Many business owners did not pull the trigger on selling their companies at the peak of the market, when their firms held the maximum value in early 2008. Then the Great Recession hit, causing multiples to nosedive and diminishing the value of their companies.

As the economy rebounds, another window of opportunity will open up for business owners seeking to grow through a strategic acquisition or to plot an exit strategy to sell their companies.

BizTimes Media will present its “M&A Forum: Buy? Sell? Hold?” on Thursday, March 11, from 7:30 to 11:30 a.m. at The Pfister Hotel, 424 E. Wisconsin Ave., Milwaukee. The event is designed to help business owners identify ways to build their business through acquisition or to help them prepare for an eventual sale.

The keynote speaker will be Mark Herndon, president of Dallas-based Parkwood Advisors LLC, a financial services firm specializing in mergers and acquisitions, investment banking and private equity financing. Herndon is co-author of “The Complete Guide to Mergers and Acquisitions: Process Tools to Support M&A Integration at Every Level.”

Several breakout sessions will follow Herndon’s keynote presentation. The breakout sessions will be designed to help business owners and their advisors develop plans and strategies for an acquisition, prepare a company for an eventual sale or craft strategies to invest a windfall realized once a business sale is complete.

The cost to attend the event is $75 per person and $600 for a table of eight. For information or to reserve a spot, visit www.biztimes.com/maforum.

The Milwaukee-based law firm Foley & Lardner LLP recently hired James Chapman as a partner in its Silicon Valley office. Chapman will work with Foley’s private equity and venture capital practice group.

Chapman formerly worked with the Silicon Valley and Palo Alto offices of Nixon Peabody LLP, and helped the firm develop its China practice.

“Foley provides me a unique opportunity to duplicate in Silicon Valley the tremendous success of the Foley Private Equity & Venture Capital practice in other key Foley markets, such as San Diego and Boston,” said Chapman. “I look forward to further growing my practice by leveraging the firm’s national presence and deep team of transactional attorneys, while expanding on the firm’s success in assisting clients with complex matters that arise when doing business in China. Foley’s office in Shanghai and its growing Chinese practice will allow me to enhance the service offerings to my clients.”

Chapman has more than 20 years experience in corporate and securities law and has been involved in more than 200 mergers, acquisitions and financial transactions. He represents emerging growth companies looking to expand domestically and internationally, and the venture capitalists, private equity groups and angels that invest in them.

Chapman has extensive expertise in international and cross-border transactions. He regularly represents Chinese companies looking to raise capital and acquire companies in the U.S., as well as U.S. companies doing business in China through acquisitions, joint ventures, distribution and out-sourcing relationships.

“Jim’s arrival to the firm greatly enhances our venture practice on the West Coast,” said Gabor Garai, chair of Foley’s Private Equity & Venture Capital Practice. “His knowledge of various types of investment funds and substantial experience with international business transactions will be a tremendous asset to our clients, particularly bi-coastal venture funds involved in direct investment work.”

The annual BizTimes Access to Capital directory, a directory of commercial lending, mergers and acquisitions, accounting, legal and related financial services providers in the Milwaukee area, is open for submissions.

The directory will be printed in the March 5 issue of BizTimes Milwaukee and will be posted online that day. Submissions must be completed by Feb. 22.

For more information or to submit your company to the directory, visit http://www.biztimes.com/site/capital.

Glendale-based Johnson Controls Inc. has been named one of the among America’s companies with best investor relations by Institutional Investor magazine.

Steve Roell, Johnson Controls' chairman, president and chief executive officer, and Bruce McDonald, chief financial officer, were recognized in the consumer, autos and auto parts category, while Glen Ponczak, executive director of investor relations, was named the best investor relations professional by both buy-side and sell-side analysts.

"We are honored to receive this recognition from Institutional Investor," Roell said. "Over the past year our leadership team and our 130,000 employees around the world have worked hard to address the market realities that we faced. Johnson Controls has a long history of growth and focus on shareholder value. We are proud to be named to this list of distinguished companies and individuals by Institutional Investor."

Rankings for these awards are based on Institutional Investor magazines' U.S. Investor Relations Perception Study, a comprehensive analysis completed by 570 sell-side analysts at nearly 100 securities firms and more than 780 buy-side investment professionals at 425 institutions. The complete listing can be found at www.iimagazine.com.

