Can Suburban Dailies Move in Onpd's Turf?

20130429-NEWS--25-NAT-CCI-CL_-- 4/26/2013 2:43 PM Page 1

JASON MILLER Home-delivery tubes for The Plain Dealer and the Elyria Chronicle-Telegram are shown along a street in Avon, which is one of the areas in which the Chronicle-Telegram hopes to take advantage of the PD’s reduced home delivery. CAN SUBURBAN DAILIES MOVE IN ON PD’S TURF? Smaller NE Ohio papers plan to take advantage of cut in home delivery by their big rival

By JAY MILLER [email protected]

he handful of Northeast Ohio BILL BISHOP newspapers that plan to continue Bill Hudnutt, general manager of the Elyria publishing seven days a week see a Chronicle-Telegram, left, is shown with Paul B. modest opportunity ahead when Martin, president and CEO of Lorain County TThe Plain Dealer cuts back home delivery to Printing and Publishing Co. three days a week later this summer. However, none is expected to make a NEWSPAPER CIRCULATION full-blown assault on the Cleveland market, as has happened in New Orleans after that Daily Sunday city’s Times-Picayune switched to publish- Akron Beacon Journal x-82,054 116,546 ing only three days a week. Elyria Chronicle-Telegram 24,274 24,014 Although it is too early for them to say (Lake County) News-Herald 37,218 34,570 definitely what their plans will be — partic- (Lorain) Morning Journal 22,487 21,046 ularly because The Plain Dealer hasn’t said Medina Gazette 11,853 — which days, other than Sunday, it will offer ■ x-The Beacon Journal daily circulation is home delivery — publishers of the region’s Monday through Friday only. The paper’s larger community newspapers said they are Saturday circulation is 101,430. gearing up for possible circulation inroads ■ Source: Alliance for Audited Media. on the edges of their current footprints. Average paid circulation as of Sept. 30, 2012. See SUBURBAN Page 22

17 SPECIAL SECTION 7 FINANCE

74470 83781 concern to many firms ■ Pages 15-19 by Crain Communications Inc. Vol. 34, No. 17 0 PLUS: ADVISER ■ PUBLIC VS. PRIVATE ■ & MORE 20130429-NEWS--26-NAT-CCI-CL_-- 4/25/2013 12:08 PM Page 1

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$2.00/APRIL 29 - MAY 5, 2013

State could give area incubators major makeover

mission is considering three ideas Proposal would that would reshape the state’s Edison Technology Incubator push groups to Program. If the commission adopts the share money, get ideas as they stand, the program’s 11 incubators would need to com- startups out faster pete with other incubators for By CHUCK SODER state money. They’d also need to [email protected] push more mature companies to set up shop elsewhere, in some Big changes could be on the cases. And they’d need to take way for Ohio business incubators one-third of the money they that receive state money — and spend on operations and give it JASON MILLER directly to the startup companies Home-delivery tubes for The Plain Dealer and the Elyria Chronicle-Telegram are shown along a street in Avon, which is they are changes some incubator they support. one of the areas in which the Chronicle-Telegram hopes to take advantage of the PD’s reduced home delivery. directors don’t like. The Ohio Third Frontier Com- See INCUBATORS Page 24 CAN SUBURBAN DAILIES INSIDE It’s the go-to team in sports Buffy Filippell, left, and her 24/7 virtual job fair, MOVE IN ON PD’S TURF? TeamWork Online, works with almost all of the clubs in pro sports. The company matches potential Smaller NE Ohio papers employees and teams with vacancies. PAGE 3 plan to take advantage of cut in home delivery by their big rival Clinic’s Alliance is By JAY MILLER [email protected] growing stronger he handful of Northeast Ohio BILL BISHOP newspapers that plan to continue platform that allows physicians to Bill Hudnutt, general manager of the Elyria publishing seven days a week see a More than 5,100 track their patients’ progress and Chronicle-Telegram, left, is shown with Paul B. modest opportunity ahead when compare the performance of their Martin, president and CEO of Lorain County TThe Plain Dealer cuts back home delivery to independent docs practices with others in the Printing and Publishing Co. three days a week later this summer. alliance. However, none is expected to make a are gaining access “Our goal isn’t to have every- full-blown assault on the Cleveland market, NEWSPAPER CIRCULATION body become a mini Cleveland as has happened in New Orleans after that Daily Sunday to hospital system Clinic,” said Dr. Tarek Elsawy, city’s Times-Picayune switched to publish- chief medical officer of the Clin- Akron Beacon Journal x-82,054 116,546 ing only three days a week. By TIMOTHY MAGAW Elyria Chronicle-Telegram 24,274 24,014 Although it is too early for them to say [email protected] ic’s Community Physician Part- (Lake County) News-Herald 37,218 34,570 definitely what their plans will be — partic- nership and Quality Alliance. (Lorain) Morning Journal 22,487 21,046 ularly because The Plain Dealer hasn’t said The Cleveland Clinic is in the “Our goal is to leverage the knowl- Medina Gazette 11,853 — which days, other than Sunday, it will offer hunt for independent physicians edge we’ve developed here and ■ x-The Beacon Journal daily circulation is home delivery — publishers of the region’s who want a taste of the way the share it with our partners.” Monday through Friday only. The paper’s larger community newspapers said they are health care behemoth practices Launched in 2010, the Quality Saturday circulation is 101,430. gearing up for possible circulation inroads medicine — a quest that, if Alliance initially was developed as ■ Source: Alliance for Audited Media. on the edges of their current footprints. successful, could offer the Clinic a way for the Clinic to align with Average paid circulation as of Sept. 30, 2012. See SUBURBAN Page 22 exposure in new geographic private practice physicians that markets without the cost of hefty worked with the Clinic’s eight capital investments. community hospitals in North-

17 SPECIAL SECTION As part of its so-called Quality east Ohio. The alliance began with

7 Alliance, the Clinic isn’t necessar- 50 physician members and since ily looking to gobble up indepen- has ballooned to include more dent physician practices and slap than 5,100 members — a collec- FINANCE the Clinic logo on their doors. tive that now includes the Clinic’s Instead, the health system is offer- own docs. ing independent doctors access to After seeing success locally, the NEWSPAPER Few advisers are in their 20s and 30s, which is a Entire contents © 2013 clinical data, protocols for caring Clinic started pitching the bene- 74470 83781 concern to many firms ■ Pages 15-19 by Crain Communications Inc. Vol. 34, No. 17 for certain conditions and a fits of the Quality Alliance beyond 0 PLUS: ADVISER ■ PUBLIC VS. PRIVATE ■ & MORE robust information technology See ALLIANCE Page 23 20130429-NEWS--2-NAT-CCI-CL_-- 4/26/2013 1:15 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 COMING NEXT WEEK CHIPPING IN In the private sector, 82% of workers who received medical care benefits Difficulties of going global were required to share in the cost of single coverage, and 91% of workers were required to share in the cost of family coverage, according to March data How does a company or compiled by the U.S. Bureau of Labor Statistics. The smallest establishments 700 W. St. Clair Ave., Suite 310, — those employing 49 workers or fewer — were more likely to provide Cleveland, OH 44113-1230 entrepreneur pursue opportunities Phone: (216) 522-1383 across the globe? Crain’s will coverage at no cost to employees than large companies. Here’s a breakdown Fax: (216) 694-4264 of the data: explore that topic and much more, www.crainscleveland.com including staffing concerns, in next Contribution requirement All 1-49 workers 500+workers Publisher/editorial director: Brian D. Tucker ([email protected]) week’s International Business Editor: SINGLE COVERAGE Mark Dodosh ([email protected]) section. No employee contribution 18% 25% 13% Managing editor: Scott Suttell ([email protected]) Employee contribution required 82% 75% 87% Sections editor: Amy Ann Stoessel ([email protected]) REGULAR FEATURES Contribution requirement All 1-49 workers 500+workers Assistant editor: Kevin Kleps ([email protected]) Sports Big Issue ...... 11 Going Places ...... 13 FAMILY COVERAGE Senior reporter: No employee contribution 9% 12% 10% Stan Bullard ([email protected]) Classified ...... 24 Letters ...... 10 Real estate and construction Editorial ...... 10 Reporters’ Notebook....25 Employee contribution required 91% 88% 90% Reporters: Jay Miller ([email protected]) From the Publisher ...... 10 What’s New...... 25 Source: U.S. Bureau of Labor Statistics; www.bls.gov Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Rachel Abbey McCafferty ([email protected]) Manufacturing and energy Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim ([email protected]) Events Manager/Operations & Logistics: Christian Hendricks ([email protected]) Events Manager/Promotions & Sponsor Relations: Jessica Snyder ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) John Banks ([email protected]) Sales and marketing assistant: Michelle Sustar ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher

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Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20130429-NEWS--3-NAT-CCI-CL_-- 4/26/2013 1:55 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Schools buy into technology boom

year, a 40% Startups respond to jump from $448 million in 2011, growing reliance of according to figures from the students, teachers MoneyTree Report by PwC on innovative tools and the National Venture Capital Greenberg By CHUCK SODER Association. The [email protected] increase is all the more impressive because the 2011 figure blows away A few weeks ago, Don Greenberg most of the totals from the previous had lunch with a superintendent 10 years, according to the report, who used to forbid students from which is based on data from Thom- using their smart phones at school. son Reuters. But his attitude toward technology in the classroom has changed, Some of that money has found its which bodes well for Mr. Green- way to companies such as eGenio, berg, CEO of eGenio Education which since mid-2010 has raised Solutions in Cleveland. $1.1 million from investors and His startup is one of many North- secured some debt financing. east Ohio companies riding a wave Mr. Greenberg said he and of interest in education technology. co-founder David Berman picked A growing number of schools are the right time to start the company, deciding that they need it. Students which sells software that among expect to have it. And investors other things allows teachers to nationwide are pouring money into aggregate educational materials the sector to meet that demand. into electronic lesson plans, distrib- U.S. companies in what is often ute assignments to students and called the “ed tech” sector raised manage their classrooms. $629 million in venture capital last See SCHOOLS Page 8 UH distributor will be an arm’s length away

significant client of Owens & Minor, JANET CENTURY TeamWork Online founder Buffy Filippell was the first female sports agent ever hired by IMG. Owens & Minor and this move is an outgrowth of the health system’s “Vision 2010” plan to better integrate itself into its By KEVIN KLEPS plans to move big surrounding community. [email protected] distribution center The $7.5 million project will bring 31 jobs into the city with the expec- HER TEAM eamWork Online’s first and bring jobs here tation the number could double in client was the XFL in 2001. the years ahead. The renegade professional By JAY MILLER “We are attempting to really do football league run by World [email protected] what we can to invest in the city of IS TOUGH TWrestling Entertainment owner Cleveland and our region,” said Vince McMahon lasted all of one A Fortune 500 medical supply Heidi Gartland, vice president of season. company plans to move a distribu- government relations for UH. “They TeamWork Online — a virtual tion center into the city of Cleve- (Owens & Minor) have been our TO BEAT sports networking job fair with a staff land, to a piece of city-owned land major distributing arm for a num- of four full-timers in Shaker Heights overlooking Lake Erie and the East ber of years.” — is still going strong. Shoreway. Richmond, Va.-based Owens & TeamWork Online has built TeamWork was born when Owens & Minor Distribution Inc. Minor will occupy the majority of a founder Buffy Filippell — who, upon is the first big company to help Uni- 75,000-square-foot building that a huge following in pro sports her hiring in 1978, was the first versity Hospitals Health System ful- real estate developer and investor female sports agent at sports fill its ambition to bring its suppliers will construct at Marquette Avenue with its unique hiring hub See TEAM Page 21 into the city of Cleveland. UH is a See DISTRIBUTOR Page 8 THE WEEK IN QUOTES

“We do expect to pick up “We have “It’s hard for a 27-year-old “I do think we will some subscribers.Whether LaunchHouse female in a fee-based see more go-private that’s a few hundred or a for technology environment to get the trust transactions as we few thousand at each companies, but of a 67-year-old retiring work through 2013 property is as yet to be we need man to manage his money. and certainly as we determined.We should something … And so there are moments work into 2014 and pick up some advertising similar for food when you can feel a little ’15.” dollars as well.” businesses.” disheartened.” — Randy Paine, co-head of KeyBanc Capital Markets. — Jeff Sudbrook, president and — Carolyn Priemer, — Elizabeth Verner, adviser (right), Page 15 publisher of The Morning Journal in co-founder, Cleveland NCA Financial Planners, Mayfield Heights. Lorain and The News-Herald in Lake Culinary Launch & Page 15 County. Page One Kitchen. Page 6 20130429-NEWS--4-NAT-CCI-CL_-- 4/26/2013 2:33 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 FOR SALE OR LEASE National Interstate founder, 9060 TYLER BLVD, MENTOR, OHIO board at odds over nomination By MICHELLE PARK Great American Insurance Co. of the election of directors. Mr. Spach- [email protected] Cincinnati, and its parent, Ameri- man said he did send such notice. can Financial Group Inc. — are Under Ohio General Corporation Even though his son’s name isn’t 70-plus years old. Law, cumulative voting allows a on the proxy mailed to sharehold- “We have a couple older gentle- shareholder to multiply the number ers, the founder of National Inter- man who’ve already announced of shares owned on the record date state Corp. is confident he and that they won’t be able to serve on by the number of directors to be other like-minded shareholders can 6)%XLOGLQJZLWK6)2I¿FH the board for much longer,” said elected and to cast the total for one elect him to the company’s board of Mr. Spachman, who now is presi- nominee or distribute the votes /RFDWHGRQ$FUHV¶&OHDU+HLJKW Visit directors. TerryCoyne.com dent and owner of Belmont Insur- among the nominees. ¶[¶&ROXPQ6SDFLQJ([SDQVLRQ$YDLODEOH Alan R. Spachman — who started ance Services LLC in South Caroli- For instance, if a stockholder (6)56SULQNOHU%XLOWLQ Or Call Terry at the Richfield specialty insurance na. “My nomination of Michael owns 100 common shares and there 216.453.3001 company in 1989 and was its CEO Spachman was my attempt to bring are six directors to be elected, the (XFOLG$YH6WH until 2007 — said he, with his fami- on a new independent director that stockholder may allocate 600 votes &OHYHODQG2KLR ly, is the company’s second-largest would be able to serve … for a num- for one nominee or distribute the shareholder. A director himself, he ber of years.” votes among two or more directors. nominated his 38-year-old son, The matter is up for a vote at the According to public filings, Alan Michael A. Spachman, because he’s company’s annual meeting this Spachman owns 1.7 million dissatisfied with the way the board Thursday, May 2. National Interstate shares, or 8.6% appointed a new independent of the shares outstanding. In addi- Company favors incumbents Local Real Estate director, Donald W. Schwegman, in tion, he is the beneficiary, but not February. National Interstate in its proxy the trustee, of two trusts that hold That’s the same month Mr. statement acknowledged Alan another 463,229 shares. Spachman said he was voted out as Spachman’s nomination. National Interstate’s majority Financing National Interstate’s chairman. “… We have received notice that owner, Great American Insurance, While he said he harbors “no ill he has nominated his son for elec- owns 10.2 million shares, or 51.8% will” toward the new director, Mr. tion as a Class I director at the of the shares outstanding. Spachman doesn’t like how the annual meeting, and accordingly, Representatives for Mr. Consoli- board appointed Mr. Schwegman, we believe that Mr. Alan Spach- no and National Interstate declined a lead client service partner for man may not support one or more comment. complex insurance organizations of our nominees,” the company’s for more than 20 years at Deloitte, public filing stated. Résumé does the talking according to public filings. Mr. National Interstate recommended Both Alan and Michael Spach- Spachman said no public search to shareholders that they elect six man are aware that concerns of was conducted and no other candi- incumbents for the terms that will nepotism may exist. But, Alan dates were presented. end in 2015. The nominees are Mr. Spachman insisted, “This has noth- A “I think it’s fair to say that I’m Schwegman; Joseph E. (Jeff) Con- ing to do with my son.” TTRHSSMWH¥O\OGMOT\W\M=\E=HDO\==UZIHSDKMOWHSUPHOURH\=HSU\UH personally not completely satisfied solino, board chairman and chief “This is the fact that he’s a share- DOU\GU&DO\UN\OKDRPDRHMOKDRP\UMDOu with the way we’ve managed our financial officer of American Finan- holder, that he’s a young profes- affairs at the board level over the cial Group; David W. Michelson, sional director candidate and he past few months,” he added, Jonathan Mokri National Interstate’s president and has an interest in serving,” Mr. declining to be “more direct.” 440.526.8700 CEO; and three others, including Spachman said. “I will say that my Mr. Spachman said he’s also dri- two who also work for Great Amer- son’s resume speaks for itself.” ven to elect his son because two of [email protected] XXX GESGVSD GDP ican Insurance. Michael Spachman is a commer- the company’s independent direc- Although his son’s name didn’t cial mortgage broker in San Francis- SM tors — or those unaffiliated with pass muster for the official ballot, Mr. co. While Michael declined to iden- ,RDWMFMOT DPPHRGM\=(D\O"MO\OGMOTMO,\RUOHRSNMIXMUNRH\ RHFMU1OMDOS National Interstate’s majority owner, Spachman said it’s “highly likely” tify his specific stake in National Michael Spachman will be elected Interstate, he said it’s a major por- through his efforts and those of “a tion of his wife’s and his net worth. few more like-minded shareholders.” This would be his first board National Interstate announced directorship. last week it received notice last Tues- “I feel like I have the skills and in- Bring morale up. About thirty stories. day, April 23, that a shareholder interest to represent the shareholders tends to invoke cumulative voting for well,” Michael Spachman said. ■

