MONTHLY NEWSLETTER by wangnianwu

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									                                                                                           The Leading Authority
                                                                                           on Corporate Growth

                                                                                                              DECEMBER 2007


                      MONTHLY NEWSLETTER
                                    The President’s Letter
Board of Directors        ... 2                               Dear fellow ACG members,

Chamber Report            ... 2
                                                              While the market may be navigating some deal turbulence,
Calendar of Events        ... 3                               our programming has turned to networking and practical
                                                              operating tips to help keep opportunities flowing and
Thought Leadership ... 4                                      provide operational insights to daily execution issues.
Programs Update           ... 6
                                                        Hopefully many of you were able to attend our joint meeting
Member Profile            ... 7     Ed Fisher   - President
                                                        with FEI on November 13 at Anthony’s (see photos of the
New Members               ... 7
                                                        event on our back cover). Additionally, a stellar panel
                                    discussed Supply Chain issues on December 6. We will convene again on
                                    January 17 to hear Jim Geiger, CEO of CBeyond, and just around the corner,
Quinn Hudson, Editor                on February 7, is our annual M&A conference, Capital Connection to be held
678.904.2290                        at the Cobb Galleria.
qhudson@hudsonslaton.com
                                    As we roll into the end of the calendar year and the holiday season, we still
                                    have more than half of our program year ahead of us. We look forward to
Contact ACG Atlanta                 providing additional valuable content for you in 2008. On behalf of the entire
                                    ACG Atlanta Board of Directors, we send our best wishes for a happy holiday
Margie Poole - Executive Director   and a very prosperous 2008 for all of us.
1631 Phoenix Blvd.
Suite 4
                                    Ed Fisher
College Park, GA 30349
                                    SouthPointe Ventures, LLC
Phone: 770 991 2170                 President, ACG Atlanta
Fax: 770 997 2488                   edfisher@southpointeventures.com
acgatlanta@informedhorizons.com




                                                                                  ACG Atlanta Newsletter - December 2007   1
                                                                                       Board Members
Executive Committee                                              Directors
President                         Vice President of              Toby Chambers           Ira Moreland
Ed Fisher                         Communications                 Roark Capital Group     SunTrust Robinson
SouthPointe Ventures, LLC         Quinn Hudson                                           Humphrey
                                                                 Rob Coble
                                  Hudson Slaton Group
Executive Vice President                                         KPMG LLP                Stefanie Paulos
Katherine Morris                  Vice President of                                      Randstad
BDO Seidman, LLP                                                 David Duke
                                  Strategic Planning
                                                                 Headwaters MB           David Walker
                                  Joseph Longosz
Vice President of Programs                                                               EBSCO Industries, Inc.
                                  Golub Capital                  Winston Gillum
Allen Taylor
Bank of America                                                  Harbert Management      Capital Connection Chair
                                  Treasurer
                                                                 Corporation             Andy Mason
                                  Bishop Leatherbury
Vice President of Membership                                                             VRA Partners, LLC
                                  Tatum LLC                      Nancy Halwig
Dom Mazzone
Mazzone & Associates, LLC                                        UPS Capital
                                  Secretary
                                  Wayne Bradley                  Bud Ingalls
Vice President of
                                  McKenna Long & Aldridge LLP    Genstar Life Sciences
Corporate Member Affairs
Stephen McGaw                     Historian                      Ransom James
AT&T                              Wayne Reid                     Arcapita
                                  Frazier & Deeter, LLC
Vice President of Awards                                         Alex Mammen
Kathy Harris                      Immediate Past President       TM Capital Corp.
Noro-Moseley Partners             Carol Newman
                                  Powell Goldstein LLP



                                                                News from the Metro Atlanta
                                                                   Chamber of Commerce
Fortune Global 500 Ranks Atlanta a Top Ten Global City
for 2007
Atlanta is among the top ten global cities with most FORTUNE Global 500 companies, as ranked by total revenue
worldwide. Only three cities in the United States made the top ten ranking. Metro Atlanta is home to nearly 2,000
locations of foreign-owned companies including CIBA Vision, Siemens, Matsushita, Panasonic Automotive,
InterContinental Hotels Group, Merial and ING. Examples of Atlanta-based companies with significant operations
abroad include: The Home Depot, CNN, Coca-Cola Enterprises and Coca-Cola Co., UPS, Equifax, Serologicals,
S1Corp., Internet Security Systems, Manhattan Associates, GE Energy and Delta Air Lines.




