Wisconsin Governor Jim Doyle signed a bill yesterday that brings the state treatment of Roth IRA conversions into line with federal treatment. The state Assembly and Senate passed the bill in February.

“Prior to enactment, Wisconsin was the only state in the country with restrictions on Roth conversions. Now, state taxpayers at all income levels can consider a Roth IRA conversion without the fear of being assessed various tax penalties,” said Tim Steffen, CFP, financial and estate planning for the private wealth management group at Milwaukee-based Robert W. Baird & Co. “Deciding whether or not to convert an IRA to a Roth IRA is a complicated decision that involves a variety of factors. With the enactment of this law, all Wisconsin taxpayers will have the opportunity to make that decision for themselves and their family.”

In January, federal guidelines were changed, allowing those who earn more than $100,000 per year to convert IRAs to Roth IRAs.

If the law were not changed, Wisconsin residents earning more than $100,000 per year who converted their IRAs could have faced several penalties, including:

A 3.3 percent early distribution penalty for the amount converted for taxpayers younger than 59.5 years old.

Any amount that is rolled into a Roth IRA could have been treated as a contribution and subjected to a $5,000 annual maximum. If the amount exceeded that limit, it might have been subject to a 2 percent penalty.

“This means that a Wisconsin resident doing a conversion in early 2010 would face uncertainty as to the state tax treatment of the transaction,” Steffen said.

Patina Solutions, a Milwaukee-based professional services firm, has raised $1.5 million from private investors throughout the Midwest and has opened an office in Boston. Patina provides seasoned professionals on a flexible basis to client companies to help them achieve their business objectives.

The company has grown quickly since it opened in 2008. The company now has more than 500 professionals in its talent portfolio and offices in Milwaukee, Chicago and Cleveland, in addition to the new office in Boston that was opened last week.

"Patina's story, results and plans resonated very well with angel investors, even in these still difficult economic times," said Mike Harris, co-founder and CEO of Patina Solutions. "Patina now has almost 50 individual investors from several states including Wisconsin, Illinois, Michigan and Ohio. We are continuing to grow and are expecting a 700 percent increase in sales from 2009 to 2010."

Patina provides seasoned professionals on a flexible basis to help companies achieve their business objectives. Most of its professionals are 50 years old or older, and are able to give the company’s clients the benefits from their years of experience.

Harris is an experienced entrepreneur with significant success in start-up and high-growth companies. Patina is his sixth professional services start-up since 1995. He is best known as the founder and former CEO of Jefferson Wells, which was acquired by Manpower in 2001.

For more, visit www.patinasolutions.com.

Waukesha-based Gernerac Holdings Inc. expects to raise about $23.8 million in the sale of 1.95 million shares of its common stock to the underwriters of its recent initial public offering. The shares are expected to sell for about $13 per share, and the sale is expected to close at the end of trading on Thursday.

J.P. Morgan Securities Inc., Goldman, Sachs & Co., BofA Merrill Lynch and Robert W. Baird & Co. Inc. are the book running managers for the offering. William Blair & Company, KeyBanc Capital Markets, and Stephens Inc. are the co-managers for the offering.

Once the transaction is completed, Generac will have sold roughly 20.7 million shares.

Barron’s magazine recently released its annual listing of the top 1,000 financial advisors in the country for 2010. This year’s list includes 15 financial professionals from Wisconsin – employed by firms such as UBS Financial Services, Robert W. Baird & Co., RBC Wealth Management, Morgan Stanley Smith Barney, and more.

To view the list, click here.

M&I schedules annual shareholder meeting

Marshall & Ilsley Corp. today announced that the corporation's annual meeting of shareholders will be held on Tuesday, April 27, at 10 a.m. (CDT) at the Cooley Auditorium on the Milwaukee Area Technical College (MATC) campus, 1015 N. Sixth St.

The company’s 2010 proxy statement and 2009 annual report to shareholders are available online at www.micorp.com.

Marshall & Ilsley is the Milwaukee-based parent company of M&I Bank.

With recent acquisition, Oilgear is bullish on 2010 prospects

The Oilgear Company, a Milwaukee-based designer and manufacturer of hydraulic components and systems used in the industrial, mining and energy exploration markets, has seen a rebound in orders for its parts and components over the last several months.

“It’s getting better. The trends, one would say, are increasing in our business and inquiries,” said Richard Armbrust, president and CEO of the company. “We’re cautiously optimistic.”