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Volume 34, Number 17 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- bined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address Opens May 11 changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20130429-NEWS--5-NAT-CCI-CL_-- 4/25/2013 12:09 PM Page 1

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013

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JASON MILLER Cleveland Culinary Launch & Kitchen co-founders Tim Skaryd, left, and Carolyn Priemer are shown in one of the kitchens LNA MAINTENANCE at the facility as chef Patrick Kander, right, prepares a meal. & Grounds Care Professional Grounds Care – Commercial / Residential New space is perfect recipe Full Landscaping Services - Spring Clean-up. Mowing -- Mulch -- Topsoil -- Decorative for chefs who are on move Stone -- Fertilize. Competitive pricing. Control your costs - Call now for an estimate Cleveland kitchen “The economy is 440.879.2009 changing. Growth is gives entrepreneurs coming to Cleveland through entrepreneurs more room to help and young people.” their business grow – Bill Hildebrandt, owner, Hildebrandt Provisions Co. By KATHY AMES CARR CPA’s and Business Advisors [email protected] Kitchens heat up

Cleveland’s artisan food commu- Other community kitchen pro- nity is ripe with established and jects are materializing throughout new ventures alike, though some Cleveland. only have so much room to grow. Bill Hildebrandt, whose Hilde- Organizers of the new Cleveland brandt Provisions Co. located near

Culinary Launch & Kitchen are JASON MILLER the West Side Market serves as a looking to give those entrepreneurs Chef Patrick Kander prepares a meal hub for food entrepreneurs and their space in the form of a shared in one of the new kitchens at the artists, is opening later this summer commercial kitchen and business Cleveland Culinary Launch & Kitchen. a 2,000-square-foot shared com- incubator. mercial-style restaurant kitchen he “We want to help food businesses cream maker and food truck opera- calls “The Meating Place.” succeed,” co-founder Carolyn tors. The name pays tribute to the Priemer said. “We have someone interested 115,000-square-foot building’s The 3,800-square-foot kitchen at who produces higher-end, all-nat- roots as a meat processing facility 2800 Euclid Ave. in Cleveland’s ural sauces and only can go to during the late 1800s through the MidTown neighborhood has sta- Athens or Bowling Green for com- early 1970s. tions for canning, catering, baking, mercial canning,” kitchen “The economy is changing. thermal processing and dry pack- co-founder Timothy Skaryd said. Growth is coming to Cleveland “It’s also ideal for chefs who want to ing. It also offers dry storage and through entrepreneurs and young do (research and development) but 300 square feet of refrigeration and people,” Mr. Hildebrandt said. “I’m don’t have extra space in their freezer space for caterers, food trying to provide opportunity and restaurant kitchens.” truck operators, chefs and specialty space to help people express their Rates for using the kitchen range product makers. talents and their particular art of from $16 to $24 an hour and Cleveland Culinary Launch & creating.” What do Kitchen is among an emerging include secured 24-hour access. Burton, Bell, Carr Development batch of urban community “We have LaunchHouse for tech- Inc. last September opened CornU- kitchens that provide affordable nology companies, but we need copia, a community kitchen, as part You Value? kitchen space to fledgling food something similar for food busi- of a $1.3 million project that also entrepreneurs. nesses,” Ms. Priemer said, referring includes a healthy restaurant and The community kitchens help to the local business accelerator. Maybe it’s advice from accounting address the constraints food arti- If the project takes off as community space for the Kinsman sans face in working out of their planned, the next step is to build neighborhood. and tax professionals to help your homes or from church kitchens. out surrounding space for work- CornUcopia provides health and They also can promote a bit of shops, programming and events, wellness classes, junior chef classes business grow and thrive. cross-pollination in the business. Ms. Priemer said. and family cooking demonstra- “I’m looking forward to meeting The space that Cleveland State tions, and is part of the 28-acre prospective clients and watching University formerly occupied be- Urban Agriculture Innovation Zone the other businesses grow,” said came available about a month ago that aims to revitalize the inner-city Patrick Kander, who in late Febru- once the institution’s catering arm area. We Value that too. ary relocated his Choice Catering moved into the new student center. “We see health and wellness as business from his Lyndhurst home Ms. Priemer’s family-owned an important component of com- to the incubator. company, J & M Real Estate Advi- munity development,” said Timo- 216.241.3272 or www.meadenmoore.com Organizers over the last couple sors, is a partner in the project and thy Tramble, executive director of weeks have been courting potential manages the six-story building the nonprofit community develop- users that include a chocolatier, ice within which the venture is located. ment organization. ■ 20130429-NEWS--7-NAT-CCI-CL_-- 4/26/2013 3:23 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Akron center has been TPC says its new cables will better big driver for Hankook serve customers in food industry

By MIKE McNULTY kook made in the last 20 years that By RACHEL ABBEY McCAFFERTY ative bacteria, such as e. coli, and dustry for awhile, but this new Rubber & Plastics News have vaulted it from the back of the [email protected] gram-positive bacteria, such as lis- material could open doors in the pack to the front in the tire industry. teria, as well as fungi and mold medical field, which also has a Hankook Tire Co. was a relatively “We’re a critical part of Han- TPC Wire & Cable Corp. doesn’t growth, within 24 hours. need for antimicrobial materials. small tire manufacturer in 1992 kook,” Mr. Kenny said. “The com- make its cables, but it is taking an That’s important for food Before designing a product, when the Korean company decided pany has been growing by about active role in designing them. producing and food packaging TPC’s team gathers feedback from to open its first overseas research 15% to 20% a year and wants to be The supplier of industrial cord, companies. This type of cable potential customers, said product and development center in Akron. in the top five by 2020.” cable and connectors recently might be used in areas that the manager David Sedivy. Then, the That step proved to be an impor- Hankook had global sales in 1992 developed an antimicrobial average consumer doesn’t think of company chooses a supplier that tant one for the ambitious tire mak- of $759 million; it posted 2012 sales cable, inspired by the needs of its as needing to be clean, such as a can create the desired product for er. Even back then, it had its sights of $6.26 billion, with an estimated food and beverage industry cus- control circuit in a packaging plant TPC. Mr. Sedivy declined to identi- set on climbing the tire rankings $1.4 billion of that coming from tomers. or lighting in a brewery, said Jay fy the company that produces the globally. North America. The Defender cable uses silver Hathaway, TPC food and beverage Defender cable. Though it had a long way to go, it Mr. Kenny came on board two ion technology mixed in the jacket segment manager. But if it’s not Mr. Sedivy expects to see more figured a research center located in years before the research center of an electrical cable to eliminate sanitary, bacteria can spread, lead- of this type of development in the a key area of America eventually moved to its sprawling, 48,000- bacteria and fungi. Mixing the sil- ing to ill consumers, lawsuits and future as the company works to would help it gain ground on U.S. square-foot building in Uniontown, ver ion directly into the cable jack- damaged brands. create more proprietary com- soil. which is in Stark County. et — rather than coating the jacket “Spending a little more on a ca- pounds. He said TPC wants to cre- It was right. “We had 15 people working for us — makes it more resilient, accord- ble up front pays a lot of dividends ate compounds that improve on The Akron R&D center, now lo- then,” Mr. Kenny said. “Today, we ing to TPC product manager Todd in the long run,” said Mr. Hath- the materials already available in cated in Uniontown and the only have 40.” Hadbavny. He said the antimicro- away, who noted that cables with the marketplace. one the company operates in North bial nature of the cable lasts as Big into R&D mold or fungi growth must be re- TPC, which was founded in America, has been a driving force in long as the cable itself, standing up moved and replaced, costing a 1979, consolidated its plants and helping to expand Wayne, N.J.- The center primarily handles tire to water, scratches and other plant time and money. offices in Macedonia last summer, based Hankook Tire America Inc. development for the North Ameri- abrasions. The Defender cable, which was Ms. Sabovik said. It employs about and its South Korean parent over can market. The majority of that According to the information released last November, could 150 people and is a portfolio the last 21 years. work focuses on original equip- about the cable, independent lab help TPC break into new markets. company of Chicago-based private It also plays a pivotal role within ment for the U.S. market, Mr. Ken- tests found the silver ion-based ad- Marketing manager Carol Sabovik equity firm Pfingsten Partners the company’s R&D global network. ny said. ditive eliminates 99% of gram-neg- said TPC has served the food in- LLC. ■ Hankook was much smaller in “We also have research and test 1992, but was growing, said Thomas departments and a fully functioning Kenny, the company’s new vice lab that develops compounds for president of technology and head of use in this market as well,” he said. the Hankook Akron Technical Cen- Hankook earmarks about 5% of ter. The company had one factory its annual sales toward R&D, “so when he joined the business in there is a large commitment,” Mr. 1994. It has added six since then. Kenny said. Tire industry veteran Ray Labut- Byeong Jin Lee, who in January The Solon Select is a ta was in charge of the center when was named president of Hankook distinguished group it opened. He spearheaded the Tire America Corp., said the Akron of more than 800 move from small quarters to a larg- Technical Center is “one of our businesses that have er facility that Hankook built in 1996 company’s most valuable re- chosen to locate in When It Gets the City of Solon. in Uniontown, located on the outsources.” skirts of Akron. Mr. Labutta recent- Hankook operates three other ly retired after serving for 20 years in R&D centers — a primary operation the post Mr. Kenny now holds. in Daejon, South Korea, and region- Down to Business… al sites in Germany and China. The Keen vision company is building another R&D Before taking over his present po- center in South Korea that is twice Solon Gets It! sition, Mr. Kenny spent 14 years in the size of the present operation in the center’s tire development sector the country. The City of Solon welcomes these new businesses: and four years as manager of tire Hankook built the Uniontown development and engineering. He building with growth in mind, Mr. Antonio’s Real Italian Pizza said Hankook showed great fore- Kenny said. ■ sight when it added the center. He Digiplex Solon Cinema 16 noted that the company needed a Mike McNulty is a senior reporter at GetGo presence in North America to build Rubber & Plastics News, a sister its business outward. publication of Crain’s Cleveland Levin Mattress It is one of several moves Han- Business. ON Search Partners Starbuck’s

And thanks these real estate professionals for bringing new business to Solon: Simon Caplan – CRESCO Real Estate Megan Conway – Newmark Grubb Knight Frank Jeffrey Davis – Davis Development Group William Saltzman – Newmark Grubb Knight Frank Chris Seelig – Colliers International Samuel Taylor – Newmark Grubb Knight Frank

Solon’s Got It! Prime industrial, ofﬁ ce and retail sites at www.solonohio.org $JUZPG4PMPOt#BJOCSJEHF3PBEt4PMPO 0IJPt 1FHHZ8FJM%PSGNBO &DPOPNJD%FWFMPQNFOU.BOBHFSt[email protected] 20130429-NEWS--8-NAT-CCI-CL_-- 4/26/2013 1:18 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 Schools: FOR SALE 100% leased Startups are aided by trend 299-305 Columbus Road Front parking lot continued from PAGE 3 “The opportunities have Opportunity knocks Over the last few years Mr. Bedford, OH Newer Roof, parking lot just exploded.” Aside from cloud computing, and storm sewers Greenberg has watched schools other factors driving the ed tech stop taking their students’ smart – John Knific, CEO, $325,000 trend include improved video tech- phones and become more open to DecisionDesk, on doing business 9.4% cap rate NOI $30,600 Demos: nology, rising student expectations new, high-tech ideas that could with universities and the spread of mobile devices, 3 miles help them teach more effectively Ann Ertle ing to Jim Cossler, the incubator’s which create a new way to reach and save money. Households: 28,228 “chief evangelist.” students, said Bob Sopko, who un- 440-537-5445 “It’s a positive for us. It’s a posi- Mr. Cossler said a Youngstown Population: 65,452 til November was manager of [email protected] tive for education in general,” he startup called Learning Egg is said, noting that eGenio’s software strategic technology partnerships at brokers protected Average Income: $48,410 “probably progressing faster and is used by “several thousand” stu- Case Western Reserve University. further than any company we’ve Mr Sopko now is director of dents in Ohio and Texas. worked with.” Learning Egg this fall The trend is helping other local CWRU’s Blackstone LaunchPad launched its Lighting Grader soft- entrepreneurship program, which startups, too. DecisionDesk of ware, which lets teachers create has provided assistance to a new Lakewood in March announced it tests, grade them and analyze the student-led company called Sap- had raised $1.75 million, which results. It’s used by more than 70 phire Education. The company’s includes $1 million from North schools and another 160 individual software — which is meant to help Coast Angel Fund and the individ- teachers. students track their progress and ual investors that belong to the The incubator has a few other ed WHAT YOU? find ways to improve it — is cloud- IGNITES group, as well as $750,000 from the tech startups, including one that based, and it takes advantage of Innovation Ohio Loan Fund. signed up last week. EDUCATING PHYSICIANS, PHARMACISTS students’ proclivity for portable The company plans to use the Another is about to join because AND HEALTH CARE RESEARCHERS gadgets. money to market its software, of a partnership between the incu- “Now they’ve got a laptop, a which helps universities and busi- bator and its biggest tenant, Turn- tablet and a smart phone,” Mr. Sop- nesses review applications that ing Technologies, which sells hand- ko said. “They’re completely require video and other multimedia held “clickers” that schools and engaged at all times.” elements. businesses use to quiz or poll peo- Primus sees opportunity in ed Like others interviewed for this ple, be they in classrooms or con- story, DecisionDesk CEO John Knif- ference halls. tech, too, which is why the private ic said the rise of “cloud” software, Turning Technologies’ nonprofit equity firm based in Mayfield which is delivered via the Internet, foundation, working with the incu- Heights plans to start making more has made it easier for schools to try bator, last week named the winners investments in the sector, especially out new technologies. Instead of of its first “Ed Tech Idea Challenge,” at the K-12 level, said managing spending a ton of money upfront which aims to help companies with director Scott Harper. on licenses and computer servers to ideas that could change the way But Mr. Harper warned that a lot run software on site, schools now education is delivered. Though the of ed tech companies are going to can lease the technology. company that won the challenge’s fail. They face some big challenges, Universities — the core of Deci- $20,000 grant is based in New York, he said: State and federal money for sionDesk’s customer base — have the Turning Foundation named a education is tight, the education taken a liking to the company’s second winner — a Youngstown- sales cycle is highly seasonal, and cloud software. The 15-employee based group that wants to commer- it’s not easy to displace a big company has more than 100 cus- cialize software that uses data to incumbent ed tech company, such as Blackboard. neomed.edu tomers, up from about 30 last year. help teachers figure out which “The opportunities have just instruction methods work best for “The big challenge here is not exploded,” Mr. Knific said. different students with autism. That product development,” he said. group received no formal prize but Yet, big opportunities remain, Good egg was invited to join the Youngstown because people are tired of throw- The ed tech sector is particularly Business Incubator. ing money at schools that don’t hot in Youngstown — so much so Mr. Cossler said he expects the seem to improve, Mr. Harper said. that the Youngstown Business contest to attract other ed tech star- “The market is going to force the Incubator now considers the cate- tups to the incubator in the future, education space to become more SALT • SALT • SALT gory one of its specialties, accord- regardless of where they’re based. productive,” he said. ■ • Water Softener • Industrial • Food • Ice Melt • Sea Salt Distributor: Company will lease land