    2     ACG Atlanta Newsletter - December 2007
Calendar of Events
January 17, 2008: 6:00pm-9:00pm - Villa Christina
James F. Geiger, Chairman and Chief Executive Officer, Cbeyond
Sponsored by: Golub Capital

February 21, 2008: 6:00pm-9:00pm - Villa Christina
Gregory E. Hyland; Chairman, President and Chief Executive Officer, Mueller Water Products, Inc.
Sponsored by: Kilpatrick Stockton LLP

March 20, 2008: 6:00pm-9:00pm - Villa Christina
Jeff Sprecher, Founder, Chairman of the Board and CEO, IntercontinentalExchange®
Sponsored by: McKenna Long & Aldridge LLP

April 17, 2008: 6:00pm-9:00pm - Villa Christina
David W. Scheible, President and Chief Executive Officer, Graphic Packaging Corporation
Sponsored by: Alston & Bird LLP

May 7, 2008: 6:00pm-9:00pm - Villa Christina
E. Neville Isdell, Chairman, Board of Directors and Chief Executive Officer, The Coca-Cola Company
Sponsored by: Aon

May 12, 2008: 12:00pm - Country Club of the South
Golf Tournament



                                                            The 2008 Atlanta


                                     Thursday, February 7, 2008
                                Cobb Galleria Center • Atlanta, Georgia
   This forum hosted by ACG Atlanta brings together private capital providers with those seeking capital
   either as an intermediary, seller, or firm seeking growth capital. All of the prior five Atlanta Capital
   Connection conferences have been sold out events. We expect another sellout in 2008, including at
   least 80 Private Equity Group exhibitors and 1,000 attendees. For sponsorship information regarding the
   Atlanta ACG Capital Connection, please contact: Nancy Halwig at 404 444 9871.

                                      Keynote Speakers for this year include:

                  Dennis P. Lockhart                                           Ronald Brownstein
                  President and Chief Executive                                Political Director for Atlantic
                  Officer of the Federal Reserve Bank                          Media Co.
                  of Atlanta
                                                                                 Ronald Brownstein is the Political
                   Dennis Lockhart took office                                   Director for Atlantic Media Co., with
                   March 1, 2007, as the 14th President                          responsibility for coordinating overall
                   and Chief Executive Officer of the                            political coverage at its publications,
  Federal Reserve Bank of Atlanta. In this role, Lockhart      which include the Atlantic, National Journal, the Hotline
  is responsible for all the Bank’s activities, including      and Congress Daily. He writes a weekly column on
  monetary policy, bank supervision and regulation,            politics and policy which appears simultaneously in the
  and payment services. He also chairs the Bank’s              National Journal and the Los Angeles Times, as well as
  Management Committee. In addition, he serves on              articles in National Journal and The Atlantic.
  the Federal Reserve’s chief monetary policy body, the
  Federal Open Market Committee (FOMC).


                                                                              ACG Atlanta Newsletter - December 2007       3
                                                                                      Thought Leadership
                         The Future of Global Supply Chain Management
                         Nancy Halwig
                         UPS Capital

                        In the world of physical               open the door to new and innovative ways of financing
                        fitness, stretching a muscle           trade transactions. Typically, in today’s world, financial
                        is considered a good thing             services providers are hesitant to extend credit against
                        because it can improve                 goods that are in transit or that are domiciled in foreign
                        performance and ensure that            locations. The financial services providers deem
                        the muscle is ready to respond         the credit risk to be too high because of the lack of
                        to just about anything. In today’s     visibility into the goods and because certain foreign
                        global economy, stretching             governments do not yet have buttoned-down laws
a supply chain from one country to another also is             revolving around the ability to perfect security interests
considered beneficial - especially the cost advantages         in collateral. As a result, buyers and suppliers either
that can be achieved by manufacturing or sourcing              conduct their trade transactions via arduous letters of
goods from international markets.                              credit or burdensome open account terms.

