Money Weekly

Southeastern Wisconsin financial service industry news.


Tuesday, August 26, 2008

MMAC launches rally against sick leave referendum

When they help pick our nation's next president this November, residents of the City of Milwaukee also will be asked if small-business owners in the city should be required to by law provide a minimum number of sick days for their employees.

The question will be featured in a binding referendum on the Nov. 4 ballot.

A coalition led by 9to5 and the National Association of Working Women mounted a petition drive and gathered enough citizen signatures to place the referendum on the ballot. On July 30, the Milwaukee Common Council voted to approve putting the referendum on the ballot.

The law would require firms with fewer than 10 employees to provide at least five days of sick leave, and companies with 10 ore more would be required to approve at least nine days of sick leave.

The Milwaukee Metropolitan Association of Commerce (MMAC) believes that requiring companies to provide a set number of sick days will further discourage economic development in Milwaukee, and the organization is mounting a campaign to denounce the concept.

"This measure would create an additional layer of government mandates and regulation for all businesses in the city, making the region's core a regulatory island both within the state and the nation," the MMAC said in blast e-mail to constituents Monday. "In addition, this measure would limit employers' flexibility to tailor their individual compensation systems to the realities and desires of their businesses and their employees alike."

To join the MMAC's opposition of the issue, click here.

Wisconsin Banking News

Dosland is new CFO of Bank Mutual Corp.
Michael Dosland has been appointed senior vice president and chief financial officer of Milwaukee-based Bank Mutual Corp.

Dosland most recently served as president and chief executive officer of Vantus Bank, a savings bank with locations in northwestern and central Iowa, and First Federal Bankshares Inc., its publicly held holding company. He previously was the senior vice president and CFO of First Federal Capital Corp. in La Crosse.

"Mike comes to Bank Mutual Corp. with an extensive background in finance and leadership. We look forward to having him as an integral part of our management team," said Michael Crowley Jr., chairman, president and chief executive officer of Bank Mutual Corp.

North Shore Bank looks to staff new Grafton branch
North Shore Bank is currently seeking a full-time branch manager, several full-time personal bankers and several other new employees for its new branch in Grafton, under construction at 2301 Wisconsin Ave.

The branch will open with temporary office hours this fall until construction is complete during the winter months. Once finished, the new bank branch will incorporate the historic Heinrich Anschuetz stone home that has stood on the site since 1869.

For more information about the positions, visit careers.northshorebank.com.

M&A Deals of the Week

Beer Capitol acquires Miller Brands
As a fallout from the MillerCoors LLC merger, the beer distribution industry in southeastern Wisconsin is consolidating, with Pewaukee-based Beer Capitol Distributing Inc. acquiring Miller Brands-Milwaukee LLC of Wauwatosa.

Beer Capitol, which sells Pabst and other brands in Milwaukee County, has agreed to buy Miller Brands, which has sold Miller Brewing Co. products throughout Milwaukee County for many years, for an undisclosed amount. The sale is set close by Oct. 31.

The consolidation will create one distributor for all Miller, Coors, Pabst and the newly relaunched Schlitz products throughout southeastern Wisconsin, with 250 employees and 2,000 sales accounts.

Beer Capitol is owned by Aldo Madrigrano and his family, which also operates W.O.W. Distributing Co. of Sussex and CJW Inc. of Racine. W.O.W. Distributing sells MillerCoors products in Waukesha, Ozaukee and Washington counties. CJW Inc. sells MillerCoors products in Kenosha, Racine and Walworth counties.

The acquisition of Miller Brands will bring MillerCoors' Milwaukee County accounts, including Summerfest, downtown Milwaukee and Miller Park, under the Madrigrano corporate umbrella.

"The joining of these two great companies represents a strategic move that better aligns both organizations with the newly formed Miller-Coors joint venture, building upon each companies' recognized strengths in delivering exemplary customer service and developing long-standing relationships within local operating communities," said Aldo Madrigrano, who will serve as chairman of the Beer Capitol after the sale.

Mike Merriman, president of Beer Capitol, will continue in that role, and Dave Neville, currently the vice president of sales for Miller Brands, will lead sales efforts.

"This is a joining of two great organizations and we fully intend to build on the strong consumer loyalty to the Miller brands in Milwaukee County," Madrigrano said. "This deal gives us long-term continuity and combines the forces of a bigger, better and stronger service organization to serve our customers and offer consumers an expanded array of top-flight brands."