continued from PAGE 3 tially outsources the distribution anything south of the 1876 shore- Call For Pricing!! and South Marginal Drive near the and logistics services for the hospi- line to be sold, only leased. So, Minimum Delivery: 1Pallet East 55th Street entrance to the East tal system, which has operations Brookwood will hold a 50-year lease Shoreway/Interstate 90. spread across Northeast Ohio. on part of the property with an The developer, Brookwood Cap- “They have been our major dis- option for another 49 years. ital Partners of Raleigh, N.C., is buy- tribution arm for a number of Brookwood will pay $238,495 to ing and leasing 8.4 acres now years,” she said. “Hospitals have buy 5.6 acres and will pay $5,346 a owned by the city of Cleveland and gone into just-in-time inventory.” year to lease 2.8 acres under what is taking an option on city land that The Owens & Minor distribution called a submerged land lease. has enough room for a 25,000- center receives supplies bought by At City Council’s insistence, the square-foot expansion. the hospital system and delivers sup- building will be constructed in a Dean Huibregtse, Owens & Mi- plies across the system as needed. way that it can earn what’s called nor’s area sales director, said the LEED Silver certification. LEED is a company has outgrown its 50,000- Overcoming site problems nationally recognized program for square-foot building in Glenwillow As a part of the deal to build the benchmarking the environmental and was encouraged by UH to find structure for Owens & Minor, performance and energy efficiency a new home close to the hospital’s Brookwood Capital will get a of a newly constructed or renovated main campus. 10-year, 60% tax abatement. building. “We’re excited to partner with Economic development director University Hospitals has been UH and the city and this is a natural Tracey Nichols told a Cleveland focusing on maximizing support of progression in that partnership,” City Council committee last Tues- the East Side Cleveland communi- Mr. Huibregtse said. “We’re excited day, April 23, that the tax abate- ty since it adopted Vision 2010 in to come into Cleveland.” ment will help compensate for un- 2005 as it embarked on a $750 mil- Mr. Huibregtse said he hopes expected geotechnical issues found lion building program. Along with construction can begin this sum- at the site as the deal developed. Cleveland Clinic, it has pledged to mer so the company can move in The property, though now hun- create jobs and build community spring 2014. Owens & Minor has dreds of feet from the lake shore, wealth. been in Glenwillow for six years. It has site problems common to filled Both hospitals committed to the also serves the Cleveland Clinic and lakefront property. Cleveland Foundation to support its Akron’s Summa Health System, As a result, the deal is complicat- local business development and Mr. Huibregtse said the com- ed. Brookwood Capital is buying effort that led to the Evergreen 1-800-547-1538 pany hopes to build the business only a part of the city-owned parcel Cooperative Laundry, a worker- with its expanded footprint. of land since the northern edge is owned business on East 105th Street Salt Distributors Since 1966 UH’s Ms. Gartland said the legally considered a part of Lake that now cleans bed linens and oth- Owens & Minor relationship essen- Erie and state law does not allow er laundry for the two hospitals. ■ 20130429-NEWS--9-NAT-CCI-CL_-- 4/25/2013 12:11 PM Page 1

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10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Kill cafés III ast Wednesday’s sudden revelation by Ohio Senate President Keith Faber that his cham- ber will take immediate action on a bill to ban Internet cafés is a welcome develop- Lment that comes not a moment too soon for law enforcement agencies concerned about illegal gambling operations. Too bad it didn’t come until after a bit of public embarrassment for members of Sen. Faber’s party. Until last week, the Republican-controlled Senate had been seen as dragging its feet on House Bill 7. FROM THE PUBLISHER It’s the measure that would put most Internet cafés out of business because it would restrict the size of the payoffs on the slots-like “sweepstakes” games played at the parlors. Term limits in Congress? No way Republican leaders don’t like the characterization that they were in no hurry to move ahead with HB 7. ow’s this for an inane, useless of interest for federal elected officials to they should win a third term. People They particularly take issue with a mid-April story in proposal, trotted out on the prevent the states from making the deci- bounce back and forth between the The Columbus Dispatch. The newspaper reported national stage for lit- sion on whether their own House and Ohio Senate. It’s a mess. terms should be limited.” And further, term limits have only that key Senate members had put the brakes on the tle more than public- BRIAN Hity: term limits in Congress. The group and its backers in increased the power of the lobbyists and bill, then rushed off the same day to attend a dinner TUCKER There is a part of me that Congress attribute public dis- staff members, who become the only hosted by lobbyists for Pong Marketing and Promo- doesn’t even want to identify satisfaction with Capitol Hill as folks in Columbus around long enough tions Inc., a Canadian company providing software the sponsors in the House (Matt the driving force behind their to have institutional memory and long- and technical support to Internet cafés. They would Salmon, an Arizona Republi- efforts. Well, there is doubtless term contacts. move the dinner from the pricey Hyde Park Prime can) and Senate (David Vitter, a a substantial amount of irrita- Add to that the natural American nas- Steakhouse to another restaurant after a Dispatch Louisiana Republican), because tion about how business is tiness that has enveloped political dis- reporter got wind of the gathering. that’s what they want. These done in Washington, but term course, and the result is guaranteed tox- Maybe the senators were going to the dinner to two lawmakers want to be able limits are anything but a icity of debate and next to no bipartisan educate themselves about the business of Internet to crow in their home states panacea. cooperation. cafés. Or maybe they hoped to bump into some of that they tried to change Washington. Anyone listening — even a little bit — to This so-called national group quotes These two have introduced amend- such an argument ought to chat with folks Rep. Salmon as saying, “The people hold the café interests who, according to The Dispatch, here in the Buckeye State, where term lim- contributed more than $110,000 to the campaigns ments to the U.S. Constitution that the legislative branch of our federal gov- would limit House members to three its have wrought havoc and created even ernment in such low regard largely of state lawmakers last year. terms (six years) and senators to two more divisiveness in Columbus. because they believe that they are no John McClelland, director of communications for terms (12 years). In our General Assembly, first-term longer represented by fellow citizens but the Ohio Senate Republican Caucus, said in According to a news release distrib- House members angle for their chance instead by professional politicians.” e-mailed comments last Wednesday that it “should uted by some group calling itself “U.S. to be Speaker, and it can happen as soon Well, the gentleman from Arizona may be clear that Senator Faber’s intent from the outset Term Limits,” nearly 75% of the respon- as his or her second term when a third of be right about Americans holding lawmak- of this General Assembly has been to shut them dents to a recent Gallup survey said they the body is being turned over every two ers in low regard, but that’s not a problem (Internet cafés) down, but he wanted to give his would vote for term limits. years. It’s just plain scary that such a term limits can fix. People need to simply colleagues the opportunity to understand all sides The news release quoted Phil Blumel, powerful job can be held by such an boot the non-performers out of office. of the debate.” identified as president of U.S. Term Lim- inexperienced legislator. Second-term As has been said, we have the term “No one in the caucus at any time contemplated its, saying, “The public clearly wants state House members start their plan- limit system we need and should stay ning for what office they’ll next seek if ■ doing nothing,” Mr. McClelland wrote. term limits, and it is the ultimate conflict with: elections. We’re not sure Ohio Attorney General Mike DeWine was as convinced about the Senate’s inten- tions. Rather than await passage of a bill to squelch LETTERS the cafés, Mr. DeWine and various law enforcement authorities plowed ahead with a legal crusade to close them one by one. Truth in shale debate hard to ascertain Just two weeks ago, Mr. DeWine and Cuyahoga County Prosecutor Timothy McGinty executed ■ The headline on Brian Tucker’s April 1 WRITE TO US are used per gallon in fracking fluids? search warrants on six Internet cafés they said were commentary read, “Truth gets in the way A tiny bit? What measurement is a tiny operating illegally. According to an announcement of fracking furor.” But whose truth is get- Send your letters to: Mark Dodosh, bit? What is the per particle chemical in editor, Crain’s Cleveland Business, 700 W. St. about the raids, the action not only involved the ting in the way of the fracking furor? a gallon of water times a million or bil- You are certain of what you know, Mr. Clair Ave., Suite 310, Cleveland, OH 44113- lion? offices of the county prosecutor and the attorney 1230; Email: [email protected] general, but also was done in connection with the Tucker. It’s what you don’t know that is Shale magazine, in a March 2013 arti- disturbing. Do you know anything about cle, “A Lack of Transparency,” provides state Bureau of Criminal Investigation, Ohio Inves- ecosystems, habitats or perhaps the wa- Buried. little light on what chemicals are used tigative Unit of the Ohio Department of Public Safe- ter cycle? Why can’t fracking water be recycled? because it’s secret. ty, U.S. Postal Inspection Service, U.S. Secret Water is the one resource for which The pressurized fracking fluids are “Ohio’s Utica Shale is relatively new, Service, Parma Heights Police Department, and law there is no substitute. made of water, sand and chemicals. Do so information is at a premium. The cur- enforcement agencies in New Jersey. In a recent issue of Shale magazine, you know what chemicals are used? Not rent system doesn’t make much sense to Imagine the time, money and human resources which Crain’s produces, I read that each even the EPA knows. It’s a trade secret … many.” That statement was on Page 14. that would need to be devoted to this process if a fracking well can use as much as 4.5 mil- shhhh. The truth is there is an absence of Did you know that there are over 2,000 bill banning cafés did not pass. It would be a crime lion gallons of water. The December knowledge of the risks. Cheap, easy gas 2012 issue predicted that by 2015 there chemicals, of which 625 are known car- that would rest on the heads of Senate Republicans. slows our progress toward more would be over 2,000 shale wells in Ohio, cinogens, which can be used in the affordable alternatives, including They cannot act fast enough. which can mean 9 billon gallons of water fracking process? I wonder how many conservation. removed from the water cycle. Gone. grams, ounces or pounds of chemicals See LETTERS Page 11 20130429-NEWS--11-NAT-CCI-CL_-- 4/25/2013 3:22 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

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BRUCE WATERHOUSE JOE PULIZZI KAYLEIGH SOPKO GEORGE MOSSEY Solon Cleveland Parma Cleveland It’s innocent until proven I think that’s completely I like the Browns. I like They’re separate. I don’t guilty at this point. It unnecessary. Technically, football. I just want the really feel they pertain to doesn’t matter. his job as the owner was Browns to win, regardless each other. If they find to hire people to run the what’s going on. something Browns-related, Accelerating team for him. He’s done that would be a different that. He should stay away story. It really doesn’t and leave the Browns to matter because they say success. Banner (Browns CEO Jim people who micromanage Banner) to run. do more harm than good.

Letters: Too many breaks in the state continued from PAGE 10 State should give up state. The overcharges that the bu- Methane gas can leak into the reau forced them to pay stripped environment, short-circuiting the workers’ comp fight them of vital financial resources — green gas benefit we are seeing. ■ It is time for Bureau of Workers’ the lifeblood of any business — that Judith A. Majher Compensation administrator they would have reinvested and Kirtland Stephen Buehrer to end the injus- used to grow their companies, cre- Realize your vision with Colliers in Cleveland tice suffered by nearly 270,000 ating more jobs and strengthening We know it’s all about location, location, location. And setting your Close tax loopholes businesses at the hands of the our state’s economy. sights on the next move. At Colliers International in Cleveland, we have BWC by overcharging those busi- Instead, under the bureau’s poli- the real estate expertise and strength to lead you into new territory ■ The Crain’s editorial board was nesses for premiums of nearly cies, job creators saw their premi- locally, around Ohio or around the world—taking you to new heights. right on the mark in its April 15 $860 million. ums skyrocket on average 700% www.colliers.com/ohio +1 216 239 5060 editorial, “Tax sieve,” suggesting This is not an opinion, it is fact. A and in some cases as high as 2,000% that the issue of evaluating tax fact substantiated by the former ad- to pay for discounts for favored breaks deserves more attention in ministrator of the BWC and the bu- groups of businesses. Unfortunate- the debate over state tax reform. reau’s own actuarial experts. And it ly, because of those policies, far too There are two bills in the Ohio is a fact determined by the Court of many businesses were forced into House of Representatives that Common Pleas in Cuyahoga Coun- bankruptcy. would create formal procedures to ty in the case of San Allen Inc., et al, As an added incentive to resolve evaluate whether the 129 tax breaks vs. Stephen Buehrer, Administrator this case, the BWC needs to consid- listed in the state Tax Department’s of the Ohio BWC. er that each day of delay costs the report on tax expenditures are Administrator Buehrer said re- bureau $73,000 in post-judgment working as they should. Both of cently he had a “fiduciary duty” to interest — that’s over $27 million a these bills — HB 81, sponsored by appeal the case. Clearly, his sense of year. Rep. Mike Foley of Cleveland, and fiduciary duty needs re-examina- The bureau’s decision to appeal HB 24, sponsored by Rep. Terry tion. (an appeal legal experts say they are Boose of Norwalk — are excellent He has said on many occasions unlikely to win) could result in starting points for reform. his duty as administrator is to make additional costs to the bureau in In the 2011 budget debate, the the BWC more “business friendly.” excess of $100 million. Ohio Senate had an evaluation How appealing this case advances That doesn’t include legal fees process in its version of the budget that goal is more than problematic. and other expenses. bill but it did not survive confer- To his credit, the administrator After six years and nearly $4 mil- ence committee negotiations. has said he is open to settlement. lion in legal fees, now is the time for Clearly, the concept of closing tax Unfortunately, he has rejected four the BWC to recognize that its “fidu- loopholes has some traction in the separate settlement offers out-of- ciary responsibility” to class mem- Ohio Statehouse, but has yet to be hand. bers and Ohio taxpayers will be bet- embraced by legislative leadership. If the BWC is serious about settle- ter fulfilled by engaging Ideally, proposals for reform ment, it is time for it to make a legit- independent legal experts to review should go further and require a sun- imate counteroffer. The BWC has the bureau’s basis for appeal to see set clause (automatic repeal every already paid outside counsel over the futility of its position and its eight years, for instance) for all tax $3 million in fees. While its attor- limited chances for success. breaks. This would force supporters neys have little or no incentive to It is clearly in the best interest of of tax breaks to justify their existence resolve this matter, it is clearly in all of the parties to resolve this case and would focus legislators’ minds the interest of class members and as soon as possible and for the BWC on dealing with the issue. all Ohioans to bring this matter to a In an era of tight budgets, we conclusion. to fulfill its fiduciary responsibility cannot afford to let the current lax The class members are not the to the 270,000 businesses it over- approach continue. enemy. charged. Jon Honeck They are the small and midsize Earl Stein Director, public policy businesses that form the backbone President The Center for Community Solu- of the state’s economy. They Pay Us Back Ohio BWC Inc. tions employ Ohioans and fuel commu- Owner Columbus nities of every size throughout the Corky & Lenny’s Delicatessen

Send us your Human Resources Leaders nominations

Crain’s is looking for human resources professionals www.CrainsCleveland.com. who have built their company or organization with the The deadline is 5 p.m. on May 20. best people, talent, development and culture. If you have any questions, contact Michelle Sustar at Nominations can be made by filling out a form at: 216-771-5371 or [email protected]. 20130429-NEWS--12-NAT-CCI-CL_-- 4/25/2013 1:11 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013

