20100222-NEWS--0001-NAT-CCI-CD_-- 2/19/20106:06PMPage1 ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved no’s FarmsinAnnArbor from spaceitleasedatDomi- Clinical andHealthResearch as the mer Pfizersite,nowknown 300 researchersintothefor- said itwouldbeginmoving structural imaging. will involvemolecularand drug delivery;theotherhub nanotechnology, sensorsand engineering combinationof will bebiointerfaces,abio- for medicalaffairs,onehub and executivevicepresident CEO ofthe for $108million. university boughtlastyear mer the 2million-square-footfor- hubs toserveasanchorsat has identifiedtworesearch Page 18 Largest accountingfirms, Pages 13-17 Winners, finalistsprofiled, Go global–orbust? Auto suppliers’challenge: in DetroitRegionalChamber The manwhoput‘regional’ for formerPfizercampus UM announcesanchors

NEWSPAPER www.crainsdetroit.com Vol.26,No.8 Crain’s Crain’s M&A Awards This JustIn Page 3 In January,theschool According to The Pfizer Inc. See ThisJustIn,Page2 University ofMichigan Michigan Institutefor List UM HealthSystem Ora Pescovitz campus the , , and therecipientofnearlyevery of comedybits,chatterandmusic, the modernmorningradioformat stations since1965. on-air stintsatdifferentDetroit than 50yearsago.Thatincludes ending acareerthatbeganmore oldies station he’s retiringnextmonthfrom Purtan announcedonFeb.11that work andtrademarkmustache, Purtan. years willbethevoiceofDick car radiosforthefirsttimein45 on March29,absentfromtheir metro Detroitersbegintheirday land assetsnowtobackloans,buttheycanusesuch cause ofadeclineinrealestatevalues,companiescan’tuse is oftenshort-termborrowingtofillneeds.Be- lost fortunesasabankfocusedalmostexclusivelyonhome personality’ be aso-called ‘It’s harderto Asset-based program atautosuppliers aimsinpart New modelforFlagstarBank /multimedia Video: W Widely consideredapioneerof Known forhishumor,charity When yawningandbleary-eyed Troy-based Asset-based lendingleveragescompanyassetsforwhat EB changing industry CRAIN’S DETROITBUSINESS E President andCEOon www.crainsdetroit.com XTRA his visionforFlagstar B young hockeyplayer, andonfindingthe — banking industryasa Y Purtan leavesPurtan a B Flagstar Bank ILL WOMC-FM 104.3 CRAIN’S DETROITBUSINESS B S Y HEA T OM H (NYSE: FBC),whichmadeand ENDERSON ing. into small-businesslend- tion. Italsowantstomove nance ramp-upsinproduc- suppliers andothersfi- program thatwillletauto out anasset-basedlending business model. mortgages, ischangingits , The bankintendstoroll ary methodinrecentyears. placed thetraditionalwritten di- Portable PeopleMetersthat re- as technology, such measurement stant audience detailed andin- of increasingly instead. play moremusic less onair,and to talkandlaugh agers andowners dio stationman- pressure fromra- change hasbeen mense change. a timeofim- ness, Purtanexitstheindustryat imaginable awardinthebusi- FEBRUARY 22–28,2010 It’s theresult Some ofthat Arbitron Inc. ’s womc.com Southfield, MI48075 16130 NorthlandDrive, Army Bed&BreadClubat send achecktoTheSalvation 1043, gotowww.womc.comor and sheltersthehomeless. Bed &BreadClub,whichfeeds Salvation ArmyofMetroDetroit Radiothon toraisemoneyforthe Ⅲ Ⅲ Ⅲ Ⅲ Ⅲ 23 What Details To donate Where When RD about hisshort-termplansforgrowingthebank’scom- pointed,” saidPresidentandCEOJosephCampanelli portfolio overthenext12-18months,I’llbeverydisap- ministration will alsoconsiderparticipationin and growsmall-businessmiddle-marketlending.It as accountsreceivablefromneworgrowingcontracts. P : 23rdDickPurtan RA RADIOTHON URTAN “If wedon’thaveacoupleofhundredmillioninour Flagstar wantstotapintothatmarketaswellstart : 6a.m.-10p.m.Friday : OaklandMallinTroy : salmich.org, “ : Call(248)307- lenders inourmarket. We wanttobemeaningful Joseph Campanelli,FlagstarBank loan programs. cluding Jackie,whoworkson the radio ismusicradio,andtalk “That’s beenaproblem.Music NATHAN SKID/CRAIN’SDETROITBUSINESS ’s See Purtan,Page26 daughters —in- has sixadult retiring, however. reason Purtanis isn’t theprimary play moremusic.” Owners wantto there usedtobe. much timeas There’s notas music radio. and entertainon called personality harder tobeaso- tan said.“It’s is talkradio,”Pur- Purtan, who That pressure See Flagstar,Page26 ..SmallBusinessAd- U.S. ” gives itsdonorsamoreintimate Society, GreatLakesDivision, an initiativeofthe vestment firm troit-based in- founder ofDe- search Fund gan CancerRe- man ofthe founding chair- Campbell, said William something else,” search anddo leave cancerre- wise might jects …other- research pro- who haveviable “the youngones tial funding, searchers. tinuing pipelineoflocalcancerre- projects butalsotoensureacon- put moneybehindvalidresearch would gounfunded. cer researcherswhootherwise lowships toyoungMichigancan- and 2013toprovidethree-yearfel- just under$1millionbetween2009 and afoundationhavecommitted researchers young cancer raised tofund Nearly $1M The researchfund,operating as Without ini- The group’saimisnotonlyto Sixteen localphilanthropists CRAIN’S DETROITBUSINESS B based lendingprogramsoon. expects torollouttheasset- CEO JosephCampanelli Flagstar BankPresidentand Y S Michi- HERRI and W.Y. Campbell&Co. See Cancer,Page25 $2 acopy;$59year Campbell Page 25 supporters, the research Donors: T American Cancer W ELIST HE NATHAN SKID/CDB ELCH Naming also ® 20100222-NEWS--0002-NAT-CCI-CD_-- 2/19/2010 5:29 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS February 22, 2010

ranean region, the Middle East, son and M1 Rail CEO Matt Cullen development assistance to local THIS JUST IN The way it was: 1985 Central Asia and India. will discuss the Woodward Light downtowns and businesses. The gallery’s construction cost Rail Project, aiming to connect The county said Main Street has ■ From Page 1 Throughout our 25th-anniversary was $750,000, and a pre-grand downtown, Midtown and the New tallied $540 million of investment, year, Crain’s will use this space opening celebration was to be Center district and be the founda- 4,000 jobs and 407 new businesses Township. to look at interesting items from held Saturday. tion for transit to Eight Mile and since the program launched 10 The school plans to form vari- past issues. —Crain News Service beyond. In addition, film producer years ago. MSOC provides infor- ous research clusters at the site (A longer version of this story ap- Aaron Woolf will present clips from mation, technical assistance and and add up to 3,000 jobs over the Companies peared on detroitmakeithere.com) his national PBS special “Blue- networking. Participants include next 10 years. Its engineering “ print America: Beyond the Motor Farmington, Ferndale, Franklin, school is one of the leading re- that use only City,” and DDP CEO Ann Lang will Highland Township, Holly, Lake search centers in the world in Deadline coming up provide a downtown update. Orion, Ortonville, Oxford, Ponti- MEMS, or microelectromechani- regular mail for biz-plan competition Also speaking: DDP Chairman ac, Rochester and Walled Lake. cal systems. Roger Penske, Mayor Dave Bing — Chad Halcom — Tom Henderson and telephone calls are going Would-be entrepreneurs look- and Wayne County Executive ing for funding have a little time Robert Ficano. SRC to see leadership transition to lose their competitive left to register for the Great Lakes The 11:30 a.m.-1:30 p.m. event Zoup stirs up plans for 100 Entrepreneur’s Quest’s statewide takes place at the Detroit Marriott Sterling Heights-based SRC Re- new locations in five years edge. business plan competition. The Renaissance Center. Tickets are frigeration Inc. founder and Presi- ” deadline for the contest is March 5. $75. The deadline for reservations dent Craig Richert will hand over Southfield-based Zoup plans to Larry Brilliant, Entrants will compete for cash is Tuesday. See www.downtown- the reins of his company at year’s open 12 new U.S. locations this prizes up to $25,000 or a new detroit.org or call Sharol Morgan end to Vice President of Opera- year and 100 within the next five Network Technologies $100,000 SmartZone Award. at (313) 566-8250. tions Steve Lemieux. Lemieux, 40, years, the company said. International Inc., Ann Arbor Entrepreneurs may work with — Brett Callwood joined the company in December The openings will bring Zoup’s after acquiring a 5 percent stake From a May 20, 1985, article GLEQ business coaches and store count to 34. about business communications. SmartZone advisers. Plans and in it and said he has until 2014 to The company started as a two- Brilliant and others were singing executive summaries are due in Main Street Oakland touts buy the company outright under man operation supplying soups the praises of “electronic mail.” late April and early May, and businesses, development a five-year purchase agreement to restaurants out of a small awards will be announced June with Richert. He was previously space in Eastern Market. 10. See http://gleq.org. At least 19 new businesses, 11 operations director at Romeo Eric Ersher, founder and manag- DIA opening new gallery — Nancy Kaffer new buildings, $19 million in pub- auto supplier L&L Products Inc. ing partner, opened the first Zoup for Islamic artworks lic and private investment and Richert, 62, will continue on in September 1998 in Southfield more than 300 new jobs came to with SRC in a different capacity and has since opened 22 loca- The Detroit Institute of Arts plans M1 Rail on agenda 11 downtown areas of Oakland after Lemieux takes over as presi- tions, with sales reaching $9.7 to open a new Islamic art gallery at DDP annual meeting County last year, according to dent in 2011. The company makes million in 2009. The company pro- Sunday. county officials. commercial refrigeration and jects revenue of $12 million this After more than five years of The M1 Woodward light rail County Executive L. Brooks Pat- cooling systems for floral shops, year. planning and acquisitions, the project is among the topics on the terson made the announcement convenience stores, restaurants Zoup franchises in Michigan 3,350-square-foot gallery is to agenda for the March 4 Downtown last week for Main Street Oakland and other companies. generate about $500,000 in sales open with a rotating display of Detroit Partnership annual meeting County, an agency of the county SRC has 16 employees and re- on average, Ersher said. 168 of the museum’s 1,400 Islamic and luncheon. Planning and Economic Develop- ports annual revenue of $5 million. —Nathan Skid artworks from the Mediter- Kresge Foundation CEO Rip Rap- ment Department that provides — Chad Halcom

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February 22, 2010 CRAIN’S DETROIT BUSINESS Page 3 Suppliers’ challenge: Global or bust? Finance Extra

BY ROBERT SHEREFKIN contracts on global vehicles. CRAIN NEWS SERVICE The added locations in Europe Suppliers have a significant opportunity and South Carolina will bolster the A new shakeout of the auto sup- “ company’s already strong global ply base could be under way as au- to grow with this conversion to global position, even if the deal was in- tomakers focus on global vehicle tended to grow its share of the platforms, an industry consultant platforms. flooring and acoustics market, Year without inheritance says. ” Wall said. The race to compete in this in- James Ricci, Grant Thornton L.L.P. Global platforms reduce engi- tax brings many questions, dustry dictates global platforms, neering costs and give automakers said James Ricci, a director with Ricci declined to list potential The deal, which gives IAC floor- more flexibility to react to changes Page 9. the consulting firm Grant Thornton winners in the coming shift. ing operations in both Europe and in the market. They also simplify L.L.P.’s Southfield office. But he did point out moves by North America, will position the manufacturing processes and im- And as automakers intensify Dearborn-based International Auto- supplier for global platforms. prove quality by reducing vari- their focus on engineering and motive Components Group, which Mike Wall, director of global ad- ability. manufacturing global platforms, this month announced plans to visory services for Northville- The global platform can include Company index buy the portion it did not own of based CSM Worldwide Inc., said the that creates opportunities for the a vehicle’s basic chassis, wheel- These organizations appear in this week’s Crain’s best-positioned auto suppliers. flooring and acoustics supplier Stankewicz acquisition highlights base, suspension, steering and Detroit Business: But it undermines ones that Stankiewicz International Corp. in the kind of strategy that will help Association for Corporate Growth ...... 17 aren’t global. Spartanburg, S.C. companies compete for component See Suppliers, Page 25 CFA Society of Detroit ...... 9 CitrinGroup ...... 13 Community Central Bank ...... 12 Crestmark Bank ...... 26 CSM Worldwide ...... 3 Delphi ...... 13 State cuts Detroit Economic Club ...... 3 Detroit Medical Center ...... 23 Detroit Metro Convention and Visitors Bureau . . . . 22 Detroit Radio Advertising Group ...... 26 worry care Detroit Regional Chamber ...... 3 Dickinson Wright ...... 16 Dick Blouse Dykema Gossett ...... 9 moved with Flagstar Bank ...... 1 the Detroit Glencoe Capital Michigan ...... 16 providers Regional Chamber in Gongos Research ...... 4 1997 to Grant Thornton ...... 3 Health systems offices at One Hamilton & Associates ...... 9 Woodward Hennessey Capital ...... 14 Avenue Henry Ford Health System ...... 23 face pay delays overlooking the city in all Huron Capital Partners ...... 15 directions — a Johnson Controls ...... 25 for Medicaid view that Lear ...... 25 Blouse said Michigan Cancer Research Fund ...... 1 Y AY REENE makes an B J G Michigan Health and Hospital Assoc...... 3 CRAIN’S DETROIT BUSINESS impression on visitors. Michigan State Medical Society ...... 23 Michigan may have saved near- NATHAN SKID/CRAIN’S DETROIT BUSINESS Michigan State University ...... 17 ly $22 million last year by fur- Moosejaw Mountaineering ...... 15 loughing state workers, but the un- NAPC Holdings ...... 15 paid days off have contributed to Oakwood Healthcare ...... 23 hundreds of millions of dollars of Blouse put ‘regional’ in chamber Plante Moran Financial Advisors ...... 9 Medicaid payment delays to Plante Moran Trust ...... 10 providers, according to the Michi- Pulte Homes ...... 13 gan Health and Hospital Association. The Medicaid payment delays Outgoing president’s biggest regret: Transit Rehmann Financial ...... 13 are also due to a Ross Medical Education Center ...... 15 2011 BUDGET dramatic in- BY NANCY KAFFER and forged ties with many of the Rubino Financial ...... 12 crease in Medic- CRAIN’S DETROIT BUSINESS region’s minority-oriented cham- Specs Howard School ...... 26 Medicaid aid-eligible ben- We wanted to bers of commerce. St. John Health System ...... 3 reimbursement: Dick Blouse came to Detroit “ Then there’s the r-word: re- eficiaries, Superior Capital Partners ...... 15 Health care with big ideas and a tough job. portray ourselves as a gion. providers see reduced staff Get the Detroit Regional Chamber Tanner Friedman ...... 26 hours by state From Day One, Blouse has more bad news, out of the red. Bolster relation- brain center, a global Telemus Wealth Advisors ...... 12 Page 23 workers and the pushed the idea of Detroit as a re- ships with local businesses while The Baskin Law Firm ...... 26 implementation gion, a contiguous economically projecting a global identity. Forge marketplace. Travel Michigan ...... 22 of two online Medicaid billing and linked area. regional ties in conflicted metro ” Walsh College ...... 17 application systems, said Peter In 1994, shortly after he was Detroit. Dick Blouse, Schonfeld, MHA’s senior vice pres- tapped for the job, Blouse told Warner Norcross & Judd ...... 9 Fifteen Detroit Regional Chamber ident, policy and data services. Crain’s that only regions that WOMC FM ...... 1 years later, could cooperate could compete In an MHA survey of 46 hospi- WEB EXTRA Blouse is During Blouse’s tenure, the tals, Medicaid paperwork days in for significant economic develop- Video: Blouse on the stepping chamber’s membership has more accounts receivable increased ment deals. Department index state of the down as than doubled, from almost 11,000 “That was so important in the from 63 days in January 2009 to 78 chamber, in 1995 to roughly 25,000 this year. CEO and early days,” said Beth Chappell, BANKRUPTCIES ...... 23 days in November. and what’s president Despite 2009’s financial turbu- The payment delays created a next on his president and CEO of the Detroit BRIEFLY ...... 8 plate, of the lence, the chamber ended the fis- Economic Club. backlog of $176 million in unpaid chamber, cal year in the black, with cash CALENDAR ...... 21 bills from June 30 to Dec. 31 for www.crainsdetroit Chappell served on the search .com/multimedia with a few reserves. CAPITOL BRIEFINGS...... 22 five unnamed hospitals, according committee that selected Blouse regrets, but Blouse has instituted a host of CAREERWORKS ...... 20 to the MHA. and as chair of the chamber’s overall, satisfied with the job he’s programs designed to add value board of directors after his ar- CLASSIFIED ADS ...... 21 The situation is worse for some done. to chamber membership — an of- Detroit-area hospitals. rival. KEITH CRAIN...... 6 His last day is June 30. Newly fice supply discount program de- “I can remember many inter- At St. John Health System in De- hired President and CEO Sandy veloped by the chamber is used LETTERS...... 6 See Medicaid, Page 23 Baruah starts March 15. by 400 chambers nationally — See Blouse, Page 24 OPINION ...... 6 OTHER VOICES ...... 6 PEOPLE ...... 20 Health Care Heroes, 40s Ann Arbor-area news RUMBLINGS ...... 27 THIS WEEK @ Crain’s covers Washtenaw and Livingston County Nominations are open for Health Care Heroes business news. Sign up for the weekly e-newsletter and 40 under 40. Go to www.crainsdetroit STAGE TWO STRATEGIES ...... 4 WWW.CRAINSDETROIT.COM at www.crainsdetroit.com/getemail. .com/nominate to fill out the online form. WEEK ON THE WEB ...... 27 20100222-NEWS--0004-NAT-CCI-CD_-- 2/19/2010 4:25 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS February 22, 2010

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GONGOS RESEARCH INC. Catherine Larive Tracy Lund Location: Auburn Hills To maintain standards, the more applicants than the compa- 248-534-2264 248-534-2138 Description: Gongos is a custom company turned down some work ny could hire. market-research company. until the right people were on “We were worried that the em- Clients include General Motors Co., board. ployees would be disappointed if Dominos Pizza Inc. and Best Buy. “We could have hired a lot we didn’t hire their referral,” he Top executive: more people,” he said. “But, we’re said. “We made sure they got a John Gongos really selective.” fair shot,” interviewing some can- Founded: 1991 Solution: In addition to using didates who may not normally Employees: 77 traditional recruitment tactics, have had a chance. Revenue: Gongos enlisted its employees to Expert opinion: Joan Moore, $13.2 million in help identify qualified applicants. president of Northville-based The Information subject to changes without notice. Courtesy of HVT Enterprises 2009, projected “We got our entire company in- Arbor Consulting Group L.L.C., said Keller Williams Clarkston Market Center 6510 Town Center #D, Clarkston MI 48346 $16.9 million in volved,” Gongos said. “We really companies should recruit in a va- 2010. challenged everyone to network riety of ways. Problem to be and actively seek candidates.” “If you want to get the best peo- solved: From Employees used LinkedIn and ple, you have to try a lot of Gongos 2005 to 2008, other social media tools to find things,” she said. revenue at Gongos grew 50 per- candidates. If the candidate was Although enlisting employees cent. But like most companies, hired, the employee was given a is becoming more popular, Moore that growth fizzled by late 2008. referral bonus. recommends not limiting yourself One year later, the company expe- The tactic, he found, is a more to the method. rienced an unexpected upswing, effective way to recruit passive “You have to be careful, be- when it received a 35 percent, or candidates — those who are al- cause you might be just perpetu- $7.6 million, increase in business. ready employed. ating the status quo,” she said. “Many companies were holding The result was 14 new hires. “You typically don’t get a diverse back on spending due to the un- Risks and considerations: While workforce through this method.” certainty in the economy,” said putting companywide emphasis Employers should also vet re- Gongos. “We had no idea the on new hires, it’s important to re- ferrals as they would any other dams were going to break open member the good employees you candidate, she said. Don’t assume like they did.” already have, Gongos said. their qualified because a qualified To manage the growth, Gongos “We didn’t want the people employee recommended them. needed to hire more than a dozen working here, the people in the “We have a saying in this in- senior-level researchers — a trenches, to think we’re all about dustry: ‘Hire in haste, repent in somewhat specialized field — the new hires,” he said. leisure,’ ” she said. without compromising quality. Gongos also received many — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entrepreneurship editor at Crain’s Detroit Business, at [email protected].

