State Controller John Chiang: Safeguarding
The State's Cash And Its Credit Rating
The position of
California State Controller is one of those
government posts that few of us give much
though. But for John Chiang, his two-term
tenure in that brutally challenging role has
meant a successful battle against waste and
fraud that has returned $3 billion so far
to taxpayers, businesses and the public.
Since
taking office in January 2007, our October
18th speaker has worked to make the State’s
finances more transparent and accountable to the
public, and to weed out waste, fraud and
abuse of public funds.
As Controller during
the worst economic downturn since the Great
Depression, Chiang was forced to delay payments
and issue IOUs in order to have enough
cash to meet obligations to education and bond
holders. His cash management was lauded by
Fitch, Standard & Poor's and other rating
agencies, and a bond advisory service called him
"a hero of sorts ... because he did just
what he was supposed to do to protect
bondholders."
Mr. Chiang led
efforts to reform the State's public pension
systems, helped local governments survive the
recession, and returned more than $2 billion
in cash and 157 million shares to
their rightful owners after they were lost or
forgotten.
He has received
numerous awards for his public service,
including the Pat Brown Institute’s 2010 Public
Servant of the Year, and the 2010 Crystal Eagle
Award from Coro Southern California.
Mr. Chiang graduated
with honors from the University of South Florida
with a degree in Finance, and received his law
degree from Georgetown University Law Center.
June 20, 2012
Living
Through The Recession,
Then Taking It To The Limit:
Sport Chalet Rises Again
Recessions make everyone
think twice about their spending, so it's not surprising that even
health-oriented items like sports equipment get trimmed from some consumers'
budgets.
Sport
Chalet, a leading operator of full-service sporting goods stores in
California and neighoring states, was hit hard by the economic slowdown.
Revenues declined by
about 10% from the 2008 peak of $402 million, and losses over the
past four years total over $60 million.
But one of the
organization's guiding principles is, "Do a thousand things a little bit
better."
Under
the leadership of Chairman and CEO Craig Levra, our June 20th
speaker, that's precisely what the 3,100 employees of Sport
Chalet have been doing to turn the 54-store chain around.
Some of those
accomplishments include stabilizing sales in its stores; growing
online sales by 110%; increasing sales to teams; reducing occupancy
costs by $4 million and inventory by almost the same amount;
shrinking debt; and improving gross margins by 140 basis points.
On June 20th we heard Mr. Levra's plans to continue rebuilding Sport Chalet's
balance sheet despite a business climate that continues to be
challenging
Mr. Levra has been
President and CEO of Sport Chalet since 1997, and was named Chairman in
2001. Prior to joining the company he was a senior executive with The
Sports Authority, then the nation's largest sporting goods retailer.
He currently serves on the
Boards of Junior Achievement of Southern California, the Southern California
Committee for the Olympic Games, and the Los Angeles Sports and
Entertainment Commission.
He received his BA and MBA from the University of Kansas
April 18, 2012
Fast-Growing Companies:
Creating Success In a Difficult Economy
In this tough economic climate, keeping your company afloat
and your bills paid is a pretty significant accomplishment. Yet some
companies have seemingly ignored the challenges of a sluggish economy and
soared past their competition. What has fueled the success of these
fast-growing companies? And what can the rest of us learn from them?
We found some answers at the
April 18th breakfast meeting of the California CEO Forum at the
Jonathan Club downtown. Our panelists will included:
Brady Caverly, Founding
Partner and Co-President, Alchemy Worldwide LLC and founding
Principal of Provida Life Sciences. With his partners, Mr. Caverly is
responsible for overseeing the development of new products, brands and line
extensions, and marketing strategies and channels. To date, Mr. Caverly has
been instrumental in creating direct response TV campaigns that have
grossed nearly $1 billion in direct-to-consumer sales.
Alex Bouzari, CEO
and Co-Founder, DataDirect Networks. The world's largest privately
held information storage company, DataDirect Networks provides data
storage and processing solutions for high-growth IT environments. Its
customers include the world's leading online content and social networking
providers as well as cloud computing, life sciences , security, intelligence
and media production organizations.
Kerry Sachs, CEO and
Founder, Puroast Low Acid Coffee. Mr. Sachs developed a proprietary
roasting process which creates PuroastŪ Low Acid Coffee, pure gourmet coffee
with up to 80% less acidity than regular coffees. Distribution
through major retailers means the company is on track to increase its sales
from $1.4 million this year to $5 million next year.