BRIGHT SPOTS

Bright Spots is a period feature in clinical centers. moderate to moderately based verification service that of- tickets online by giving them an eas- Crain’s highlighting positive business “The MHRA autho- severe stroke, as de- fers an easy-to-use alternative to ier way to verify they are human,” developments in the region. rization will enable us to fined by a National In- Captcha technology. Veritix said. Use of PlayThru’s game- To submit information, email Scott bring several leading stitutes of Health Stroke Veritix said it partnered with a based verification results in a 40% Suttell at [email protected]. United Kingdom stroke Scale score of 8 to 20. company called Are You a Human increase in submission rates com- centers into the study, Athersys said patients to offer the service for online ticket pared with Captcha, according to the ■ Clinical stage biotechnology which will help us to enrolled in the study re- purchases, which eliminates the Cleveland company. company Athersys Inc. of Cleve- speed the completion of ceive a single intra- need for buyers to enter difficult- In addition, 98% of users prefer land said the Medicines and the stroke clinical trial,” venous dose of MultiStem to-read Captcha words that some- PlayThru to Captcha, and users have Healthcare Products Regulatory said Gil Van Bokkelen, therapy or placebo in the 24 times require multiple entry a 98.7% accuracy rate through the Agency in the United Kingdom has chairman and CEO of Athersys, in a to 36 hours following the stroke, attempts. game-based verification, Veritix said. approved the company’s applica- statement. “The authorization is which is “a significant extension of Instead, Veritix said, “consumers tion to expand its ongoing Phase 2 also noteworthy as it marks the ini- the current treatment window over engage with short, simple, and ■ Welding is a relatively new Mer- study evaluating the administration tiation of MultiStem clinical devel- existing standard of care.” interactive games to verify that they it Badge in the world of the Boy of its MultiStem therapy to patients opment activity in the United King- The study is expected to enroll are human.” Scouts of America, and Lincoln who have suffered an ischemic dom.” 136 patients in total and currently is Quicken Loans Arena will be the Electric Co. has stepped up to help stroke. The Phase 2 study is a double conducted at multiple centers first Veritix client to use PlayThru, scouts earn the distinction — and Enrollment at U.K. sites is blind, placebo-controlled trial eval- throughout the United States. which will be available for all arena help U.S. companies get an early expected to begin after a final ethics uating the safety and efficacy of events. jump in filling their skilled labor gap. committee review and the comple- MultiStem cells when administered ■ Cleveland-based Veritix has PlayThru “eliminates a signifi- About 100 scouts received hands- tion of preparations at participating to patients who have suffered a introduced PlayThru, a game- cant barrier for consumers buying on welding training on April 13 at Lincoln Electric’s headquarters, 22801 St. Clair Ave. in Euclid. The Welding Merit Badge debuted in February 2012, with collaboration from the American Welding Society and industrial partners. To earn the badge, scouts “must learn welding More than 300 people attended the 2013 CIO of the Year safety requirements, demonstrate awards, which honored some of the most innovative chief first aid procedures that may be needed in the welding environment, information officers in Northeast Ohio. The March 16 event demonstrate proficiency in skill sets related to the welding of joints, and was hosted by both Crain’s and the Northeast Ohio Software learn about careers in various indus- Association. tries that employ welding skills,” according to a news release from Lincoln Electric. “Lincoln Electric is helping Scouts get excited about such career 2. options as welding, engineering and manufacturing in a hands-on way, 1. while earning their badges,” said FOLLOW US: Carl Peters, Lincoln Electric’s direc- @CrainsCleveland tor of technical training, in a statement. @CRAINSCIO “They get to explore different career pathways by trying something new,” he said. “And they’ll get a sense of accomplishment when they 3. walk away with their own welding 1. Over 300 people attended project — a specially designed Tuesday’s event, in partnership with eagle.” NEOSA’s Tech Week. 2. Attendees ■ from SS&G came out to support Two partners at Cleveland law 4. their colleague and CIO Finalist Jerry firm giant Jones Day were named by Law360 as among the nation’s top Justice. 3. A group from event spon- five “Rising Stars” in their respective 4. Ross Nelson, sor Cox Business enjoy themselves practices. Cox Business, award during the pre-event networking. The distinction went to Jones Day recipient, M&A partner James Dougherty and Terri Rini-Barber of to one of the firm’s intellectual prop- Southwest General, Brad erty partners, Ryan McCrum. Nellis, NEOSA, and Crain’s ■ Brian Tucker 5. A group The George Gund Foundation THANK YOU announced that Horace “Treye” of the CIO of the Year Johnson III, director of athletics and finalists gathers on student activities at Saint Martin de stage Tuesday at 5. To our sponsors Porres High School in Cleveland, LaCentre Conference has been named the 2013-2015 and Banquet Facility. George Gund Foundation Fellow. Presented by The fellows program, started in 2004, “provides an opportunity for promising young professionals to work inside the foundation,” according to a news release. Each fellow, selected from a nationwide pool of applicants, works at the foundation for two years. Mr. Johnson, who joined Saint Co-Presented by: Martin de Porres in 2008, has a bach- elor’s degree in communications from John Carroll University and a master’s degree in sports administration from the University of VisitV CrainsCleveland.com/CIOcoverage Louisville. He also has worked as assistant director of admissions for tot read live tweets from the event, Cleveland’s Saint Ignatius High School; as a program coordinator at vview additional photos and Cocktail Reception Sponsor: Social Media Sponsor: Video Sponsor: the Booker T. Washington Center in Erie, Pa.; and as a guest relations watch a video wrap up. associate and weekend facilities manager for the Muhammad Ali Center in Louisville. He will join the foundation on July 1. 20130429-NEWS--13-NAT-CCI-CL_-- 4/25/2013 1:14 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13

GOING PLACES

JOB CHANGES Attn: Manufacturers & Warehouses ARCHITECTURE If you missed out on FirstEnergy’s Lighting Rebate BRAUN & STEIDL ARCHITECTS: You can still get a rebate for upgrading your lighting Don Funk to project manager; Julia Duhart to architectural intern. • 50% Energy Savings THEN DESIGN ARCHITECTURE: • Utility Rebates Dan Polak to project manager. Polak Sceranka Brand Danus • Fast Payback CONSTRUCTION • Tax Incentives JACKSON TAYLOR CONTRACTORS: • Brighter lighting Steve Sceranka to director, business development. • Replace HID high bays VIP: David Cubero to prime • Upgrade T-12 fixtures contracting manager. Independence, Ohio Thurs., May 16, 9-11:30 a.m. CONSULTING Carter Gregory Tyrpak Conklin Registration limited to first 40 COHEN HEALTHCARE CONSULTING LTD.: Joan Scully to $69.00/person director; Sonda Kunzi to associate director; Kristen Hornyak to coding CALL TODAY! Don't squander this opportunity! quality manager. Register NOW at www.ROI-Energy.com/seminar or call 330-931-3905 ENGINEERING Presented by FirstEnergy and ROI Energy MANNIK & SMITH GROUP INC.: Michael T. Brand to project manager; Matthew N. Danus to Bryson Dhinojwala Palmer Healy environmental scientist. FINANCE HOMETOWN BANK: Matthew Carter to assistant vice president, residential mortgage specialist; Barbara Gregory to assistant operations officer. OHIO COMMERCE BANK: Cierra Lewis Maimbourg Snyder Watson R. Freeman to senior credit analyst. FINANCIAL SERVICE APPLE GROWTH PARTNERS: Jaclyn Donadio to recruiter. PEASE & ASSOCIATES INC.: Sherri Blackwelder to supervisor, tax department; Pam Frolo to administrative assistant. Zimmerman Moncrief Shepheard Prostor

INSURANCE strategy and communications and BRUNSWICK COS.: Allison chief strategy officer; Jim Michaud SERVICE Robbins and Lauren Schachter to to executive vice president, human ELITE TURFGRASS MANAGEMENT: account coordinators. resources and chief human resource Nathan Conover to ISA certified MEDICAL MUTUAL: Daniel Tyrpak officer; Ronald Aderhold to senior arborist. to emarketing leader; Carroll vice president, chief information offi- Conklin to manager, marketing cer; Terry Fedor to vice president, STAFFING communications; Kathleen Bryson U.S. iron ore operations; William TORCH GROUP: Lora Zimmerman to director, Case, Disease and Hart to senior vice president, global to senior account manager. Behavioral Health Management. marketing; Sean Whiteford to vice president, exploration. TECHNOLOGY LEGAL MEDIA MCPC INC.: Paul Moncrief to vice CRITCHFIELD, CRITCHFIELD & president and general manager, JOHNSTON LTD.: Duriya BUSINESS WIRE: Jill Connor to consulting; Kim Shepheard to Dhinojwala and Lucas K. Palmer vice president, Cleveland. credit manager. to members. NONPROFIT UNITED COMPUTER GROUP INC.: ROETZEL: John J. Rutter to Timothy J. Prostor to senior associate. TEAM NORTHEAST OHIO: Jacob consultant. TUCKER ELLIS LLP: Jeffrey Healy Duritsky to managing director, Giving away the solutions to chair, Mass Tort & Product research; Camille Billups to senior BOARDS director, business attraction; Steve before the sale? Liability Practice Group; John Q. UNIVERSITY SETTLEMENT: Fritsch to senior director, strategic Lewis to chair, Business Litigation Geoffrey S. Goss (Walter & network engagement; Nina Holliday Practice Group; Rita Maimbourg to Haverfield LLP) to vice president. chair, Trial Department; Christine to senior director, marketing and Presenting before the Snyder to associate. communications. AWARDS TREMONT WEST DEVELOPMENT prospect is really qualified? MANUFACTURING CORP.: David Simon to retail pro- PUBLIC RELATIONS SOCIETY OF gram coordinator/program manager. AMERICA, CLEVELAND CHAPTER: CLIFFS NATURAL RESOURCES Joe Marinucci (Downtown Cleveland Allowing your proposals INC.: Cliff Smith to executive vice REAL ESTATE Alliance) received the John W. Hill president, global business develop- Award. to be shopped around? ment; Terry Paradie to executive KELLER WILLIAMS GREATER vice president, CFO; Steve Raguz to CLEVELAND WEST: Stacy Watson Send information for Going Places to executive vice president, corporate to sales associate. [email protected]. STOP STAY CONNECTED Immediately! ■ Crain’s on Twitter: @CrainsCleveland; Crain’s on Facebook: Facebook.com/CrainsCleveland ■ Crain’s daily e-newsletters: CrainsCleveland.com/register CALL TODAY, 440 575-7000 ■ Newsletter schedule: Weekdays: Morning Roundup and daily headlines; Mondays: Real Estate Report; Tuesdays: Work Force Report; Wednesdays: Dealmaker Alert; Thursdays: Small Business Report; Fridays: WWW.SALESCONCEPTSINC.COM Shale and Energy Report SELL MORE. 20130429-NEWS--14-NAT-CCI-CL_-- 4/25/2013 1:14 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 Timken is raising its Faircrest presence Huge vertical caster will cost $200M and improve plant’s steel production by 25% By RACHEL ABBEY McCAFFERTY [email protected]

If Timken Co.’s future vertical The new forge press at Timken’s caster was plunked down in the Faircrest Steel Plant in Canton is deepest part of Lake Erie, its top still completely automated. would reach above the waves. As it is, the pricey piece of equipment, which will pour molten ON THE WEB For a metal on a continuous basis, slideshow from Timken’s forming hardened steel, will rise steel plant, log on to: high above most of Stark County at tinyurl.com/cgjyjtf Timken’s Faircrest Steel Plant in Canton. Timken spokesman Dan Minnich the “added job security” that the said the structure housing the investments represent is a positive caster is expected to reach 175 feet for Timken union members. above ground and more than 75 feet However, Joe Hoagland, presi- below. Crews already are hard at dent of Steelworkers Local 1123, RACHEL ABBEY MCCAFFERTY PHOTOS work digging the giant hole for the which represents hourly workers at Crews dig the hole for Timken’s new vertical caster at the Faircrest Steel Plant in Canton. The caster will extend more continuous caster, which should be Faircrest, wasn’t as upbeat as Mr. than 75 feet below the ground. installed and operational by the Montana about what the equip- second half of 2014. ment would mean for Timken’s The caster investment, at about employees. $200 million, is the biggest Timken Mr. Hoagland said he would take has made in Faircrest since the the investment as job security and plant was built in 1985, said Erich as a sign that Timken intends to stay Williams, manager of steel commu- in Canton, but noted that there nications. And the Canton-based would be no net gain of jobs. Some maker of bearings and steel is people could lose jobs or be dis- expecting it to pay off in a big way. placed as the workflow at the plant The continuous caster will make changes, but other jobs could be Faircrest more efficient and will created by the new machines, he improve the quality of the steel it said. creates, said Tom Moline, vice Still, Mr. Hoagland sees value in president of steel manufacturing. the investment. Because the new caster won’t “Progress is progress, and you bend the steel on its long drop, it have to stay competitive,” Mr. will be stronger. Steel becomes less Hoagland said. pure when it is bent, Mr. Williams Mr. Moline said demand in the said, adding that strength comes markets Faircrest serves has been into play in high-stress uses, such as increasing, especially in the oil, gas drilling. and industrial fields. Mr. Minnich Mr. Moline said when this invest- said the decision to invest in this ment and others Timken is making equipment was made before the this year in Faircrest are complete, shale movement took off, but the the plant will be able to ship about company has seen opportunity for 175,000 more tons of steel per year. growth in supplying the energy That’s close to a 25% increase for industry. the maker of steel alloy bars. Fair- “It was time to make an invest- crest’s current capacity is about ment,” Mr. Moline said. 750,000 tons. Rolling along Mr. Moline said he expects the Our business is the key to unlocking the potential of your business. changes at the 375-employee Fair- The investments at Faircrest add Whether you’re in the locksmith business or any other small business, Cox Business VoiceManagerSM crest plant to increase the compa- up to about $265 million, including can help your business reach a new level of success. Get up to 20 of the professional phone features ny’s steel shipping capacity by an inspection line, Mr. Minnich your business needs most so it can thrive the way you imagined on the first day you opened. Plus, our about 15% overall. said. A ladle refiner and the continuous caster together will cost about award-winning local support is available 24/7. Call today and see how your business is our business. All about timing $225 million. The investments come during a Also among those expenditures is tumultuous time for Timken. Two a new in-line forge press, an ap- of its shareholders, asset manage- proximately $35 million investment ment firm Relational Investors LLC Timken commissioned on April 10. and the California State Teachers’ The forge press takes a red-hot, Retirement System, have been 28-inch square ingot and presses it Business Phone calling for Timken to split its steel down to 22 inches as easily as shap- + NEXT DAY, EVENING AND SATURDAY INSTALLATION APPOINTMENTS AVAILABLE and bearings operations into two ing clay. + UNLIMITED LONG DISTANCE CALLING separate businesses, arguing that Mr. Moline said the process $ + PRICE GUARANTEED FOR 2 YEARS the split would be beneficial to the makes the center of the company’s stock value. ingot stronger and cuts down on the 35 A representative of Timken said coxbusiness.com | 866.791.2688 number of times an ingot must pass A MONTH* the company is not commenting through the rolling mill. publicly on the proposal, but it has This piece of equipment allows launched a website that calls for the steel to move straight from the shareholders to vote against it. Just forge press to the rolling mill with- what the investments in Faircrest out being reheated, which reduces * Offer valid until 7/1/13 to new commercial subscribers of Cox Business VoiceManagerSM in Cox Ohio, Rhode Island or Connecticut serviceable locations. Minimum 2-year service contract required. Offer includes monthly service fees for the first 24 months of 1 line of Cox Business VoiceManager Anywhere with unlimited nationwide long distance. One additional VoiceManager line may be discounted will mean for unionized production production time and thus increases to $20 per month for 24 months (long distance not included). Unlimited plan is limited to direct-dialed domestic calls only and is not available for use with non-switched circuit calling, auto-dialers, workers at the plant is a matter of capacity, said Bob Perez, a team call center applications and certain switching applications. Next-day installations are subject to availability and do not apply to ported phone numbers. Offer does not include installation, construction, inside wiring, usage, equipment, applicable taxes, surcharges or fees. Telephone modem equipment is required. Modem uses electrical power to operate and has backup battery power provided by interpretation. leader at Faircrest. Cox if electricity is interrupted. Telephone service, including access to E911 service, will not be available during an extended power outage or if modem is moved or inoperable. Telephone services are Tony Montana, a spokesman for provided by Cox Ohio Telcom, LLC; Cox Rhode Island Telcom, LLC; or Cox Connecticut Telcom, LLC. Discounts are not valid in combination with or in addition to other promotions and cannot be applied The Timken team said the to any other Cox account. Services not available in all areas. Other restrictions apply. ©2013 CoxCom, LLC, d/b/a Cox Communications Ohio & New England. All rights reserved. the United Steelworkers, said that machine was the first of its kind in after years of seeing jobs disappear, North America. ■ 20130429-NEWS--15-NAT-CCI-CL_-- 4/25/2013 3:16 PM Page 1

