Publish Date 10/31/06
Toledo BGA Workshop for Middle-Market Businesses
Owners/Executives hear how to access Fortune 500 company know-how and development support
The Business Growth Alliance, LLC (BGA), in collaboration with the Toledo-Lucas County Port Authority and Eastman & Smith, Ltd., hosted and presented the second in a series of nationwide Middle Market Business Owner/Executive Workshops. The subject of the workshop was: Increasing Profit and Sustaining US-Based Middle Market Businesses By Accessing Fortune 500 Company Know-How & Development Support. The workshop was held on September 20, 2006 at The Toledo Club in downtown Toledo, Ohio.
The workshop was organized for the benefit of middle market businesses (revenue in the range of $25MM to $500MM) to help such companies grow and remain competitive in the United States and throughout the world by accessing world-class know-how, development support, and even brands and product lines from Fortune 500 Companies.
The event featured a speaker from DuPont (NYSE: DD), a Fortune 100 company which is leading the way in licensing technology and providing development support to middle market companies. Dr. Barry Crouch, Licensing Manager, Intellectual Assets and Licensing, DuPont, discussed the benefits of licensing DuPont’s Technologies and its approach to working with and selecting middle market companies. “DuPont spent $1.3 billion on research and development last year,” said Dr. Crouch. “Much of this technology will be used internally in new products, but inevitably some will not fit with our strategic plans and will not be implemented. This means there is an opportunity for middle market companies to take advantage of this pool of knowledge and drive forward to market with products they might not be able to develop internally. We are actively looking for companies interested in licensing technology and the BGA meeting was an excellent opportunity for DuPont to spread this message.”
Also, Eric and Cary Senders, co-owners of 6062 Holdings, LLC, an Ohio based company, discussed how they recently licensed a product line from DuPont, which is now the foundation for their current initiatives in introducing an artificial biodegradable plant growth medium for the global hydroponics industry. “It is clear from our licensing deal with DuPont, and our interaction with other Fortune 500 companies, that there are large, forward thinking companies which recognize the benefit of offering untapped technology to successful entrepreneurs, as well as medium sized companies, to capture ROI on what would otherwise be unused or shelved intellectual property. It is also clear that the best path to working with these companies is through yet2.com and BGA, both of which offer access and assistance both pre and post deal”, said Mr. Eric Senders.
BGA featured speakers included: Mr. James C. Bly, Jr., Co-Chairman of BGA and Chairman and CEO of Source Companies, LLC, based in Pittsburgh, PA; Mr. Phil Stern, co-founder and CEO of yet2.com, based in Needham, MA; Mr. Garth M. Tebay, Founder and Managing Partner of Value Defined Middle Market, LLC, based in Toledo, OH; and, Mr. Barry Rosen, President of The Pursuit Group, also based in Toledo, OH. Source Companies, LLC, yet2.com, Value Defined Middle Market, LLC and The Pursuit Group are all Founding Members of BGA (www.bgallc.net).
James Bly’s presentation focused on how companies must re-think their growth strategies and learn how to factor into their plans the ability to access world-class know-how, development support, and even brands and product lines from Fortune 500 companies. He presented practical examples of what middle market manufacturing companies are doing to profit from this emerging trend among Fortune 500 companies to assist smaller businesses. “Most medium-sized companies have not considered, as a key element of their growth strategy, accessing know-how and development support from Fortune 500 companies,” said Mr. Bly. “Often that would be less risky than considering growth through business acquisitions.”
Phil Stern explained how his pioneering activities during the past seven years have positioned his company, yet2.com (www.yet2.com), as the world leader in providing guidance and intermediary assistance to arrange successful “know-how” transfers from larger companies to middle market businesses. Mr. Stern noted that yet2.com has working relationships with roughly twenty-five percent of the Fortune 500 companies, which are committed to finding medium-sized companies that can benefit from intellectual property and knowledge transfer, and development support. “Importantly”, noted Mr. Stern, “we have developed the window and gateway that can facilitate a middle market company’s ability to more easily determine which Fortune 500 companies might be able to provide know-how or technology applicable to their needs, and the ability to immediately access direct introductions to the decision makers within large companies.”
Mr. James H. Hartung, President, Toledo-Lucas County Port Authority, discussed the many financing options made available to middle market companies in the Toledo area through the Port Authority, which could help companies expand and grow their businesses. “The Toledo-Lucas County Port Authority is committed to the economy and employment in the region. We are here to support the financing needs of businesses, which need to fund new facilities and equipment to grow and expand employment in Northwest Ohio”, he said.
The conference was well received by the companies which had been invited to attend, according to many members of the audience who participated in the Executive Roundtable Discussion at the end of the workshop. Mr. Craig Tapley, Chief Operating Officer of Kellogg Crankshaft, a manufacturer of crankshafts based in Jackson, MI said, “Middle market companies like mine often wonder if our current business can support our future. We know we need to change the way we think or we die. The workshop addressed some of the real issues middle market companies like mine are facing today. We are trying to survive and grow in today’s rapidly changing and competitive environment and all of the points discussed at the conference hit home for my company. The breakout sessions were especially helpful as I had a chance to hear from several owners and executives of other middle market companies facing some of the same problems and issues we are struggling with today. The workshop was a fantastic forum for privately owned companies which may not be aware of the financing solutions, networking opportunities and growth advisory options such as, accessing know-how and development support from Fortune 500 Companies. Often, medium sized businesses have limited resources and need expert advice from organizations such as BGA to help them grow and remain competitive.”
ABOUT BGA
Business Growth Alliance, LLC (BGA) believes that locally owned, privately held, growing and profitable medium-sized businesses are materially important contributors to the betterment of regional economies and the social fabric within communities. BGA has carefully selected and organized a national affiliate network of seasoned, professional services firms, which are dedicated to providing growth advisory and investment banking services to middle market and family-owned companies and their principals. In addition to their core growth advisory and investment banking services, BGA Member Firms collaborate to address the strategic growth, capital formation, owner liquidity, and governance needs of such businesses and their owners. The eight Founding Affiliate Members of BGA include: de Visscher & Co., Source Companies, LLC, yet2.com, The Pursuit Group, Tenzing Consulting, Value Defined Middle Market, LLC, Asher Training, and US China Business Solutions, Inc.