Service tax plan projects $1.26B in new revenue

BY AMY LANE CAPITOL CORRESPONDENT EXPECTED REVENUE LANSING – It’ll take lots of auto The Michigan Department of Treasury has estimated the impact of taxing 55 areas of consumer services, generating $1.26 billion in fiscal 2011. Some repairs, haircuts, funeral arrange- of the largest areas are: ments and lawyers’ hours to help generate the $1.26 billion that Gov. Ⅲ $143.9 million from non- Ⅲ $57.3 million from child care Jennifer Granholm proposes to construction-related repair and services. raise next year by extending a maintenance services, such as Ⅲ $47.9 million from structure- Commercial • Residential • Retail sales tax to consumer services. for autos and appliances. related repairs that are not new But those are among some 55 ar- Ⅲ $134.6 million from personal construction or remodeling, such eas that would produce new rev- services such as haircuts, as plumbing and locksmith enue if Michigan imposes a 5.5 per- tanning, personal fitness, dating services. services and wedding planning. cent tax (See box). Ⅲ $47.5 million from landscaping Ⅲ $115.5 million from services. In presenting her 2011 budget, cable/satellite TV services. Ⅲ $45.3 million from Granholm said the move to a sales Ⅲ $71.5 million from live water/sewerage services. tax on consumer services would entertainment. •Kitchen modernize an outdated tax struc- Ⅲ $59.8 million from legal Ⅲ $42.1 million from accounting •Shower & Bath ture and provide a stable source of services. services. •Glass Fencing & Handrails funding for K-12 education. •Landscape Glass The current sales and use tax is levied on the sale of tangible goods The proposal is part of tax re- Senate Majority Leader Mike Bish- •Partition Walls and a few services, but over the form that includes phasing out the op, R-Rochester. •Mirrors years the sale of services has 21.99 percent Michigan Business “The senate majority leader •Green Ideas grown to account for about 66 per- Tax surcharge and reducing the doesn’t believe that a tax on ser- •Online Store cent of consumer spending, ac- gross receipts tax in the MBT’s vices is a solution to fix Michi- cording to the administration. base. gan’s budget problems,” said FREE estimates & consultations Granholm proposes to lower The tax appears far from a sure Matt Marsden, Bishop’s press sec- Michigan’s 6 percent sales tax to thing. retary. 5.5 percent and extend it generally House Speaker Andy Dillon, D- Instead, Marsden said Senate 7420 Allen Rd | Allen Park MI to all consumer services, with ex- Redford Township, has said tax in- Republicans have proposed re- clusions for business-to-business creases should be “a last resort, forms that would significantly 313.928.0428 services, health care and social as- not a first option” and reforming change Michigan’s government sistance, education, new construc- and streamlining government structure and produce savings. Trainorglass.com/retail tion and remodeling, real estate must be state leaders’ focus. Amy Lane: (517) 371-5355, and insurance commissions. And there’s no support from [email protected] DBpageAD.qxd 2/16/2010 12:06 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS February 22, 2010 OPINION OTHER VOICES Pure Michigan works for all of us Are voters ready The state Senate allocat- able funding, not a series of a troubled city and state. Pure ing $9.5 million (on top of a of half-measures. Michigan wasn’t conceived just to $5.4 million base) for Some have asked sell tourism, but to help counter tourism promotion this whether the state should the negative press that surround- year is a small step in the be in the tourism-promo- ed our state and the auto industry. for more change? right direction for the tion business. Critics say Positive feedback from across the Pure Michigan campaign. those in the tourism in- country suggests the campaign is s Detroit’s latest political corruption case ended in How much funding will dustry should be directly doing just that. make a difference for funding Pure Michigan Are we doing enough to tap the mistrial last week for political consultant Sam Riddle, Michigan tourism? $15 because they’re the ones full potential Pure Michigan offers A attention turns now to the March 10 sentencing of his million means Michigan Mark Lantz who benefit from it. as a marketing asset? No. former boss, ex-Detroit City Council President Monica Cony- can promote itself as a summer But we all benefit from Pure Pure Michigan can play a much ers. draw to neighboring states. $30 Michigan: 8,000 restaurants, 900 golf greater role in selling our state to million (similar to 2009) would let courses, 800 hotels and motels, 400 business, showcasing our agricul- In contrast to Riddle, Conyers has remained remarkably Michigan go national again with bed-and-breakfasts, 500 museums, ture, supporting our industry and quiet since her guilty plea on federal bribery charges. warm-weather promotion and add 600 campgrounds, even gas stations. shining a light on the great things Thankfully, she is off the Detroit council, and Detroit vot- regional support during autumn Michigan has many thousands of Michigan has to offer the rest of ers seem to be favoring candidates who promise not to embar- and winter. $45 million would places for guests to spend money. the country, and the world. rass the city by their behavior — corrupt or just plain stupid. mean aggressive marketing all Improving Michigan’s image is- But it all starts with the tourism year. n’t only good for the tourism indus- campaign. The state needs to fund But could Monica Conyers’ legal troubles lead to a serious When Pure Michigan went na- try. It can make companies more Pure Michigan in a way that primary challenge in August against her husband, U.S. Rep. tional last year, it announced that likely to expand here, meeting plan- makes a difference in the market- John Conyers? we are much more than just a ners more likely to choose our con- place. The popular, iconic Detroit Democrat is a civil rights leg- struggling auto industry. This is vention centers, grocery shoppers Pure Michigan has become our real news for most of America. But in other states more likely to pick brand. And there’s a lot it can do end whose 40-plus year tenure in Congress is exceeded only by it needs time to sink in. Effectively Pure Michigan products, etc. for us. All of us. If only we let it. his congressional neighbor, U.S. Rep. John Dingell, D-Dear- marketing Michigan requires an I was part of the team that creat- Mark Lantz is a branding con- born. ongoing commitment to getting ed Pure Michigan. We looked to sultant who blogs on marketing No one — including federal prosecutors — has suggested (and keeping) the word out. Pure the contribution I Love New York and Michigan at www.themark- Michigan needs consistent, reli- made in helping revive the image lantzproject.com. he was aware of his wife’s financial dealings. But he — or his Washington staff — may have been manipulated to support one of her side deals. Months ago, Riddle told the Detroit Free Press that in early 2007 he paid Monica Conyers half of the $20,000 in consulting LETTERS fees he received from businessman Jim Papas. The payments were followed in July 2007 by a letter John Conyers wrote to the Environmental Protection Agency sup- porting Papas’ quest to reopen a controversial deep-well injec- Reform for all, not just unions tion site in Romulus in which retiree pension funds had in- vested. Editor: the same time, the Legislature has This is in response to Mary Crain’s Detroit Business refused to end lifetime health ben- welcomes letters to the editor. Were the two events related? Until that letter, Conyers, Kramer’s Feb. 15 column, “Public- efits for current state politicians All letters will be considered for whose 14th District includes seven Downriver communities, sector unions must sacrifice too.” or investigate the $15 billion in publication, provided they are Budget reform can’t mean “re- state contracts and $32 billion in had vigorously opposed the liquid waste operation. signed and do not defame form everyone but me.” Unfortu- tax giveaways doled out each year Conyers last year defended his change of heart to the Free individuals or organizations. nately, that’s how some Lansing with little transparency or ac- Letters may be edited for length Press, saying that the investments by the Detroit police and politicians and CEOs play the countability. and clarity. firefighters pension funds persuaded him to lobby the EPA on game. Whenever Michigan is in a Real reforms mean all of us — budget hole, politicians protect Write: Editor, Crain’s Detroit politicians, banks, CEOs — must Papas’ behalf. Business, 1155 Gratiot Ave., But his memory on the subject has grown hazy — at least in themselves and their perks and in- share in the sacrifice, not just stead target public employees. Detroit, MI 48207-2997. Michigan’s public employees. public. Every year, public employees E-mail: [email protected] Phil Thompson In December, at a luncheon meeting of the Southern Wayne are on the frontlines, supporting Executive vice president of SEIU 517M Lansing County Chamber of Commerce, Conyers was asked by a mem- reforms that save taxpayer dol- a study by MSU economics profes- ber of the audience: How was it that you changed your mind on lars. They have taken furlough sor Charles Ballard. days without pay and pay more for Singling out public workers is Writer clarifies point the Romulus deep-well injection issue? health care. not only unfair to them and their Conyers did not answer the question directly, people who From layoffs to pay cuts, state families, it endangers our quality on stem-cell research workers and their families have attended the lunch said. Instead, he asked his former district of life, safety and ability to attract Editor: saved Michigan $3.7 billion be- manager, seated in the audience, to field the question for him. businesses. Michigan has laid off In response to Tim Smith’s re- tween 2001 and 2008. And the size people who do important jobs, quest for clarification, I apologize That wasn’t lost on the audience. And it may not be lost on of the state workforce is the small- such as fighting crime and keep- Downriver voters in August. est in recent history, according to ing our roads and bridges safe. At See Letters, Page 7 KEITH CRAIN: There are going to be interesting races Although the August primary is cost the normal several Quite a wide range of raising money. Those may be slim year we have some striking differ- months away, we’re seeing a ramp- millions of dollars, for- personalities and this year. ences between the candidates, and up in the race for governor. getting that he only points of view. Terri Lynn Land, our secretary the Democrats still haven’t Since our incumbent governor bought coverage in On the Democratic of state who has to have the best flushed out all their potential can- can’t run for a third term and Lt. Michigan for consider- side, it seems they are name recognition, realized it was didates. Gov. John Cherry, the expected ably less. It was proba- still pondering. The pri- going to be impossible to raise The electorate will have some choice for the Democratic nomi- bly a wise amount to mary slate of an- enough money for her campaign interesting choices. nee, has chosen not to run, it ap- spend for what he re- nounced candidates is for governor and instead agreed to And with a voter revolution pears to be a completely wide-open ceived. nowhere complete, and be the running mate of Oakland sweeping the country, it will make race for both the Republican and So we have a bunch of more are announcing County Sheriff Mike Bouchard. our campaigns and choices even Democratic nominations. announced candidates every day. It appears One might expect that Rick Sny- more interesting. We are starting to see political running for the Republi- there is plenty of time, der, a self-made and successful en- We’ve got some very good candi- ads early in the primary cam- can nomination: a just not money. trepreneur, might have the best dates who might serve our state paigns for both parties. In fact, Re- Washington congressman, a coun- This year, the challenge isn’t go- advantage since he’ll be using lots well for the next few years. When publican Rick Snyder kicked it off ty official, an incumbent Lansing ing to be just for the hearts and of his own money. it’s all said and done, it’s going to with an ad during the Super Bowl official and a rogue businessman minds of the electorate. This year For me, the most interesting be a very tough and interesting that everyone thought probably who is a self-proclaimed “nerd.” the real challenge is going to be part of this process is that this campaign. 20100222-NEWS--0007-NAT-CCI-CD_-- 2/19/2010 4:53 PM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 7 LETTERS CONTINUED Study shows need for new Detroit River crossing, MDOT says ■ From Page 6 for any confusion my Feb. 1 letter BY BILL SHEA through July using the Ambas- 48 to 52 months to finish. dated that MDOT complete an in- may have caused. Senate Bills 647- CRAIN’S DETROIT BUSINESS sador Bridge and Detroit-Windsor A downturn in border traffic vestment-grade traffic study to de- 652 would severely restrict embry- Tunnel. That’s down from 34,254 since 2001 and the state’s financial termine if car and truck traffic The Michigan Department of Trans- onic stem cell research here. daily through the same time peri- crisis has some Michigan lawmak- warrant another crossing. portation said Wednesday that a new There are two basic types of od in 2008. ers balking at DRIC, and the Am- MDOT must submit the study traffic study at the Detroit-Windsor stem cells, embryonic and adult. DRIC is the joint project among bassador Bridge’s owner, Grosse and a justification for the crossing border confirms the need for a new Embryonic stem cells are only MDOT, U.S. Federal Highway Admin- Pointe’s Manuel Moroun, has sev- by May 1, and lawmakers will de- Detroit River crossing. found in 4- to 14-day-old embryos. istration, Transport Canada and On- eral lawsuits ongoing against DRIC cide in June if the state will pro- The agency said the study shows At this point, the embryo is a mi- tario’s Ministry of Transportation to because he says it’s unfair and un- ceed. The Legislature last year lim- croscopic cluster of about 150 cells that border traffic in 2035 would be build a new bridge that would link needed government competition. ited MDOT’s spending on the called a blastocyst. These embry- 34,600 vehicles daily, down from a I-75 and Highway 401 between De- Moroun is also in legal battles in- project to $2.5 million and mandat- onic stem cells have the potential projection of 38,218 done in Novem- troit’s Delray neighborhood and volving his own effort to privately ed that the agency seek lawmaker to form all cell types of the body. ber 2008 for the Detroit River Interna- Windsor’s Brighton area. fund a new Ambassador Bridge ad- permission to move forward. Adult stem cells are found in tis- tional Crossing project. The project, including separate jacent to the current bridge, a pro- The study was conducted by Co- sues that have already developed. The most recent numbers on but linked road work, has a total ject opposed by Canada because of lumbia, S.C.-based engineer and For example, adult stem cells are current border traffic, released in price of about $5 billion, with a traffic issues in Windsor and a de- planning firm Wilbur Smith Associ- found in bone marrow, fat, umbili- August by the Public Border Opera- bridge itself at $1 billion, and the sire for government control of bor- ates, which has an office in Lansing. cal cord blood, amniotic fluid and tors Association, show that 28,647 cost would be split among the der infrastructure. Bill Shea: (313) 446-1626, other developed tissue. vehicles crossed the border daily agencies. The project would take The Legislature last year man- [email protected] Research on adult stem cells has yielded important treatments for blood cancers such as leukemia and lymphoma. However, adult stem cell research is limited be- cause adult stem cells are not as versatile as embryonic stem cells. Embryonic stem cells can divide indefinitely and can make any cell type in the body. Adult stem cells can only form a limited number of cell types corresponding with their tissue of origin. Embryonic stem cell research provides insight into the origin of disease and has the potential to lead to new, more effective treat- ments and cures for serious dis- eases and injuries. To maximize the chances of discovering new cures and treatments, it is essen- tial to pursue research on both em- bryonic and adult stem cells. It is important to note that em- bryos used for embryonic stem cell research in Michigan would be discarded whether or not they are used for research. Embryonic stem cell research, like all scientific research, is heav- ily regulated by federal, state and local laws and regulations. Our scientists don’t need their hands tied by unnecessary and overly re- strictive legislation such as the Tom George bills. Sheri Mark President Michigan Citizens for Stem Cell Research and Cures Ford’s stem cell support is misguided Editor: I was a bit surprised to see that Edsel B. Ford II tied some of his support for embryonic stem cell research to pancreatic stem cell re- search in his Feb. 15 letter. I know that this is tied to his hope that this research, that has never rendered anything new, will help in his family’s medical diffi- culties. This is natural enough, but I find it a bit disingenuous. Anyone who has looked into this issue at all knows that adult stem cell research and working with fal- lopian tube stem cells are the areas that have given us genuine hope and results without controversy. This research has been legal for a very long time, and the evidence is clear. There is no excuse to use aborted human embryos for this research to build up false hopes. Except, of course, that it is good business. Michigan has proven time and again that it is pro-life at its core. This “business” will serve to di- vide us at a time when we need each other the most. Larry Giroux Sterling Heights 20100222-NEWS--0008-NAT-CCI-CD_-- 2/19/2010 4:54 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS February 22, 2010

BRIEFLY Is Your Business Ready Businesses commit to add nearly $3 million in administrative costs over six years, said Laurence Bak- for the Next LEVEL? 700 jobs in Macomb County er, D.O., the oncology group chair At least 38 businesses made a at the University of Michigan School combined commitment to invest of Medicine. $74.7 million and add 680 new jobs Southwest moved its headquar- to Macomb County in 2009, accord- ters to UM in 2005. ing to data released earlier this More than two dozen operations month by the county Planning and staff will remain in San Antonio, Thought so. Then come in and talk to us, at Level One Bank. Economic Development Depart- but now as employees of The Hope You’ll love the one-on-one personal attention. The way we ment. Foundation. take the time to thoroughly understand your business The attraction and expansion — Jay Greene financial needs, then develop a plan that maximizes deals range widely in scale, from its financial strengths. aerospace industry supplier Global Henry Ford Health System Tooling Systems Inc. investing At Level One Bank, we’re more about people $17.2 million to move from Utica to to conduct lean system training larger space in Macomb Town- than procedures; listening and thinking Detroit-based Henry Ford Health ship, adding up to 184 jobs, down to more than presuming; solutions System will present the Henry Ford Achatz Handmade Pie Co., to invest Production System lean training more than products. We take $300,000 and retain five jobs in Ar- program for physicians, adminis- the time to understand your mada Township. trators and other health care sup- business, your financial Other deals include: port staff March 11-12 at the goals, and how to Dynamic Control Inc., makers of Gilmour Education Center at 1 achieve them. material handling systems for the Ford Place. So you have defense industry, to invest $14 mil- The cost is $550 for non-Henry lion for 100 new jobs in Chester- more time to Ford personnel. For more infor- field Township. do what you mation and registration, visit ProWeld Inc., makers of in- do best. www.henryford.com/ plant and returnable shipping con- tainers, moved in December from hfproductionsystem. Port Huron into a former Lionel — Jay Greene Trains building in Chesterfield Township, for an investment of $2.3 million and 100 new jobs. Salvation Army to open new Models & Tools Inc., investing community center in Pontiac $3.1 million to move in March from Troy to Shelby Township and add The Salvation Army Eastern Michi- 57 new jobs. gan Division has completed its Visioneering Inc, the Fraser- $645,000 purchase of the Wallace E. based tooling and fixtures manu- Holland Center from the city of facturer for the aerospace indus- Pontiac. try, to invest $3.5 million and add The organization plans to open up to 50 new jobs. the remodeled 17,000-square-foot United Machining Inc., makers building by the end of this year, of automotive specialty tools, to in- with recreation, fitness, social ser- Take Your Banking to a Whole New LEVEL. vest $7.3 million and add up to 28 vices, educational programs and www.levelonebank.com new jobs to its current 58 jobs in an “spiritual encouragement” offer- automotive-related expansion in ings. 30201 Orchard Lake Rd, Ste. 165 21211 Haggerty Rd. 28345 Beck Rd, Ste. 102 Sterling Heights. The center, on Martin Luther Farmington Hills, MI 48334 Novi, MI 48375 Wixom, MI 48393 Gentz Industries L.L.C., suppli- King Jr. Boulevard, had been r (248) 380-6590 r (888) 437-8243 (248) 468-0205 (248) 737-0300 (888) 880-5663 ers of containment cases that closed the past four to five years house engine components in com- because of lack of city funding. mercial jet aircraft, to invest — Sherri Welch $2.4 million and adding up to 26 jobs in Warren. DM Fabricating Inc., makers of Steven Sallen new CEO of Maddin, welded components for the auto- Hauser, Wartell, Roth & Heller motive and defense industries, in- vesting $2.2 million and adding up Southfield-based real estate, em- to 30 new jobs in Sterling Heights. ployment and business law firm — Chad Halcom Maddin, Hauser, Wartell, Roth, & Heller P.C. has announced that Music star Toby Keith’s shareholder Steven Sallen restaurant to open today has succeeded Country music star Toby Keith’s Michael Maddin 22,000-square-foot restaurant, as president and I Love This Bar and Grill, is slated to CEO. open today at Great Lakes Crossing. Sallen, 50, The restaurant seats 650 and is heads the firm’s anchored by an 85-foot guitar- environmental Sallen shaped bar. law practice It will also serve as an entertain- group. ment venue with live music six He succeeds Maddin, 69, who nights a week, a dance floor, a me- will remain a member of the exec- chanical bull named Toby and 50 utive committee and continue in HDTVs. his practice in corporate, estate — Nathan Skid planning and real estate law. A 1984 graduate of the University of Detroit School of Law, Sallen be- Southwest Oncology Group gan at Maddin Hauser as a law moves operations to Ann Arbor clerk in 1983 and has been a share- holder at the firm since 1992. The Southwest Oncology Group He also is on the board of direc- has transferred its operations of- tors of the Detroit Metropolitan Bar fice out of the University of Texas Association Foundation and plans to and placed it under administrative continue his practice in environ- control of the group’s philanthrop- mental, corporate and real estate ic arm, The Hope Foundation, in Ann law. Arbor. The move will save more than — Chad Halcom 20100222-NEWS--0009-NAT-CCI-CD_-- 2/19/2010 11:13 AM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 9