APRIL 29 - MAY 5, 2013 CRAIN’S CLEVELAND BUSINESS 15

INSIDE 18 ADVISER: LOWERING THE COSTS INVOLVED IN 401(K) PLANS. FINANCE

MARC GOLUB Elizabeth Verner, 27, is among the 6% of financial advisers who are 36 or younger, according to the Financial Planning Association. YOUNGER GENERATION NEEDS IN ON THE PLAN

By MICHELLE PARK Few financial advisers are in their 20s [email protected] and 30s, which is a problem some firms t’s not uncommon for Elizabeth Verner to provide financial guidance to clients who have children as young as she is. What is uncommon is Ms. are trying to solve before it’s too late I Verner herself. A certified financial planner at age 27, she is half the average age of her brethren. See PLANS Page 16

BY THE NUMBERS A look at the transaction value, in billions, of U.S. companies going private, along with initial Private is preferred route for some public offerings, since 2003: Year Private Deals IPO Deals 2003 $10.0 122 $14.3 82 Megadeals such as recent proposals involving Heinz, “When private equity firms and 2004 $46.2 82 $44.3 232 companies see those transactions 2005 $93.3 103 $36.2 203 American Greetings and Dell may get others thinking 2006 $320.1 166 $43.2 199 being completed, it gets their 2007 $316.6 148 $46.8 205 By MICHELLE PARK say the cash is available and the cost savings thought process going.” 2008 $48.4 81 $26.8 31 [email protected] are compelling enough that more public companies are likely to follow suit. – Randy Paine 2009 $11.3 72 $17.5 52 co-head, KeyBanc Capital Markets 2010 $67.8 101 $37.2 123 hree well-known, arguably iconic, “When private equity firms and companies 2011 $49.8 91 $34.8 116 companies that sell greeting cards, see those transactions being completed, it 2012 $42.1 101 $41.0 126 T computers and ketchup have under- gets their thought process going,” said “I think there are a lot of boards of direc- x-2013 $50.7 21 $10.5 43 taken a common course of action this year: Randy Paine, co-head of KeyBanc Capital tors and management teams that see those x-Through April 16 They’re going private. Markets, the investment banking arm of transactions and think, ‘Huh? Should we be Source: Thomson Reuters And Northeast Ohio bankers and advisers Cleveland-based KeyCorp. See PRIVATE Page 17 20130429-NEWS--16-NAT-CCI-CL_-- 4/25/2013 2:47 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013

TRY LIBERTY FOR YOUR Plans: Financial adviser positions HOME LOAN are expected to grow 32% by 2020 Great interest rates & most current terms are available, subject to credit approval & program terms continued from PAGE 15 that. LOW RATES LOW COSTS SUPERIOR SERVICE “Going to national events and “Now, that generation is Key Private Bank, whose 300 conferences, I am in the minority,” really seeing they’re not fee-only advisers counsel wealthy she said. “It can get kind of clients across KeyBank’s footprint, 216.359.5597 lonely.” going to do this forever. started a wealth associate program There is a pressing need to make Their firms have to move about three years ago. Baby EQUAL HOUSING OPPORTUNITY young advisers less the anomaly, into other hands at some Boomer demand was a primary financial advisers say. Of those point, and they need to motivation, said Veena Khanna, members of the Financial director of wealth advisory Planning Association who disclose make sure those other services for Key Private Bank. their age, only 6% are 36 or hands are qualified.” “As they mature out of … busi- younger. The average age of – Michael Branham ness, no matter who they are and members of the group, which president, Financial Planning what occupation, they’re going to represents tens of thousands Association need wealth planning advice,” she involved in providing financial said. planning services, is 52. planner exam and is an adviser To date, Key’s program has Combine that with an increased with NCA Financial Planners in hired 16 people, predominantly demand for financial advice from Mayfield Heights, knows firsthand out of college, into the new posi- Baby Boomers approaching retire- the challenges of breaking into the tion of wealth associate, Ms. ment age, and the math works out business. Khanna said. like this: The Bureau of Labor Sta- “It’s hard for a 27-year-old “I think it’s in everyone’s best tistics projects 32% growth in the female in a fee-based environment interest to pull them in early, teach number of personal financial to get the trust of a 67-year-old them the ropes,” Ms. Khanna said. adviser jobs between 2010 and retiring man to manage his mon- Ms. Verner’s firm, NCA Finan- 2020 — a rate that is “much faster ey,” she said. “And so there are cial Planners, hired her in as a than the average for all occupations.” moments when you can feel a little paraplanner. Though it’s a In order to retire themselves, disheartened. You have the knowl- decades-old practice for NCA, financial advisers will need young edge, you have the expertise, you more firms have launched appren- advisers to whom they can transi- have the support behind you, but tice-like programs, including Cor- tion their books of business. … it’s the look (of being young) nerstone Wealth Advisors, the “Now, that generation is really you’re being judged upon.” Minneapolis firm for which Mr. seeing they’re not going to do this Branham works. It started hiring forever,” said Michael Branham, Training wheels college graduates into a three-year president of the Denver-based To meet the demand driven by “residency” program in 2010. FPA. “Their firms have to move Baby Boomers and the fact that In the paraplanner role, Ms. into other hands at some point, people are increasingly responsi- Verner sat in client meetings, and they need to make sure those ble for their own financial futures learned the fundamentals and other hands are qualified.” — read: fewer defined benefit pen- gained her industry licenses. In At the same time that the oppor- sion plans and Social Security’s September 2011, she learned she’d tunity for the industry is great, it’s solvency problems — firms and passed the certified financial plan- never been harder to break into it, organizations are mobilizing to ner exam, which covers a range of many insiders say. attract, mentor and appropriately concepts including insurance Large companies’ training pro- train Generations X and Y. planning, estate planning and grams that used to take in robust More universities offer curricula ethics, and about six months ago, numbers of would-be advisers have that prepare students to sit for the after roughly five years with NCA, been pared back, in many cases certified financial planner exam, she was promoted to financial because they weren’t profitable, in Mr. Branham said, though many adviser. large part because most trainees local advisers say they know of few Ms. Verner, who is paid a salary, didn’t stick to the profession. such programs in Northeast Ohio. now is at work building a book of In addition, the business of One is at the University of Akron. business. She also is helping start a financial advice today is much “The real challenge is to find NexGen group of the local chapter more fee-based. That presents a career paths for young planners in of the Financial Planning Associa- challenge for making a living the profession itself,” Mr. Bran- tion, which is seeking advisers 36 because young advisers — who ham said. “Who’s willing to train and younger. Of the Northeast have a lot yet to prove before they them and make them part of a Ohio group’s 288 members, 21 can build a sizable book of busi- viable business?” meet the age criteria of the next ness — must rely increasingly on The onus, he said, is on wealth generation group, though not earning a fee based on a percent- management firms to appeal to everyone necessarily reports their age of the assets they manage. young people and to build an age, Ms. Verner noted. (Not every organization in the infrastructure that provides them “There’s so few of us,” she said. business pays a salary.) a career path. “It’s needed that we have an Ms. Verner, who in 2011 passed A number of Northeast Ohio opportunity to communicate with the 10-hour certified financial firms have created positions to do each other.” ■ Nesco Resource is the largest national staffing firm headquartered in North East Ohio. Call today to see how we can help you improve your staffing experience. Despite efforts, some barriers remain Nesco has been awarded Inavero’s Best of Staffing for ne of the greatest barriers staying power. in front of a client to ask them to to entry into financial “If we don’t have people to step write you a check for $100,000 … the both Client and Talent for 2013. This is the second year advising is one’s ability in, then we’re going to have a skill set that’s required on an inter- in a row that Nesco has received this award and it is a to make a living, said humongous void between the personal level, to get them to trust OKevin Myeroff, president and CEO people that need these services you, that’s really hard to train.” testament to our quality driven processes. of NCA Financial Planners in and the people there are to pro- For his part, Bob Smith, whose Mayfield Heights. vide these services,” Mr. Myeroff firm employs 12 people, six of Ten years ago, nearly 100% of added. “This has become a very, whom are younger than 32, isn’t NCA’s business was commission- very specialized business, and if sorry that it’s tough to break in. based, or “eat what you kill,” as people don’t come in to learn it, “Barriers are a good thing to some in the industry put it. Now, the cost of getting financial plan- make sure people don’t start prac- less than 1% of the firm’s revenue ning advice will go up and up. ticing independently before comes from commission. There will be an industry created they’re ready,” said Mr. Smith, www.nescoresource.com www.talentalley.com “There are more avenues than of people who don’t know what president and CEO of Spero-Smith ever before to learn this business,” they’re doing.” Investment Advisers in Beachwood. said Mr. Myeroff, 52. But, “it takes Another barrier to entry is the “I would argue that we have not many years of building up clients job’s difficulty, said Ed Vargo, enough barriers. Just look at every- until you have enough assets when senior financial planner with thing from scams (and) inappro- you can make a living off of fees. Burning River Advisory Group in priate investments that have been Back in the old days, you could just Westlake. made. It argues for barriers, regu- sell a lot of products and make “It’s not good enough just to know lation and good judgment.” enough money. So it takes some real the numbers,” he said. “Sitting down — Michelle Park 20130429-NEWS--17-NAT-CCI-CL_-- 4/26/2013 10:26 AM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Private: Disclosing numbers to the public can come at a cost

continued from PAGE 15 his hand in 10 IPOs and two thinking about this? Can we opti- go-private deals throughout his mize the value that we create for WHAT THEY’RE SAYING ON PUBLIC VS. PRIVATE career, cites the small growth in our shareholders by pursuing this the U.S. gross domestic product as course of action?’ ” he said. “I do think we will see “When you disclose “You sort of now have the Good one reason why. The announcement came April more go-private to the public ... Housekeeping seal of approval. The company he leads, Panther 1 that the Weiss family and Ameri- transactions as we work you’re also You’re public and by definition, Expedited Services Inc. in Seville, can Greetings Corp. had struck a through 2013 and disclosing to your you’ve made it. ... Now people actually filed to go public but deal for the Weisses — who lead pulled out in late 2011 because the company — to acquire it. certainly as we work competitors.” look at you differently and are “the market was getting soft,” said Also in the first quarter came into 2014 and ’15.” – Jerry Kelsheimer more accepting of you.” Mr. Schneeberger, president and the news that H.J. Heinz Co., the – Randy Paine president and CEO, Fifth – Lou Schneeberger CEO of the shipping company. In publicly traded Pittsburgh food co-head, KeyBanc Capital Third Bank’s Northeastern president and CEO, Panther Expedited June 2012, Panther, whose private company, had agreed to be ac- Markets Ohio affiliate Services Inc. equity investors were ready to sell, quired by Berkshire Hathaway and sold to Arkansas Best Corp., a 3G Capital for $28 billion, includ- public company. ing debt — the largest food acqui- ized and that are strong today are significant inflow of capital into Fine, who was involved in multiple As one of four partners who sition on record. A shareholder very interested in growing their the equity markets, which initial public offerings as an took Olympic Steel Inc. public in vote on that deal is scheduled for balance sheets.” KeyBanc Capital Markets’ Mr. investment banker at Goldman 1994, Mr. Schneeberger knows this Tuesday, April 30. The only counterpoint KeyBanc Paine expects to drive more IPOs, Sachs, also anticipates more firsthand the benefits of doing it. And then there’s computer Capital Markets’ Mr. Paine sees to particularly for energy and tech- go-public deals and fewer go-pri- “It was a good way for us to maker, Dell Inc., which has signed the availability of capital is the nology companies. vate deals because the equity mar- retain ownership and to also … a definitive agreement to sell to run-up in public markets, wherein “Companies that are operating kets are strong. When they are, bring cash into the company,” he founder, chairman and CEO even smaller-cap companies, in those areas, one, have tremen- there shouldn’t be as many com- said. Michael Dell and private equity which he defines as $2 billion and dous need to deploy capital, but panies undervalued by the mar- “You sort of now have the Good firm, Silver Lake Partners, for less in market capitalization, have they’re driving growth,” he said. ket, which tends to be a motiva- Housekeeping seal of approval,” he $24.4 billion. seen increases in their stock “That’s the No. 1 thing investors in tion to go private, he explained. added. “You’re public and by defi- Already as of April 16, the dollar prices. IPOs look for — a solid growth Another reason for more IPOs? nition, you’ve made it. You’re the value of going-private mergers “That certainly can put a story.” Large private equity investors same company that you were six and acquisitions in the United damper on some of that (go-pri- He also expects more initial need liquidity, Mr. Fine said. months ago, pretty much, but now States — $50.7 billion — exceeded vate) activity,” he said. public offerings out of the health Still, Lou Schneeberger doesn’t people look at you differently and the full-year dollar value of such The motivations for ending care space, and noted, too, that expect more companies to go are more accepting of you … deals in 2012 ($42.1 billion) and in one’s time as a public company food IPOs have been strong. public. because somebody chose to buy 2011 ($49.8 billion), according to vary. Case Western Reserve’s Mr. Mr. Schneeberger, who has had your stock.” ■ Thomson Reuters. Some smaller-cap companies KeyBanc Capital Markets has are driven by a lack of investor seen more M&A activity over the interest, which subsequently can last nine months, including more leave them feeling that their com- companies contemplating going pany is undervalued, Mr. Paine private, Mr. Paine said. said. All the while, just like every “I do think we will see more other public corporation, they go-private transactions as we work must absorb “significant costs,” he through 2013 and certainly as we added. work into 2014 and ’15,” said Mr. Professional advisers estimate Paine, whose company advised that being public costs companies the Weiss family on its transaction millions annually. That figure in- and raised a good portion of the cludes legal and accounting costs, CAUGHT IN THE PERFECT capital for it. plus the fact that management “Private equity firms have a lot must devote some time to culti- of capital to deploy, and the debt vating a relationship with share- capital markets are wide open,” he holders and research analysts. said. “Every type of capital is avail- There also are cases such as able right now.” Dell’s, in which the company STORM? Private eyes seeks to reposition itself and diversify its business away from Fifth Third Bank’s Northeastern the scrutiny of public sharehold- Ohio affiliate has engaged over the ers, Mr. Paine added. WE’LL GET YOU BACK TO BUSINESS. last 12 months in more conversa- “Transformation takes years in tions with clients about their most cases and public investors strategic options, including going are looking for progress every private, than it has in the several quarter,” he said. “In those years prior, said Jerry Kelsheimer, instances, many CEOs and boards president and CEO of the affiliate. feel it’s in the company’s best in- There have been seven Ohio terest to undertake that transfor- companies that have gone private mation outside of the public eye since 2009, according to Thomson and the public equity investors’ CLEVELAND’S Reuters, including the sale to a need for quarterly progress.” private equity firm of fabric and Mr. Paine said he cannot com- BUSINESS LAWYERS crafts retailer Jo-Ann Stores Inc. ment on American Greetings’ mo- of Hudson in 2010 and a deal for tivations. Scott Fine did, though. BUSINESS BREAK-UPS & PARTNERSHIP DISPUTES Max & Erma’s Restaurants Inc. in With “virtually no analysts that 2008. cover it,” “thin trading volume,” Company executives pondering and its small size, “there’s no rea- Business break-ups and partnership disputes can be turbulent. It takes a specialized law such deals tend to discuss the way son for it (American Greetings) to ﬁrm to help weather a storm. Ciano & Goldwasser - we’ll get you back to business. the market values their businesses, be a public company,” said Mr. the costs of compliance and Fine, a professor of banking and reporting — particularly because finance at the Weatherhead Andy Goldwasser & Phil Ciano of the Sarbanes-Oxley Act of 2002 School of Management at Case — and having to do public disclo- Western Reserve University. Selected by their peers as two of the sure, Mr. Kelsheimer said. A ‘seal of approval’ “When you disclose to the pub- “Top 50” Lawyers in Cleveland and “Top 100” Lawyers in Ohio. lic … you’re also disclosing to your Initial public offerings also may competitors,” Mr. Kelsheimer be poised to increase in today’s said. “The other side of that is environment, some say. each time you write a disclosure, it IPOs in the United States takes time and effort and it costs reached their highest dollar value something.” in 2012 ($41 billion) since 2007, Liquidity is available to finance when IPOs reached $46.8 billion, the “good, sound transactions in according to Thomson Reuters the marketplace,” Mr. Kelsheimer data. The firm counts only five said. When asked whether Fifth IPOs in Ohio, though, since 2008. Third faces stiff competition in For the first time in a number cianogoldwasser.com/businessdivorce | 216-658-9900 financing such deals, he replied, “I of years, there’s been a strong think banks that are well capital- run-up in stock valuations and 20130429-NEWS--18-NAT-CCI-CL_-- 4/26/2013 10:27 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 Investment committees need plan to address costs