Oilgear now has about 900 employees around the globe. While its total employment has fallen over the last 18 months, it is significantly higher than it was in 2007, when the company had about 700 workers.

Part of the increase is two acquisitions the company made during and just after the Great Recession. Oilgear acquired Clover Industries, based in Wausau, in December, 2009, and Olmsted Products based in Traverse City, Mich., in November, 2008. The company would not disclose terms of either acquisition.

Clover Industries is a manufacturer of cylinders, piston accumulators and intensifiers for the oil and gas, military, industrial, construction and civil markets. Oilgear believes it will see additional growth in 2010 by adding the company’s products to its existing offerings, Armbrust said.

“When you look at the markets they’re in, their products fit nicely in with who we are,” he said. “We’re quite optimistic about the cylinder business. The acquisition of these two companies will allow us to expand our product offerings to better serve our global customers in our core markets.”

Through the Great Recession, Oilgear’s domestic and European orders have fallen off dramatically. But the company has found increasing opportunities for sales in Asian markets, Armbrust said.

“We’ve spent a great deal of time capturing business in these markets and we’ve been quite successful,” he said.

• Estates of decedents dying in 2010 are able to step up the basis of assets transferred, but only to a $1.3 million limit.
• The basis of property transferred to a surviving spouse may be increased by an additional $3 million, or $4.3 million in total.
• The basis may never be adjusted above its fair market value on the date of the decedent’s death.
• The executor elects which assets receive an increase in basis and the extent to which each asset is adjusted for each beneficiary.

To read more, click here.

Wauwatosa-based Clifton Gunderson has hired Christopher Moss, CFA as its lead advisor and vice president of investments for the firm’s wealth management practice.

“We are eager to leverage Chris’ areas of financial expertise to further strengthen and build our practice in Wisconsin – and across the firm,” said Bob Mathers, president and CEO of Clifton Gunderson’s wealth management subsidiary.

Moss will be responsible for articulating and implementing thoughtful solutions for the wealth planning goals of Clifton Gunderson’s clients. He will also share responsibility for the firm’s capital markets research, which drives the strategic and tactical allocation for our client portfolios.

Moss has more than 17 years of investment and financial planning experience, including 10 years as a registered investment advisor representative. He specializes in sophisticated portfolio construction solutions for business owners, senior executives and high net-worth families.

Buyers emerge for manufacturing companies in receivership

Buyers have emerged for two well-known Milwaukee manufacturing companies that are now in state receivership protection.

Milwaukee Forge, which entered state Chapter 128 protection in February, currently has two different groups that have announced their intention to bid for the company’s assets, properties and will hire some or all of its employees.

Last week, MF Acquisition Corp. a wholly owned subsidiary of NOG Inc., announced that it has entered into an agreement to bid on the assets of Milwaukee Forge. Later the same day, an investor group led by David Messick, the current president and CEO of Milwaukee Forge, announced that it intends to bid for the company’s assets.

“Our local group is prepared to make a very strong bid, and we believe that it will be successful when the auction is completed,” Mesnick said. “Our investor group represents the best overall package, and it also is the best chance to retain the 100-plus jobs in Milwaukee and continue operating the company as a local business.”

NOG, which has a forging facility in Kentucky, and which employs managers who formerly worked at Interstate Forging Industries, which was formerly headquartered in Milwaukee, said that Milwaukee Forge would allow it gain new customers in the local market.

“The Milwaukee Forge situation looked like an opportunity to expand our offerings in our forging group,” said Dave Lauer, chief financial officer of NOG. “We will do our best to retain the customers and hire the employees there to try and make it a sustainable business.”

The purchase of Milwaukee Forge is not expected to close until late April. A buyer will ultimately be determined by the court. Until the case is decided, other bids can still be submitted to the court or the company’s receiver.

Meanwhile, an agreement to purchase Milwaukee-based Super Steel Products Corp. was announced last week by Fred Luber, founder of the company. Under the agreement, which still needs court approval, Luber and an investment group would purchase selected assets of the company out of Wisconsin Chapter 128 receivership.

Super Steel Products Corp. manufactures steel and metal equipment and products for the freight locomotive and passenger rail industries, as well as the industrial, construction and agricultural markets. The company operates at two facilities in the city of Milwaukee – its headquarters and manufacturing facility at 7900 W. Tower Ave., and its transportation and manufacturing facility at 7100 W. Calumet Road.

The company has approximately 250 employees. At its peak earlier this decade, Super Steel had more than 700 employees.