Miller Brands president Steve Johnson and vice president Mike Gallagher will not be part of the leadership team of the merged company, a Beer Capitol spokeswoman said.

Miller Brands has about 150 employees in Wauwatosa. When asked about the status of those jobs, Beer Capitol spokeswoman Mary Brophy said, "There are no other changes planned at this time."

Madrigrano, who is the chairman of the board of the National Beer Wholesalers Association (NBWA), was the winner of the Small Business Times Bravo! Entrepreneur Regional Spirit Award in 2006.

In a recent issue, Small Business Times published a report that predicted the pending consolidation of the beer distribution industry in southeastern Wisconsin.

General manager buys Brookfield inventory company
Jerry Bannerman is the new owner and president of General Business Services Inc. in Brookfield. Bannerman previously served as general manager of the company that provides customized inventory reports for grocery stores, specialty food stores, pharmacies, clinics and hospitals.

The company has a history of providing services throughout Wisconsin and Minnesota since it was founded in 1959, but Bannerman said he plans to expand that footprint into Illinois and Missouri. "We give retailers a competitive edge by providing a service that is objective and accurate. They can easily see which items are top sellers and which have been lost to theft or damage," Bannerman said.

General Business Services can be especially helpful for smaller hardware and convenience stores that have tight margins, Bannerman said. "Our staff members have decades of experience and can work with each owner to review the inventory and provide reports that are custom-designed for each location," he said.

Additional information is available at www.countinv.com.

Profile of the Week

Name: Jason Herried, CFA 
Title: Portfolio Manager 
Company: Associated Wealth Management 
City of Residence:  New Berlin 
Family: Wife, Carla 
What’s new at your company? "We are renewing our focus on a consultative approach to wealth management, and bringing the best the bank has to offer to each client. Because every client is different, each requires a unique approach that’s right for them."
What are the most interesting issues you work with clients on? "Sometimes clients come to me with a tip they heard on TV or saw in a magazine, and wonder why we are not following it. I explain that a long-term investment strategy is more sophisticated than a single tip and, over time, should pay off."
What is the most difficult or challenging project you've been involved with? "Lately it has been managing risk. In an economic downturn, you really understand a client’s risk tolerance. One of our strategies is to not invest too heavily in any one sector, but we also realize that investments that do well over time are able to experience a downturn now and again. It’s a natural part of the cycle. We are also monitoring potential changes in federal tax laws that may have an impact in the future."

Money Odds & Ends

Virchow Krause plans name change
Milwaukee accounting firm Virchow, Krause & Company LLP is seeking regulatory approval to change its name to Baker Tilly LLP.

The change reflects Virchow Krause's partners plans to become a branded affiliate of Baker Tilly International, the eight-largest worldwide accounting and business services network. Virchow Krause, an independent member of Baker Tilly International since 1999, is the largest independent U.S. member firm in the Baker Tilly network.

Virchow Krause will maintain its independent member status and will not assume any management responsibilities within the network as a result of the name change. Virchow Krause is not merging with Baker Tilly, nor is it being acquired.

In making the announcement, Geoff Barnes, chief executive officer and president of Baker Tilly International, said, "The independent members of Baker Tilly International desire to develop the brand worldwide, and as the largest U.S. member firm, Virchow Krause became the logical choice to carry the brand in the U.S.  Discussions ensued and Virchow Krause was extremely interested in pursuing this opportunity."

Tim Christen, Virchow Krause CEO, said, "The world is becoming smaller and many of our current clients, and the new clients we’re engaging, are involved in international commerce. Representing the Baker Tilly global brand in the U.S. will strengthen our ability to provide clients with seamless resources and benefits as they develop business abroad."

According to Christen, consideration of a name change is part of Virchow Krause’s long-term global branding strategy.

"The firm has extensive international capabilities in-house, but the common international brand will greatly reduce the confusion that often occurs when collaborating with other independent member firms throughout the world to serve client needs," Christen said.

Virchow Krause Wisconsin managing partner Kevin Heppner said, "Doing business internationally is the future - now. More and more, our clients, and companies throughout our geographic market, are increasing their investments in foreign markets."