Four state banks named among the 150 best-performing banks in US

Four of Wisconsin’s banks have been ranked among the 150 best performing banks in the country in 2009 in the annual “Bank Performance Scorecard” by Bank Director magazine. 

Milwaukee-based Bank Mutual Corp. was the highest-ranking Wisconsin financial institution, ranking 57th.

The other Wisconsin-based banks on the list were:

• Green Bay-based Associated Banc-Corp., 72nd.
• Milwaukee’s Marshall & Ilsley Corp., 135th.
• Madison’s Anchor BanCorp., 148th.

The annual ranking analyzes the 150 largest banks and thrifts in the U.S. and ranks them by profitability, capital adequacy and asset quality. Ranking is based on performance over the last two quarters of 2008 and the first two quarters of 2009.

Anchor Bank still absorbing losses

Anchor BanCorp Wisconsin Inc. (ABCW) announced a fiscal third quarter net loss of $9.0 million, or 58 cents per share, which was an improvement over a net loss of $72.0 million for the previous quarter and $167.1 million for the same period a year ago.

As a result of the third quarter loss, ABCW remains undercapitalized at the bank level according to the terms of the Order to Cease and Desist by the Office of Thrift Supervision. Being undercapitalized subjects the bank to several operating restrictions, including increased premiums for deposit insurance, prior approval from the Federal Deposit Insurance Corp. in order to access brokered deposits, and increased scrutiny by the Office of Thrift Supervision

The company is taking the following actions effort to improve its capital position: continued reduction of balance sheet through loan sales and other strategies; the sale of 11 non-core branches planned to close in first half of 2010; improvement of profitability through continued cost reduction initiatives; and entering into agreements with Badger Anchor Holdings LLC, which will make an investment of more than 483 million shares of common stock at 60 cents per share, for an aggregate equity investment of up to $290 million.

Anchor’s net loss declined 95 percent from one year ago and 84 percent from the previous quarter. The company’s loan loss provisions declined nearly 83 percent from the previous quarter and were down nearly 89 percent from a year ago.

"Despite the third quarter loss, we continue to make progress toward upgrading our credit quality standards, strategically repositioning our balance sheet and, most importantly, returning the bank to profitability," said ABCW president and chief executive officer Chris Bauer. "These results show signs that we're moving in the right direction."

Manpower to acquire Comsys It Partners
Milwaukee-based Manpower Inc. has entered into an agreement to acquire Comsys It Partners Inc. of Houston, Texas, for $17.65 per share, for a total estimated value of $431 million.
Comsys is a leading professional staffing firm. The agreement has been approved by the boards of directors of both companies.
Comsys’ professional IT staffing services will be integrated into the Manpower Professional offering, and when combined with Elan, Manpower's European IT staffing business, will create an entity with total revenues of more than $2.5 billion.
The combined entities increase Manpower's professional consultants on assignment to more than 25,000. With 4,000 offices around the globe, the addition of COMSYS increases Manpower's professional staffing services geographic footprint to more than 400 offices worldwide.
"The acquisition of Comsys is consistent with our strategy and strengthens the continued expansion of our professional staffing services and outcome-based solutions," said Jeff Joerres, chairman and chief executive officer of Manpower. "Both are areas where we have significantly grown organically over the past few years, driven by our strategy to provide clients with all the talent they need, particularly in the high demand skill verticals of IT, engineering, finance and accounting."
"Manpower and Comsys have very similar cultures, focused on a client-first and consultant-first mindset and values," said Jonas Prising, Manpower Inc. president of the Americas. "Joining our trusted brands and services, combined with our ability to deliver a unique experience to clients and candidates, will address the market's needs from both a scale and capabilities perspective. The strong alignment of our services and cultures positions us well for a rapid and successful integration."
Larry Enterline, CEO of Comsys, said, "This is a great opportunity for us to leverage our demonstrated expertise and strong market presence with Manpower's global leadership in the employment services industry. The combination of these two great organizations is exciting for us and very positive for all of the stakeholders' of both companies.”
Milwaukee-based Robert W. Baird & Co. Inc. served as the exclusive financial advisor to Comsys It in the transaction.
Manpower also announced that its fourth-quarter net earnings fell 62 percent to $29.1 million, or 37 cents per share, from $76 million, or 97 cents per share, a year earlier. The company’s quarterly revenue fell 4 percent to $4.4 billion.