Our moderator was John
Thrasher, Founder and CEO of Management Resources Group and
Founder of the California CEO Forum. Management Resources Group is a
consultancy focused on corporate
profitability and high growth. It provides execution to underperforming
companies, transitions entrepreneurships to professional management, and
helps business owners prepare their companies for sale.
March 14, 2012
No
Regrets: Smart Advance Planning
For the Eventual Sale of Your Company
Your company
is the product of years of effort, and probably is your most valuable asset.
Unless you are lucky enough to have kids willing and able to take over,
eventually you will have to think about selling.
But to maximize the
outcome of that sale – not just the price you get, but your
quality of life afterward – the time to think about selling isn’t
“eventually.” It’s right now.
At the March 14 breakfast
meeting of the California CEO Forum, a panel of experts helped us
understand all of the factors you should consider. Our panelists
included:
Bruce
Munster, Principal of MPF Family Wealth Group
and Senior Vice President of Morgan Stanley Smith Barney.
Bruce’s
team at MPF manages $850 million for 55 families, most of whom are
entrepreneurs, inventors and others who created their wealth by building and
selling successful businesses.
Bruce has advised clients on personal wealth
management issues related to more than 25 M&A transactions, in industries
ranging from consumer products, aerospace & defense, business services,
specialty finance and real estate.
Robert
E. Straussis with the law firm Weinstock,
Manion, Reisman, Shore & Neumann, and specializes in advanced wealth
transfer planning, pre-liquidity-event wealth transfer planning, business
success planning, and estate planning.
Robert studied law at UCLA after
graduating magna cum laude from Harvard with a
degree in economics.
He lectures on advanced estate planning at UCLA, and is a past President of
the Los Angeles Estate Counselors Forum.
John
K. Murphy, of JKMurphy Advisors, has raised
capital, facilitated mergers and acquisitions and set Strategic Direction
for growing businesses since 1985.
JKMurphy Advisors helps owners of
privately-held businesses with strategic planning, capital raising and
preparing for M&A transactions.
John has worked with companies in health care,
retailing, chemical products, building materials, music publishing, software
and other industries.
Our Moderator was Larry Braun, a Partner at the law
firm of Sheppard Mullin Richter & Hampton, and widely regarded as the
“go-to” lawyer for any substantial M&A transaction.
With both a law degree
and an MBA in finance, Larry represents public and private companies ranging
from family-owned businesses to multi-national corporations, advising them
in mergers and acquisitions, corporate finance, securities and general
business matters.
November 16, 2011
Will A
Successful Business Builder
Be
The Next Mayor of Los Angeles?
Our November 16th breakfast
speaker will be Austin Beutner, who left a successful investment
banking career to become the $1-per-year First Deputy Mayor of the City
of Los Angeles, and is now a candidate to succeed Anthony Villaraigosa as Mayor
of the City.
Mr.
Beutner brings a remarkable background, in both business and
public service, to his quest for what would be his first elected
position.
He spent the last year and a
half working as deputy to Mayor Villaraigosa, at $1 per year, striving to
make the City more efficient, business-friendly and responsive to its
residents. He also ran the Department of Water & Power for six months.
He is credited with helping to
persuade Google to open a major facility in Venice; getting the
Gensler architectural firm to move its 250-person office from Santa
Monica to downtown Los Angeles; luring Chinese electric car maker BYD
to the City; and easing the way for reconstruction of the Wilshire Grand
Hotel. He also helped obtain a 3-year tax holiday for firms that
move to the city.
His candidacy is endorsed by
former Mayor Richard Riordan, who was the person who persuaded Mr.
Beutner to leave an extraordinarily successful career in the private sector
to serve in City Hall.
At 29, he became the youngest
person to be named a partner at Blackstone, one of the world's
leading private equity firms. He went on to co-found the investment banking
firm Evercore Partners with former Deputy Treasury Secretary Roger
Atlman.
After the fall of the Soviet
Union, at the request of the U.S. State Department he led a team that helped
Russia transition to a market economy.
Facing a crowded
field, he
says he is running for Mayor because "We need to change the culture of City
Hall from one that says 'no' to new ideas to one that says 'yes' — one that
will turn those ideas into realities."
September 15, 2011
Richard Riordan: Our Region's Business Outlook
and Political Climate
What's the outlook for Los
Angeles as a business center? How will the fiscal problems of local,
state and federal governments affect companies that operate here?
On September 15 we heard from a man who has a unique perspective on these issues.
Richard Riordan has both built companies in and around Los
Angeles, and served as one of the City's most effective mayors.