ticipant’s or beneficiary’s action. 401(k) offerings MICHAELSWALLOW The court ruled that plan fidu- Even if you formally benchmarked your plan two or three ciaries can be held responsible for years ago, it may be time to again embark on a review should be reviewed losses caused by the fiduciary’s of current investment fees, products and services. breach of its duties. to determine if the ERISA requires that fiduciaries This necessary step will ensure that the plan sponsor act with the type of “care, skill, and investment committee are meeting their fiduciary fees are reasonable prudence and diligence under the responsibilities. circumstances not of a lay person, s your 401(k) plan utilizing the but of one experienced and lowest cost investment ADVISER knowledgeable with investment plan menu because they failed to against its peers, it is a best practice options? matters.” investigate the possibility of insti- to use actual competitive market I on one of the most important tutional share class alternatives. data to determine if your plan’s in- If not, does your investment Selected mutual funds that components of plan sponsor fidu- vestment fees and expenses are committee have the proper docu- charge “excessive fees” are consid- This ruling came on the heels of ciary responsibility, which is to reasonable and appropriate. mentation supporting the plan’s ered to be a breach of the fiduciary the new plan sponsor fee disclo- ensure that fees and expenses sure requirements of 2012. The Since 401(k) marketplace dy- decision to offer higher cost retail duty of prudence, although the paid by plan participants are rea- Department of Labor 408(b)(2) fee namics are constantly changing, mutual funds instead of lower cost court recognized that “nothing in sonable in relation to the services disclosure requirements, which plans must remain competitive to institutional funds? ERISA requires (a) fiduciary to and products provided. called for compliance by July 1, keep up. Based on the March 21 ruling of scour the investment markets to th In Tibble v. Edison, the plan 2012, brought fees and expenses Even if you formally bench- the 9 U.S. Circuit Court of Ap- sponsor and fiduciaries had been find and offer the cheapest possi- to the forefront of the minds of marked your plan two or three years peals in the Tibble v. Edison case, sued by participants claiming their ble mutual fund.” every plan sponsor and invest- ago, it may be time to again embark every 401(k) plan sponsor and in- account fees were too high because The court also notes that there ment committee. on a review of current investment vestment committee should ask the plan offered higher cost retail may be situations where a fiducia- Now more than ever, plan spon- fees, products and services. themselves these questions when mutual funds when lower cost in- ry might “have chosen funds with sors and investment committees This necessary step will ensure evaluating the investment options stitutional funds were available. higher fees for any number of rea- of 401(k) plans should be review- that the plan sponsor and invest- in their 401(k) plans. The appeals court rejected the sons, including potential for high- ing not only investment fees but ment committee are meeting their The court affirmed a district plan sponsor’s claim that it was er return, lower financial risk, also the overall costs of their fiduciary responsibilities while court opinion that a plan sponsor shielded from liability under the more services offered or greater plan(s) and making a determina- helping plan participants reach was imprudent for offering retail Employee Retirement Income Se- management flexibility.” tion as to the reasonableness of their retirement goals. mutual funds without investigat- curity Act, Section 404 (c), because In this case, however, the fidu- those costs. ing the possibility of lower cost in- that provision only protects fiduciaries were imprudent in decid- While survey data can provide Michael Swallow is a senior vice stitutional share classes. ciaries from losses that are a “di- ing to include retail class shares of some guidance on how your 401(k) president at CBIZ Retirement Plan This ruling shines a bright light rect and necessary result” of a par- three specific mutual funds in the plan’s investment fees compare Services. Gabelli-led group ups Crain’s is Cleveland Business its Ferro Corp. stake May 13 May 20 May 27 FOCUS: Small Business FOCUS: Health Care FOCUS: Investing Guide Conglomeration has Largest Manufacturers List Heroes feature Northeast Ohio Largest Public ON THE WEB Story from: Companies List www.crainscleveland.com ad space close: May 2 (+ bonus distribution at the 16.2% of all shares Crain’s luncheon) ad space close: May 16 outstanding, some company intends to support the ad space close: May 9 three individuals nominated for the claim board ‘failed’ board by the Shareholder Commit- By RACHEL ABBEY McCAFFERTY tee for the Future of Ferro. It has June 3 June 10 June 17 [email protected] not yet decided how to divide the votes if the election for directors FOCUS: Prep & Parochial FOCUS: Higher Education FOCUS: How Casino group of investment firms uses cumulative voting or if it will Largest Non-Profits List Education Gambling has changed connected to Mario J. give its proxy to the shareholder committee, according to the filing. Largest Private Companies List ad space close: May 30 Cleveland Gabelli has increased its ad space close: May 23 stock holdings in specialty The committee, led by Front- Largest Hotels List chemicalA maker Four Capital Group LLC and Quin- + SHALE magazine Ferro Corp. of pario Partners LLC, sent a letter to Early Ad close: May 2 ad space close: June 6 Mayfield shareholders last week, asking Heights, accord- them to support Jeffry N. Quinn, ing to informa- David A. Lorber and Nadim Z. tion filed last Qureshi as directors and saying Tuesday, April that the current Ferro board has “clearly failed.” The committee 23, with the U.S. highlighted the turnaround experi- Securities and ence of Mr. Quinn, Mr. Lorber and Exchange Gabelli Mr. Qureshi in its letter. Commission. Mr. Gabelli gave a few examples In sum, the Gabelli group now behind Gamco’s decision, the holds 16.16% of all of Ferro’s most recent being Ferro’s lack of shares outstanding. The group disclosure to shareholders about a held 15.67% of the shares in its last takeover proposal from Akron- filing on Feb. 25, and has been based A. Schulman Inc. until after purchasing shares since the start of a decision rejecting the proposal the year. had been made. A. Schulman, a Gamco Asset Management Inc. supplier of plastic resins, subse- and Gabelli Funds LLC hold the quently decided to proceed with a largest portions of the shares, at hostile takeover bid of $6.50 a 9.68% and 4.99%, respectively. share in cash and stock for Ferro. Mr. Gabelli expressed frustration That offer remains on the table. with the leadership at Ferro in an Voting for the committee’s slate interview with Crain’s, saying he of candidates would create “cre- wants to see its leaders think of the ative tension” on the board, Mr. shareholders when making Gabelli said. decisions. Ferro released a letter to share- If you want a connection to it - you have to be connected to Crain’s. “And they’re not doing it,” he holders last week, encouraging said. them to vote against the commit- For advertising information call 216.771.5158 or www.CrainsCleveland.com Gamco, a New York-based tee’s proposed slate of directors. investment advising firm, The annual shareholder meeting announced in the filing that the is scheduled for May 15. ■ 20130429-NEWS--19-NAT-CCI-CL_-- 4/26/2013 10:28 AM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 Good communication should be part of deal

very ambushed or taken by sur- “When you’ve identified a buyer “We’re dealing with human beings Mergers and acquisitions must be properly prise (when a deal is announced). and a timeline for the transaction here. If people get wind that Engaged employees also protect then your rank and file should be something is going on and there is explained to employees, and all questions the integrity of the deal.” informed. I would meet with no communication, they are going Keven Prather, the Cleveland- department heads who are proba- to be nervous and that’s when you and concerns should be thought of quickly based managing partner of the bly going to be in the know, and I have problems.” business private client group at would do a company meeting or Get the story straight By CHRISSY KADLECK depend on the type of sale, the size Skylight Financial Group, who meet with individual depart- [email protected] of the company and the degree of works with companies on pre-deal ments,” Mr. Prather said. Emotions can run high during integration. While there isn’t a hard planning as many as 10 years prior Dr. Feiner suggests working these transitions, especially in the hen Christopher M. and fast rule that fits every sce- to a deal, said if owners complete with a communications profes- case of mergers when there is Snider acquired the nario, advisers say there are some all the elements of a transition or sional to craft thoughtful commu- duplicity and cultures to weave Exit Planning Insti- smart strategies on-the-block com- exit plan, the employees are part nications in the seller’s voice to together. Up-front and thorough tute last fall, he exer- panies should employ to ensure of the value of the company. loyal customers, investment insti- communication can help ease con- cisedW the same sound practices he the long-term success of their deal. “You don’t want a mass exodus tutions, families and employees. cerns and worries, Mr. Snider said. recommends to his clients. “For business owners, it’s how of talent because what happens “The communication should be That’s when the aforemen- The new president and CEO do you preserve and protect your then is your value is walking out timed effectively so the people tioned “story” development piece began by crafting a story struc- legacy and how do you walk into the door,” he said. “The only way who need to know first are told becomes critical. What is the sto- tured around answering the antic- your future without your business you avoid that is by clear and con- first,” she said. For instance, an ry? How is that story going to be ipated questions and concerns of with no regrets and no stone left sistent communication at differ- employee shouldn’t hear the news interpreted by each of the identi- the institute’s key stakeholders. unturned,” said Stacy Feiner, a ent times but your top level man- from a supplier. fied stakeholders? What questions He then shared that story, first clinical psychologist who is a direc- agers need to be brought into the Mr. Snider said sometimes it’s will they have? What concerns will with the board and then with the tor at Solon-based SS&G Parkland fold once owners of the company nearly impossible to keep some they have? association’s 250 members, in a Consulting LLC. Dr. Feiner works understand how the transaction is details about the impending deal “What I ask my owners to do is series of in-person and online with business owners to first iden- going to occur.” from leaking out. to write up the set of questions and meetings. tify all of the people impacted by a All about timing “You are going to tell your man- then let’s then write up a press He articulated his vision of the decision to buy or sell a business. agement team first, they will typi- release or internal communication organization, which is an interna- The first tier of stakeholders Generally companies want to cally have to be involved in due that will address those questions tional membership organization includes the business owner, the avoid widespread communication diligence, especially if it’s a large before they are even asked,” Mr. for exit planning professionals, his potential buyer and the company’s to rank-and-file employees, cus- middle market company; you are Snider said. “It’s a good exercise for plan to learn and listen the first 90 employees — a figure that Dr. tomers, vendors, suppliers and going to talk to your board of the owners because it makes them days and his assurance that any Feiner suggests multiplying by four community members until the advisers; and you’re going to tell be more sensitive to how they have changes would be implemented to account for families impacted by deal is complete. your family,” Mr. Snider said. to communicate.” ■ around the six-month mark. He the decision. opened up the virtual floor to ques- “You are working intensely, tions from members. He then is- expensively and diligently with sued a news release to the public. your attorneys and your invest- Mr. Snider will concede that his ment bankers, and you have to outright purchase of the member protect the integrity of the deal, association lacked the complexi- which means you have to hold a ties that often accompany a more lot of information confidentially traditional mergers-and-acquisi- but oftentimes that gets confused tion deal, but his professional with being deceptive or secretive opinion is that exit planning itself with employees,” she said. THERE WERE SO MANY GUIDELINES, needs to “come out of the closet.” In an ideal corporate setting, “One of the problems in the employees should have a sense of EVEN THE GUIDELINES HAD GUIDELINES. industry is that it’s very fragment- the owner’s commitment to doing ed and there aren’t a lot of best what’s in the best interest of the practices. Where I think a lot of work force and sustainability of The Small Business Lending Fund didn’t get here on its own. It came with mergers and acquisitions fail is the company. there hasn’t been enough thought “The business owner can com- guidelines. There were the formal guidelines. There were the informal into what’s going to happen after municate in a variety of ways that guidelines that explained the formal guidelines. And there was a 30-day the sale,” Mr. Snider said. “Com- they have a vision for the company. munication is one of the key areas This has nothing to do with an deadline. So there were emergency shareholder meetings, disclosures and that break down.” actual deal, actual buyer or actually being in the market,” she said. non-standard proxy statements, and changes in charters and corporate Finding the best practices “When employees aren’t aware of structures, all to meet (you guessed it) the guidelines. In the end, we were How a company handles its the business owner’s overarching communication strategy will plan for the business, they can feel DEOHWRVWHHURXUÀQDQFLDOVHUYLFHVFOLHQWVWKURXJKHYHU\VWHSRIWKHSURFHVV help them increase lending to small businesses and help communities grow. Raymond James focuses on Good thing there were guidelines. technology, data collection

By LIZ SKINNER rate allowing clients to sign docu- Investment News ments electronically, he said.

Improving how advisers use ® Raymond James Financial Ser- Raymond James’ technology to Higher standards make better lawyers. vices Inc. plans to improve the serve clients and encourage asset For more information on our work in ÀQDQFLDOVHUYLFHVYLVLWYRU\VFRPÀQDQFLDO\ process its advisers use to sign on growth is the focus of many of the customers, according to the inde- firm’s sessions during the four-day pendent broker-dealer’s president. conference. At the opening of the firm’s na- Vin Campagnoli, head of tech- tional adviser conference in Dallas, nology strategy for Raymond Scott Curtis said the firm, which James, said the brokerage has in- has 3,200 financial advisers man- creased its technology spending by aging $175 billion in assets, also 30% since 2011. “That’s unheard of will require advisers this year to — no other firm can claim that add a layer of mobile security by they are up in technology spend- implementing MobileIron. ing that much over the last two “The goal is to completely reno- years,” he said. vate how we collect and store data, Raymond James has had a 3% and re-purpose basic client infor- increase in the number of advisers mation to make it reusable across and a 60% increase in client assets applications,” Mr. Curtis said. since 2008. It has offices throughout Vorys, Sater, Seymour and Pease LLP Improving the client intake Northeast Ohio. ■ 1375 East Ninth Street 2100 One Cleveland Center Cleveland, Ohio 44114 process — a task that many advis- 106 South Main Street Suite 1100 Akron, Ohio 44308 ers in the industry claim is too long Investment News is a sister publica- and involved — also will incorpo- tion of Crain’s Cleveland Business. 20130429-NEWS--20-NAT-CCI-CL_-- 4/26/2013 2:47 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 LARGEST INVESTMENT ADVISERS

RANKED BY ASSETS UNDER MANAGEMENT LOCALLY(1)

Total regulatory assets under Minimum Company management Total number individual Portfolio Address locally of local account analysts on Chief investment Rank Phone/Website (millions)(2) accounts (thousands) staff Compensation for services officer Top local executive

CBiz Financial Solutions Inc., dba CBiz Retirement Plan Services Fixed fees, percentage of 1 6050 Oak Tree Blvd. S., Suite 500, Independence 44131 $3,444.7 429 $1,000.0 6 assets under management and Brian Dean Luke F. Baum (216) 447-9000/www.cbiz.com commissions president

MAI Wealth Advisors LLC Fee only based on assets 2 1360 E. Ninth St., Suite 1100, Cleveland 44114 $2,960.6 709 $500.0 11 under management or set fee Gerald H. Gray Richard J. Buoncore (216) 920-4800/www.maiwealth.com for non-investment services managing partner

