The Leading Authority
on Corporate Growth
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.
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.
College Park, GA 30349
SouthPointe Ventures, LLC
Phone: 770 991 2170 President, ACG Atlanta
Fax: 770 997 2488 firstname.lastname@example.org
ACG Atlanta Newsletter - December 2007 1
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
Hudson Slaton Group
Executive Vice President KPMG LLP Stefanie Paulos
Katherine Morris Vice President of Randstad
BDO Seidman, LLP David Duke
Headwaters MB David Walker
Vice President of Programs EBSCO Industries, Inc.
Golub Capital Winston Gillum
Bank of America Harbert Management Capital Connection Chair
Corporation Andy Mason
Vice President of Membership VRA Partners, LLC
Tatum LLC Nancy Halwig
Mazzone & Associates, LLC UPS Capital
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
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
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.
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
The Future of Global Supply Chain Management
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.
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
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
ACG Atlanta Newsletter - December 2007 5
Challenges in Global Supply Chain Management
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
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
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We reserve the right to select and edit all submissions. Please
send all items for consideration to the attention of the editor at
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