Richard Riordan had made a
fortune in tech ventures and private equity investing when, in 1993, he
decided to run for election as Mayor of Los Angeles. The city's crime rate
was rising, racial tensions were high following the police beating of Rodney
King, and the region's economy was in a slump.
Riordan became the first
Republican to win the office in 30 years, and became one of the most
successful leaders in the City's history. His overhaul of the police
department was followed by a sharp drop in the crime rate. During his
eight years in office, he campaigned to improve the school system,
and to make the City more business-friendly.
His civic engagement continued
after he was termed out of office. He served as California Secretary of
Education under Gov. Arnold Schwarzenegger. He has donated tens of
millions to educational causes, and is personally involved in a consortium
of schools in South Los Angeles.
His venture capital firm,
Riordan, Lewis & Haden Equity Partners, supports growth-focused
middle-market companies in Southern California and beyond.
Mr. Riordan also teaches a
graduate course in "Leadership and Ethics" at UCLA's Anderson School.
June 22, 2011
Richard
S. Ziman, Chairman of Rexford Industrial and AVP Advisors
Listen
to the podcast:
With
the real estate market in a continuous downhill slide since 2006, the
question investors and property owners ask is, "When will it recover?"
Richard Ziman,
our June 22 breakfast speaker, doesn't have a crystal ball. But he is
in a better position to understand the ups and downs of the commercial
and industrial sectors of the real estate market than most of us.
He is the
Founding Chairman of Rexford Industrial, LLC, one of Southern
California’s leading private industrial real estate investment
companies.
Rexford operates over six million square feet of
industrial real estate. It focuses exclusively on creating value by
investing in well-located infill industrial property in Southern
California -- which, he notes, is the nation’s largest, most fragmented and
perhaps most sought-after industrial property market.
Mr. Ziman
is also the Chairman of AVP Advisors, LLC, the exclusive advisor to
American Value Partners a $500 million institutionally
sponsored real estate fund of funds covering all sectors of real
estate investment throughout the United States.
He was the founding
Chairman and CEO of Arden Realty, Inc., a New York Stock Exchange
real estate investment company and the largest owner of commercial office
real estate in Southern California.
In 2006, Arden
was acquired by an affiliate of General Electric Company in a $5
billion transaction involving Arden’s entire portfolio of almost 20
million square feet in more than 200 office buildings, the largest
real estate transaction in the history of Southern California.
May 18, 2011
Tim
Leiweke, President, Anschutz Entertainment Group
Listen
to the podcast:
Many executives
have been credited with building successful business organizations. Tim
Leiweke has done that, time and time again, on several continents. But he has
also been identified as the man who almost single-handedly transformed
and revitalized downtown Los Angeles.
Mr. Leiweke,
who was our
May 18th speaker, is president of Anschutz Entertainment Group (AEG), president
of Staples Center and president of the Los Angeles Kings. AEG
operates , and owns a number of
sports teams. In his various roles, Mr. Leiweke oversees some 50
divisions, some 100 entertainment venues and 24,000 employees
worldwide.
A native of St.
Louis and the son of a former semi-pro defensive lineman, Mr. Leiweke grew
up with a love of sports. He built a baseball field in his back yard at the
age of 10, using an actual dinner plate for home plate. Since then his
construction projects have expanded in scope.
Locally, he
spearheaded the development of the four million square foot LA Live
entertainment complex adjacent to Staples Center, which includes the
56-story Ritz-Carlton and JW Marriott hotel tower, several
theaters and concert halls, retail and office space and much more. The
projects represent an investment of $3 billion.
Mr. Leiweke also
hopes to build a $1 billion football stadium in the same area, which
would require the City to relocates part of the Convention Center and issue
$350 million in bonds. Not surprisingly, the proposal has drawn strong
reactions from both supporters and opponents.
Eli Broad
said of our speaker, "I can think of no one in the history of Los Angeles,
certainly not in my lifetime, who's done more for the city." Los
Angeles Mayor
Antonio Villaraigosa calls Mr. Leiweke "a visionary, a force of nature."
April 20, 2011
Fastest Growing Companies
A Panel Discussion
Listen
to the podcast:
In this
challenging economy, many companies have been focused on simply keeping the
doors open. But some executives managed to propel their organizations to
spectacular growth, despite today's extraordinary hurdles.
At our
April 20 meeting we heard from three executives whose companies
have demonstrated exceptional gains during the past year:
Steve Jones, Co-CEO and Chief Operating Officer, Universal Services of
America.
Founded
in 1965 as a janitorial company, the company expanded into security services in 1977.