CM Wealth Advisors Inc. 3 30195 Chagrin Blvd., Suite 250, Pepper Pike 44124 $2,054.3 93 $2,000.0 NA Percentage of assets under James W. Wert James W. Wert (216) 831-9667/www.cmwealthadvisors.com management, fixed fees president, CEO

Lincoln Financial Advisors/Sagemark Consulting Flat fee, commission and/or 4 28601 Chagrin Blvd., Suite 300, Cleveland 44122 $2,006.8 NA NA NA percentage of assets under Tim Johnson Jeremy DiTullio (216) 765-7400/www.lfa-sagemark.com management Ben Huddle managing principal

Rehmann Financial Joseph P. Heider 5 29065 Clemens Road, Bldg. B, Westlake 44145 $1,162.0 4,667 $250.0 14 Fee or commission Jeffrey Phillips regional managing (440) 356-4520/www.rehmann.com principal

Fairport Asset Management JT Mullen Kenneth Coleman 6 3636 Euclid Ave., Cleveland 44115 $1,045.5 1,205 $1,000.0 4 Fee only John Silvis Heather Ettinger (216) 431-3000/www.fairportasset.com managing partners

HPM Partners LLC 7 600 Superior Ave., Suite 1000, Cleveland 44114 $900.0 101 $2,000.0 6 Fee only from clients Douglas C. Nardi Irvin A Leonard (216) 687-0700/www.hpmpartners.com managing partner

Sequoia Financial Advisors LLC Percentage of assets under 8 121 S. Main St., Suite 300, Akron 44308 $846.0 3,489 $0.0 5 management, fee and Thomas A. Thomas A. Haught (330) 375-9480/www.sequoia-financial.com commission Haught president

Fairway Wealth Management LLC 9 6055 Rockside Woods Boulevard, Suite 330, Independence 44131-2317 $783.0 120 $2,000.0 4 Fee only, based on assets Mark S. Weiskind Daniel R. Gaugler (216) 573-7200/www.fairwaywealth.com and/or scope of services CEO, managing director

McDonald Partners LLC 10 959 W. Saint Clair Ave., Cleveland 44113 $575.2 1,916 NA 2 Fee and commission Bill Hegarty Thomas McDonald (216) 912-0567/www.mcdonald-partners.com president, CEO

Vantage Financial Group Inc. 11 6200 Rockside Road, Cleveland 44131 $550.0 2,500 NA 4 Fee and commission NA William M. McCormick (216) 642-7878/www.vanfin.com CEO, president

MGO Investment Advisors Inc. 12 24400 Chagrin Blvd., Suite 310, Beachwood 44122 $470.7 2,223 $15.0 4 Percentage of assets under Michael Bradford Michael Moskal (216) 771-4242/www.mgo-inc.com management Moskal president

Cornerstone Capital Advisors 13 1507 Boettler Road, Suite G, Uniontown 44685 $410.5 1,110 $100.0 2 Fee only Mario C. Giganti Mark W. Fearigo (330) 896-6250/www.ccadvisors.com principal, senior advisor

St. Clair Advisors LLC(3) Fee only, fixed or based on David W. Ron Bates 14 6120 Parkland Blvd., Suite 303, Mayfield Heights 44124 $407.0 50 $5,000.0 1 (216) 925-5670/www.saintclairadvisors.com assets under management Sommer president Landing Point Financial Group 36350 Detroit Road, Avon 44011-1506 Percentage of assets under NA Joe L. Flinner 15 (440) 934-7100/www.ameripriseadvisors.com/team/landing-point-financial- $348.5 2,192 $0.0 12 management managing partner group/ Inverness Holdings LLC 16 One Chagrin Highlands, Suite 440, Beachwood 44122 $312.0 352 $750.0 8 Fee and commission Jeffrey van Richard B. Renner (216) 839-5130/www.invernesswealth.com Fossen principal

Scott Snow (financial advisors) LLC Scott P. Snow 17 24601 Center Ridge Road, Suite 175, Westlake 44145 $270.4 65 $1,000.0 2 Fee only Scott P. Snow (440) 871-7669/www.s2fa.com managing director

Aurum Wealth Management Group LLC Eric N. Wulff, Christopher 18 6685 Beta Drive, Mayfield Village 44143 $228.4 106 $1,000.0 2 Fee only Michael T. D. Bart, managing (440) 605-1900/www.aurumwealth.com McKeown directors, principals

Financial Management Strategies Inc. Fee only, percentage of assets Jeffrey C. Knox 19 9050 Sweet Valley Drive, Valley View 44125 $140.4 378 $50.0 2 Charles B. Elliott president (216) 642-1099/www.fmstrategies.biz under management

Paradigm Wealth Management LLC Percentage of assets under Douglas C. Kuhlman 20 27865 Clemens Road, Suite 1A, Westlake 44145 $98.2 55 $500.0 2 Marnie Randel managing partner (440) 892-5900/www.investpwm.com management

Willow Street Advisors LLC Fee only, percentage of assets Richard H. David B. Kearns 21 198 W. Portage Trail Ext., Suite 105, Cuyahoga Falls 44223 $89.2 65 $1,000.0 1 (330) 923-3038/www.willowstreetadvisors.com under management Stevens managing director, Ohio Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Companies that are registered with the SEC as investment advisers but do not have full control over where their clients' money is invested are included in the Investment Advisers list. This criteria is in keeping with the standard used by our sister publication, Pensions & Investments. (2) As of the most recent ADV filed with the SEC. (3) Formerly Altus Wealth Advisors LLC. 20130429-NEWS--21-NAT-CCI-CL_-- 4/26/2013 1:17 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Team: Revenue has grown considerably

continued from PAGE 3 TEAMWORK’S REACH Komoroski said. “Teamwork Online marketing giant IMG — found a foreshadowed what the future of need for a digital version of her A look at the number of professional the industry was. I’m not sure if executive search firm, TeamWork sports teams with which TeamWork there is a major sport or governing AIR CHARTER SERVICE Consulting, which she started 27 Online works, along with the total body or discipline that she doesn’t AIRCRAFT MANAGEMENT years ago. TeamWork Online was number of teams in each league and have a relationship with.” the first of its kind in the sports the percentage that does business with Now that he is the one doing business — an online matchmaking the Shaker Heights company: much of the hiring for the Cavs, Mr. service for teams and potential League Clients Teams Pct. Komoroski said TeamWork Online hires — and it has been so effective NBA 30 30 100.0 is “a staple of our recruiting efforts.” MLS 16 19 84.2 its footprint is visible in almost Thank you, Godmother every area of professional athletics. NFL 26 32 81.3 All 30 NBA teams use Team- NHL 24 30 80.0 Bill Sutton was a sports manage- Work’s service, for which employ- MLB 23 30 76.7 ment professor at Ohio State Uni- ers pay annual fees to use the site’s TOTAL 119 141 84.4 versity who was looking for some- database of job candidates and po- ■ Cleveland connections: The thing different. He was referred to tential employees pay for help find- Browns and Cavaliers are TeamWork Mrs. Filippell, and his “life has ing their dream jobs. TeamWork Online clients. The Indians are not. changed quite a bit ever since,” he Cleveland’s Premier Air Charter Service also counts 26 of the NFL’s 32 says. Serving Northeast Ohio with four Beechjets and a Hawker teams as clients, along with 24 of almost like a 24-7 virtual job fair. Dr. Sutton went on to work for a the 30 NHL clubs and 23 of the 30 We have these massive employers sports marketing agency, then teams in Major League Baseball. sitting at the table, and we have this served as vice president of team massive pool of candidates.” marketing and business operations Factor in NASCAR, the PGA Tour, www.FlySkyQuest.com • 216-362-9904 Major League Soccer (16 of the 19 Mrs. Filippell said about 60% of for the NBA. In 2006, he started his clubs are TeamWork clients) and TeamWork Online’s revenue comes own strategic marketing company, others — including a new addition from annual fees paid by its long list and he’s also the founding director in the Harlem Globetrotters — and of professional teams. The rest and a professor in the sports and the small company led by the “God- stems from job candidates, partner- entertainment business manage- mother of Sports Management,” as ships with colleges and a new addi- ment graduate program at the Uni- one counterpart calls Mrs. Filippell, tion that has become quite popular versity of South Florida. Profitability is everywhere. — in-person networking events. He has leaned on Mrs. Filippell “When I made it, the whole point TeamWork is on pace to host every step of the way. Danger to employees, lost productivity, damaged of it was I was making a replica of more than 60 networking events “I call her The Godmother,” Dr. my executive search practice,” Mrs. this year, including ones with the Sutton said. “She’s the Godmother inventory, damaged equipment from a leaking Filippell said. “I know how much Cavaliers, Cincinnati Reds and of Sports Management. She has money they make and where they Columbus Crew of Major League made a significant difference in the roof? want to live. I know all that. How do Soccer. business. I don’t ever make a move I replicate it digitally? We’ve done Job-seekers pay for a ticket to the without running it by Buffy.” Carey Roofing Corp. has eliminated these that here. It’s been a phenomenal event, and Mrs. Filippell said teams He isn’t alone. Mrs. Filippell — who has been success.” must supply at least five “senior- married to her husband, Mark, for problems for our customers with practical Mrs. Filippell said TeamWork has level” executives. more than 30 years and has a son, had an annual revenue growth of TeamWork drew 200 people to solutions since 1946. Davis — said her company placed 18.8% since 2001. She said the com- an event last Monday, April 22, at 78 candidates in six-figure jobs in pany’s revenue climbed 39% in Fenway Park, home of the Boston 2012. 216•881•1999 2012 from levels of 2011, and its Red Sox. Said Mr. Kittle, TeamWork’s chief www.careyroofing.com first-quarter revenue this year was Another moneymaker is a premi- growth officer, “If you’re touching CAREY founded in 1946 up 30% from the first quarter of um service where candidates’ web somebody in sports, we’ve proba- Roofing Corp. MEMBER: National Roofing Contractors Association 2012. profiles can include a personal bly worked with them.” ■ TeamWork Online had 13,000 video, stories they have written and clients find jobs through its site in a link to their Twitter feeds. The 2012, a figure that was twice as MVP Access Program also includes many as the 2008 total, according to career coaching from Mrs. Filippell. Ms. Filippell. She said the company “One of the terrific parts of our is on pace to match more than program is you could see your 15,000 candidates and sports teams entire career in sports laid out for this year. you,” Mrs. Filippell said. “You can TeamWork Online chief growth say this is how much money I want officer Matt Kittle, who has been to make and see every single job with the company for four years, you’ll have to do for the next 20 said it “has been interesting to kind years in order to make that THE FUTURE BEGINS WITH A CAPITAL “G”. happen.” of be along for the ride.” Mr. Kittle For families, family ofﬁces, endowments, and foundations, the path to ﬁnancial stability said the private company doesn’t Local teammates and opportunity begins with a company founded by the Pew family in 1956 — Glenmede. release its financials, but Mrs. Filip- pell said TeamWork Online’s rev- The Browns and Cavaliers are As a privately-owned trust company with over $22 billion under management, we never enues are above seven figures, and two of TeamWork Online’s many struggle with competing priorities. We remain singularly focused on investment and wealth the company “has always been clients. management and serving your best interests. profitable.” The Browns do much of their hiring on their own, according to a How it works team spokesman, and use Team- TeamWork’s thousands of job- Work as a “supplement” to their seekers enter their desired posi- searches. tions and salaries into the compa- The Cavs, however, have had a ny’s database and clients are long partnership with TeamWork matched with professional teams — one that resulted in the hiring of with which they might be able to fill Len Komoroski in 2003. needs. Mr. Komoroski, CEO of the Cavs Mrs. Filippell said much of her and Quicken Loans Arena, left his company’s growth stems from a job as vice president of sales with change made in 2008. In prior the Minnesota Timberwolves in years, TeamWork Online’s candi- 1994 when Mrs. Filippell steered date profiles were what Mrs. Filip- him to the Cleveland Lumberjacks, pell called “dead end” — they a minor league hockey team for weren’t continuously updated. Five which he became chief operating years ago, TeamWork created a uni- officer and a minority owner. versal candidate application that is Mr. Komoroski left Cleveland for updated every time a candidate a job with the Philadelphia Eagles applies for — or lands — a job. in 1996, then returned when Mrs. www.glenmede.com “Most employment systems are Filippell reached out about an dead end,” Mrs. Filippell said. opening with the Cavs. Glenmede’s services are best suited for those with $3 million or more to invest. “Those records will die in three, “She’s responsible for both of my To learn more, please contact Linda Olejko at 216-514-7876 or [email protected] four months. Ours never die. It’s a hires in Cleveland,” Mr. Komoroski very living, breathing system that is said of Mrs. Filippell. 2 2 2 2 2 running through all this. We’re “Over the years, she’s placed any keeping track of this system. It’s number of execs in pro sports,” Mr. 20130429-NEWS--22-NAT-CCI-CL_-- 4/26/2013 2:52 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 Suburban: Beacon Journal is vague about opportunity continued from PAGE 1 “We’re hashing that over “We’re hashing that over right now,” said Paul B. Martin, president right now.” and CEO of Lorain County Printing – Paul B. Martin, president and and Publishing Co., which publishes CEO, Lorain County Printing and the Elyria Chronicle-Telegram and Publishing Co., on plans to The Medina Gazette. increase home delivery “We will try to deliver as many market after The Cleveland Press copies as we can in those areas,” folded in 1982, and it’s not saying Mr. Martin said, declining to be much about any plans to extend its more specific. reach, though it’s unlikely its owner In a letter last Monday, April 22, is eager to invest in the property. to its employees, Lorain County Publisher Andrea Mathewson Printing was only slightly more declined to be interviewed by tele- forthcoming, stating, “We will be phone but did agree to respond to working to strengthen our presence questions by email. However, her in new markets and offer differenti- response to several questions was a ating services over the next few brief four sentences. Boiled down, months that will strengthen our she said, “The Beacon Journal has position in the market.” no plans to reduce its home deliv- Editorially, the two papers’ cover- ery days. We are always looking at age overlaps The Plain Dealer in options to enhance our coverage as communities such as Avon, Avon we enter our 175th year of serving Lake and North Ridgeville in Lorain the community.” County, and in Brunswick in Medina The Beacon Journal was sold in County. 2006, just before the newspaper The Lorain County Printing industry began a downward spiral, newspapers, like all the papers that by The McClatchy Co. to Canadian serve the region outside Cuyahoga press mogul David Black’s Black JASON MILLER County, comprehensively cover the Home-delivery tubes for The Plain Dealer, the Elyria Chronicle-Telegram and The Lorain Morning Journal are side by side Press Ltd. for $165 million. Cleveland pro sports teams and, on a street in Avon. In 2010, Mr. Black told the Globe because of inter-county rivalries, and Mail of Toronto, after writing high school sports. Those coverage down the Beacon Journal invest- areas would make them attractive ment by $100 million, “It was not a to some readers, especially if The smart thing to buy.” Tuesday, June 4, 2013 Plain Dealer stops home delivery on The Beacon Journal and The 7:00-8:00AM - Registration/Breakfast/Networking Saturdays or Mondays. Plain Dealer — like larger daily 8:00-9:30AM - Program/Panel Discussion Feeling territorial newspapers across the country — Ritz-Carlton, 1515 W 3rd St, Cleveland, OH have been struggling. The situation Two newspapers that bracket has created an opportunity for Cuyahoga County to the east and smaller papers, which generally west are even further ahead in their have not have been hit as hard, to planning than the Chronicle- boost circulation and advertising by Telegram and Gazette. attracting die-hard newspaper “For several months we’ve been readers, typically older readers, who anticipating (The Plain Dealer’s cut- can’t or don’t want to go out to a back) and planning for it,” said Jeff convenience store or news box four Sudbrook, president and publisher of days a week to get a newspaper. The Morning Journal in Lorain and The News-Herald in Lake County. New Orleans’ experience “Most recently at The Morning The Plain Dealer’s home delivery Journal we expanded our news cov- footprint covers all of Cuyahoga erage more intensely into the Avon- County and pushes into communi- Avon Lake area, and into Westlake, ties on the edges of neighboring Bay Village and Rocky River; and in counties. The paper’s market The News Herald (territory) as well,” research department describes its reaching into Euclid and Richmond “Power Zone” as Cuyahoga County Heights, Mr. Sudbrook said. and the ZIP codes approximately 10 “We do expect to pick up some miles beyond the county’s borders. subscribers. Whether that’s a few None of the smaller regional hundred or a few thousand at each papers in Northeast Ohio intend to property is as yet to be determined,” strike at the core of that zone. Mr. Sudbrook said. “We should pick In New Orleans, however, the Where is my data? Is it safe? up some advertising dollars as well.” Baton Rouge Advocate moved quick- The two newspapers are owned ly to fill the gap that opened in New by Journal Register Co., a media Orleans when the Times-Picayune t.BOBHJOHUIFDIBMMFOHFTPGFYFDVUJOHB$MPVETUSBUFHZMeet the Panel conglomerate with print and online took a more drastic step than The news properties in 10 states. Journal Plain Dealer, its corporate sibling. Register in March emerged from In May 2012, Advance Publica- t8IBUTIPVMEZPVBTLBCPVUXIFSFZPVSEBUBJTIPTUFE Chapter 11 bankruptcy protection tions announced it would halt sev- — its second stint in U.S. Bankrupt- en-day publication of the newspa- t8IBUTFDVSJUZJTTVFTDPVMEIBNQFS$MPVEBEPQUJPO cy Court in three years. Like Plain per and publish only three days a Dealer owner Advance Publications week. By September, the Advocate t0QUJNJ[JOHZPVSCVTJOFTTQSPDFTTFTXJUIUIF$MPVE of New York, Journal Register prop- was launching a New Orleans edi- erties are placing greater emphasis tion. At the time that the Baton on their online products. Rouge-based newspaper was sold Sponsored by: Michael D. Stovsky Joe Palian, Sales Engineer, Joe Compton, The Lorain paper circulates pri- in March to New Orleans business- Partner, Benesch Expedient Data Centers Principal, Skoda Minotti marily in Lorain County, though it man John Georges, the Advocate does have some circulation in Cuya- said it was selling 20,000 papers daily Underwritten by: hoga County’s western suburbs. The in New Orleans, a significant part of Sponsored by: News-Herald circulates in Lake its 98,000 daily circulation. REGISTRATION: Contact Denise Donaldson at County and in several of Cuyahoga Mr. Georges has not announced County’s eastern suburbs, including plans for further development of 216-771-5159 or [email protected] Euclid and Richmond Heights. the New Orleans edition. Underwritten by: The southern flank Rick Edmonds, a newspaper REGISTRATION:www.CrainsCleveland.com/BREAKFAST Contact Denise Donaldson at business analyst at the Poynter In- 216-771-5159 or [email protected] The Akron Beacon Journal could stitute, a nonprofit journalism insti- be considered The Plain Dealer’s tute based in St. Petersburg, Fla., greatest rival, because it’s the largest said the Advocate’s experience in www.CrainsCleveland.com/BREAKFAST newspaper that rings the PD’s home New Orleans strongly suggests that territory. The Akron paper tried un- “some people get it because they successfully to crack the Cleveland really, really want to get a paper.” ■ 20130429-NEWS--23-NAT-CCI-CL_-- 4/26/2013 3:05 PM Page 1