Luber is already a significant stakeholder in Super Steel. He has formed a new company, called SS Acquisition LLC, that would be the buyer of Super Steel if the bid is approved.

The purchase would include the Super Steel name, inventory, all machinery and equipment, as well as current customer contracts.

Luber indicated that if the sale to his company is approved, he has agreed to hire “substantially all” 250 Super Steel employees.

“As our industry arises from one of the most tumultuous economic periods in history, I believe very strongly that there are good things ahead for Super Steel,” Luber said.  “I am hopeful that the judge will approve our offer.”

Time is running out to apply for SBA Economic Injury Disaster Loans

April 15 is the filing deadline for businesses to apply for Economic Injury Disaster Loans, intended to help businesses recover from the severe storms and flooding that occurred on June 18 -19.

Privately held businesses and non-profit organizations in Kenosha, Milwaukee, Racine, Walworth and Waukesha counties are able to apply for loans as high as $2 million, which may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans, which carry a four percent interest rate with a maximum term of 30 years, are not intended to replace lost sales or profits.

Eligibility for the program is based on the size and type of business, and its financial resources.

To obtain a loan application, businesses should contact the SBA’s Customer Service Center by calling 800-659-2955 (800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 6 p.m. EDT or send an e-mail to disastercustomerservice@sba.gov. Business disaster loan applications can also be downloaded from www.sba.gov/services/disasterassistance.

Shift supervisor at Wildeck is ESOP Employee Owner of the Year

The Wisconsin Chapter of the ESOP Association has selected Jack Sites, a shift supervisor at Wildeck Inc., as its 2010 Employee Owner of the Year. The annual award is presented to an employee who exemplifies the highest standards of employee ownership through their dedication and commitment to their company’s success.

“I never thought I would be an ‘owner’ in any capacity,” stated Sites, “As an ESOP owner, I try to apply my product and manufacturing knowledge to influence change and make things happen in the easiest, and most cost-effective way. At the end of the day, I want to make sure that we remain profitable – especially during these tough economic times – and do my part where we all benefit as employee owners.”

Sites will compete against a competitive field of employee owners from other state and regional chapters for the title “National Employee of the Year.”  The winner of the award will be announced at the ESOP Association’s 32nd Annual Conference in Washington, D.C. in May 2010.

“This is a high honor for Jack and for the company,” said Keith G. Pignolet, president of Wildeck. “Jack has been with Wildeck for nearly 28 years and is active in many of the company’s ESOP activities. He has made significant contributions to improve product quality, our manufacturing methods, and in streamlining many of our production processes. He is truly deserving of this award.”

Ryan appointed to serve on Obama’s deficit reduction commission

U.S. Rep. Paul Ryan (R-Janesville), ranking member of the House Budget Committee, has been named by House Minority Leader John Boehner (R-Ohio) to serve on President Barack Obama's bipartisan deficit commission.

Ryan joins House GOP colleagues Dave Camp of Michigan and Jeb Hebsarling of Texas on the commission, which was created by executive order last month.

They will join Sens. Judd Gregg (R-New Hampshire), Mike Crapo (R-Idaho) and Tom Coburn (R-Okla.) as the Republican appointees on the commission.

"While I have serious concerns about what this commission can actually achieve, I hope it spurs a genuine effort to tackle the looming crisis of unsustainable entitlement spending - the greatest threat to our nation’s fiscal and economic future," Ryan said.

Boehner said his designees "know what it takes to address our long-term challenges while protecting taxpayers.”

“Americans are rightly concerned about the growth of government, while the rest of the country has been tightening their belts,” said Senate Minority Leader Mitch McConnell (R-Ky.).

The commission will be chaired by former Clinton chief of staff Erskine Bowles and former Republican Sen. Alan Simpson.

The commission’s mission is to propose specific recommendations to balance the federal budget by 2015. A final recommendation must receive votes of approval from 14 of the commission's 18 members and be submitted to the president by Dec. 1.

Kolb + Co. will present “ESOPs and ESPN” on Thursday, March 18 at 5 p.m. at its headquarters, 13400 Bishop’s Lane, Brookfield. The event will include a presentation about employee stock ownership programs by John Schliesmann and Ben Choice of Reinhart Boerner Van Deuren S.C., who will define the pros and cons of ESOPs and explain the forces that make this succession strategy a viable option for many organizations. After the presentation, the company will hold a March Madness party with multiple games playing and refreshments served. To register, click https://www.signup4.net/Public/ap.aspx?EID=HELP24E.

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