REPORTER’S NOTEBOOK Extra

Tom Henderson CONVERT IRA TO ROTH? covers banking, finance, For those who make more technology and than $100K, it’s a question biotechnology. Call (313) 446- worth asking, Page 12 0337 or write thenderson @crain. com. Tom Henderson Survey opens “ Everything we do this year has the file on investors asterisk. We don’t know what Congress is going to put in place and Individuals with high net worth still have a great deal of uncertainty about if it’s going to be (retroactive). where to invest their money and don’t ” do enough homework when choosing Dawn Jinsky, Plante Moran Financial Advisors L.L.C. a financial adviser. And the “CFA” certification for chartered financial analysts is largely unknown to them, according to a recent survey of the affluent in Southeast Michigan by the CFA Society of Detroit. The survey was conducted with 193 respondents who had at least Estate of confusion $250,000 in assets they could invest. According to the survey: 44 percent are more conservative in their investing as a result of the In the year without an inheritance tax (maybe), potential pitfalls are many downturn, but only 14 percent are keeping more cash in reserve. BY SHERRI WELCH Most estate plans give the sur- CRAIN’S DETROIT BUSINESS viving spouse access to the family 4 percent have replaced their POSSIBLE TAX CHANGES and marital trusts, but some fami- financial advisers, and only 3 percent The repeal of the federal estate tax and the generation-skipping tax are inancial planners say ly situations would warrant oth- have cashed out of the market. highlights of a year of uncertainty in estate planning. there’s a lot of uncertainty erwise, such as a second marriage 40 percent anticipate making F swirling around estate plan- Potential challenges to estates: reinstates the estate tax later in where the decedent wants to keep changes in their strategies in the next ning right now because of a 2001 the year and makes it retroactive. the family trust — often designat- 12 months, but there was little The unintentional disinheritance law that repealed this year’s fed- ed to the children — separate agreement on what those would be. of a surviving spouse with the Potential opportunities include: eral estate tax. repeal of the estate tax. from the marital trust, she said. 18 percent said they’d do a Congress has given no clear “In a repeal environment, as- general shifting between accounts, New income tax implications for No tax on the estates of people sign of when it might take up the who die this year if Congress does sets from the estate typically all 14 percent said they’d take a wait-and- beneficiaries of inherited assets in issue or whether the estate tax not reinstate the tax retroactive to go to the family trust, not the see approach, 9 percent said they’d be the absence of the estate tax. lawmakers are expected to put in Jan. 1. more aggressive, and 9 percent said The loss of fair market value for marital trust,” Jinsky said they’d be more conservative. place will be retroactive to Jan. 1. inherited assets, which could A chance for individuals to shift In the absence of an estate tax, That means the current system mean capital gains taxes when wealth to their grandchildren with the beneficiaries of an estate may 58 percent of respondents had — without the tax in place — those assets, such as real estate, no tax penalty, in the absence of also be faced with other taxes on some level of postgraduate education, could lead to liabilities later. are sold. Instead, asset values the generation-skipping tax this the assets they inherit. Typically, the mean age was 56.2, 63 percent are based on original worth or year. were male and 96 percent were white. The absence of an estate tax income taxes aren’t imposed on presents questions not only for cost. A lower tax of 35 percent this inherited assets since estate taxes 38 percent had investable assets high net-worth individuals, but Potential liability for trustees year, rather than 45 percent, on are in place, Jinsky said. of between $250,000 and $499,999, also for people who consider and beneficiaries of estates with gifts of more than $1 million made But that may be different with- 23 percent had $500,000 to distributed assets if Congress during a giver’s lifetime. $749,999, 13 percent had $750,000 themselves of average wealth, out an estate tax this year. to $999,999, 23 percent had planners say. Under the old law, beneficia- $1 million to $4,999,999 and The uncertainty is fueling a losing any tax advantage” if they Henke, senior counsel at law ries also got a step up in the val- 3 percent had more than $5 million. stream of client requests to re- die this year, he said. firm Warner Norcross & Judd L.L.P. ue of inherited assets, meaning 56 percent earned their wealth view and amend estate plans. “I am drafting trust agreement Estate plans typically call for the value was set on the date of through earned income, and just 6 “Our clients are not waiting. I amendments as fast as I can right the distribution of assets or the the decedent’s death, said Greg percent through inheritance. Other am getting now,” Cumming said. creation and funding of trusts. Hamilton, founder and principal responses included 17 percent saying phone calls, e- With so much uncertainty, That funding is guided by formu- of Hamilton & Associates P.L.L.C. in their wealth came from investment mails and it’s likely that many estates will las based on the estate tax ex- Bingham Farms. returns, 6 percent from employer voice mails,” be tied up this year, waiting on emption, he said. If the assets were then sold, the equity participation and 2 percent said Michael distributions, Kovac said. One of the main concerns is sellers would avoid capital gains from the sale of real estate and Cumming, a that when the first spouse passes if they sold it at the value it had investment property. member of Uncertainty for beneficiaries away, all of his or her assets on the date of death, he said. 29 percent said they let their Dykema Gossett would go into a family trust But under the law this year, the advisers make most of their P.L.L.C. in At issue are the unintended where the surviving spouse is value of assets to survivors is tied investment decisions; 26 percent said Bloomfield consequences of the estate tax re- not a named beneficiary because to their original cost. If the benefi- they use an adviser only on rare Hills, in an e- peal on surviving spouses and on of that language, said Dawn Jin- ciary later sells the inherited as- occasions; 23 percent said they don’t mail. Cumming beneficiaries of the estate. sky, relationship manager and set, they could face a substantial use an adviser; and 22 percent said The firm’s clients, most of “Many existing estate plans head of the estate planning prac- capital gains tax, Hamilton said. they listen to an adviser regularly but whom have high net worth, could fail to meet the goals of tice at Plante Moran Financial Advi- make most of their own decisions. “don’t want their beneficiaries many clients,” said Frank sors L.L.C. in Southfield. See Estate, Page 10 44 percent said they chose their adviser by word of mouth, with 12 percent saying the adviser was assigned by his or her firm and 11 percent saying the adviser was M&A AWARD WINNERS, FINALISTS recommended by another professional Winners and finalists of the third annual M&A Awards, presented by Crain’s in cooperation with the Detroit chapter of the Association for service provider. Corporate Growth, will be honored March 18 at Big Rock/The Reserve in Birmingham. Event tickets are $60 each, $50 for ACG members. For more 61 percent said they had no information, see www.crainsdetroit.com/events. The 2010 honorees, profiled inside, are: knowledge of the certifications of their advisers. Only 1 percent knew if Best Deal – Large Best Deal – Small Lifetime Achievement Winner Best Expansion Deal Maker Deal Maker ACG Cup their adviser had the CFA certification. Winner: Pulte Winner: Superior Frank Winner: of the Year, of the Year, competition Homes/Centex Capital “We’d like to see investors do more Hennessey, Huron Capital Buyer/Seller Adviser Homes Partners/National Winner: due diligence,” said Marisa Lenhard, Hennessey Partners/ Finalist: Beijing Archive Publishing Winner: Richard Michigan vice president of the CFA Society of Capital Ross Medical West Industries/ Finalist: Glencoe Education Glencoe Bolton, State Detroit and a senior portfolio manager Page 14 University Delphi Corp. Capital/Moosejaw Center Capital Dickinson at Sigma Investment Counselors Inc. of Wright MBA student Page 13 Mountaineering Finalist: Southfield. Hennessey Page 15 team Page 15 Huron Capital Page 16 Page 16 Page 17 20100222-NEWS--0010-NAT-CCI-CD_-- 2/19/2010 10:25 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS February 22, 2010 Finance Extra Estate: Pitfalls are many in year without an inheritance tax ■ From Page 9 “Good record-keeping is impor- gains of $400,000 — instead of zero. income tax and estate planning rea- than the estate tax, since the in- nior vice president and trust man- tant, because if you can’t prove Current law lets the estate’s ex- sons — had children or others as come tax issue impacts people who ager at Plante Moran Trust in Grand what the purchase price was, gov- ecutor allocate up to $1.3 million of the beneficiaries are inheriting assets from estates Rapids. ernment can say it was zero, in- an artificial “basis adjustment” to of these trusts,” that weren’t subject to estate tax,. If someone were to die today, that creasing your capital gains tax,” he increase the value of various assets Cumming said. “Now all of a sudden, because of person’s estate is not taxable. But if said. they own so that the beneficiary can “Those trusts the estate tax repeal, middle-class Congress makes the tax retroactive, For example, under the law last pay less capital gains taxes when need to be America has income tax concerns and the estate trustee has already year, if a couple bought a house for the asset is sold, Cumming said. changed in order and considerations,” Jinsky said. made distributions to the beneficia- $100,000 and it was worth $500,000 If the assets are going to a surviv- for them to quali- ries, “the IRS can hold the trustee li- when the last of them died, the val- ing spouse or a trust set up for his fy for the $3 mil- able” for those taxes, he said. ue assigned to that property would or her benefit, the executor can ad- lion basis adjust- Uncharted tax consequences “The concern with this is that if be $500,000. Under the law this year, just upward the value of assets by $3 ment to be Another significant issue could someone has named a family mem- the value assigned to that property million, he said. allocated by the arise for estate trustees if Congress ber without financial expertise as would be $100,000, Hamilton said. “This is where the estate plan- Jinsky executor.” waits until later this year to put the trustee, (the trustee) may not be If the beneficiaries sell the house ning revisions come into play right The capital gains implications estate tax in place and makes it aware of the current environment for $500,000, they could face capital now: A lot of trusts — for very good impact more households on average retroactive, said David Kovac, se- and may distribute the estate pre- maturely,” Jinsky said. But with the issues this year come opportunities, planners said. Like the estate tax, the genera- tion-skipping tax was repealed this year. It originally was enacted be- cause ultra-wealthy families were leaving their assets to their grand- children and not leaving anything to their own children because they had sufficient assets, Jinsky said. “The problem was that the IRS was missing a whole level of taxa- tion,” she said. The absence of the tax this year could present a window for those individuals who want to shift a lot of wealth to their grandchildren without the tax, she said. While the generation-skipping tax repeal appears to be positive, there’s a lot of discussion in Con- gress about reinstating the tax and Yes, we’ve expanded. making it retroactive, Jinsky said. Yet another opportunity is the But our world still revolves gift tax, which decreased to 35 per- cent from 45 percent on gifts of more than $1 million made during around you. the giver’s lifetime. “But everything we do this year has the asterisk. We don’t know what Congress is going to put in place and if it’s going to be (retroac- tive),” Jinsky said. Clients who make gifts this year believing the tax rate will be 35 per- cent could end up with substantial gift tax liabilities if Congress imple- ments retroactive legislation that raises the gift tax rates, Henke said. Changes for middle income The scheduled return of the es- The world is tate tax next year with a $1 million getting smaller. That’s why exemption could mean not only higher taxes on wealthy individuals we recently changed our name to but also taxes on estates of people of include one already respected in 114 countries. average wealth or middle-class, Jin- And why we’ll keep on expanding our accounting sky said. and advisory resources to meet your growing needs. But The last time there was an exemp- rest assured, you’ll continue to find partners who genuinely tion as low as $1 million was about 10 years ago, Kovac said. connect with you and your business. People who will offer One asset many people don’t con- you clear industry insights, candid advice, and the inspired sider is life insurance, Jinsky said. solutions our clients have relied on for generations. If a person has a $500,000 policy and a house worth $200,000 to $300,000, Connect with us: bakertilly.com that gets them to nearly $1 million worth of assets. “I have found that individuals tend to undervalue their estate — one, because of the life insurance, but also many clients have closely held businesses that are difficult to value without a formal appraisal,” she said. Although the $1 million exemp- tion in 2011 is not the most likely scenario, “Congress’ inability to move on the (2010) bills makes it worth consideration,” Jinsky said. © 2010 Baker Tilly Virchow Krause, LLP. Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. Sherri Welch: (313) 446-1694, [email protected] DBpageAD.qxd 2/17/2010 11:48 AM Page 1 INSIGHT + INNOVATION = RESULTS

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Page 12 CRAIN’S DETROIT BUSINESS February 22, 2010 Finance Extra The $100,000 question: Convert an IRA to a Roth?

BY TOM HENDERSON bet the house (that) tax brackets CRAIN’S DETROIT BUSINESS are going to increase. They’re go- ISAROTH RIGHT? It’s really getting ing to increase for all individuals. A traditional IRA allows money to be substantial portions of their estates A change in federal law allows “ And I think they’re going to be sig- set aside tax free and federal to charity. those with incomes of more than overblown. nificant. If that turns out to be income taxes paid when money is Those who expect to be in the top $100,000 a year to convert their tra- ” true, then almost no one benefits taken out. Roth IRAs are funded tax bracket for the foreseeable ditional IRAs to Roth IRAs this Anne McIntyre, from keeping their traditional with after-tax income, but profits future, or high-bracket individuals year. Depending on which finan- Community Central Bank IRAs and not doing a conversion. the IRAs accrue are then tax-free. who expect to leave their estates to cial advisers you talk to, opinions “I don’t know how you suggest it When you convert, you must pay heirs who are also in the top bracket. on the change range from “great- as a gamble. The gamble is waiting taxes on the money that goes from Those who have a large estate est thing since sliced bread” to to pay taxes later,” said Rubino, re- a traditional IRA into the Roth, and won’t need to take distributions The gamble is based on your current tax bracket. “gamble of a lifetime.” “ ferring to an article in the Feb. 1 is- to live on. With Roth conversions, Most take a more nuanced mid- sue of Investment News, written by Until this year, Roths were available there are no mandatory waiting to pay taxes only to those making less than distributions at age 70½. dle ground: There are investors for financial adviser Andrew Rice and $100,000 a year. That cap has Those who foresee a substantial whom it makes no sense and oth- later. titled “Roth Conversions: The been eliminated. It has been loss from a business that can offset ers who should do it as soon as pos- ” Gamble of a Lifetime.” estimated up to $2 trillion in assets taxes owed in the conversion. sible. Many others need to evalu- Mike Rubino, “I think the notion that tax have the potential to be converted. Those who have built up a sizable ate a complicated set of pros and Rubino Financial L.L.C. brackets are not going drastically If you convert this year, you have IRA balance but who are now cons. higher is absolutely ludicrous,” the option of paying the taxes on unemployed or for other reasons One thing everyone agrees on? cial advisory firms are prospect- said Rubino. your 2010 return or splitting the temporarily in a very low bracket. Boy, this sure has been hyped. ing for clients, and it’s really get- One thing that seems certain is taxes between 2011 and 2012. Anne McIntyre, president of Mt. ting overblown.” the sunsetting of the Bush tax cuts. If you convert, you have a grace Those for whom a conversion might not make sense include: Clemens-based Community Central Mike Rubino, president of Troy- Unless Congress does otherwise, period to undo it. If it makes sense Bank’s financial services group, based Rubino Financial L.L.C., agrees and not many expect it will, taxes for you to undo the conversion, you People who don’t have money can do so without penalty by Oct. outside the IRA to pay the tax said a near-carnival atmosphere that the topic may have been over- in all brackets will rise 3 percent to consequences of a conversion. has developed in the investment hyped. But he disagrees with 4.6 percent effective Jan. 1, 2011, 15, 2011. Advisers say you should put a conversion into several Roths, Those who have enough assets community about the Roth conver- McIntyre that there are few who with the highest tax rate going with, say, emerging market mutual outside the IRA to pay the taxes but sions, with billboards and mass will benefit from a conversion. He from 35 percent to its former level funds in one Roth, large cap stocks take such a big hit on the tax bill mailings touting them and fliers thinks federal deficits sooner or of 39.6 percent. in a second, small caps in a third. that they no longer have enough arriving in the mail inviting later are going to result in higher Bernie Kent, managing director Then, you can unwind those assets for comfort. prospective customers to come to federal tax rates, and that means of Southfield-based Telemus Wealth conversions where it makes sense Those who expect to be in a seminars, lunches and dinners to paying taxes now, rather than lat- Advisors L.L.C., is far more cautious. as the deadline approaches. Here’s lower tax bracket or who will retire get conversion pitches. er, makes good sense. His clients have high net worth, what advisers generally agree on. soon. Why pay higher taxes now “It’s ‘Step right up! Everyone “When I talk to someone, I ask and he says the people he urges when you can pay lower taxes later? Those for whom a conversion Those whose conversion is large has to do a Roth IRA conversion!’ ” them, ‘Do you think taxes are go- most strongly to consider a con- makes sense include: said McIntyre. “I’ve seen market- ing up, down or staying the same?’ enough to push them into a Those who plan to leave substantially higher tax bracket. ing tools that horrify me. Finan- And 100 percent say, ‘Going up.’ I’d See Roth, Page 13

congratulates our clients as Crain’s M&A Award winners

Glencoe Capital LLC Huron Capital Partners LLC Pulte Homes, Inc. Superior Capital Partners LLC Dealmaker of the Year Best Expansion Best Deal Best Deal Client since formation Client since 2001 Client since 1972 Client since formation

HONIGMAN MILLER SCHWARTZ AND COHN LLP '(752,7‡/$16,1*‡2$./$1'&2817<‡$11$5%25‡.$/$0$=22 WWW.HONIGMAN.COM 20100222-NEWS--0013-NAT-CCI-CD_-- 2/19/2010 10:23 AM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra Winner: Best Deal – Large ters isn’t as important as where ADVISERS you are invested out in the field. Pulte Homes/Centex Homes Michigan is a great location for us, Citigroup Global Markets; Banc we’re close to all the investor cen- of America Securities; Merrill ters, it’s a very nice place to live. For the past four years, Bloom- Lynch; J.P. Morgan Securities Inc.; field Hills-based Pulte Homes Inc. Sidley Austin L.L.P.; Honigman “We never considered leaving had been looking at Dallas-based Miller Schwartz and Cohn L.L.P.; Michigan.” Centex Homes Inc. as a possible Goldman, Sachs & Co.; Wachtell, Dugas said he’s never been in- takeover and had made overtures. Lipton, Rosen & Katz volved in a deal on the same kind But the deal never came together. of scale as the Centex acquisition. When asked about why the deal tion, Pulte acquired Centex and also “Personally, it’s the biggest I’ve finally came together last year, earned the title of being the largest been involved in,” he said. “It’s a Chairman, President and CEO homebuilder in the United States by real game-changer. The home- Richard Dugas virtually every metric used to mea- building industry has had a tough had a simple an- sure the size of homebuilders. run. This was the opportunity to swer: “They The combined company oper- put together a deal, and leverage called us.” ates more than 900 communities our size, to give us a chance to get “Pulte ap- across 29 states and sells homes back to profitability faster. It made proached them through the Pulte, Centex and Del a lot of sense. four years ago, Webb brands. Norman Beitner, partner at and the timing In the deal-making process, Honigman Miller Schwartz and Cohn wasn’t right,” Dugas said, one aspect of the com- L.L.P., said the tax and financial de- he said. “They bined company was never even tails of the deal, such as integrating have a similar considered — the idea of leaving business units, were complex. Dugas culture to ours, Michigan. “It was a transaction that clear- their land positions are comple- “From the earliest day, that was ly helped vault Pulte to the top of mentary to Pulte. So we’re glad it non-negotiable on our part,” he the field, and we were very proud could come together.” said. “For a homebuilding compa- to be a part of it,” he said. As part of the $3.1 billion transac- ny, the location of the headquar- — Daniel Duggan