APRIL 29 - MAY 5, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 Alliance: Initiative helps Clinic extend brand into new markets continued from PAGE 1 WHAT THEY’RE SAYING ABOUT THE ALLIANCE Intellectual capital gains “I think clearly the market in the future will favor the groups that are Northeast Ohio. Late last year, for While those participating in the the most efficient, and quality is go- instance, the Clinic announced it Quality Alliance beyond Northeast “We want the “It doesn’t matter whether ing to be absolutely expected,” Dr. had struck a deal with Buffalo Med- Ohio pay to be a part of the group, community to know we you get any referrals out of it Elsawy said. “How efficiently you ical Group in western New York as Ann Huston, the Clinic’s chief strat- can provide those outcomes is go- its first out-of-state participant in are part of the or not. People are saying egy officer, brushed off a question ing to be key to the success of any the initiative. alliance and that we they’re part of the Cleveland about whether the alliance was a health care system.” In addition, the Quality Alliance way for the Clinic to generate rev- are included in this Clinic quality initiative, and Patient data from the Quality Al- is expected to play a big role in the prestigious group.” they follow the Clinic’s enue. Instead, she said in an e-mail Clinic’s burgeoning relationship the Quality Alliance “shifts the ful- liance’s members also will be with Community Health Systems – Joe Mantone, director of standard of care.” crum of our health system from the dumped into a secure online data- bank, which Dr. Elsawy said will be — the large, publicly traded hospi- public relations, Buffalo – Bill Ryan, president, Center for Health hospital to a care system which is tal company in Franklin, Tenn., Medical Group Affairs needed for population health.” useful for research and evaluating that inked a strategic alliance with “We recognize that every physi- the best ways to manage the health the Clinic in March. cian practice, physician group or of large groups of people. “The more data points you start ‘That’s free advertising’ said it appears to be a logical way for Systems announcement that the health care organization will not the Clinic to drive patient referrals partnership would be “a way for us have the resources, the time, or collecting from varied geography, From a local standpoint, the and — perhaps more importantly — hopefully to extend our brand.” the intellectual property to build you truly start to enter the realm of Quality Alliance allows the Clinic to to extend the Clinic’s already-strong The Buffalo Medical Group has these scalable capabilities,” Ms. understanding big data in a mean- ensure private practice docs doing brand into new markets. rolled the Quality Alliance into Huston said. “The Quality Alliance ingful way,” Dr. Elsawy said. business at its community hospi- “It doesn’t matter whether you some of its in-house promotional allows us to bring these types of of- Dr. John Notaro, associate med- tals are up to snuff in caring for pa- get any referrals out of it or not,” pieces, which run on televisions in ferings to them wherever they are ical director of Buffalo Medical tients by meeting certain quality Mr. Ryan said. “People are saying patient waiting rooms at the located.” Group, said gaining access to the metrics. In the long run, it will be they’re part of the Cleveland Clinic group’s facilities. Most large health care systems clinical protocols and quality stan- the hospitals that are dinged by quality initiative, and they follow “We want the community to are migrating toward this notion of dards established by the Clinic and government payers for costly read- the Clinic’s standards of care. know we are part of the alliance population health management to the other doctors in the alliance is missions — something that could That’s free advertising.” and that we are included in this varying degrees, as commercial and invaluable. be warded off by proper primary Clinic CEO Dr. Toby Cosgrove prestigious group,” said Joe Man- government insurers are expected “We’ve already taken things that care, said Bill Ryan, president of the has been vocal about his desire to tone, director of public relations for to move toward reimbursement are pretty well recognized mea- Center for Health Affairs, an advo- bolster the Clinic’s name recogni- Buffalo Medical Group. “From systems that reward doctors and sures of quality for ourselves, but cacy group for local hospitals. tion throughout the country, not- what I’ve read, the Cleveland Clin- hospitals for providing quality, yet this enhances that,” Dr. Notaro As for the Clinic’s out-of-state push ing during an interview with Crain’s ic is one of the world’s most recog- low-cost, care for large groups of said. “It gives us access to the intel- with the Quality Alliance, Mr. Ryan following the Community Health nized health brands.” people. lectual capital of the alliance.” ■ TAX LIENS

The Internal Revenue Service filed tax LIENS RELEASED liens against the following businesses Presented by: in the Cuyahoga County Recorder’s Allied International Sales Co. Office. The IRS files a tax lien to pro- 18224 Fernway Road, Shaker tect the interests of the federal gov- Heights ernment. The lien is a public notice to ID: 34-1613053 creditors that the government has a Date filed: Oct. 26, 2009 claim against a company’s property. Date released: Feb. 5, 2013 Liens reported here are $5,000 and Type: Employer’s withholding higher. Dates listed are the dates the Amount: $28,919 documents were filed in the Recorder’s Office. Alpha Tool & Mold Inc. 83 Alpha Park, Highland Heights ID: 34-1258012 LIENS FILED Date filed: Jan. 7, 2011 Saluting the best of Northeast Ohio’s HR executives Eagle Panels LLC Date released: Feb. 5, 2013 3636 W. 58th St., Cleveland Type: Employer’s withholding ID: 27-2160052 Amount: $19,604 NOMINATE NOW! Date filed: Feb. 5, 2013 Alpha Tool & Mold Inc. Type: Employer’s withholding 83 Alpha Park, Highland Heights Amount: $9,652 ID: 34-1258012 www.CrainsCleveland.com/HRLeaders Progressive Steam Inc. Date filed: Nov. 12, 2010 1588 E. 40th St., Cleveland Date released: Feb. 28, 2013 NOMINATION DEADLINE: Monday, May 20 ID: 34-1533090 Type: Employer’s withholding Date filed: Feb. 28, 2013 Amount: $90,106 CATEGORIES Type: Employer’s withholding Architectural Sheet Metals LLC Amount: $9,213 1457 E. 39 St., Cleveland )3&YFDVUJWFPGUIF:FBSt*OOPWBUJPO"XBSEt3JTJOH4UBS K P S Electric Inc. ID: 20-4733935 3120 Woodview Drive, Broadview Date filed: July 24, 2012 $JUJ[FOTIJQ"XBSEt-JGFUJNF"DIJFWFNFOU"XBSE Heights Date released: Feb. 5, 2013 ID: 34-1840061 Type: Employer’s withholding Date filed: Feb. 7, 2013 Amount: $13,906 Premier Sponsor: Type: Employer’s withholding Architectural Sheet Metals LLC Amount: $6,470 1457 E. 39 St., Cleveland Romito Enterprises Inc. ID: 20-4733935 18414-16 St. Clair Ave., Cleveland Date filed: March 23, 2012 Date released: Feb. 5, 2013 ID: 34-1898839 CCo-Presentedd by:b Date filed: Feb. 27, 2013 Type: Employer’s withholding Type: Employer’s withholding, Amount: $15,731 unemployment Architectural Sheet Metals LLC Amount: $6,283 1457 E. 39 St., Cleveland Harold Pollock Co. LPA ID: 20-4733935 5900 Harper Road, Suite 107, Solon Date filed: Nov. 16, 2011 Networking sponsor: In partnership with: Video sponsor: ID: 34-1530164 Date released: Feb. 5, 2013 Date filed: Feb. 27, 2013 Type: Employer’s withholding Type: Employer’s withholding Amount: $12,546 Amount: $5,630 Bejjanis Balloon Mart Inc. James Secure Inc. 100 Hayes Drive, Suite F, Brooklyn 932 Broadway Ave., Bedford Heights ID: 20-1889160 ID: 34-1697010 Date filed: Feb. 5, 2013 Date filed: Feb. 24, 2004 NOMINATION QUESTIONS? Contact Michelle Sustar Type: Employer’s withholding, Date released: Feb. 28, 2012 unemployment, failure to file Type: Employer’s withholding, at 216-771-5371 or [email protected] complete return unemployment Amount: $5,307 Amount: $48,064 20130429-NEWS--24-NAT-CCI-CL_-- 4/26/2013 1:53 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 29 - MAY 5, 2013 Incubators: Ohio says promising startups should receive money

continued from PAGE 1 tion that incubators should push ness Accelerator, staff would need ator in March 2012, when it was ac- were putting people in the hallway, The ideas are meant to help the harder to make sure startups “grad- to be cut, said CEO Anthony quired by Laird PLC of London for I might help Banyan find other incubators turn startups into uate” — meaning they should stop Margida. $22 million. The wireless technology space,” he said. “thriving, independent job cre- using subsidized office space and “It would really cut into our abil- company since has moved out. ators” within roughly three to five relying on incubator services — ity to serve our client base,” Dr. The Akron accelerator didn’t Make way for innovators years, said David Zak, chief of the within three to five years. Margida said. push the companies to leave State officials said they under- business services division within And none of them voiced sup- Officials from the two Edison in- because it hasn’t “reached a point stand that businesses in some sec- the Ohio Development Services port for the idea of giving one-third cubators in Cleveland — BioEnter- where any viable candidate would tors grow more slowly than others, Agency. The agency created the of their Edison money directly to prise Corp. and the Manufacturing be denied space,” said Dr. Margida, and they have no problem when es- overall incubator proposal for the their most promising startups in Advocacy & Growth Network who in January replaced Michael tablished companies pay full rent Third Frontier Commission, which the form of grants, loans or perhaps (MAGNET) — declined to com- LeHere as the incubator’s CEO. The in space set aside for incubator oversees most of the state’s tech- equity investments. ment on the issue. 50 or so companies in the incubator graduates. For instance, the nology-based economic develop- take up about 80% of the building, a Youngstown Business Incubator The Ohio Development Services When to leave the nest? ment efforts and recently took over Agency suggested the latter idea former B.F. Goodrich manufactur- has acquired space specifically for the Edison program. because startups need both men- Most companies served by ing plant with more than 200,000 that purpose. It’s not uncommon for compa- toring and capital, said senior me- Ohio’s Edison incubators already square feet of useable space. But established companies nies to remain in Edison incubators dia strategist Katie Sabatino. graduate in three to five years, said Plus, successful tenants not only shouldn’t use space and resources longer than five years, Mr. Zak said. But a few incubator officials said Bob Leach, who is both director of create local jobs, but they also can that startups could be using, said “In a lot of cases there are com- they don’t need to give their oper- operations at Braintree and chair- serve as mentors to younger ten- Mr. Zak of the Ohio Development panies that are there for a long ating money to the startups they man of the Edison Technology ants, Dr. Margida said. And their Services Agency. time,” he said. house because they already have Incubator Directors Collaborative. rent payments provide revenue for “If a company becomes indepen- The proposal hasn’t won a lot of relationships with investors and Some startups do take longer to the incubator, he added. dent, in our minds that makes support from the incubators. other organizations that provide leave, especially companies devel- Though some tenants pay higher room for another innovator who Executives from four Northeast capital for young companies. oping medical devices and phar- rental rates than others, they all pay has another great idea,” he said. Ohio incubators — the Akron Global For instance, GLIDE works with maceuticals, which have regulatory less than the market would charge, Incubator directors still have the Business Accelerator, the the Innovation Fund at Lorain hurdles to clear before launching Dr. Margida said. So, could he start opportunity to sway the direction Youngstown Business Incubator, County Community College. The their products, Mr. Leach said. charging more mature companies of the Edison program: The Third the Great Lakes Innovation & De- nonprofit fund gives startups However, companies that could a market rate? Frontier Commission instructed velopment Enterprise (GLIDE) in grants ranging from $25,000 to leave occasionally stick around “That’s certainly an option,” Dr. the development services agency to Elyria, and the Braintree Business $100,000. longer. Margida said. get their input. Development Center in Mansfield “Hopefully they’ll rethink that For instance, digital marketing A transportation software compa- The incubator directors said they — said they were OK with the idea whole concept,” said Dennis Coc- software company Knotice ny, Banyan Technology, has been believe they’re doing a good job, of letting other incubators apply for co, co-director of GLIDE. employed about 75 people in based in the GLIDE incubator for but they also know they have a duty the Edison program’s money. The If incubators are required to give Northeast Ohio at the start of the several years, but it pays what Mr. to work constantly to improve the program is set to receive $7.3 mil- one-third of their Edison money year, but it continues to rent space Cocco said is a market rate. Plus, Edison program, said Mr. Leach, lion over 18 months, a slight directly to companies, they’ll need at the Akron incubator at below- there is room for the company in the chair of the Edison directors group. increase over past levels. to reduce the services they provide, market rates. Another company, building, which is owned by Lorain “We understand that we have re- However, a few incubator offi- some incubator leaders said. For Summit Data Communications, County Community College. sponsibilities to both the state and cials were uneasy about the sugges- instance, at the Akron Global Busi- employed 38 people at the acceler- “If I was out of space and we the taxpayer,” he said. ■

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