But there is another rule in physical fitness: One must        But if financial services providers had access to the
pay attention to all muscle groups, not just a single one,     information about the disposition of goods within the
because all muscles must work in concert for optimal           supply chain – knowing what goods are where and
performance. The same holds true for global supply             in whose control – the risk of providing credit against
chain management. Optimizing the performance of                those goods would be reduced.
the physical movement of goods across an elongated
supply chain – that is, the warehousing, logistics, and        The good news is that this information exists already.
transportation of those goods – is simply half the equation.   Logistics providers regularly track the movement of
True value can only be unleashed when companies                goods they are managing and routinely share this
also focus their attention on the financial supply chain       information with their customers. The bad news is that
– that is, the movement of funds associated with trade         this information is not yet being shared more widely
transactions. In an April 2006 report from the Aberdeen        within companies and between logistics providers and
Group, they found that “the magnitude of potential gains       banks.
from Supply Chain Financing is staggering. Finance
costs associated with products moving through the              But that is changing. Buyers, sellers, logistics providers,
supply chain comprise 4% of finished goods costs (the          and financial services firms are beginning to realize the
same size as transportation and distribution costs), and       need to work together to share the visibility information
have remained virtually untouched by new technology            in order to provide chief financial officers and chief
and process for the last 40 years.”                            procurement officers with new supply chain finance
                                                               solutions. And within companies, the CFO’s office is
Luckily, companies are beginning to realize the benefits       beginning to work more closely with the CPO’s office.
of supply chain “cross training,” marrying the physical
and the financial supply chains. In fact, according to         As indicated in another 2006 report from the Aberdeen
a September 2006 Aberdeen Group study, Supply                  Group, New Strategies for Financial Supply Chain
Chain Finance Benchmark Report, which surveyed 110             Optimization, best-in-class companies are forming
firms on supply chain finance, while only 13 percent of        cross-functional teams – consisting of supply
respondents were currently using supply chain finance          management and finance professionals – to manage
techniques, 56 percent had plans or were investigating         their global supply chain finance programs. These
options to improve in those financial areas.                   cross-functional teams, along with financial services
                                                               providers and logistics companies, are developing new
So how can companies marry the physical and financial          global supply chain finance solutions.
supply chains?
                                                               For instance, what if a transportation company were
The key ingredient is information – specifically, the
                                                               to share the visibility information about the goods
information about the disposition of goods within the
                                                               movement with a bank so that the bank can extend
supply chain. This information is critical because it can
                                                               credit earlier in the trade transaction cycle? In this
                                                               instance, the buyer would be able to provide faster
                                                               payment to the supplier and, in return, negotiate a
    4      ACG Atlanta Newsletter - December 2007
 lower price for the goods. That gives the corporate          That would create a finely tuned supply chain with all
 supply management division a competitive advantage,          muscle groups working together.
 and it enables the supplier to lower the burden of
 inventory carrying costs. Buyer and supplier win.            Nancy Halwig is the director of Global Supply Chain
                                                              Finance at UPS Capital, the financial services arm of
 In the future, we envision multiple partnerships between     UPS, the world’s largest package delivery company
 buyers, sellers, financial services firms, and logistics     and a global leader in supply chain services.
 companies that result in new financial solutions for all
 participants in the global supply chain.