Finalist: Best Deal – Large bell & Co., the investment bank ADVISERS working on behalf of Delphi. Beijing West Industries/Delphi Corp. W.Y. Campbell & Co.; Skadden Completing the sale of the Arps; Honigman Miller Schwartz brakes and suspension business, The November 2009 closing of and Cohn L.L.P. which generates roughly $550 mil- Beijing West Industries Co. Ltd.’s ac- lion in annual revenue, meant quisition of Delphi Corp.’s global signed in April, is 51 percent navigating a complex minefield of brake and suspension business owned by Shougang Steel, one of regulatory, business practice and was a landmark deal, both for Del- China’s largest steelmakers; 25 cultural issues. phi and the auto industry as a percent owned by Beijing’s munic- Negotiations involved Delphi’s whole. ipal govern- corporate and business unit man- The $100 million deal allowed ment; and 24 agers, most of whom did not speak Delphi to divest the business, com- percent owned Mandarin, and Beijing West repre- pleting a crucial step in its four- by Tempo Indus- sentatives, most of whom did not year odyssey through Chapter 11 tries Group Ltd., a speak English. bankruptcy, from which the com- Chinese diversi- The deal also required approval pany emerged as Delphi Holdings fied industrial by Delphi’s bankruptcy court, the L.L.P. in November. It also was one conglomerate U.S. government and the Chinese of the largest, if not the largest, ac- with affiliates in government. quisition by a Chinese-owned com- Canton Town- On top of that, the deal was Bei- pany of a U.S.-based auto supplier ship. jing West’s first entry into the business to date. “We’ve had a Roesler global automotive market, includ- But it was far from straightfor- number of transactions in the past ing the transfer of automotive in- ward. with a global buyer, but never one tellectual property that was close Beijing West, a joint venture like this,” said Clifton Roesler, to unprecedented for a Chinese formed three months before the managing director at Detroit- buyer. preliminary sale agreement was based investment bank W.Y. Camp- — Ryan Beene

Roth: IRA conversion $100K question ■ From Page 12 “Pristine 48+/- Acre Lake”

version are those who expect being going to tax it again,’ ” he said. gress change its mind and tax Roth in the highest tax bracket for the Or, he said, the government IRAs? Yes. Will they? I don’t know. It’s time to build your upscale estate or foreseeable future. Better to pay 35 could radically alter its tax policy, What’s to stop them if they want to percent now than 39.6 percent reducing income taxes and replac- raise taxes from taxing Roths? It is development! down the road. ing them with value-added taxes or the gamble of a lifetime.” “Overall, it’s a relatively small consumption taxes, in which case Jonathan Citrin, CEO of South- number of people who are right for you’d wish you’d kept your tradi- field-based CitrinGroup L.L.C., a fi- Hidden from view and located in ideal Oakland a Roth conversion,” he said. He tional IRA. nancial advisory firm, said the said there are so many variables “There are an incredible num- main beneficiary of Roth conver- County awaits this rare opportunity! Very and hard-to-predict tax conse- ber of threats to a conversion,” he sions is the federal government, unique and backs to state land on two sides. quences in the future that, “I only said. “Which is why so many peo- which can collect potentially bil- want to do it for someone I am rea- ple are saying, ‘Why bother paying lions of dollars in taxes in 2011 in- Consists of 117 +/- Acres with two access points. sonably sure will be in a high tax taxes sooner rather than later?’ ” stead of having to wait for years or Bargain Priced and Ready To Be Named! bracket and so will their heirs Gary Gilgen, director of finan- decades for traditional IRAs to be looking out many years.” cial planning in the Troy office of cashed out. Inquire for additional details and your personal tour! One possible complication, he Rehmann Financial, and Aaron “The government needs money said, is what he calls “the double- Humphrey, a tax adviser in the of- now. It doesn’t want to wait,” he cross issue.” What’s to prevent fice of a Rehmann Group affiliate, said. “A conversion isn’t for every- Congress, he said, in the face of fu- Rehmann Robson, echo the distrust one. It’s very tempting, but you Catherine Larive Tracy Lund ture budget woes, from deciding of consistent federal tax policy. need to look very closely before you 248-534-2264 248-534-2138 that Roth profits are henceforth “We did a study for our clients leap. There’s going to be an imme- www.catherinelarive.com www.tracylund.com taxable? and found out that from 1913 to diate downside, so don’t do it unless “They can say, ‘You’ve paid tax- 2010 there have been 36 federal tax you’re sure there’s an upside.” es on your conversion, but tough. increases, from 7 percent to 94 per- Tom Henderson: (313) 446-0337, Information subject to changes without notice. Each office independently owned and operated. Courtesy of HVT Enterprises We’ve got a big deficit and we’re cent,” said Gilgen. “Could Con- [email protected] KW Clarkston Market 6510 Town Center Dr. #D, Clarkston, MI 48346 20100222-NEWS--0014-NAT-CCI-CD_-- 2/19/2010 10:22 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS February 22, 2010 Finance Extra Winner: Lifetime Achievement Award | Frank Hennessey Hennessey Capital’s ‘triple threat’

BY TOM HENDERSON tal successfully helped bridge a CRAIN’S DETROIT BUSINESS funding gap to growth and prosperi- ty include Detroit-based VisionIT Inc., Frank Hennessey is known as a one of the fastest growing Hispanic- renaissance man of investing and owned companies in the U.S., and deal making, a rare combination of Pontiac-based GPSi L.L.C., which numbers-cruncher and entrepre- makes GPS-based antitheft systems neur who can keep an eye on a for the new car aftermarket. spreadsheet and the big picture si- That both of them are high tech multaneously. is not a coincidence. “I love play- He is the founder, chairman and ing in areas of new technology,” CEO of Huntington Woods-based said Hennessey, who, reflective of Hennessey Capital L.L.C., an asset- the large portion of time he spends based lender that has provided at his ranch, is now an active more than $75 million in capital to member of the Ocala Chamber of more than 200 companies, many Commerce and has invested in with at least short-term funding three Tampa-area companies: a difficulties, since its founding in cold-storage company, a trucking 2002. He also founded Hennessey En- company and a brokerage. DARRYL LARSON/COURTESY OF EQUINE.COM Frank Hennessey, CEO of Hennessey terprises Inc., a Boston-based in- “I’m as enthusiastic and as ener- Capital L.L.C. and founder of two other vestment company run by son getic as I’ve ever been,” he said. Hennessey firms, also raises Arabian Frank Jr., and Hennessey Ventures Hennessey Capital President horses on his ranch in Ocala, Fla. L.L.C., a San Francisco-based VC Michael Semanco was recruited firm run by son Michael. from Troy-based Crestmark Bank by Last, but certainly not least in Hennessey when he founded the terms of passion, is his 90-acre asset-based lender. “Frank allows ranch in Ocala, Fla., where he people to learn and excel. He al- breeds Arabian horses. lows people to grow, and he sup- “My goal is to make this the best ports you 100 percent. He’s not the Arabian horse farm in the world,” my-way-or-the-highway kind of said Hennessey. At least one Saudi leader,” said Semanco. Arabian prince likes what he sees “He has the ability to coach and in Ocala — Hennessey said he has direct and be someone who can be he Capital Mark sold him three Arabians. leaned on when there are chal- ging T et Sto For his investment prowess and lenges. I’ve learned so much from rid rm more, Hennessey, 71, is the recipi- him in the last eight years,” said B ent of the third annual Crain’s Semanco, a member of the Crain’s Lifetime Achievement Award and 40 under 40 class of 2007. will be honored at the M&A Hennessey is a CPA by trade. Awards ceremony, held in con- Before founding Hennessey Capi- junction with the Detroit chapter tal, he was a group managing part- of the Association for Corporate ner in the Detroit office of then- Growth, March 18 at the Big Coopers & Lybrand before taking Rock/The Reserve in Birmingham. over as CEO of the Handleman Co. Walter “Bud” Aspatore, chair- He then was an executive vice man and co-founder of Birming- president of Masco Corp., CEO of ham-based Amherst Partners L.L.C., Emco Ltd., a $1.4 billion Canadian was the first honoree; last year’s distribution and manufacturing winner was William Campbell, co- company, and then CEO at Mas- W.Y Camp- Add-on acquisition for Add-on acquisition founder of Detroit-based coTech Inc., then a $1.7 billion man- MOS Holdings, LLC for Quest Specialty bell & Co. ufacturing company. Chemicals, Inc. “If you know Frank, you know Hennessey is on the board of di- why we chose him,” said Angus rectors and is chairman of the audit January 2009 August 2009 White, president of the Detroit committee of DTE Energy, is a past di- chapter of the ACG. “He’s a big- rector of New Detroit Inc., a former hearted entrepreneur who’s inter- trustee of the Hudson-Webber Founda- ested in helping small businesses tion, past chairman of the Japan get the resources they need. America Society of Greater Detroit and “Why now? Hennessey Capital is Windsor, and past chairman of the hitting its stride. It’s really growing Detroit Regional Chamber. Dividend Recapitalization in Recapitalization in its business. It just fits,” said White, Sam Valenti III, chairman and Recapitalization of partnership with partnership with who was on the committee that CEO of Bloomfield Hills-based Ross Education LLC management management chose Hennessey for this year’s Valenti Capital L.L.C., joined Masco award. “We said, ‘Let’s think about Corp. at 22 to manage its pension August 2009 October 2009 December 2009 who really deserves a lifetime fund investments and worked achievement award.’ Frank is a closely with Hennessey at Masco good choice. It’s that simple.” and MascoTech. Last September, Hennessey Cap- “Frank’s got a combination of Consistent and Reliable, Huron Sails into 2010 ital was named member of the year skills I haven’t seen in my 40 years at the annual awards banquet of in business. I’ve never met any- Troy-based Automation Alley. body who put it all together like Hennessey said the secret to Frank,” said Valenti. Hennessey Capital is that those “The thing about Frank is he’s a HURON CAPITAL PARTNERS LLC firms in need of asset-based lend- CPA, so he’s got a very organized ing often need other help, too, and mind. But he’s also an entrepre- providing it is a source of pride. neur, which is a very unusual PLATFORM INVESTMENT CRITERIA TRANSACTION TYPES “We’ll help companies with coach- blend. He’s a triple threat. One, Revenues $20 million to $200 million Buyouts Buy & Build ing and consulting. We’ve had our he’s very organized and disci- EBITDA $5 million to $20 million Recapitalizations Growth Initiatives share of failures, sure, but we’ve plined. Two, he’s an executive. He Equity per Deal $10 million to $70 million Family Successions Corporate Spin-offs helped a lot of small companies ran Handleman and MascoTech. survive. We’ve made a difference. Three, he’s an entrepreneur, and www.huroncapital.com “We’ve funded an awful lot of you don’t find that blend ever,” 500 Griswold Street, Suite 2700 I Detroit, Michigan 48226 I Tel: 313.962.5800 companies. Some didn’t make it. said Valenti. “And he’s got that hu- 225 Ross Street, 5th Floor I Pittsburgh, Pennsylvania 15219 I Tel: 412.201.7040 Most did. I’ve had a lot of fun, and man side that people really like.” 100 King Street West, 37th Floor I Toronto, Ontario M5X 1C9 I Tel: 416.234.0313 I’m still having fun,” he said. Tom Henderson: (313) 446-0337, Companies that Hennessey Capi- [email protected] 20100222-NEWS--0015-NAT-CCI-CD_-- 2/19/2010 10:28 AM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 15 Finance Extra Winner: Best Expansion special,” said Huron Managing 3,000 students in Michigan, Indi- ADVISERS Partner Brian Demkowicz. ana and Ohio, Demkowicz said. Huron Capital Partners/ After acquiring majority owner- We ... made it into And revenue increased to Goldberg Kohn; Signature Ross Medical Education Center ship in Ross Medical Education “ $60 million in 2009 from $10 million Associates Center in 2005, Detroit-based a business with a four years earlier. Huron Capital Partners L.L.C. al- Huron Capital spent the next two Ross’ growth hasn’t been just for ready had experience turning that is what’s critical,” said years getting operations back on vision for growth in growth’s sake. It’s been focused on around educational businesses Mitchell, who remains a sharehold- solid footing and updating its tech- filling specific needs in communi- when Paul Mitchell from Ross Med- er in Ross and now serves as CEO. nology, appearance and in some the right way. ties, such as for entry-level med- ical Education Center came calling in “We took an organization that cases, more visible locations. ” ical personnel, Mitchell said. 2004. was sleepy, more of a mom-and-pop Ross grew very little in those two Paul Mitchell, Underpinning the growth is a Mitchell, who was COO of one of kind of a busi- years but put in place the founda- Ross Medical Education Center strong focus on quality, Demkowicz Ross’ operating divisions and one of ness, and made it tion for growth, Demkowicz said. said. three shareholders at the time, had into a business “When we invest in small busi- ments culminated last August Ninety percent or more of Ross no interest in divesting his share of with a vision for nesses … we try to bring more than with a recapitalization of the busi- graduates go on to find entry- to the career schools operator. growth the right just capital,” he said. “We bring ex- ness, Demkowicz said. mid-level assistant positions within He was looking for not just in- way — providing pertise in … marketing, opera- With the new funds, last year six months of graduation, he said. vestment capital, but investors who quality educa- tions.” Ross expanded its footprint by “We’re committed … (to) mak- understood the highly regulated na- tion and student Once Ross was “ready to grow” 40 percent, opening five new cam- ing sure we’re reinvesting in the ture of the post-secondary educa- outcomes,” he Huron and Mitchell embarked on a puses in Portage and Davison, communities we operate and pro- tion business and “the right ways” said. strategic plan which included ex- Mich., Ohio and Indiana. And it viding people who are here an out- to grow in the education industry. From Huron’s panding the number of centers and added new medical billing and den- let to get retrained and to get em- Demkowicz “You’ve got to ensure you’re perspective, adding new programs to enhance tal assistant training programs. ployment so … they can stay in the maintaining and improving quality Mitchell “had the fire in the belly its curriculum. Enrollment increased by 79 per- state,” Demkowicz said. while you’re growing. How do you to make Ross into something very Huron’s $20 million in invest- cent last year, giving Ross about — Sherri Welch

Winner: Best Deal – Small ProQuest Co., which traded on the executives. around situation.” ADVISERS New York Stock Exchange until a scan- Said Carroll: “We bought a com- Judges were impressed by the Superior Capital Partners/ dal over false revenue figures pany poised for significant growth speed with which Superior got the Dickinson Wright P.L.L.C.; forced its delisting and dismantle- and a microfilm business that is a deal done. Providing its own bridge National Archive Publishing Co. Sprock Capital Advisory; ment. cash cow to fuel the growth of the ed- financing, Superior closed this deal PM Environmental; Wolf-Hulbert; The purchase in September of the McGraw Wentworth; Reiber Group; National Archive Publishing was ucation business. It’s nice to be able in 31 days, including due diligence. assets of struggling Ann Arbor- Grant Thornton; McDonald Hopkins formed in 2005 by former ProQuest to buy a growth business in a turn- — Tom Henderson based National Archive Publishing Co. L.L.C.; Bodman L.L.P. by Detroit-based Superior Capital Part- ners L.L.C. was more than a win-win. South Franklin Street Partners L.L.C., a An investor in troubled compa- mezzanine lender that had been a nies, Superior got to buy two Na- partner with NatCity in the original Successful people tional Archive assets, one called a NAPC investment, was happy to put “cash cow” by in more capital to keep its invest- are inherently managing part- ment alive and help close the deal. ner Mark Car- Plus, 140 employees got to keep roll, the other in their jobs. a steady growth Superior formed NAPC Holdings mode. Cash cows . ious cur L.L.C. in which to operate the two as- and growth as- sets: XanEdu Publishing, the largest They put past judgments aside and make new sets are not publisher in the U.S. of customized something Supe- course materials for higher educa- judgments based on new facts. rior comes tion, and NA Publishing Inc., a new en- across every day tity that will continue to provide Our clients and their advisors are open minded. as it shops for Carroll microfilm archiving of periodicals They utilize our firm’s intellectual capital. Together, using companies in trouble. and journals for libraries, universi- The opportunity to buy National ties and health care markets. life insurance, we design conservative investments and Archive came as a side effect of PNC The two assets were generating Financial Services’ purchase of Nation- about $30 million in revenue at the wealth transfer strategies. The results are extraordinary. al City Bank. time of the sale, the price of which Feed your curious mind. When it bought National City, it was not disclosed. XanEdu had also bought NatCity’s troubled as- about 70 percent of the revenue and sets, including a loan to NAPC. Car- is expected to continue growing at roll said PNC likely would have liq- more than 10 percent a year. uidated the company had the sale Both trace their roots to the for- not gone through. mer Ann Arbor-based University Mi- Meanwhile, Cleveland-based crofilms Inc. and were later part of

Finalist: Best Deal – Small ADVISERS Glencoe Capital/Moosejaw Bodman Mountaineering L.L.P.; The Clement Group; While retail has been one of the Ernst & Young; sectors hard hit by the nation’s re- West Monroe Partners; Doug cession, there are still retailers Coltharp; Jones that show promise. Day; North Sterling Heights-based Moosejaw Point Partners Mountaineering and Backcountry Duzan Travel Inc. was seen as an example the amount of the investment in of that and ripe to grow with an in- Moosejaw but said Glencoe typi- fusion of cash, said Jason Duzan, cally invests between $7 million managing director of Birming- and $20 million in its portfolio ham-based Glencoe Capital Michigan companies. The seller in the deal L.L.C., which manages the Michigan was Parallel Investment Partners, Opportunity Fund. Dallas. The fund acquired 40 percent “This is a chance to be proac- ownership and 50 percent control tive, and take a company from a Be Curious. in the company last year, with the position of just muddling along to 248.731.9500 expectation of giving Moosejaw being in a position to grow its on- the tools to grow both its online line operations and open some *Securities offered through NFP Securities, Inc., (NFPSI) a Broker/Dealer and Member FINRA/SIPC. Schechter Wealth Strategies is an affiliate of NFP Securities, Inc. and a and brick-and-mortar business new stores,” Duzan said. subsidiary of National Financial Partners Corp., the parent company of NFP Securities, Inc. Schechter Wealth Strategies and NFPSI do not offer legal or tax advice. Clients must lines. Duzan declined to disclose — Daniel Duggan consult with their tax and legal advisors. 20100222-NEWS--0016-NAT-CCI-CD_-- 2/19/2010 10:21 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS February 22, 2010 Finance Extra Winner: Deal Maker of the Year was hurt by the financial markets Travel Inc. last year. The most traditional of the three (Buyer/Seller) “It is difficult to do a buyout deals was a $25 million buyout of 800-292-3831 when there are limited opportuni- Fort Worth, Texas-based Novo 1, Glencoe Capital Michigan L.L.C. ties for debt,” he said. “So we fo- which will bring 300 new jobs to indiantrails.com cused on finding companies and Michigan this year. Given the state of the economy creating structures that allow us The Michigan Opportunities in 2009, Jason Duzan recognized to take part in their growth.” Fund was established in 2008 by that the traditional private-equity Still, in 2009, the Michigan Op- the state as a way to leverage pub- deals wouldn’t be as effective as in portunity Fund was involved in lic and private funds to help Michi- past years. three deals representing 25 per- gan companies grow. It focuses on “We couldn’t just sit back and cent of the $150 million fund. companies with earnings of more ONE HU G ND IN R say, ‘Here is the formula we use,’ A deal with Grand Rapids-based than $3 million. T E A D R Y American Education Group is an ex- Duzan, who relocated from B and go along,” said Duzan, manag- E

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S ing director of Birmingham-based ample, he said. The fund closed on Chicago to Birmingham to be in-

C 100 Glencoe Capital Michigan L.L.C., a $10 million equity investment volved with the fund, said it’s re- which manages the Michigan Oppor- with the group, taking a 24 per- warding to play a role in an effort tunity Fund. “We had to be more cre- cent ownership stake, and will to grow Michigan companies. ative, we had to adapt.” have a role in the company’s “We’re in a position to leverage Typically, a private-equity fund growth. private and public funds and then would stick to buying the equity in Similarly, another 2009 deal in- go out there and identify some another company. However, the volved taking a 40 percent interest great Michigan entrepreneurs and ability to combine venture-capital in Madison Heights-based Moose- help them grow.” money with traditional lending jaw Mountaineering and Backcountry — Daniel Duggan