Shawna Bertalot has been named executive director of specialization and practices with Racine-based Johnson Insurance Services LLC. Johnson Insurance is part of Johnson Financial Group, a $5.7 billion financial services company.

Bertalot has nearly 20 years of experience in the insurance industry. She will lead Johnson Insurance Services’ property and casualty insurance teams for specialization and practice programs, which include architects and engineers, law and accounting firms, health care organizations and school districts.

“Our clients are best served by a variety of complimentary, specialized services that anticipate their needs, exceed their expectations and make their lives easier,” said Christian Lie, President and Chief Executive Officer of Johnson Insurance Services. “Shawna’s new role will help us promote those strengths, to the benefit of our clients.”

Milwaukee-based RitzHolman CPAs has hired Shelby Pecor, CPA, as a staff accountant. As a member of the firm’s tax, nonprofit and outsourcing teams, Pecor will focus on nonprofit audit as well as providing tax and consulting services to individuals and businesses.  RitzHolman also hired Marie Jasinski as a bookkeeper. Her more than 20 years of  bookkeeping experience includes working for the Wisconsin Institute of Certified Public Accountants, Weather-Tek Design Center and the Pabst Family Trust Company.

PNC Bank to repay TARP money

PNC Financial Services Group Inc. has reached an agreement with U.S. banking regulators and the U.S. Treasury to repay the roughly $7.6 billion the bank holding company received under the Troubled Asset Relief Program (TARP), part of the Capital Purchase Program.

The bank also is planning to offer roughly $3 billion in common stock to investors.

PNC Financial Services Group is the parent company of Cleveland-based National City Bank, which it acquired in December, 2008. National City operates branches in the Milwaukee market.

PNC’s fourth quarter 2009 net income was $1.1 billion, or $2.17 per diluted common share, compared with net income of $559 million, or $1.00 per diluted common share, for the third quarter of 2009.

"During the most challenging economic environment of our time, the execution of the PNC business model resulted in exceptional 2009 performance," said James Rohr, chairman and chief executive officer of Pittsburgh-based PNC. "Our businesses performed well and customer growth and sales of products and services across the franchise were strong, giving us considerable momentum starting into 2010. We continue to focus on risk management and made significant progress in transitioning to a stronger balance sheet with strengthened loan loss reserves, liquidity and capital."

PNC recently announced plans to sell PNC Global Investment Servicing, a provider of fund processing products and services, to BNY Mellon for about $2.3 billion. The transaction is expected to close in the third quarter of this year.

 “With signs of an improving economic environment and stabilizing financial system, we believe now is the appropriate time for us to redeem the preferred shares held by the U.S. Treasury,” Rohr said. “As a result, we are pleased to have reached an agreement with our regulators to return the taxpayers’ investment in PNC. These strategic actions are expected to improve the quality of our capital and position us for further growth. Collectively, we believe these actions are in the best interests of our shareholders, customers and employees.”

Fiserv caps strong year

Brookfield-based Fiserv Inc. reported fourth quarter net income of $118 million, or 76 cents per share, up from $62 million, or 39 cents per share, in the same period a year ago.

The company’s quarterly total revenues grew to $1.06 billion from $1.04 billion a year earlier.

For the full year, Fiserv’s total adjusted revenue for the year decreased 1 percent to $3.87 billion from $3.89 billion in 2008.

"We finished the year with a strong fourth quarter highlighted by positive revenue growth, record December sales and superior free cash flow providing momentum as we enter the new year," said Jeffery Yabuki, president and chief executive officer of Fiserv. "In a challenging 2009, we delivered on our financial goals and enhanced our strategic position. These results reflect our industry-leading commitment to clients and the value of our integrated product offerings." 

Fiserv expects 2010 adjusted internal revenue growth to be in a range of 1 to 3 percent. "The strong finish to 2009 is another proof point that our strategy is working. Although we believe the environment in 2010 will remain tough, we expect to grow revenue, earnings and free cash flow while continuing to invest in solutions that will help our clients to be even more successful," Yabuki said.

