz & Associates, P.C.
3. Jeff Frable - Curzon, Cumbey & Kunkel, PLLC
Sales to Prospects
1. Sean Weaver - Allen, Gibbs & Houlik, L.C.
2. Donna Beels - Pisenti & Brinker LLP
3. Dave Holt - Brady, Martz & Associates, P.C.
PDP 2006 (year 1)
Sales to Current Clients
1. Cherie James - Wall, Einhorn & Chernitzer, P.C.
2. Jeff Horst - Kuntz, Lesher, LLP
3. Joanna Brumsey - Wall, Einhorn & Chernitzer, P.C.
Sales to Prospects
1. Cherie James - Wall, Einhorn & Chernitzer, P.C.
2. Joanna Brumsey - Wall, Einhorn & Chernitzer, P.C.
3. Jeff Barbacci - Thomas Howell Ferguson, P.A.
Welcome Aboard!
Baumann, Raymondo & Company PA
Tampa, FL
Baumann, Raymondo & Company PA has been in the Tampa, Florida, area since 1979 and has two partners, 10 professionals and 24 total employees. The firm serves a wide variety of industries with services that include accounting and auditing, personal and corporate financial planning, management consulting and tax services. For more information on Baumann, Raymondo & Company, go to its Website at www.brcpaweb.com.
Field Wilkinson, PC
Jackson, WY
Field Wilkinson, PC was founded in 1982 and provides tax planning, accounting and financial based services to clients throughout the United States. In addition to accounting, tax and financial services, Field Wilkinson specializes in estate and trust planning and administration, trustee and business valuation services. The firm has two partners, nine professionals and 18 total employees. Visit its Website at www.fwpc-cpa.com to find out more about this new affiliate.
Filomeno & Company, P.C.
West Hartford, CT
Filomeno & Company has been operating in the West Hartford area since 1966 and serves a wide variety of industries including manufacturing, construction and real estate, auto dealers, medical, not-for-profit, retail, and professional services firms. In addition to traditional services, the firm provides wealth management, plan administration, business valuations and estate, gift and trust planning. To learn more about this new Network member, visit its Website at www.filomeno.com.
Lockart, Atchley & Associates, LLP
Austin, TX
Lockart, Atchley & Associates, LLP was formed in 1999 and has 24 professionals and 29 total employees. Its provides services to a wide variety of industries, including Political Action Committees, school
districts, not-for-profit organizations and financial institutions. Services include real estate advisory services, political accounting and advisory services, and litigation support in additional to traditional audit, tax and consulting services. Go to www.lockartatchley.com to discover more about this firm.
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