Winner: Deal Maker of the Year tions during 2009, with a combined 2009, with a combined value of value more than $100 million. $68 million: The fund acquired con- (Adviser) “I was fortunate that a lot of trol of Calif.-based Metric Precision clients wanted to get into the pri- Machine & Engineering Inc.; sold its Comfort and Richard Bolton vate equity space,” he said. “It’s stake in Hamden, Conn.-based Spe- For an area of practice that he been a little insu- cialized Packaging Group Inc.; and fell into gradually, counseling pri- lated. It certainly closed on four mezzanine financing t
$IBSUFST Luxury vate equity firms has served has held up bet- deals. Richard Bolton well in recent ter than many Bolton also advised California- t
5PVST years. areas of (transac- based Active Interests Media Inc., a Bolton, 57, managing director of tional law), al- portfolio company of client firm t
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4FSWJDFT SAVE $100 OFF began shifting into private equity tions were also specialty publications from from traditional corporate, fi- down in the past Gloucester Publishers and F+W Media t
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4DIFEVMFE
4FSWJDF promotional code at time of booking: CDB52feb He now represents 11 client tions on credit loosen, it should see Bolton’s first private equity clients funds, accounting for at least 70 per- a great deal of growth again.” when it opened a Southfield cent of his practice today, and was Client private equity firm Penin- branch office in 1997. The firm an adviser on at least 10 transac- sula Capital Partners L.L.C., Detroit, closed that office in late 2009. closed in December on the organiza- Bolton said one of his proudest tion and capitalization of a fifth 2009 moments was as an adviser on mezzanine fund, of $375 million. the August deal for Superior Capital That brings total committed capital Partners to acquire the assets from to around $1.2 billion for all five National City Bank as a secured funds at Peninsula, which Bolton lender to Ann Arbor-based National has represented since its inception Archives Publishing Co. The deal (See in 1995. related story, Page 15) closed in just He also counseled Peninsula’s 30 days. prior funds on six transactions in — Chad Halcom

Finalist: Deal Maker folio company, St. Clair-based Ross Education L.L.C., which will be hon- Huron Capital Partners ored as the best expansion of the year. (See related story, Page 15.) Detroit-based Huron Capital Part- The last two deals, one in Octo- ners L.L.C., always an active pri- ber and the other in December, vate-equity firm, was Crain’s Deal were each valued at more than Maker of the Year for 2007 and a $10 million. runner-up to Detroit-based W.Y. They involved buying firms to Campbell & Co. for the top honor for serve as platform companies in 2008. which to fold future acquisitions: This year, the firm’s continued Ontario-based Maple Leaf Automo- Growth Capital. track record of deals, albeit down tive Inc., a maker of aftermarket auto repair parts, a growth busi- Financial Wisdom.® from prior years, earned it a spot as the Deal Maker finalist. ness in a down economy; and Illi- The current economic climate Huron was busy enough to close nois-based Cardinal Agricultural isn’t easy for entrepreneurs; but the on five deals and walk away from Transport Inc., a short-haul carrier Hennessey Capital team is committed to six others during due diligence. of bulk liquid food products. Two of the closed deals had Those deals were the first two out using our growth capital and financial transaction values of less than of Huron’s third and biggest fund, wisdom to help businesses create positive $10 million and involved buying the $350 million Huron Fund III L.P. cash flow, despite challenging times. add-on companies for existing Managing partner Brian Let us put the Hennessey Factor portfolio companies — the pur- Demkowicz said a third deal for to work for your company. chase of Lansing-based O&P Profes- another platform company was sional Care L.L.C. for its Livonia- agreed upon in the fourth quarter based Michigan Orthopedic Services and will close soon. L.L.C. and of Tennessee-based Cus- “It was a challenging year for 248.658.1100 tom Finishes Inc., for its Walled everyone, but we had a fine year in HennesseyCap.com Lake-based Quest Specialty Chemi- a tough environment,” he said. cals Inc. Huron targets well-run prof- A third deal involved acquiring itable companies in need of equity additional equity, for more than to fund growth. $10 million, in a fast-growing port- — Tom Henderson 20100222-NEWS--0017-NAT-CCI-CD_-- 2/19/2010 11:37 AM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 17 Finance Extra MSU, Walsh students come in first, second in ACG contest

BY BRETT CALLWOOD their trophy at the M&A Awards ployees of a private-equity fund enced firsthand the outstanding SPECIAL TO CRAIN’S DETROIT BUSINESS event March 18 at Big Rock/The Re- and were presenting their recom- quality of students representing serve in Birmingham. I hope ... this mendations on buying or selling to our Michigan schools. Students from Michigan State Uni- In second place, a team from “ the firm’s investment committee. “Michigan is fortunate to have versity walked away with the Walsh College consisting of Jen- event helped to slow Also in the finals were teams of so many talented, future business $10,000 scholarship first prize and nifer Gasiecki, Mike Brown and MBA students from Wayne State leaders attending these schools. a trophy after winning the Third Ryan Myers won $5,000 in scholar- the brain drain. University, University of Michigan, Our state has lost too many of its annual Association for Corporate ship money. ” University of Detroit Mercy and Uni- educated residents, so I hope in Leslie Sheidler, Growth Detroit Chapter Cup com- The teams from MSU and Walsh versity of Michigan-Flint. These some small way that this event Association for Corporate Growth petition on Feb. 13 at the cup finals finished top out of 15 teams that teams each won $1,000 in scholar- helped to slow the brain drain.” held at Walsh College. were each given a real-life busi- vestment banking advisers to a ship money. A new award called the The Pin- The team of MBA students from ness case study to analyze when family that owned a broadband Leslie Sheidler, ACG cup com- sent Masons Scholarship, which is MSU’s Broad School of Business, the competition began earlier this services company that had re- mittee chair and senior director of an expenses-paid internship in consisting of Sudeep Poddar, year. ceived an unsolicited offer to sell. strategic initiatives at Kelly Ser- England with the global law firm Hitesh Mohta, Samir Sawant and During round one, the MBA stu- In the finals competition, the vices Inc., Troy, said, “As a judge Pinsent Masons LLP, was won by Vishwesh Chaphekar, will receive dents were asked to serve as in- student teams served as new em- and chair of the event, I experi- Walsh’s Gasiecki.

HEALTH CARE HEROES Crain’s Detroit Business is seeking nominations for Health Care Heroes, a special report on health care professionals that will run in the Aug. 9 issue. The program will honor top- notch medical innovators and patient advocates. Winners will be chosen in five categories: Corporate achievement in health care: Honors a company that has created an innovative health benefits plan or has solved a problem in health care administration. Advancements in health care: Honors a company or individual responsible for a discovery or for developing a new procedure, device or service that can save lives or improve quality of life. Physician: Honors a physician whose performance is considered exemplary. Allied health: Honors an individual from nursing or allied health fields deemed exemplary by patients and peers. Trustee: Honors leadership and distinguished service by a health care trustee. A panel of health care judges will Make Your Break choose the winners. Visit www.crainsdetroit.com/nominate to submit a nomination. The deadline is May 10. Questions? Contact Jennette Smith at (313) 446-1622 or [email protected].

CRAIN’S CALLS FOR Are you stuck in a rut when it comes to your current UNDER-40 NOMINATIONS accounting firm? Do you tell yourself each year that Crain’s Detroit Business is seeking there must be something better out there? A firm that is nominations for the 2010 class of responsive instead of reactive. One that advises and 40 under 40, which recognizes young achievers based on factors guides you based on your specific needs. A firm that such as financial impact and civic places customer satisfaction at its highest priority. and community leadership. Winners will be profiled in the Oct. That firm is Doeren Mayhew. 4 issue, and Crain’s will celebrate their achievements at an Oct. 28 awards event. For more than 78 years Doeren Mayhew has been To be eligible, nominees must be successfully serving privately held companies with under age 40 as of Oct. 4, 2009. proactive tax planning, resourceful problem solving, Accounting, Audit, and Tax For sponsorship opportunities, International Tax and Consulting please call (313) 446-6052. and a progressive business approach to accounting Corporate Finance and Strategic Services Nominations must be received by and consulting needs. Payroll Services April 5. Visit Financial Advisory Services www.crainsdetroit.com/nominate Call the professionals at Doeren Mayhew today and Litigation Support and Forensic Services to fill out the online form. Troy, Michigan 248.244.3000 www.doeren.com Questions? Contact Jennette make your break to the extraordinary. Smith, assistant managing editor, at [email protected] or (313) 446-1622. 20100222-NEWS--0018-NAT-CCI-CD_-- 2/19/2010 10:43 AM Page 1

Page 18 CRAIN’S DETROIT BUSINESS February 22, 2010

CRAIN'S LIST: LARGEST ACCOUNTING FIRMS Ranked by number of employees In the spotlight

Number of Number of Number of Company employees employees employees Number of Number of Number of Number of Top accounting firms Address Detroit area in Michigan engaged in employees employees employees CPAs Detroit Phone; Web site January 2010/ January 2010/ audit/ engaged in engaged in engaged in area Jan. Rank Managing partner 2009 2009 accounting taxes consulting other Jan. 2010 2010/2009 over the past 25 years 928 1,052 292 225 230 47 188 Deloitte L.L.P. Ranked by total employees in the 600 Renaissance Center, Suite 900, Detroit 48243 983 1,156 234 1. (313) 396-3000; www.deloitte.com Detroit area Joseph Angileri 1985* Plante & Moran P.L.L.C. 840 1,140 253 111 214 261 342 27400 Northwestern Highway, P.O. Box 307 925 1,230 335 1. Coopers & Lybrand 370 2. Southfield 48037; (248) 352-2500; www.plantemoran.com 2. Arthur Andersen & Co. 357 Gordon Krater 3. Touche Ross & Co. 340 PricewaterhouseCoopers L.L.P. 700 721 343 165 0 215 210 4. Plante & Moran 204 1900 St. Antoine St., Detroit 48226-2263 700 721 210 5. Ernst & Whinney 170 3. (313) 394-6000; www.pwc.com David Breen 1990 Ernst & Young L.L.P. 520 597 286 118 38 78 188 1. Deloitte & Touche 679 1 Kennedy Square, 777 Woodward Ave., Suite 1000 531 619 152 2. Coopers & Lybrand 601 4. Detroit 48226; (313) 628-7100; www.ey.com Jeff Bergeron 3. Plante & Moran 406 4. Ernst & Young 352 KPMG L.L.P. 344 344 144 71 0 129 82 5. Arthur Andersen 314 150 W. Jefferson Ave., Suite 1200, Detroit 48226 373 373 97 5. (313) 230-3000; www.us.kpmg.com Rick Siebert 1995 1. Arthur Andersen & Co. 785 UHY Advisors-Michigan Inc. 244 244 104 80 26 34 116 2. Deloitte & Touche 706 26200 American Drive, Suite 500, Southfield 48034-6173 263 263 110 6. (248) 355-1040; www.uhy-us.com 3. Coopers & Lybrand 463 Tom Callan 4. Plante & Moran 461 5. Ernst & Young 295 Rehmann 224 604 224 231 59 90 91 5750 New King St., Suite 200, Troy 48098 224 604 91 7. (248) 952-5000; www.rehmann.com 2000 Phil Bahr and Steve Maltzman 1. PricewatershouseCoopers 1,528 Doeren Mayhew 200 200 108 39 13 40 93 2. Deloitte & Touche 1,143 8. 755 W. Big Beaver Road, Suite 2300, Troy 48084 217 217 90 3. Arthur Andersen 989 (248) 244-3000; www.doeren.com 4. Plante & Moran 767 Mark Crawford 5. Ernst & Young 473 Jefferson Wells International 197 204 177 10 204 0 50 1000 Town Center, Suite 1000, Southfield 48075 249 208 60 2005 9. (248) 350-3006; www.jeffersonwells.com Daniel Saint, managing director 1. Deloitte & Touche 908 2. Plante & Moran 767 Grant Thornton L.L.P. 152 152 53 27 51 3 50 3. PricewatershouseCoopers 744 27777 Franklin Road, Suite 800, Southfield 48034 166 166 51 10. (248) 262-1950; www.grantthornton.com 4. Ernst & Young 435 Vincent Tomkinson 5. KPMG 345

Baker Tilly Virchow Krause L.L.P. 143 143 47 47 29 20 51 *Ranked by professional employees 1 Towne Square, Suite 600, Southfield 48076 172 172 70 11. (248) 372-7300; www.bakertilly.com Craig Nelson BDO 65 348 NA NA NA NA NA 755 W. Big Beaver Road, Suite 1900, Troy 48084 58 347 NA History’s popular tune: 12. (248) 362-2100; www.bdo.com Fred Rozelle, managing partner, audit; John Marquardt, managing partner, tax Accounting-firm shuffle Godfrey Hammel, Danneels & Co. P.C. 64 64 16 26 9 13 34 The Big Eight wasn’t the im- 21420 Greater Mack Ave., St. Clair Shores 48080 61 61 31 13. (586) 772-8100; www.ghdcpa.com mutable eight. Or, after awhile, Thomas Beard even eight. The major national ac- counting firms are down to the Big Gordon Advisors P.C. 61 62 29 11 10 12 30 Four now. 1301 W. Long Lake Road, Suite 200, Troy 48098-6319 65 65 30 14. (248) 952-0200; www.gordoncpa.com Look at those names above Alan Steinberg and Michael Dentamaro, partners from past Crain’s rankings of the top area accounting firms. There’s Clayton & McKervey P.C. 56 54 26 16 2 12 33 2000 Town Center, Suite 1800, Southfield 48075 63 63 24 one name that has been a con- 15. (248) 208-8860; www.claytonmckervey.com stant: Southfield-based Plante & Donald Clayton Moran. The others have mixed Wright, Griffin, Davis and Co. CPAs 48 48 32 30 9 5 30 and merged and changed faster 16. 555 Briarwood Circle, Suite 300, Ann Arbor 48108 50 50 28 than the Cleveland Indians’ roster (734) 761-2005; www.wgdandco.com in late July. Scott Price Our first list was in 1985. Coop- Alan C. Young & Associates P.C. 34 34 29 5 1 NA 8 ers & Lybrand merged with Price 7310 Woodward Ave., Suite 740, Detroit 48202 35 35 7 Waterhouse to become PriceWa- 17. (313) 873-7500; www.alancyoung.com Alan Young terhouseCoopers. The venerable Arthur Andersen turned out to be Fenner Melstrom and Dooling P.L.C. 30 30 10 15 5 NA 19 no more venerable than Enron. 355 S. Old Woodward, Suite 200, Birmingham 48009 30 30 19 18. (248) 258-8900; www.fmdcpas.com Touch Ross & Co., No. 3 then, Leonard Gayeski carries on as Deloitte, which was No. 7 then as Deloitte Haskins & Iannnuzzi, Manetta & Co. P.C. 27 27 17 3 0 7 10 Sells. 1175 W. Long Lake Road, Suite 201, Troy 48098 27 27 10 19. (248) 641-0005; www.imc-cpa.com Ernst & Whinney carries on as Frank Iannuzzi Ernst & Young after a merger with Arthur Young & Co., then the No. Skillman Group P.L.C. 26 26 13 10 1 2 13 2150 Butterfield Drive, Suite 210, Troy 48084 26 26 13 9 firm in Southeastern Michigan. 20. (248) 641-5020; www.skillmancpa.com Will there be a Plante Moran on John Boyle the 2015 list? Or will we see an Edwards, Ellis, Stanley, Koshiw, 26 26 NA NA NA NA 15 Ernst Young & Plante, or a Price- Armstrong, Bowren & Co. P.C. 26 26 14 WaterhouseCoopersMoran? 20. 2155 Butterfield Drive, Suite 305A, Troy 48084 “We’re going to remain inde- (248) 643-4545; www.eeacpas.com Richard Edwards pendent,” said managing partner Gordon Krater. “There won’t be MRPR CPAs and Advisors 26 26 10 11 1 4 18 any name changes for us.” 28411 Northwestern Highway, Suite 800, Southfield 48034 26 26 17 20. (248) 357-9000; www.mrpr.com Other constants over the years? Mark Rottermond Grant Thornton, which changed its name from Alexander Grant & Co. The number of employees encompasses those in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This list of accounting firms is an approximate compilation. It is not a complete listing but the in 1986, and Doeren Mayhew con- most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. sistently show up in the top 15. LIST RESEARCHED BY ANNE MARKS — Tom Henderson DBpageAD.qxd 2/11/2010 9:48 AM Page 1

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Page 20 CRAIN’S DETROIT BUSINESS February 22, 2010

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

PEOPLE CONSULTING FINANCE HOSPITALITY Ravi Nayar to vice president of busi- Jack Johnson to business development Margarita Garcia IN THE SPOTLIGHT ness strategy and IT consulting ser- officer, SEM Resource Capital Inc., to director of Ann Arbor-based Adeona Pharmaceuticals Inc. has vices, Accretive Solutions Inc., Troy, Livonia, from product delivery officer private dining from managing director, UHY Advi- and credit solutions specialist, Bank appointed James Kuo, M.D., as chairman, CEO and and catering of president. sors MI Inc., Southfield. of America, Ann Arbor. Bacco Ristorante, Edward Bishop to senior project engi- Sheilah Clay, president and CEO, Rycaco Inc., Kuo, 45, replaces Max Lyon, who resigned as CEO and neer, NTH Consultants Ltd., Neighborhood Service Organization, Southfield, from from the board for unspecified reasons. Northville, from environmental engi- Detroit, appointed to board member, director of cater- Before joining Adeona, Kuo was chairman and CEO of neer, Severstal Dearborn Inc., Dear- Federal Reserve Bank of Chicago, ing, Oakland Hills Cordex Pharma, a La Jolla, Calif.-based company born. Chicago. Country Club, specializing in cardiovascular drugs. He has been a Bloomfield Hills. director of Adeona since early 2007. Garcia Kuo received his medical degree from the University of LAW Pennsylvania School of Medicine and his master’s Kimberly Kefalas to principal, Miller, Kuo degree in business administration from the university’s Canfield, Paddock and Stone P.L.C., Wharton School of Business. Ann Arbor, from associate; also, Stephen Palms to principal, Ann Ar- Greg Heist to vice president of re- TELECOMMUNICATIONS bor, from senior counsel; Carla Mach- search innovation and technology, Lisa Nolen Birmingham to vice presi- nik to principal, Detroit, from senior Gongos Research Inc., Auburn Hills, dent of government and regulatory af- counsel; Gregory Nowak to principal, from director of research innovation Detroit, from senior counsel; and Ken- fairs, Comcast Corp., Southfield, from . and technology. director of government affairs, neth Sachs to principal, Troy, from se- Go Green Freddie Scott Sr. to sales executive, Burlington, Vt.; also, Chris Horak to di- nior counsel. Mist Innovations Inc., Detroit, from rector of state government affairs, SERVICES managing partner, Visions Educa- from governmental affairs director, . tion Development Consortium L.L.C., Michigan Telecommunications Asso- Green Edward Minch to Troy. ciation, Lansing. senior account Learn how you can reduce building manager, Patti RSHUDWLQJFRVWVREWDLQ¿QDQFLQJ Engineering Inc., IRUJUHHQUHWUR¿WVDQGLPSURYH Auburn Hills, from program your workplace at our CareerTransition manager, Applied Project Green Institute Manufacturing Name: Kenneth Stahovec, 46. Technologies Education: Stahovec expects to complete a bach- in Ann Arbor or online at JSVig.com. L.L.C., Orion elor’s degree in business administration at North- Township. wood University this spring. He also expects to Matthew Loria to Macomb Commu- Contact Joe Vig to Minch earn his associate’s degree from vice president of schedule a consultation. nity College in metals machining technology and sales and marketing, Re.Source Part- [email protected] a certificate in Renewable Energy Technology by ners Asset Management, Clinton 313.477.1060 this summer. www.jsvig.com Township, from director of global IT asset recovery. Last career: He has 23 years of automotive expe- rience as a mechanical designer and mechanical project engineer. New career: Renewable energy. He’s a landfill Kenneth Stahovec gas technician with Waste Management Inc. at Former career: Pine Tree Acres in Macomb County. Stahovec Mechanical is one of two full-time technicians monitoring designer and and controlling the landfill’s gas collection and mechanical project delivery system. engineer Why he decided to make the switch: “After being New career: laid off twice within two years and not being able Landfill gas to find work after August 2008, I knew the writ- technician ing was on the wall. I was basically forced to change careers.” How he made the transition: “After the second layoff, in July of 2008, I applied for the Michigan No Worker Left Behind program. I was accepted into this program in September and October 2008. One of the approved programs was the new Renewable Energy Program at Macomb Commu- nity College. I enrolled. While enrolled in the program, the class was notified of an open posi- tion for a landfill gas technician at … Waste Man- agement. I applied and, after a few interviews, I was offered the job. I started the job in November 2009.” Obstacles overcome: “Doing homework while at- tending two colleges — Macomb Community Col- lege and Northwood University — while raising a family and surviving on my wife’s income and unemployment and coming up with money to pay tuition at Northwood.” Advice for others: “If you are one of the many that will be forced to make a career change, real- ize it’s not easy to pick a new one. Also, realize the only one that is going to make it happen is you. There is help out there, but ultimately, you’re in the driver’s seat. Make a good effort at your goal and you will most likely be rewarded for your hard work. Keep a positive attitude.” If you have made a similar change in your ca- reer, or know someone who has made an interest- ing career transition, contact Andy Chapelle, managing editor at Crain’s Detroit Business, at [email protected]. 20100222-NEWS--0021-NAT-CCI-CD_-- 2/19/2010 4:59 PM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 21