Today the Santa Ana-based firm provides building maintenance , protection
and security systems through 7,500 employees serving locations across the nation.
Richard Ham,
CEO and President of US Lighting Tech.
The company was founded in 1992 and has grown to become one of the country’s leading
manufacturers of induction lighting products that are more energy efficient
and easier to install and maintain than conventional systems.
Jason Carignan, Co-Founder
and Chief Design officer of Vapur, Inc., makers of the
Vapur foldable water bottle. Made of durable BPA-free plastic and intended
to let consumers use tap water instead of costly bottled water, each Vapur
bottle can be used multiple times, keeping single-use disposable bottles out
of landfills. The patented design has won multiple awards, and the product
has quickly moved into international distribution.
We heard these successful CEOs talk about how to:
Generate,
manage and finance growth
Find,
retain and motivate
the right team
Maintain
high quality and
customer service
... and much
more.
March 16, 2011
Where To Find Money When Your Bank Says
"No"
A Panel Discussion
Listen
to the podcast:
The economy
is showing signs of recovery, but most
banks are lending only to Fortune 500
companies with rock-solid balance
sheets. Your company may need cash to
take advantage of the improving market
conditions. But where do you find
money if the commercial lending
window is still slammed shut?
We heard
the answers
from a panel of corporate finance
experts at our March 16 meeting.
Our panelists included:
Gail
Bernstein, Executive Vice President PNC
Business Credit. Gail, who
also holds the title of Western Region
Manager for PNC Business Credit, has
spent more than half of her career in
asset-based lending. She also has strong
experience in international lending and
investment management.
Prior to
joining PNC, Gail was a Senior Vice
President and National Sales and
Marketing Director for the asset-based
lending division of Wells Fargo Bank.
She received her MBA from USC and a B.A.
from Loyola Marymount University.
Chris
Hebble, Vice President, Cerberus Capital
Management. At Cerberus,
Chris is involved in leveraged lending,
lending for middle-market companies,
debt and equity private placements,
mergers and acquisitions, and the
structuring of leveraged buyouts and
corporate recapitalizations.
Before joining Cerberus,
he was a Principal at Caltius
Mezzanine, focusing on providing
financing to middle-market companies.
Previously he was a Vice President in
the Corporate Finance Department of
Houlihan Lokey Howard & Zukin. He
began his career as a civil engineer
with international energy companies. He
received his M.B.A. from USC and his
B.S. degree from the University of
Pennsylvania.
Mark
Nowak, Managing Director, Endeavour
Structured Equity and Mezzanine.
Mark and his team provide flexible
growth and mezzanine capital to
middle-market companies, from a fund
formed in 2009 by Endeavor Capital.
Before joining Endeavor, Mark was a
Relationship Manager at Comerica Bank
in Southern California where he
originated, underwrote, and managed
senior debt lending and banking
opportunities for middle market
companies. Earlier, Mark was with GE
Capital, Monroe Capital and Union
Bank, where he originated leveraged
cash flow and mezzanine debt
transactions.
Gregory J. Annick, Senior Managing
Director and President, Pasadena Capital
Partners. Greg has focused on
leveraged buyout investing for 20 years,
and has served on the boards of nine
companies. He founded the private equity
firm Pasadena Capital Partners to
continue the successful leveraged buyout
strategy he employed while at Leonard
Green & Partners, L.P., which
managed over $1.7 billion of private
equity capital.
Greg joined
LGP upon its formation in 1989, and
became a partner in 1994. He previously
worked at merchant-banking firm
Gibbons, Green, van Amerongen in Los
Angeles, and in mergers and acquisitions
at Goldman, Sachs & Co. in London
and New York City. He received a B.S. in
business administration from Georgetown
University.
Our moderator was William J. Battison,
Managing Partner of Angeles Capital
Group. Bill has more than 30 years
of operational and deal experience,
including serving as President and CFO
of Westwood One,, Inc., the
nation's largest radio network.
Wednesday,
February 16, 2011
The Art
of Your Biggest Deal:
How To Prepare Your Company For Sale
Listen
to the podcast:
Even if
you have no intention of “cashing out” anytime soon, you should know how to
objectively value your company, how to maximize its value, and the best ways
to structure a transaction.
We learned all
about that and more at the February 16 meeting of the California
CEO Forum. Our panel of experts included:
Larry Braun, a Partner at the law
firm of Sheppard Mullin Richter & Hampton, and widely regarded as the
“go-to” lawyer for any substantial M&A transaction. With both a law degree
and an MBA in finance, Larry represents public and private companies ranging
from family-owned businesses to multi-national corporations, advising them
in mergers and acquisitions, corporate finance, securities and general
business matters.