Virchow & Krause has 220 total staff members in its Milwaukee office and 1,300 employees overall in its offices in Detroit, Chicago, Minneapolis, and throughout Wisconsin. The company said the name change will have no impact on any of its existing office locations.

Legion Insurance to close Milwaukee office
Philadelphia-based Legion Insurance Company recently informed the Wisconsin Department of Workforce Development that it will lay off more than 40 employees when it closes its Milwaukee office within a year.

The work done in the company's Milwaukee office, located at 111 E. Kilbourn Ave., will be transfered to the firm's headquarters in Philadelphia, Pa., beginning this month.

"The schedule (of layoffs) is subject to change based on the speed with which the functions transition," said a company spokesman in a statement issued to the Department of Workforce Development.

Kolb & Co. now offers benefit services
Kolb & Co., a Brookfield-based business advisor and CPA firm, recently expanded Kolb & Co. Retirement Plan Services LLC to include benefit plan services. The expanded service line will allow Kolb & Co. to assist companies and groups with cafeteria plans such as flexible spending accounts, transportation programs and health reimbursement arrangements.

For more information, visit www.KolbCo.com.

Metavante collects almost 5 tons of food
Metavante Corp.'s Milwaukee and Madison offices recently collected more than 4.9 tons of food for the Hunger Task Force of Milwaukee and the Society of St. Vincent de Paul Inc. The drive, held from July 21 to Aug. 1, also raised $2,300 in cash donations, which were donated to Milwaukee and Madison area food pantries, soup kitchens and homeless shelters.

Financial Services Industry People in the News

Business Lending Services LLC, a Muskego-based cooperative financial service entity with Business Lending Group and Corporate Central Credit Union, announced today that Linda Kennedy has joined the company as its new chief executive officer. Business Lending Services and Business Lending Group are member-owned financial cooperatives dedicated to delivering expert commercial loan services. Business Lending Services was formed in 2004. Business Lending Group launched in 1999. Business Lending Services and Business Lending Group are structured as Credit Union Service Organizations (CUSO) and currently manage more than $380 million in loan assets. Kennedy brings more than 30 years of experience in the financial industry to her new position. As CEO, Kennedy is responsible for managing overall strategies of both Business Lending Services LLC, which focuses on the Milwaukee and Madison regions, as well as Appleton-based Business Lending Group, which covers northeastern Wisconsin. Her responsibilities include leading a team of 30 commercial lenders and staff for the company's Wisconsin offices. "It is a pleasure to have Linda join Business Lending Services as CEO. She brings a wealth of experience and leadership skills to our organization. With her commitment to member service, she will be a welcome addition to our team of experts," said Robert Fouch, chairman of Business Lending Services.

Madison-based Wisconsin Community Bank recently named Charles Dearth to its Board of Directors. Dearth is president of Charles Dearth Pontiac-Buick-Cadillac-GMC Truck Inc. and Dearth Motors Inc., of Monroe.

M&I Wealth Management recently named Judith C. Wood as vice president, trust services. Wood will serve as a relationship manager for high-net-worth individuals and families. Wood will help clients with wealth transfer and legacy planning.

Bank Mutual recently named Robert Kaiser as vice president, commercial banker at its Southeast region commercial banking center located at 2600 N. Mayfair Road, Wauwatosa. Before joining Bank Mutual, Kaiser was vice president at another financial institution.

Jefferson Wells recently hired Kash Mansori as manager in the Transfer Pricing Center of Expertise. Mansori will be responsible for overseeing client engagements and developing long-term client relationships across all of Jefferson Wells’ offices. Mansori will be based out of the firm’s Charlotte, N.C. office

Calendar

The U.S. Small Business Administration has introduced two new free online finance courses to help small business owners with the basic principles of finance and borrowing.   The new self-paced courses, Finance Primer: Guide to SBA’s Loan Guaranty Programs and How to Prepare a Loan Package walk business owners through steps that answer questions about what debt financing is, what loan programs are available, what small businesses should know about borrowing money, how to prepare a loan package and how loan requests are reviewed by lenders.

Financial Executives International Milwaukee Chapter meets on the second Tuesdays of the month at 5:30 p.m., University Club, 924 E. Wells St., Milwaukee. Call Mary at (414) 226-6975.

Financial Resources

Eric Decker This exclusive news bulletin is compiled by BizTimes reporter Eric Decker. Send financial services industry news and tips to eric.decker@biztimes.com

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