MARKET PLACE CALENDAR

ANNOUNCEMENTS & BUSINESS & INDING THE FUNDING SERVICES INVESTMENTS F coffee!! Crain’s Detroit Business presents FOOD SERVICE BUSINESSES FOR SALE a second-stage workshop 7:30- 10:30 a.m. Wednesday at the MSU opportunity!! Looking to buy!!! Established gourmet market grossing $3.7 million; Management Education Center in SDD, Class C tavern/wine bar; humidor, deli, bakery, Troy. New or used (mint-condition) meat, produce, etc. in 18,000 sq. ft. showplace. Ask- ing $3.9 million plus inventory. Call (248) 888-1466. “Where’s the Money? Financing 12 cash registers and 12 scales needed interested?? BUSINESS OPPORTUNITIES growing companies” is the first of for produce center. five in-depth events on topics Call 586-574-3000 -- ask for NDT Inspection Co. wishes to purchase/merge/or aimed at growing businesses that franchise?? Sam or Mo. Fax: 586-574-9118 partner with radiography, ultrasonics, eddy current or have approximately 10-100 other testing services. Possess’ OEM, NADCAP employees or $1 million- Crain’s Classifieds Gets Results certifications. Objective, expand acceleration of growth. Harold (248) 362-8146 $50 million in annual revenue. The panels, moderated by Crain’s reporter Nancy Kaffer and Contact us at Publisher Mary Kramer, will (517) 913-1987 or REAL ESTATE feature: Paul Brown, manager of capital markets development for [email protected] the Michigan Economic AUCTIONS Development Corp. in Lansing; John Balbach, technology business consultant of the Small Business REAL ESTATE AUCTION ‡MARCH 9 ‡1 P.M. EST and Technology Development www.biggby.com 35,000 SF RETAIL/WAREHOUSE NEAR RIVERWALK Center in Grand Rapids; Tom McFadden, manufacturing This is a rare opportunity to acquire investment real estate property assistance specialist, also of the at your price in the Riverwalk Section of Detroit, Michigan. SBTDC; Brian Demkowicz, :HOOPDLQWDLQHG‡JURVVVI‡SDUNLQJVSDFHV‡3DUWLDOO\ managing partner of Detroit-based OHDVHGWR-30&KDVH OHDVHH[SLUDWLRQ ‡1HDU5LYHUZDON Huron Capital Partners L.L.C.; Greg Buck, president of Troy-based KRXVLQJUHWDLO‡&OHDQRSHQYDFDQWDUHD‡GRFNKLJKORDGGRRUV Leonard Capital Markets; and Mike PROPERTY/AUCTION LOCATION: 3300 E. Jefferson Ave., Detroit, MI 48207 Semanco, president of Huntington For more details, contact Richard F. Kruse, Auctioneer Woods-based Hennessey Capital. 877-5-Gryphon (877-547-9746) Tickets to “Where’s the Money?” www.GryphonAuction.com are $50 each, or $45 for groups of five or more. To register, go to crainsdetroit.com/events. INDUSTRIAL PROPERTY OFFICE SPACE Got Professional Office Space for Lease - Southfield WEDNESDAY 400 - 11,000 sq ft FEB. 24 367,000 SQ. FT. AVAILABLE Central location, close to expressways Move-in Incentives Business Certification Orientation. 9- Ethos? Easily Accessible  Low Rates  Rail  On-site Mgmt 11 a.m. Oakland County Planning and 248-424-8632 Exterior Storage  www.waretechindustrialpark.com Economic Development Services; oth- CATELLUS GROUP, LLC 810-695-7700 [email protected] ers. Learn the benefits and process of 4th Annual becoming a Women’s Business Enter- INVESTMENT PROPERTY prise. Oakland County Executive Of- EMU Ethos Week Troy -- Sale or Lease fice Building, Waterford Township. $25. Contact: (248) 858-0783; Web site: March 15-19 67,700 Sq. ft. Mfg. or Whse. Property 20 cents on the dollar www.miceed.org. Capstone Lunch March 19: $1.95/Sq. ft. Lease Rate • Residential land, Chesterfield Township, I Possible Seller Financing EMU Student Center 72 acres, $550,000 I • Six fast-food sites on I-94, south of 21 Mile, THURSDAY $35 general public Broker/Owner (248) 705-0835 I $5 EMU students easy on /off,1.25 acres, $390,000, 6% FEB. 25 selling broker. AVAILABLE NOW • Residential lots, Macomb Twp, 70’ wide, Recession Proofing your Business $23,500 Now. 8-10:30 a.m. Detroit Regional 4,000 to 100,000 sq. ft. • Jefferson Ave. Harrison Twp, (9) 50’ lots, Chamber. Learn to manage your staff Also 10,000 & 25,000 sq. ft. zoned commercial, $15,000/each. workload and be more productive. For ticket information, • Waterford Twp, 56,256 sq ft, $8.80/sq ft, Detroit Regional Chamber headquar- Keynote Speaker, Robert Bobb, Free Standing Bldgs w/truckwells. Emergency Financial Manager, bank financing, zero down, 4% interest ters. Free for chamber members call 734.487.4140 or visit cob.emich.edu 1 Mile from Metro Airport Business Builder and above. Contact: Detroit Public Schools REA CONSTRUCTION Bill McMachen -- [email protected] (313) 596-0392; e-mail: kgaines@ 586-915-4441 Lee & Associates detroitchamber.org; Web site: (734) 946-8730 www.detroitchamber.org. Also Heavy Industrial Call Us For Personalized Land Available Service: (313) 446-6068 Ross School of Business Club of www.reaconstruction.net Southeast Michigan Meeting. 6-9 p.m. CLOSING TIMES: Monday 3 p.m., With economist David Littman. Birm- one week prior to publication date. ingham Community House. $15 mem- Please call us for holiday closing times. MISCELLANEOUS bers, $30 nonmembers. Contact: (856) OUTGROWN FAX: (313) 446-1757 313-7837; e-mail [email protected]; Immediate Occupancy E-MAIL: [email protected] Web site: www.rossmich.org. 32,000 SQ. FT. LAB COMPLEX INTERNET: YOUR LOOK? www.crainsdetroit.com/section/classifieds Wet Labs from $8/sq.ft. Shared cell culture facility Confidential Reply Boxes Available COMING EVENTS Offices, conference rooms, kitchen & more PAYMENT: All classified ads must be Business Builders Breakfast. 7:30- Free Fenced Onsite Parking prepaid. Checks, money order or 9:30 a.m. March 2. Dearborn Chamber Crain’s credit approval accepted. of Commerce; Ford Land. With Alan Metropolitan Center for High Credit cards accepted. Technology Mulally, president and CEO, Ford Mo- 2727 Second Ave. Detroit, MI, 48201 See tor Co. Dearborn Inn. $30 members, Crainsdetroit.com/Section/Classifieds $40 nonmembers, $400 corporate table Contact: Dan Goulston (313) 961-3390 for more classified advertisements of 10 with sign. E-mail: info@ dearbornchamber.org; Web site: www.dearbornchamber.org.

Meet the Purchasers II Procurement Seminar. 8-11 a.m. March 3. Detroit Regional Chamber. Featured pur- chasers: Buy Michigan First/State of Michigan, Beaumont Hospital, Wayne State University, Oakland University, Henry Ford Health System, Detroit Medical Center, others. Detroit Re- gional Chamber headquarters. $25 chamber members Business Builder MARKETING • PR • DESIGN • NEW MEDIA and above, $35 Basic level, $65 non- members. Contact: (313) 596-0392; identitypr.com [email protected]; Web site: www.detroitchamber.org. 20100222-NEWS--0022-NAT-CCI-CD_-- 2/19/2010 5:44 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS February 22, 2010

Mission Night Light! State tourism agency may What are the forgo national ad purchase LANSING – Funding Michigan campaign re- ergy Corp. President and CEO Dave business issues that for the state’s Pure gionally, Zimmermann Joos to be its new chairman effec- Michigan tourism cam- Capitol said. tive March 1. keep you up at night? paign remains in play in Briefings The study by reserach Joos succeeds Domino’s Pizza Inc. the wake of the latest firm Longwoods Interna- CEO David Brandon, who is leaving Our attorneys are on a mission to shed twist emerging from a tional looked in part on Domino’s management and the Senate committee earlier the effectiveness of the Business Leaders board next light on those issues and help identify this month. summer 2009 Pure month to become athletic director insightful legal solutions that work for The Senate Finance Michigan campaign on a at the University of Michigan. Bran- Committee action on regional level in Chica- don remains on the Domino’s you and your business. Senate Bill 619 and House go, Cleveland, Dayton, board as non-executive chairman. As your legal counselor and business Bill 5018 provided for $9.5 Indianapolis, Columbus, Michael Jandernoa, former chair- million in state use taxes Cincinnati, St. Louis, man of Allegan-based Perrigo Co. Amy Lane advocate, we are committed to to go into a new fund that Milwaukee and Ontario. and principal in Bridge Street Capi- illuminating the most pressing challenges would support the tourism ad cam- The study found that the Pure tal Partners L.L.C., was elected first paign. Michigan campaign improved the vice chairman; and Sandra Pierce, in this difficult economy. Added to $5.4 million in general state’s regional return on invest- president and CEO of Charter One funds in the state’s current-year ment from what had been an annu- Bank, Michigan, Southfield, was budget, state tourism-marketing al average of $2.86 in new sales tax named a vice chairman. ® Attorneys on a Mission agency Travel Michigan would have revenue for every $1 spent by the Elected as directors were: Robert Your mission is our mission. $14.9 million to spend this year. state, to $5.34. Cubbin, president and CEO of Mead- But that’s just half of what was “We think national is our fu- owbrook Insurance Group, South- We never lose sight of it. available last year, including $10 ture, and that’s where we should field; J. Patrick Doyle, who becomes million it put toward a first-ever be going and we should be funded CEO of Ann Arbor-based Domino’s national ad campaign on cable TV. fully to get there, but we don’t on March 8; Yousif Ghafari, chair- If Travel Michigan has just $14.9 think we can walk away from the man of Dearborn-based Ghafari As- million with which to work, as regional markets that have been so sociates L.L.C.; Cathleen Nash, presi- much as a national campaign important,” Zimmermann said. dent and CEO of Citizens Republic A business advisory and advocacy law firm would be desirable, staying in re- Zimmermann said that until Bancorp Inc., Flint; Brad Simmons, gional markets likely will be the lawmakers finalize funding and director in the office of the execu- Carl J. Grassi, President plan, said Travel Michigan Vice Travel Michigan knows what it tive chairman at Ford Motor Co.; 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 President George Zimmermann. has to spend, it can’t move forward and Michelle Van Dyke, regional 248.646.5070 He said the state has been in the with ad buys for the summer cam- president and CEO of Fifth Third regional markets a long time and paign. Bank, Southfield. Stephen M. Gross, Detroit Managing Member has important collaborations with “We’re kind of boxed right now. Michigan convention and visitors We just are encouraging everyone Chicago • Cleveland • Columbus • Detroit • West Palm Beach bureaus in which both the bureaus to think hard about this, and act Comings & goings and the state contribute money to- quickly,” he said. Charlie Cain, former Detroit News www.mcdonaldhopkins.com ward certain regional ads. Lansing bureau chief, has joined In addition, a recent study public relations firm The Rossman demonstrated the value of the Pure Business Leaders names chairman Group as a senior writer. Statewide CEO group Business Amy Lane: (517) 371-5355, Leaders for Michigan named CMS En- [email protected] Visitors Bureau announces board, new marketing plan

BY NANCY KAFFER members: CRAIN’S DETROIT BUSINESS Rod Alberts, executive director of the Detroit Auto Dealers Association The Detroit Metro Convention and and vice president of the North Visitors Bureau elected new mem- American International Auto Show; bers to its board of directors and John Blanchard, executive director, announced a new program de- worldwide real estate, General Mo- signed to market the Detroit area tors Co.; Keith Crain, chairman, regionally and nationally at last Crain Communications Inc.; Robert Fi- week’s annual meeting. cano, executive, Wayne County; The bureau designated five “re- Christopher Ilitch, president and gions” — Oakland, Macomb, Dear- CEO, Ilitch Holdings Inc.; Christina born/Wayne, greater Novi and Lovio-George, president, LovioGeorge downtown Detroit — and created Inc.; Kevin Moore, regional vice EXCELLENCE unique branding for each, Presi- president, Enterprise Rent-A-Car Inc.; by design dent and CEO Larry Alexander Dominic Silvio, CEO and chairman, said. With the input of business Exhibitworks Inc.; Gary Torgow, presi- owners from the regions, the bu- dent, Sterling Group Detroit; and An- reau developed marketing materi- drew Zarras, vice president cus- als based on the brand. tomer service, Delta Inc. The bureau is offering business- Tom Wilson, who was also elected es and other key regional entities to the board, has announced he was the chance to buy into “coopera- resigning as president and CEO of tive” marketing, in which multiple Palace Sports & Entertainment. It’s un- CORPORATE I RETAIL I HEALTHCARE entities split the cost of placing clear if Wilson’s resignation will af- these bureau-generated, region- fect his board position. branded ads in regional and na- Timothy McCarthy, president and tional publications. CALL US TODAY AND EXPLORE YOUR DESIGN OPTIONS COO of Soave Enterprises Transporta- “In 2010 our first goal is to work tion Group and Checker Cab, was 248 855 7040 l DavisInteriorDesign.com with you to package our desirable named the organization’s new destinations, then promote it and chairman last month. sell it,” Alexander said. Nancy Kaffer: (313) 446-1412, The following are the new board [email protected] 20100222-NEWS--0023-NAT-CCI-CD_-- 2/19/2010 4:28 PM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 23 Medicaid: Payment delays worry providers as state cuts back ■ From Page 3