The Reasons for Corporate Executives to Join ACG
                         Stephen A. McGaw                    • ACG participants become better educated through
                         Sr. Vice President - Supply           speaker events and Capital Connection programs,
                         Chain & Fleet Operations              making them more productive.
                         AT&T                                • ACG facilitates professional networking, helping
                                                               establish connections that result in partnerships, the
                         Last year at my office, I             flow of capital, and new business initiatives.
                         received a call from someone
                         on the ACG board asking me          • ACG is socially responsible, granting scholarships
                         if I could persuade Lt. General       and recognizing corporate leaders for their
                         Russel Honoré to speak at a           contributions to our business community.
                         dinner event for members of
                         ACG and Financial Executives        Second, it is good for my company, AT&T, to be
                         Inc (FEI).                          represented at ACG:
                                                             • My participation makes me a more educated and
“Is that the guy that took control and said ‘You are stuck     productive executive.
on stupid’ to reporters in the aftermath of hurricane        • AT&T gets visibility through my involvement.
Katrina?,” I asked.
                                                             • AT&T has the ability to sponsor ACG speakers and
“Yes,” said the voice. “Someone told me that you knew          events.
him and could get him to come speak at this event.”
                                                             And third, it is good for me to participate in ACG:
“Uh…OK,” I said. I really didn’t have a clue how to          • I have the ability to participate by attending meetings,
reach him, let alone know how to convince a General            joining the ACG board, speaking at events, and even
of the U.S. Army to come speak to a couple hundred             writing an occasional article for the newsletter.
professionals in Atlanta.
                                                             • I learn how to tackle complex business growth issues
                                                               from speakers and people I meet at ACG.
This was my first real test as a member of ACG Atlanta.
Like everyone else, I was a busy guy with work and           • I have made new acquaintances that are now both
family. As I hung up the phone I wondered, “Why am             personal and professional colleagues with whom I
I doing this?”                                                 bounce ideas around, find contacts for AT&T, and
                                                               socialize.
When I moved to Atlanta about 6 years ago, I only
knew a handful of people. I was leading the Mergers          Well, I did find a way to reach and convince General
& Acquisitions (M&A) team for what was then called           Honoré to speak at the event and, with a lot of work
Cingular and wanted to tap into the deal infrastructure      by the ACG management team, it went well. The
in Atlanta. ACG was the clear choice for that.               ACG event gave me a reason to contact and meet the
                                                             General, bring him to AT&T beforehand to review our
There really are three primary reasons why a corporate       Crisis Management Operations Center, and introduce
executive like me values being a member of ACG.              him as the ACG speaker that evening. It was good for
                                                             Atlanta, good for my company, and good for me.
First, it is good for Atlanta to have business executives
support ACG. As Atlanta corporations grow, so does           That is what ACG is good for.
Atlanta. ACG acts as a catalyst for growth in a number
of ways:


                                                                           ACG Atlanta Newsletter - December 2007         5
                                                                                     Programs Update

Challenges in Global Supply Chain Management
Quinn Hudson
Hudson Slaton Group

On December 6th, 125 ACG Atlanta members were              human resources, accounting, etc.) but to keep the
treated to an outstanding program on global supply         strategic decisions in-house or “head space” as Mr.
chain management at Maggiano’s in Buckhead.                Gaffney described it.
Chris Wofford, managing director of Banc of America
Securities, moderated a diverse panel of experts           For the future, Mr. Vukas said companies need to be
composed of Steve McGaw (AT&T Mobility), Chris             customer centric and not product centric in assessing
Gaffney (The Coca-Cola Company), Dave Mezzanotte           supply chain management systems. Mr. Mezzanotte
(CHEP), Pete Sinisgalli (Manhattan Associates) and         added that the costs for technology such as radio
Chris Vukas (UPS Capital).                                 frequency identification devices are continuing to
                                                           decline and will play a major role in the future. Several
Mr. Sinisgalli demonstrated the importance of global       panelists identified sustainability as a key business issue
supply chain management by pointing out that an            in the future, noting that 20 percent of the miles logged
average nine percent of GDP or $5 trillion per year        by transportation providers are with empty containers.
is allocated for the transportation, warehousing and       Additionally, public and regulatory concerns, as well
distribution of goods. All the panelists agreed that a     as increased costs associated with environmental
compelling attribute of supply chain management is that    impacts of transportation and manufacturing, will
it can be measured quickly and thoroughly thus making      influence supply chain management decisions. The
management decisions easier.                               opportunities for dealmaking lie in the fact that so many
                                                           3PL companies are inefficient and significant cost
Many companies only look at individual expenditures        reductions could be made in processes.
and do not look at the total costs of supply chain
management. As a result, Mr. McGaw said his                Note: A recent study by the Institute for Supply
experience demonstrates that some companies take as        Management found that over the past ten years:
much as 18 weeks to deliver finished goods, whereas
AT&T requires four weeks.                                  • The supply chain can directly impact, on average, 75
                                                             percent of a business’ operating results.
Several of the panelists said that third party logistic    • Businesses that have best-in-class SCM practices
providers need to be managed as part of the corporate        had market cap growth 7-26 percent above industry
team and to be prepared to deal with different problems      average.
between countries. A key to effectively using 3PLs is to   • Companies that had poor SCM operations had
outsource as much activity as possible (manufacturing,       market cap growth 2-25 percent below peers.