Neenah Foundry's corporate parent files for Chapter 11 bankruptcy

Neenah Enterprises, Inc., one of the largest foundry companies in the United States and a large supplier of castings to the domestic municipal and industrial markets, has filed for reorganization under Chapter 11 of the the U.S. bankruptcy code. The company also said it has reached an agreement in principle with key creditors on reorganization that will reduce its debt by approximately $220 million while providing 100% recoveries for its suppliers and vendors.

"We've been going through efforts to streamline operations and reduce expenses over the last few years, with the intent of keeping sufficient liquidity to move operations forward," says Robert E. Ostendorf, Jr., President and CEO of NEI.  "We will emerge from this stronger and more financially sound than ever.  There is a bright future ahead for NEI."

The Company also announced that, pending the Bankruptcy Court's approval, it has received commitments for up to $140 million in debtor-in-possession (DIP) financing to fund continuing operations.  The financing will provide ample liquidity for the company and will allow it to continue funding its ongoing operations, including the payment of all employee wages and benefits in the ordinary course and the payment of all post-petition obligations to suppliers.

The Company filed a variety of customary "first day" motions with the Bankruptcy Court to enable it to continue business as usual during the restructuring.  These motions include requests to continue paying employee wages and benefits in the ordinary course and to continue all existing customer programs.

Law firm seeks claims against MGIC

The Law Offices of Howard G. Smith in Bensalem, Pa., is investigating potential claims against Milwaukee-based MGIC Investment Corp. about whether the company's 401(k) savings plan imprudently invested in MGIC stock and whether the plan's administrators breached their fiduciary duties to the plan's participants in violation of the Employee Retirement Income Security Act of 1974 (ERISA).

The investigation concerns public statements issued by MGIC between Oct. 12, 2006, and Feb. 12, 2008, regarding the company's business, operations, financial performance and prospects.

According to a shareholder lawsuit pending in the United States District Court for the Eastern District of Wisconsin, MGIC and some of its executive officers failed to disclose and/or misrepresented the company's exposure to losses related to its investments in entities established to invest in risky subprime mortgages.

The investigation concerns whether MGIC and other administrators of the plan failed to prudently and loyally manage the plans' investments in MGIC stock by continuing to offer company stock when it was no longer a prudent investment for participants' retirement savings.

NARI recognizes RitzHolman for nonprofit accounting

RitzHolman CPAs, a Milwaukee-based accounting firm, recently received the Affiliate Organization of the Year award from the Milwaukee Chapter of the National Association of the Remodeling Industry (NARI).

“As an industry leader in nonprofit accounting, RitzHolman CPAs has brought a fresh and educated perspective on the association’s finances and reporting,” said David Feldner, CAE, executive director of Milwaukee/NARI. “Not only is the responsiveness and customer service from the firm’s personnel second to none, but RitzHolman CPAs provided information on ways to improve our general accounting practices and provided reports that benchmarked the association’s financial health to those of similar size and budget. It is that extra effort that separates RitzHolman CPAs from other qualified accounting firms.”

Clifton Gunderson will present the webinar “M&A Today: Financial Reporting and Tax Implications” on Wednesday, Feb. 17 at 10 a.m. and 2 p.m. The free, hour-long webinar will discuss valuation, tax and legal issues that are changing in the M&A industry, which has gained traction as the economy has recovered. Registration is required at http://www.cliftoncpa.com/Resources/Events.

Banking

• Wisconsin Department of Financial Institutions 
• Federal Deposit Insurance Corp.
• Wisconsin Bankers Association 
• Community Bankers of Wisconsin
• Wisconsin Mortgage Bankers Association
• American Bankers Association
• Bankers Association for Finance and Trade
• Commercial Finance Association 
• Risk Management Association

Mergers & Acquisitions

• Association for Corporate Growth 
• International Business Brokers Association 
• Mergers.com

Wealth Management/Financial/Retirement Planning

• Financial Planning Association
• Financial Planning Association of Southern Wisconsin
• Investment Management Consultants Association
• National Association of Personal Financial Advisors (NAPFA)

Other 

• Society of Financial Service Providers
• Small Business Administration
• State public awareness campaign
• Wisconsin Credit Union League
• CFA Institute
• CFA Society of Milwaukee
• Wisconsin Angel Network