troit, Medicaid days in accounts “They have challenges in their sys- ber of overdue applications by receivable increased 52 days to 221 tem. They are trying to bring in ex- 40 percent. We have made strides days from July 1 through Dec. 31, Health care providers see tra help, but it is challenging be- to get those numbers down.” said Tomasine cause of the budget.” But Schonfeld said “(DHS) does Marx, vice pres- Woods said DHS has offered case not have enough workers to do ident of finance. workers overtime to reduce the (completely catch up).” Bob Plaskey, more bad news in budget backlog of applications. Since Oc- Jay Greene: (313) 446-0325, corporate direc- tober, DHS has reduced “the num- [email protected] tor of reim- On top of Medicaid payment and payment delays are adding to bursement at delays, Michigan providers re- a litany of problems doctors al- Oakwood Health- ceived more bad news on Feb. 11 ready face with the Medicaid pro- care in Dear- when Gov. Jennifer Granholm gram. He said doctors are paid an born, said Med- announced her proposed 2011 average of 50 percent of the cost icaid days have Marx budget would continue the 8 per- to treat Medicaid patients. increased at cent Medicaid cuts implemented Granholm’s budget also includ- Oakwood’s four hospitals by 55 last year to hospitals, physicians, ed revenue from a proposed 3 per- days to 165 days this month from long-term care and mental health cent tax on physician gross re- 110 on June 30. providers. ceipts, which is intended to raise Officials for Henry Ford Health Tomasine Marx, vice president $300 million from physicians and System declined to comment on un- of finance with St. John Health Sys- another $527 million in federal paid Medicaid bills, and the Detroit tem in Warren, said the cuts are matching dollars. Medical Center did not provide in- expected to reduce revenue by While Smith said physicians formation by press time. $11.6 million in 2011. St. John’s are opposed to the taxes, State “Expected furlough days and po- annual revenue was about $2 bil- Budget Director Bob Emerson tential early retirement incentives lion in fiscal 2009 ended June 30. said that if the doctor taxes are will likely increase this problem,” Bob Plaskey, corporate direc- not approved by the Legislature, said the MHA in a Feb. 4 letter to tor of reimbursement at Oakwood Medicaid provider cuts could in- state Medicaid officials. Healthcare in Dearborn, said Oak- crease up to 11 percent in 2011. Last year, state workers took wood projects an 8 percent cut In fiscal 2010, the 8 percent re- about six furlough days from June would reduce revenue by duction amounted to a $135 mil- through September, saving the $4.6 million. Oakwood’s annual lion reimbursement cut to hospi- state $21.7 million. revenue was about $1.2 billion in tals, said the Michigan Health and This year, some state employ- fiscal 2009 ended Dec. 31. Hospital Association. The associa- ees, including secretaries who Richard Smith, M.D., chair- tion is analyzing the potential im- work in the Medicaid program, are man of the Michigan State Medical pact of an 11 percent cut. scheduled for five furlough days at Society, said the Medicaid cuts — Jay Greene a savings of $3.5 million, said Liz Boyd, spokesman for Gov. Jen- nifer Granholm. since July. He said DCH processed more Late last week, the union repre- “Gov. Granholm’s supplemen- than 280,000 claims and $81 million senting case and field workers in tal budget of $7.7 million would in payments in November and De- the state Department of Human Ser- give DHS back the 197 workers cember. vices who process Medicaid appli- and continue 200 limited-term Plaskey said Oakwood’s backlog cations reached a tentative con- staff for 2011,” Woods said. “This has not been reduced. Marx said tract agreement that could avert 10 would reduce the number of cases St. John has seen a reduction in furlough days for them this year. per worker and decrease the back- unpaid bills by “one or two days” Union members with United Auto log.” over the past two months. Workers Local 6000 still must ap- James McCurtis, public infor- Schonfeld said the more difficult prove the contract. mation officer with the Depart- problem is the nearly 12 month or “The furloughs, sick days, vaca- ment of Community Health, ac- longer delays in approving Medic- tions and the 197 employees — all knowledged also contributing to aid applications under the Bridges field workers — that were cut the backlog were problems last program, which is administered (last summer) all contribute to the September with implementing by DHS. In 2008, DHS began using (application) delays and (pay- DCH’s new CHAMPS electronic the Bridges online application sys- ment) backlog,” said Edward Medicaid payment system. tem to help the state determine eli- Woods III, DHS’ communications CHAMPS is the Community gibility for food stamps, cash assis- director. Health Automated Medicaid Pro- tance, Medicaid and other social Because of the furloughs and cessing System. service programs. staff reductions, Woods said the But McCurtis said problems “The Medicaid pending (eligibil- average case load per DHS worker with CHAMPS have largely been ity approval and billing for pa- has increased to 710 from 320 resolved. tients) takes even longer,” Marx said. “We were waiting seven months to a year to get eligibility approval. Now … it is taking longer than a year.” McCurtis acknowledged Are your clients CHAMPS has a backlog. But he pointed to delays in approving Medicaid applications in the high strung? Bridges program. Let us entertain them. “We need to wait for eligibility approval from Bridges (before pro- cessing claims),” McCurtis said. Complimentary concierge planning. Entertainment, events, meetings and more. the BANKRUPTCIES cultural The following businesses filed for concierge Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Feb. 12- a program of the cultural alliance 18. Under Chapter 11, a company files of southeastern michigan, for reorganization. Chapter 7 involves a 501(c)(3) organization total liquidation, IVS Inc., 34400 Industrial, Livonia, vol- untary Chapter 11. Assets: $2,232,005; www.theculturalconcierge.org liabilities: $3,904,533. 248.766.5599 [email protected] Model Construction Inc., 319 Clark St., Clinton Township, voluntary Chapter Support arts and culture while doing business. 7. Assets: $183,300; liabilities: $261,540. — Compiled by Dustin Walsh 20100222-NEWS--0024-NAT-CCI-CD_-- 2/19/2010 5:00 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS February 22, 2010 Blouse: Outgoing president put ‘regional’ in Detroit chamber ■ From Page 3 views in my role as chair of the The regionalism pill didn’t al- he said. “It was a new idea, a new chamber where the r-word was ways go down smoothly. Blouse vision.” front and center. We called it ‘re- counts as a signal achievement the Putting the chamber on solid fi- Blouse on Archer, Kilpatrick, Granholm gional Detroit,’ ” she said. creation of the Detroit Regional Eco- nancial footing was another imme- As the head of the Detroit Re- And Kilpatrick’s tenure was Blouse’s commitment to the idea nomic Partnership, a public-private diate priority. gional Chamber for 15 years, Dick not without victories, including extended to changing the name of cooperative that works to bring “When we hired Dick, we had no Blouse has an insider’s the successful manage- the chamber, originally the business to the area. money,” Chappell said. “It was view of local and state ment of the 2006 Super Greater Detroit Chamber of Com- “It took 12 months to get 10 coun- pretty bleak. How we get from leaders. Bowl. merce. ties to be part of the partnership,” there to here back in the day was For former Mayor “One thing Kwame not an insignificant challenge. I re- Dennis Archer, Blouse Kilpatrick did — he gave member that we had a strategic has nothing but kudos. the waterfront back to planning session, laid out the chal- The pair traveled the the community,” Blouse NATURAL GAS / PROPANE HEATERS lenges and at the end of the meet- world together, pitching said. ing looked at the landscape and the investment in Detroit to But things changed situation, and it didn’t look real a global audience. quickly. good. We said to Dick, ‘Go build “He was a great re- Rumblings of the Archer your team, and he did.’ ” gional thinker,” Blouse scandals that would The chamber’s improved finan- said of Archer. “In many bring Kilpatrick down cial situation is unquestionable, ways, he was mayor of began early, and cham- said Ben Maibach III, chairman the region.” ber leaders began to and CEO of Southfield-based Bar- Then there’s dis- sense that all was not ton Malow Co. Maibach served as graced former Mayor well in the mayor’s ad- chairman of the chamber’s board Kwame Kilpatrick. ministration. of directors in 2002-03. In the beginning, the Kilpatrick became “We have a solid reserve, a di- Portable Heaters (Natural or LP Gas) from 16,000 chamber strongly sup- hostile to the chamber verse revenue source and we’re ported him, raising sig- after he won re-election to 4,000,000 BTU’s are available for sale or rent. measurably stronger financially nificant funds for candi- in 2005. Because former Also in stock are Ground Thawers and Fans. as an entity since Dick came on date Kilpatrick. Kilpatrick Mayor Dennis Archer board,” he said. Just 13 percent of “We saw a young man was so closely tied to the the chamber’s roughly $18 million with a lot of talent, a lot chamber, and Archer budget comes from membership of vision and ideas. We was a strong supporter *Lift Truck Fuel* *Temporary Heat* revenue. thought this young man of unsuccessful chal- And Blouse boosted the cham- could be a good leader,” lenger Freeman Hen- ber’s profile, Maibach said. Blouse said. “Detroit al- drix, Blouse thinks, the “Dick took over for Frank ways wants to believe in chamber seemed like a Smith. Frank had been with the 7200 Inkster Rd. Phone: (313)292-9100 a leader, because we hostile entity. chamber a long time and really P.O.Box 35 Fax: (313) 292-5950 need it so badly.” Of Gov. Jennifer had a legacy ... Dick in a very effec- Taylor, MI 48180-0035 www.propaneservices.net Particularly impres- Granholm, Blouse said: tive way — respectful of Frank — sive, Blouse said, was Granholm “I personally like the immediately embarked on taking Kilpatrick’s support, as a state governor, and I have been a sup- the chamber to a different level, a legislator, of the Detroit Area Re- porter. I have a lot of empathy for higher level,” Maibach said. gional Transportation Authority her. She has ruled as governor Chappell concurs: “We have this bill. Ultimately DARTA was ve- great, powerful organization in for eight horrible years. Some Tax Experience town that we tend to take for grant- toed by then-Gov. John Engler, would say she should have ed. And I promise you, it was not but Blouse said the legislation turned it around, but with the always like that.” couldn’t have been accomplished autos … she had a difficult time.” Maibach also credits Blouse’s without Kilpatrick. — Nancy Kaffer In Your Corner. ties with diversity and suburban chambers with strengthening re- most, and he’s got one answer: gional ties. transit. “To be a regional player, you (Blouse) From early in his tenure, when have to have the infrastructure to “ then-Wayne County Executive Ed represent the region,” he said. embarked on taking McNamara approached him with a At the same time, Blouse has plea to help save the struggling tried to boost Detroit’s presence on the chamber to a suburban bus system, regional the global scene to make the region transit has been a key issue for more attractive to international different level, a Blouse. investors. There was an end in sight in That included moving the cham- higher level. 2002, when a bill that would create ber’s headquarters. ” a Detroit Area Regional Transit Shortly after Blouse arrived in Ben Maibach III, Authority was approved by the Detroit, workers at the city’s two Barton Malow Co. Legislature and sent to then-Gov. daily newspapers went on strike. John Engler who, in a surprise From the chamber’s offices, Blouse said he can’t point to di- move, vetoed the business-backed then housed on West Lafayette rect investment spurred by the bill. Boulevard across from The Detroit trips, but said making connections Years later, it still rankles. News, picketing workers were in is positive for the region, adding “I think he had a bad day,” foreign guests’ clear view. that Indian businessmen share Blouse said. “A lot of his support- “It created the perception that U.S. business values. ers felt he made a huge mistake.” we were a strong labor market, Supporting regional economic Another sore spot is the recent and you couldn’t do business diversification has gained new transformation of the former busi- here,” Blouse said. prominence over the past 10 years. ness group Detroit Renaissance Inc. So in 1997, the chamber moved The chamber, Blouse said, has to the statewide Business Leaders into its current offices at One had to become more functional for for Michigan. Woodward Avenue, a downtown its members, who were suffering “We’re a city that doesn’t have Detroit office building with an ex- in the wake of the auto industry’s any business organization that Marla Carew pansive view of the city. troubles, and encourage new represents just it,” he said. “I Tax Attorney “In this building, you can stand growth sectors. think the chamber has to think [email protected] in one spot and see all four direc- Like logistics. along those lines. Mayor (Dave) tions through town,” Blouse said, Blouse’s brainchild in recent Bing needs the support of the busi- a view that made an impact on in- years has been TranslinkeD, a pro- ness community to achieve what ternational visitors. “We wanted ject that would make Detroit a cen- he needs to achieve.” to portray ourselves as a brain ter for global and regional ship- Ultimately, Maibach said, the center, a global marketplace.” ping. legacy Blouse leaves is a good one. Attracting international atten- Blouse said he hopes to continue “No one does everything right. tion is no less important today, working on logistics after he But what has happened under Blouse said. leaves, leaving open the possibility Dick’s leadership … he has to be 866-4VARNUM www.varnumlaw.com Over the last five years, he’s led that he’ll continue to work in that proud, and we have benefitted un- numerous trade visits to India, re- field for the chamber in some ca- der his leadership,” he said. I Novi (Metro Detroit) I Grand Rapids I Kalamazoo I Grand Haven I Lansing turning from one such trip just pacity. Nancy Kaffer: (313) 446-0412, last week. Ask Blouse what he regrets the [email protected]. 20100222-NEWS--0025-NAT-CCI-CD_-- 2/19/2010 5:45 PM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 25 Cancer: Nearly $1M raised to fund researchers www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] way to fund cancer research. cancer research at that point, said EXECUTIVE EDITOR Cindy Goodaker, (313) 446- They tour labs, pick a new re- Hammer, who today is the Millie 0460 or [email protected] RESEARCH FUND DONORS MANAGING EDITOR Andy Chapelle, (313) 446- searcher to fund each year from Schembechler Professor of Adren- 0402 or [email protected] A group of 16 local philanthropists and a foundation has committed just among three vetted by the ACS, al Cancer and director of the en- ASSISTANT MANAGING EDITOR/FOCUS Jennette under $1 million to provide fellowships to young Michigan cancer Smith, (313) 446-1622 or [email protected] and receive annual updates on the researchers. William Campbell, founder of W.Y. Campbell & Co., is founding docrine oncology program at the ENTREPRENEURSHIP EDITOR Michelle Darwish, successes and failures of those re- UM Comprehensive Cancer Cen- (313) 446-1621 or [email protected] chairman of the Michigan Cancer Research Fund, operating as an initiative COPY DESK CHIEF Gary Piatek, (313) 446-0357 searchers. of the American Cancer Society, Great Lakes Division. The others are: ter. or [email protected] “People who are just looking to “Because adrenal is such a rare ASSISTANT NEWS EDITOR Jeff Johnston, (313) 446-1608 or [email protected] write a check, we’d love to have Atanas Ilitch, president, Olympia Kristine Boll Mestdagh, executive cancer, it’s difficult to get a cohort DATA EDITOR Anne Marks, (313) 446-0418 or their money,” Campbell said. “But Development, Detroit director, John A. and Marlene L. Boll of patients of sufficient size to be [email protected] Foundation, St. Clair Shores WEB EDITOR Christine Lasek, (313) 446-0473, what we’re looking for are people Harry Cendrowski, founding meaningful in research,” Hammer [email protected] who want to know more about can- member and managing partner, William McKinley, executive vice said. WEB DEVELOPER Steve Williams, (313) 446- Cendrowski Selecky P.C., Cendrowski president and founder, Peninsula 6059, [email protected] cer research and want to have a For that reason, the return on EDITORIAL SUPPORT Robertta Reiff (313) 446- Corporate Advisors and The Capital Partners L.L.C., Detroit 0419, YahNica Crawford, (313) 446-0329 hands-on experience with cancer Prosperitas Group, Bloomfield Hills investment for that type of re- research. Huong Reilly, wife of Scott Reilly, search also is NEWSROOM (313) 446-0329, FAX (313) 446- Michelle Becker, wife of Chuck 1687 TIP LINE (313) 446-6766 “We’re trying to bring cancer re- president, Peninsula Capital perceived as Becker, owner, Becker Ventures REPORTERS search into the same deliverables Partners L.L.C., and founding small, and many L.L.C., Troy general partner, Huron Capital Ryan Beene: Covers auto suppliers, steel, higher that cancer care has always had. … large funders of education and Livingston and Washtenaw Brian Demkowicz, managing Partners L.L.C., Detroit counties. (313) 446-0315 or [email protected] I’m a businessperson, I want ac- cancer research partner, Huron Capital Partners Sara TenBroek, wife of James Daniel Duggan: Covers retail, real estate and countability and measurability,” shy away from hospitality. (313) 446-0414 or L.L.C., Detroit TenBroek, managing director, Wind he said. it, Hammer [email protected] Diane Graham Platt, Point Partners, formerly Southfield, Jay Greene: Covers health care, insurance and the Campbell so far has persuaded philanthropist, Grosse Point Farms now Chicago said. environment. (313) 446-0325 or 16 others to contribute to the re- “For the gov- [email protected]. Michael Fisher, president, Fisher Wayne Webber, president, The Chad Halcom: Covers law, non-automotive search fund and to have a hand in Dynamics, St. Clair Shores Webber Group, Chesterfield ernment to fund manufacturing, defense contracting and Oakland picking the research it supports. adrenal cancer, and Macomb counties. (313) 446-6796 or Anne Fisher Ford, philanthropist, Township [email protected]. Each has committed at least they (would be) Hammer Grosse Point Farms James Brock, president, Tom Henderson: Covers banking, finance, $50,000 over five years to the fund, Dainforth French Jr., president Middletons L.L.C., Coldwater taking money away from some- technology and biotechnology. (313) 446-0337 or totaling about $900,000 so far to thing like breast cancer, which af- [email protected]. and CEO, Leonard & Co., Troy John Jagger, senior vice Nancy Kaffer: Covers small business, the city of support research that the ACS fects a much larger number of peo- Detroit, Wayne County government. (313) 446- Helen L. Kay Charitable Private president, investments, UBS, deems valuable but cannot fund. ple.” 0412 or [email protected]. Foundation, Ann Arbor Grosse Pointe Farms Bill Shea: Covers media, advertising and Some researchers in the initial By 2003, Hammer was looking at marketing, entertainment, the business of sports, stage of their work, looking at rare the prospect of having to leave UM and transportation. (313) 446-1626 or [email protected]. types of cancer, for example, typi- young researchers in Michigan.” of prostate cancer. for lack of major research funding. Nathan Skid: Multimedia reporter. Also covers the cally get lower funding priority The ACS, Great Lakes Division, Last year, the fellowship went to It was then that the ACS stepped food industry. (313) 446-1654, [email protected]. during ACS peer reviews of re- which serves Michigan and Indi- Huira Kopera, who also earned her up with $750,000 to $1 million, giv- Sherri Begin Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] search funding proposals and fall ana, posted total revenue of doctorate at UM and is focusing on ing Hammer his first independent LANSING BUREAU into a “pay if funds are available” $42.5 million in 2009, down 12 per- increasing the understanding of ge- research grant. Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- category. cent from the year before, Elder netic mutations leading to the for- He quickly obtained a second 5355, FAX (517) 371-2492, [email protected]. or In 2008, the ACS, Great Lakes Di- said. mation of diseases such as cancer. grant from the National Institutes of 115 W. Allegan, Suite 220, Lansing 48933. vision could not fund 20 percent of About 15 percent of the divi- Young people leaving Michigan Health, and the program in adrenal ADVERTISING the research grant proposals it re- sion’s total revenue is directed to is becoming a real problem, Camp- cancer at UM began to flourish. ADVERTISING DIRECTOR Marla Downs, (313) ceived. research, with the remainder sup- bell said. “The ACS took a risk with me — 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) “We fund as porting prevention, detection and “Our goal is to reinvest in … and it did not just save my career. It 393-0997 many grant ap- treatment, patient support and support Michigan … whenever launched this program into na- ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, plications as we fundraising and operational ex- possible. There are good young tional prominence,” Hammer said. Kimberly Ronan, Cheryl Rothe, Dale Smolinski possibly can penses, said communications man- cancer research people here,” he Today, UM sees between 25 per- CLASSIFIED SALES (313)-446-0351 with the re- ager Kate Dietrich. said. cent and 50 percent of the coun- MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- sources we Early this year, the Michigan Gary Hammer arrived at UM in try’s adrenal cancer patients, and 0416 or [email protected] have,” said Jill Cancer Research Fund awarded 1999 as a junior faculty others come from as far away as EVENTS MANAGER Nicole LaPointe Elder, senior ex- its second postdoctoral fellowship member/assistant professor, on Hong Kong, Austalia and Europe, MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford ecutive director of $150,000 over three years to the heels of late UM football coach he said. CIRCULATION Candice Yopp, Manager. of Southeast David DeGraff, who earned his Bo Schembechler’s quest to raise “We are now poised to help lead MARKETING COORDINATOR Kim Winkler Michigan for Elder doctorate at the University of Michi- funds for adrenal cancer research international efforts with large in- PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, the ACS, Great Lakes Division. gan but since has moved to Vander- after his wife, Millie, lost her bat- dustry-sponsored trials with new (313) 446-0450 “Since we have this group that’s bilt University, where he is re- tle with the disease. targeted therapies for adrenal can- CUSTOMER SERVICE invested and willing to fund this searching androgen blockade In spite of those efforts, it was cer.” MAIN NUMBER: Call (888) 909-9111 or write research … we’re trying to stimu- resistance in the development of difficult to obtain continued or Sherri Welch: (313) 446-1694, [email protected] late more grant proposals from new treatments for specific forms substantial funding for adrenal [email protected] SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or (888) 909-9111. SINGLE COPIES: (888) 909-9111. REPRINTS: (800) 290-5460, ext. 125; (717) 399- 1900, ext. 125; or ashley.zander@theygsgroup .com. TO FIND A DATE A STORY WAS PUBLISHED: Suppliers: Global platforms bring opportunity, risk (313) 446-0367 or e-mail [email protected]. ■ From Page 3 CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. powertrain systems, which serve Nine of the 10 highest-volume themselves up for sale, Ricci said. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain as the base for a number of differ- platforms in 2014 will be tied to Small- to medium-size suppliers SECRETARY Merrilee Crain ent body styles and option pack- There is a much just four automakers, and Ford Mo- that lack global locations but still TREASURER Mary Kay Crain ages that can be built and sold any- “ tor Co.’s percentage of global plat- want to compete could look to es- Executive Vice President/Operations William A. Morrow where in the world. better prospect of forms could rise to 64 percent of its tablish joint ventures overseas, Group Vice President/Technology, Manufacturing, Circulation Johnson Controls Inc. and South- total platforms, Ricci said. Wall said, adding he’s talked to a Robert C. Adams field-based Lear Corp. are also ex- getting those Ricci also said General Motors Co. number of such companies looking Vice President/Production & Manufacturing Dave Kamis amples of local firms that, with will be the most aggressive in re- into such opportunities. Chief Information Officer their vast global seating business- economies of scale ducing the number of North Amer- A need still exists for large re- Paul Dalpiaz Corporate Circulation/Audience Development es, were well-positioned to capital- ican platforms. He said that num- gional suppliers, but they are a Director ize on global platforms Ricci said. from global ber could fall from 18 today to 11 in shrinking part of the market, Ricci Kathy Henry Johnson Controls’ Automotive 2014. said. G.D. Crain Jr. Founder (1885-1973) platforms (for Mrs. G.D. Crain Jr. Chairman (1911-1996) Experience business has nearly “Suppliers have a significant op- Last year, as many as 200 suppli- EDITORIAL & BUSINESS OFFICES: 100 locations in 22 nations outside portunity to grow with this con- ers went out of business, Ricci 1155 Gratiot Ave., Detroit MI 48207-2732; (313) suppliers). 446-6000 North America. Lear has roughly ” version to global platforms,” said said. As many as 50 other parts Cable address: TWX 248-221-5122 AUTNEW DET 100 locations in 33 countries out- Ricci. “We will see acquisitions, makers filed for bankruptcy. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Mike Wall, CSM Worldwide Inc. is published weekly, except for a special issue the side North America. mergers and alliances form, cen- Suppliers, he said, must act fast third week of January, a special issue the fourth Automakers have told suppliers “Now, with what we’re seeing tering on geographical, technologi- because 2010 is a critical year. By week of August, and no issue the third week of December by Crain Communications Inc. at 1155 for years that global parts plants with global automotive platform cal and customer-related issues.” this time next year, the majority of Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing were needed to supply vehicle pro- developments at a variety of au- Ricci told Crain’s sister publica- GM and Ford vehicle programs for offices. POSTMASTER: Send address changes to duction around the world. But for tomakers there is a much better tion Automotive News that the shift 2013 and 2014 already will be CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207- a variety of reasons, benefits from prospect of getting those to global platforms does not mean sourced, he said. 9732. GST # 136760444. Printed in U.S.A. economies of scale from global Entire contents copyright 2010 by Crain economies of scale were frequently the quick collapse of 500 or more From Automotive News Communications Inc. All rights reserved. not achieved by suppliers, Wall platforms (for suppliers),” Wall companies. Many will move from Leslie Allen contributed to this Reproduction or use of editorial content in any said. said. tier-one to tier-two. Others will put report. manner without permission is strictly prohibited. 20100222-NEWS--0026-NAT-CCI-CD_-- 2/19/2010 5:26 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS February 22, 2010 Flagstar: Bank to create new asset-based lending program ■ From Page 1 mercial lending. “We want to be 423.3 million shares, nearly all of it market lending, Flagstar would Citizens Bank has begun asset- meaningful lenders in our market, to MatlinPatterson, which now also offer such services as credit based lending, too. “It’s a big certainly in the top five.” This is a owns 90 percent of the stock. cards and remote deposit capture. enough market that Flagstar could He said the rollout of the asset- “ Campanelli said that the bank The latter is a service that allows tap into it to get new customers.” based lending program is about concerted move to intends to grow through acquisi- users to scan checks and transmit “It’s great for the business com- four months away and will target tion as well, though he has no the data to a bank for posting and munity to have lenders putting in large part the local auto supply being a traditional timetable and will wait to see how clearing. cash out,” said Michael Semanco, chain. “The auto industry doesn’t things continue to shake out in the “In the past, it was ‘We’ve got president of Huntington Woods- have to come back to 17 million commercial bank. still-troubled world of community branches, let’s bring in deposits.’ based Hennessey Capital L.L.C., an units a year. … It’s a significant ” banking. But the deposit side was primarily asset-based lender. “We’d love to opportunity for us to fill a need Terry McEvoy, Oppenheimer & Co. Inc. Terry McEvoy, an equity ana- just CDs,” said McEvoy. “This is a participate with them when trans- now,” he said. lyst for New York-based Oppen- concerted move to being a tradi- actions warrant. We’d like to serve Campanelli said he plans over America with $20.5 billion, J.P. Mor- heimer & Co. Inc., said diversifica- tional commercial bank and hav- as a referral source for them and the next three to five years to re- gan Chase with $14.9 billion, and tion is a necessity for Flagstar and ing products and services that sat- have them refer business to us if it vamp the bank’s revenue mix to National City Bank with $9 billion. that Campanelli has a good reputa- isfy commercial customers. That doesn’t fit their model.” even thirds from mortgage genera- Campanelli joined Flagstar in tion in the business, despite being in turn will lead to a more consis- “There’s a tremendous need in tion, retail banking and commer- October, brought in by New York- forced out late in 2008 at Sover- tent revenue stream that the mar- the market,” said David Tull, cial lending. Today, about 95 per- based MatlinPatterson Thrift Invest- eign, just ahead of its sale to ket will reward with a higher chairman and CEO of Troy-based cent of revenue comes from ments L.P. to replace Mark Ham- Spain’s largest bank, Banco San- share price.” Crestmark Bank, an asset-based mortgages. mond, who had been president tander Central Hispano. He said In a research report Oppen- lender. “From our perspective, if He said he wants to remain a ma- since 1995 and CEO since 2002. He Campanelli helped grow Sover- heimer published on Feb. 8, we do our business as well as we jor national mortgage lender. “This also replaced Mark’s father, bank eign from a small thrift that fo- McEvoy rated the stock a “perform” can, we don’t need to worry about won’t be at the expense of our mort- founder Thomas Hammond, as cused on mortgages and certifi- and said the bank had “best-in-class what smart competitors are do- gage business, but in addition to it,” chairman. cates of deposit into a large mortgage operations, with a proven ing.” he said. “We’ve got 500,000 small The Hammonds lost control of mainstream bank that had track record.” He said he expects He had a word of caution for businesses in close proximity to our the bank early last year when branched out into treasury man- the bank, which lost Campanelli. “Asset-based lending branches, and we haven’t provided MatlinPatterson followed an ini- agement and commercial lending. $513 million last year, to lose money is a business that if you grow it too them any lending opportunities tial investment of $100 million “He’s a good operator. He’s a this year but thinks much of its bal- quickly, you can get into trouble. through our branches.” with a second investment of good manager and he knows how ance-sheet troubles are behind it. You have to make sure you stick to As of June 30, Flagstar had 162 $250 million. to do what he’s doing now, saying, Currently the bank is under a your underwriting standards.” full-service branches in three Previously, Campanelli had ‘This is the platform I have. How warning by the New York Stock Ex- According to the New York-based states, including Indiana and been president and CEO of both do I squeeze the most out of it,’ ” change that it faces possible delist- Commercial Finance Association, as- Georgia, and had 45 home loan Sovereign Bank and its Philadel- said McEvoy. ing if it doesn’t get its share price set-based lending has grown nation- centers in 18 states. It was the fifth- phia-based holding company, Sov- McEvoy said Flagstar’s previ- above $1. wide from $314.4 billion in 2001 to largest bank in Southeast Michi- ereign Bancorp Inc. (NYSE: SOV). ous management gave lip service McEvoy said that asset-based $590 billion in 2008. Last year’s fig- gan, with $6.5 billion in assets. On Feb. 8, Flagstar closed a to diversification but never had lending offers a way for banks to ures are not yet available. Comerica Bank was No. 1, at rights offering, having raised much follow-through. In addition regrow business after months of Tom Henderson: (313) 446-0337, $22.9 billion, followed by Bank of $300.6 million through the sale of to beefing up small- and middle- retrenching. He said Flint-based [email protected]