Lloyd Greif, who founded the
investment banking firm Greif & Co. in 1992, and built it into one of the
region’s leading firms serving the corporate finance needs of
entrepreneurially owned middle market growth companies. An internationally
recognized authority in M&A and corporate finance, Lloyd also serves as
chairman of the Board of Directors of the Los Angeles Economic Development
Corporation.
Bob
Bradley, President and CEO of EB
Bradley & Co., a Los Angeles-based distributor of specialty hardware,
flooring and woodworking products and supplies. In 2009, after running the
company for 24 years, Bob partnered with Industrial Opportunity Partners (IOP),
a private equity firm, to acquire EB Bradley from family-member
shareholders. With the added resources of 10P, the company now operates from
10 facilities located in California, Washington and Oregon.
Our
moderator is
Bruce Munster is the principal of the MPF Family Wealth Group, an
M&A-focused wealth management practice at Morgan Stanley Smith Barney (MSSB.)
MPF manages $730 million for 43 families and business owners. Bruce
works closely with his clients and their deal teams, including many of
the top M&A professionals in Los Angeles, on the personal, financial,
legal, tax and family issues related to the sale, recapitalization or
transfer of a major asset. In July 2010 Bruce was recognized by M&A
Advisor Magazine as a top 40 deal-maker under the age of 40.
It only makes sense to know what an asset is worth, and that’s especially
true for one as important – and difficult to value – as your company. That
knowledge can be crucial when you are looking for financing, evaluating
growth options and making retirement and estate planning decisions.
Thursday,
November 17, 2010
Real
Estate - Will 2011 See Values Climb Out of the
Basement?
Listen
to the podcast:
Whether you own or lease office, factory
or warehouse space for your company, or invest
in real estate for your own portfolio, the
rollercoaster ride in the commercial real
estate market has affected you and your
company.
What is in store for 2011? Will property
values remain weak, or are we headed toward a
recovery? What are the likely effects of the
turbulence in the mortgage market, and the
difficulty many companies are experiencing in
getting bank financing?
We
heard the answers from an expert at our November
17 meeting. Ethan Penner is Founder and
President of CBRE Capital Partners and
CBRE Investors, both linked to CB Richard
Ellis, a global commercial real estate firm
based in Los Angeles.
Because real estate is such a significant asset
for any company, and real estate values are such
an important influence on consumer and business
confidence, this was a vitally useful and
informative meeting!
Planning
On A Shaky Recovery:
Avoiding Danger and Preparing For Growth in
2011
Dr.
Bill Watkins, of the Center for Economic Research and Forecasting
Listen
to the podcast:
Dr. Bill Watkins,
former Federal Reserve economist and current Executive Director of the
Center for Economic Research & Forecasting presented his latest findings
on the recovery and concerns about rising government spending, taxes and
regulations.
Bill Watkins is quoted
frequently in the Wall Street Journal, New York Times and Los
Angeles Times. He has also appeared on Fox Business News and on MSNBC.
He is an
informative, relevant speaker on the one topic that interests virtually
everyone: The economy. And best of all: He explains
economics in plain English!
January 26
Gear up for Growth, or Stay Hunkered Down?
What's the Right Strategy for 2010? Phillip
Gay Chief Executive Officer – Grill Concepts,
Inc. Bill
Watkins, Ph.D.
Executive Director –
Center
for Economic Research & Forecasting
Former Federal Reserve Board of Governors
Economist
Since
taking office in January 2007, our October
18th speaker has worked to make the State’s
finances more transparent and accountable to the
public, and to weed out waste, fraud and
abuse of public funds.
Sport
Chalet, a leading operator of full-service sporting goods stores in
California and neighoring states, was hit hard by the economic slowdown.
But to maximize the
outcome of that sale – not just the price you get, but your
quality of life afterward – the time to think about selling isn’t
“eventually.” It’s right now. 
Bruce’s
team at MPF manages $850 million for 55 families, most of whom are
entrepreneurs, inventors and others who created their wealth by building and
selling successful businesses. 
is with the law firm Weinstock,
Manion, Reisman, Shore & Neumann, and specializes in advanced wealth
transfer planning, pre-liquidity-event wealth transfer planning, business
success planning, and estate planning. 
JKMurphy Advisors helps owners of
privately-held businesses with strategic planning, capital raising and
preparing for M&A transactions.
Mr.
Beutner brings a remarkable background, in both business and
public service, to his quest for what would be his first elected
position.
W
M