    6     ACG Atlanta Newsletter - December 2007
 Sunnie Kim                                                    Member Profile
 Senior Business Development Officer
 PNC Business Credit

 Personal information                                                 Current Responsibilities
 Sunnie was born in Seoul, Korea. Without knowing a                   Sunnie is a Senior Business Development Officer
 word of English, she moved to Southern California at                 at PNC Business Credit, one of the leading asset-
 age 12 as a result of her father’s business expansion.               based lenders in the country providing middle market
 She soon achieved her goal of grasping a strong                      companies across a wide spectrum of industries with
 command of the English language and graduated from                   financing solutions generally ranging from $7 million
 the University of Southern California with a Bachelor                to $250 million. She is responsible for deal sourcing
 of Science degree in business administration. She                    and structuring primarily for financing mergers
 will be participating in the EMBA program at Emory                   and acquisitions, restructurings, recapitalizations,
 University in January 2008.                                          turnarounds, growth, and working capital.

 Sunnie relocated to Atlanta in August of 2005 and
 has successfully accomplished what so many have
                                                                      What would you be doing if you weren’t in
 dabbled in – in-town home renovation. She may not                    your current job?
 do that again. One of the more memorable books                       Marine biologist, chef, or an ecologist.
 she has read was A Prayer for Owen Meany. She
 enjoys long distance running, scuba diving, traveling
 abroad, oil painting, and, like all dutiful Trojans, USC
 football. The greatest lesson she learned was to be
 less afraid.


New Members
Nathan Barbour - Croft & Bender                                                Jerry Jansen - Wells Fargo Foothill
Chris Bracken - Childs Company                                                 Tom Lamb - Lamb Operating Advisors, LLC
Lewis Chan - Textron Financial                                                 Andrew Montgomery - Andrew Montgomery
William Ching - Nelson Mullins                                                 Jay Phelps
Frank Daniel - Commerce Capital Corporation                                    Subhash Sarda - Life Therapeutics
J. Harry Haslam - Hancock Askew & Co., LLP                                     Brian Smith - KPMG
Bethany Hofmann - Hancock Askew Valuation Services, LLC                        James Westman - The Riverhawk Group
Oliver Holmes - Tarpley & Underwood, P.C.                                      Todd Wooten - Chatham Capital
William Horne - Sopris Capital Associates



 Newsletter Ideas?                                                                   Join ACG Atlanta!
 The newsletter is a great way for you to share your expertise and news with
 the other 500 Atlanta members and the broader dealmaking community.
 There are two opportunities...
      ››› First, the newsletter has a monthly “Thought Leadership”
          column of about 500 words on a topic or issue important to our
          membership. If you have an idea for a column, please submit a
          brief description of the topic.
      ››› Second, the newsletter reports on member news such as new
          jobs, new firms, promotions, awards, accomplishments and
          deals done so send us your news. Announcements by other
          organizations, news about non-members, marketing pitches and            http://chapters.acg.org/atlanta/joins/
          general information will not be considered.

 We reserve the right to select and edit all submissions. Please
 send all items for consideration to the attention of the editor at
 acgatlanta@informedhorizons.com.
                                                                                     ACG Atlanta Newsletter - December 2007   7
ACG Atlanta / FEI Reception
November 13, 2007
Anthony’s Fine Dining
More than 100 people networked
and enjoyed the food and
camaraderie at the joint meeting
of the Atlanta chapters of ACG
and the Financial Executives
Institute on November 13, 2007
at Anthony’s Fine Dining.




  8     ACG Atlanta Newsletter - December 2007

								
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