Purtan: Radio host exits the industry at time of immense change ■ From Page 1 show — told his family last sum- sure at the state of the radio busi- honoring Purtan on air in coming Whoever takes over will do it in Ted Koppel, who turned 70 this mer that he planned to retire at ness. weeks. an uncertain economic climate. month. some point in the next 12 months. “I wasn’t hap- “He’s not re- Purtan said he’s heard that In the 1990s, Purtan was able to He reached the final decision py with that, but placeable. $100 million in radio advertising move from the traditional rev- during time off at Christmas after that was the sit- There’s no tal- revenue has evaporated from the enue-sharing model contract — in his wife, Gail, tearily told him she uation,” he said. ent like that,” Detroit market, mirroring an in- which he would get a cut of the ad- didn’t want him to go back to “Things have she said. dustry trend that has forced the vertising dollars from airtime work. tightened up a A few names major radio corporations to cut sold during his show — to a Gail Purtan has survived ovari- great deal.” to take over the jobs and belt-tighten. straight salary deal that his an cancer for the past 13 years and That’s a de- morning slot “The economic situation has lawyer, Henry Baskin of Birming- breast cancer for the past five parture from have been float- hurt radio a great deal. It’s a tough ham-based The Baskin Law Firm years — diseases her husband has what he calls the ed among radio business now to be in,” he said. P.C., said makes him the highest used his proven on-air fundraising freewheeling insiders. “It could be $100 million or close paid non-syndicated radio person- Kernen Kenyon abilities to fight. early days of his “It will have to it,” said Bill Burton, CEO of ality in the nation. “I decided it was time I devoted career, when he once interviewed to be with someone who is well Troy-based Detroit Radio Advertising But it’s raising money for chari- 100 percent of my time to her in- John F. Kennedy from the lip of a known, recognizable and has a Group, which sells advertising on ties that may be Purtan’s real stead of 90 percent,” he said, stage during a 1960 campaign stop proven track record of success in behalf of a consortium of member forte. adding that they plan to spend in Jacksonville, Fla. — Purtan still Detroit morning radio,” said Don stations. It gave Purtan a lifetime His annual radiothon benefiting time in Florida and cruising remembers the questions he asked Tanner, a partner in Farmington radio achievement award a few The Salvation Army’s Bed and Bread while he mulls writing an autobi- — and scraping up with other disc Hills-based Tanner Friedman Strate- years ago. Program, scheduled for Friday, ography and podcasting in retire- jockeys the $12,500 needed to bring gic Communications and radio vet- “It’s a tough struggle, but it’s has raised more than $22 million ment. The Beatles to perform in Cincin- eran who just published an updat- still a very good business,” Burton for the program since 1988. Some local radio insiders specu- nati in 1964. ed version of his book on the radio said. After retirement, he intends to late the cost-cutting within the in- The next year, he hired on at De- and music industries, No Static At Such lifetime awards are going stay involved behind the scenes dustry, which dwindled Purtan’s troit’s WKNR-AM, better known as All. to be harder to earn because the with the charities, but not on air, large cast of on-air sidekicks and Keener 13. Tanner believes Jim Johnson or economics and culture of radio to- he said. production staff, also significantly He would work at several other Lynne Woodison, who for many day make it much more difficult Even when Purtan is wistful re- fueled his decision to quit. local stations, and at one point had years did the “J.J. and Lynne” now for someone to spend decades flecting on his career, the trade- “I remember when Purtan’s stu- an equity stake in WKQI-FM 95.5, morning show WCSX 94.7 FM until in a market doing the same thing, mark wit isn’t far off: “Forty-five dio looked like a circus,” said Dick before launching his “Purtan’s 2008, are possibilities — but sepa- radio industry watchers say. years is a pretty good stretch of Kernen, vice president of industry People” morning show on WOMC rately, because Woodison is suing “It takes a very long time to be- time to be doing a show in one relations at Southfield-based Specs in 1996. station owner Greater Media Inc. come what Purtan and people like town. The audience must have had Howard School of Broadcast Arts and His retirement opens an enor- “Also intriguing is the duo of that have done. It takes years and strong stomachs to accept me for a 50-year veteran of the radio in- mous gap in WOMC’s lineup, the Chris Edmonds and Stacey Duford years to establish being part of that long of a time.” dustry who worked with Purtan lucrative morning drive-time slot (formerly morning show hosts at people’s day,” Kernen said. And don’t look for him shilling over the years. sought by advertisers. WNIC 100.3 FM and recently Matching how many years Pur- on television commercials, either, “This isn’t just somebody that “At some point, when the time is teamed on WOMC’s Sunday tan did it to his age is impossible which he steadfastly said he will decided to resign only to spend right, we’ll talk about the evolu- Brunch program),” Tanner said. because he’s coy about his birth not do. Nor will his lawyer of 34 more time with his family. This tion (of the morning slot),” said “A wildcard might also be Ann date. years allow him. resignation was because it wasn’t Deb Kenyon, senior vice president Delisi, who is doing her weekend However, he did confirm that he “I told him if I catch him selling fun anymore,” Kernen said. and market manger for CBS Radio show at WDET. She has a large, was a senior at Syracuse University windows or a piece of furniture, I’d WOMC’s owner, CBS Radio De- Detroit. “We’re a great station to- loyal following out there although when he turned over his program- come over and kill him,” Baskin troit, declined to renew two more of day and we’ll be a great station six has traditionally worked more ming director job at the campus ra- said. the show’s staffers last year, and months from now.” with alternative music, including dio station to a hand-picked sopho- Bill Shea: (313) 446-1626, Purtan doesn’t hide his displea- Kenyon said the station will be the original ‘River.’ ” more: future television newsman [email protected] 20100222-NEWS--0027-NAT-CCI-CD_-- 2/19/2010 6:08 PM Page 1

February 22, 2010 CRAIN’S DETROIT BUSINESS Page 27 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF FEB. 13-19

nerds “roll up their sleeves, Seldom Blues closed ater on Valentine’s Day vio- but don’t wear long-sleeve Gretchen Monday after six years. Co- lated the rules of his release shirts,” with a shot of Sny- owner Frank Taylor cited the in a pending assault case. What’s next der in a polo shirt. economy and the lack of Snyder is one of five Re- Valade is $3M foot traffic in the Renais- publicans running for the sance Center as reasons. OTHER NEWS chance to replace Democra- More than 100 new Detroit Metropolitan Air- tic Gov. Jennifer Granholm. donor for jobs are expected to be cre- for Wilson? port was rated best in cus- ated from a $19 million fed- tomer satisfaction among Forgotten Harvest staffers eral grant awarded to Ann large airports, according to St. John project Arbor-based Altarum Insti- a report by J.D. Power and to deliver aid to Haiti tute to establish the Michi- Associates, moving up from retchen Valade, CEO Keep guessing gan Center for Effective IT 12th in the most recent Forgotten Harvest staff and of Mack Avenue Adoption to offer electronic study, conducted in 2008. board members plan to fly G Records and chair of health record adoption as- he newest guessing Gilbert’s holdings, including Baggage claim and delivery to Haiti on March 17 to de- Dearborn- game around town is the Cleveland Cavaliers. sistance services to prima- speed were noted. liver the last of the $1 mil- based T “Where will Tom Wil- “Tom Wilson is a great ex- ry care providers. Gov. Jennifer Granholm lion in cash and supplies it Carhartt son end up?” ecutive and leader and we Commerce Township- issued an executive order collected in aid. Inc., has Will the former Palace have the utmost respect for based Powermat Inc. said it to establish the Office of Forgotten Harvest has re- come for- Sports & Entertainment boss him, but the Cleveland Cava- plans to expand into one Health Services Inspector ceived cash donations total- ward as the be part of a group bidding to liers nor any of our family of global market per month General within the state De- ing about $400,000 and anoth- donor of an through 2010 to meet de- buy the Detroit Pistons and companies have entered into partment of Community er $600,000 worth of donated anony- mand for its wireless charg- the venue or even discussed any posi- Health, starting Oct. 1. The items such as children’s mous ing device, the Powermat. manage- tions or business relation- governor also issued a di- shoes and T-shirts donated $3 million Delta Air Lines is seek- ment ship of any kind with Mr. rective to move toward by the Detroit Pistons and Ab- gift made Valade ing federal permission to company Wilson,” Gilbert said in a opening up the state’s sopure bottled water. to St. John Hospital and Med- begin nonstop service be- he ran as statement through Tad health care benefit plans to Archway Marketing Services tween Detroit Metropolitan president Carper, Cavs’ senior vice ical Center to fund a new in Romulus packed on pal- Airport and Tokyo’s Haneda other public employers and since president, communications. cardiovascular hybrid sur- lets all of the donated items Airport starting Oct. 31. employees. 1992? On Friday, Wilson’s gical laboratory. at no cost. The largest U.S. mall Michigan State Universi- Wilson Palace phone and e-mail Forgotten Harvest is owner, Indianapolis-based ty said it won a $25 million has said were already shut down. sending donations to two ON THE MOVE Simon Property Group Inc., National Science Foundation half a Palace Sports COO Alan Ost- Haiti hospitals operated by said it has offered more grant to establish a re- Wilson dozen field replaced Wilson. William Pulte, founder Cross International and Pro- than $10 billion for the No. search center to focus on people have expressed in- of Bloomfield Hills-based ject Medishare for Haiti Inc. 2 mall owner, Chicago- fundamental principles of terest in buying the team Pulte Homes, will retire based General Growth Proper- evolution in natural and ar- Candidate invites input from the company and its and PS&E, which owner ties Inc., Crain’s Chicago tificial systems. board at the end of March, Karen Davidson put on the on ads, but with a catch The Villages rated a top Business reported. Both M1 Rail, the $125 million the Associated Press re- block last month. He hasn’t place to buy an old house companies are major com- private effort to bring light divulged names. Republican gubernatorial ported. His board seat rail transit to a portion of candidate Rick Snyder is al- Detroit’s The Villages com- petitors of Bloomfield Hills- Or will he pull up stakes won’t be filled. He will take based real estate invest- Detroit’s Woodward Av- lowing visitors to his cam- munity has been named one and take a job elsewhere? the title of founder and ment trust Taubman Centers enue, is getting a paign Web site, rickfor of the top places in America Wilson is widely credited chairman emeritus. Inc. (NYSE: TCO). $25 million federal stimulus michigan.com, to pick his to buy an old house in 2010 as being instrumental in Oshkosh Defense is grant, the U.S. Department of next television ad, touting by This Old House magazine. the success of the Palace of again the winner in a five- Transportation announced. him as “one tough nerd.” “Yeah, times are tough in OLITICS Auburn Hills, and has NBA, P year defense contract val- Season tickets for the Like his initial ad that Detroit,” reads the text ac- WNBA and NHL champi- Colleen ued at more than $2 billion, upcoming Detroit Lions sea- companying lavish photos of onships on his resume. aired during the Super McDonald, after the U.S. Army lifted a son are now on sale; 19,000 Wilson is hinting to re- Bowl, the ads highlight Sny- the historic neighborhood, former stop-work order and reaf- Ford Field seats will be dis- porters that everyone will der’s message that Michi- east of downtown. “Still, we president firmed the award of its counted while the remain- know soon where he’ll land gan needs to be reinvented, can’t overlook its bargain- of the Holi- Tacom Life Cycle Manage- der will see their full-season — perhaps as soon as this touting his business back- hunter’s bounty of architec- day Automo- ment Command in Warren. prices frozen from last year. past weekend, making these ground as president and tural riches — just one rea- tive Group, The Army placed the stop- Suite and premium seat words moot. COO of Gateway Inc. and his son we’re betting on the which work order on the family of sales are also under way. The Ilitch organization, work in venture capital. city’s survival.” owned medium tactical vehicles in A $5 billion U.S. Trea- including the Detroit Tigers Two ads are on the Web “We believe this honor is McDonald three De- September after rival bid- sury Department lending pro- and Red Wings, already has site, and visitors can vote. an opportunity to demon- troit-area ders Rockville, Md.-based gram extended to automo- family members in key posi- But to cast a vote, visitors strate to the rest of the na- auto dealerships shuttered BAE Systems and War- tive parts suppliers — but tions, and their Olympia Enter- must first earn a minimum tion the beauty, history, cul- by the bankruptcy reorgani- renville, Ill.-based Navistar In- criticized by them for being tainment venue company has number of “points.” Users tural diversity and strong zations of Chrysler Group ternational Corp. protested too expensive and confus- Dana Warg in place. The De- must register then return spirit that exists in Detroit L.L.C. and General Motors Co., the award to Oshkosh. ing — could end by April, troit Lions have Tom Leward and donate to the campaign, historical neighborhoods,” announced she will run as a Ann Arbor-based Domi- Automotive News reported. running the organization. or invite others to join, to said Kim Clayson, president of Republican for the Michi- nos Pizza Inc. reached a mile- Another place he appar- earn points. The Villages Community Devel- gan Senate seat being vacat- stone this month by hitting ently won’t go is to Dan The ads include lines like opment Corp., in a statement. ed at year’s end by term-lim- $1 billion in online sales. OBITUARIES ited Bruce Paterson, Doug Fieger, lead R-Canton Township. COURTS singer of rock group the Former Michigan state Knack and brother of attor- treasurer and Major League The Ann Arbor Amateur ney Geoffrey Fieger, died of Baseball official Robert Bow- Hockey Association has filed cancer Feb. 14. He was 57. man has decided against a civil suit against its for- Walter Buhl Ford III, a getting into Michigan’s De- mer treasurer, Kimberly EST FROM THE LOGS great-grandson of Ford Mo- B B mocratic race for governor, Knight; her husband, Jon; tor Co. founder Henry Ford, READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS AP reported. and her father, Richard Marshke, in an attempt to died Tuesday in Palm A fan of Land Rovers Banish Detroit’s bad spirit recoup the $934,000 she ad- Beach, Fla. He was 66. COMPANY NEWS mitted to stealing from the John Holland, former Just a few days ago, Ask some folks what Chrysler Group L.L.C. said organization between 2005 managing partner of Ann I“ was clutching for a Detroit’s“ biggest problem Friday it has agreed to ac- and 2007. Arbor engineering firm Mc- hand-hold in the interior is, and they’ll say jobs. quire the Sterling Heights U.S. District Judge Av- Namee, Porter and Seeley, of an ancient rattletrap The economy. The woes assembly plant for $20 mil- ern Cohn on Wednesday de- died Feb. 11. He was 86. Land Rover Defender as of the domestic auto clared a mistrial in the pub- E. Ray Scott, former ex- it violently bounced its industry. Winter. Ask lion from Old Carco L.L.C. — ecutive director of both the way along the edge of a Francis Grunow, and the so-called old Chrysler — lic corruption trial of precipice. … I’ll never you’ll get a different which has managed the au- Detroit political consultant Michigan Council for the Arts again complain about answer: Le Nain tomaker’s remaining assets Sam Riddle, the AP reported. and the Michigan Commis- Michigan’s roads. Rouge. since its emergence from On Friday, Riddle was or- sion on Arts in Public Places ” bankruptcy last year, AP re- dered confined to his home and who is credited with es- Reporter Bill Shea’s blog on sports, the media,” Reporter Nancy Kaffer’s blog on the city of Detroit ported. The agreement on electronic tether. His tablishing Artrain, died transportation and marketing can be found and small business can be found contact with a former com- at www.crainsdetroit.com/shea at www.crainsdetroit.com/kaffer would keep the plant open Feb. 5 of heart disease. The through 2012. panion, Mary Waters, at a the- Dearborn resident was 86. DBpageAD.qxd 2/16/2010 10:45 AM Page 1

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