THIS YEAR’S WINNERS ANNOUNCED PAGES 11-22

FEBRUARY 15, 2021 • VOL. 33/NO. 9 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com DeVos-backed PE fund to support Michigan companies Pop-up concepts, Family office taps Auxo Investment Partners to lead Michigan Opportunity Fund staffing challenges,

By MARK SANCHEZ | MiBiz Investment Partners to manage the new spectrum, from growth and buyout capital to [email protected] Michigan Opportunity Fund, whose early inves- subordinate and distressed debt. uncertain demand tors include businessman and auto racing icon The response from prospective investors GRAND RAPIDS — A West Michigan capital Roger Penske. Among the fund’s investment tar- across the state has been strong, said Doug investment fund that involves the family office gets are Michigan-based family-owned compa- DeVos, the co-chair of Ada-based direct-selling fill chefs’ outlook for Doug and Maria DeVos wants to make long- nies whose owners are ready to retire and lack giant Amway Corp. Even investors who passed term investments across a variety of industries a next generation to take over. on the opportunity told him “I love the idea” and with a goal of preserving and growing local The Michigan Opportunity Fund will make offered advice on creating the fund, DeVos said. By KATE CARLSON | MiBiz companies and jobs. majority and minority investments in small “The fund has been really, really well [email protected] The DeVoses’ Continuum Ventures LLC and mid-sized companies across the state. received,” said DeVos, who sees a large demand has partnered with Grand Rapids-based Auxo Investments will occur across the capital See MICHIGAN OPPORTUNITY FUND on page 7 he COVID-19 pandemic has pushed restaurants to adapt and innovate in order to sur- vive. As the architects of the restaurant industry, chefs across TWest Michigan have tested various experi- Equitable COVID-19 ments to stay afloat during the pandemic and beyond. vaccine distribution Restrictions aimed at slowing the spread of the virus have cut down on already thin in focus for West profit margins, leading many restaurants to close their doors. The Michigan Restaurant Michigan coalition & Lodging Association predicts about 5,600 establishments will close in Michigan in the By MARK SANCHEZ | MiBiz next six months. [email protected] Restaurateurs have deployed a range of strategies have been since the pandemic f the coalition coordinating COVID-19 vaccines hit, including ghost kitchens and pop-up in West Michigan gets judged for anything, Keith concepts, increasing outdoor seating dur- Hustak hopes it’s for how well the group equitably ing colder months, and focusing on take- administers doses. out and delivery. Meanwhile, some restau- The West Michigan Vaccine Clinic at DeVos rant workers have taken on more duties as IPlace in downtown Grand Rapids was a significant staff sizes shrink. accomplishment to provide vaccines on a mass scale Some of the trends could be temporary — it hopes to provide up to 20,000 a day. The clinic’s while others might leave their mark on January opening now allows the West Michigan Vaccine the industry in a more permanent way, Collaborative to pivot “and really start to focus” more according to four chefs MiBiz spoke with on the equitable distribution and administration of recently. vaccines, said Hustak, vice president for urgent care, occupational and virtual health at Spectrum Health. Ghost kitchens “We need to be judged not by DeVos Place, but by this (equity issue),” Hustak said during this month’s An emerging trend that gained prevalence West Michigan Health Forum sponsored by Grand during the pandemic has been ghost kitch- Valley State University. ens — temporary pop-up concepts that a Hustak and others say distributing the vaccine equi- restaurant launches out of its kitchen with tably is a priority in the pandemic that has hit racial and a separate menu. ethnic minority communities harder than others. As Hops at 84 East in Holland launched they pursue that commitment, survey data has repeat- Frankie’s Cheesesteak Factory for a few edly shown racial and ethnic minorities are less likely to months during lunch hours, offering chees- get vaccinated or are taking a wait-and-see approach. esteaks, fries and desserts.

See VACCINE DISPARITIES on page 3 See FUTURE OF RESTAURANTS on page 23 PHOTO COURTESY OF SPECTRUM HEALTH

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Walther Trowal_MiBiz_12521.indd 1 2/5/2021 10:26:57 AM 2 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com VACCINE counterparts,” Furr-Holder said. “It’s the overall inequality.” DISPARITIES Data that the Michigan Task Continued from page 1 Force on Racial Disparities reported in December showed that Black resi- Published since 1988 dents who make up about 14 percent MiBiz® is a registered trademark of In a monthly national poll by the of the state’s population accounted MiBiz, Inc. Kaiser Family Foundation in January, 35 for more than 40 percent of all percent of Black respondents and 42 per- COVID-19 cases and deaths earlier Furr-Holden Greene Hustak Jameson cent of Hispanic respondents said they in the pandemic. Appointed by Gov. Publisher had already gotten a vaccine or would Gretchen Whitmer, the task force Furr-Holder, who served on GRAAHI, which works to address Brian Edwards / [email protected] Associate Publisher as soon as possible. That compares to said that efforts during the past year the Michigan Task Force on Racial racial disparities in health care, has Denise Montambo / [email protected] 53 percent of white respondents. to address racial disparities in health Disparities, would like to see the federal been partnering with care providers Black and Hispanic residents were care reduced that to 9.1 percent of all government mandate and require states to learn about the vaccine “in order Editor more likely to take a wait-and-see cases and 5.7 percent of COVID-19 to demonstrate equitable distribution to provide the education within the Joe Boomgaard / [email protected] approach toward the vaccine — 43 deaths as of December. and administration of the vaccine. community,” CEO Vanessa Greene Managing Editor percent and 37 percent, respectively Grand Rapids City Commissioner A state dashboard presently lists told MiBiz last month. Andy Balaskovitz / [email protected] — compared to 26 percent of white Joe Jones, who recently stepped down vaccine administration by age and gen- Prior survey data from the Kaiser (energy, policy) respondents, according to the poll. as CEO of the Urban League of West der, but as of last week lacked racial and Family Foundation indicated “we Senior Editor Michigan to start a consulting firm ethnic data, although the state intends have to do a lot in terms of overcom- Jayson Bussa / [email protected] focused on social equity, said after the to add it soon. ‘Overall inequality’ ing that fear and that history” of racial (manufacturing, tech, sports) pandemic’s disproportionate harm to The Kent County Health disparities in health care, she said. Senior Writer Debra Furr-Holder, an epidemiol- communities of color, the focus now is Department is working to compile “We will be on the forefront of Mark Sanchez / [email protected] ogy and biostatistics professor at on vaccine distribution. that kind of data “so we can better make this and have ongoing conversations (finance, health care, life sciences) Michigan State University, believes “The lift is really to persuade or influ- strategies to make sure we’re address- to inform and educate our commu- Staff Writer those findings do not reflect a hesi- ence those communities to consider the ing equity,” Dr. Nirali Bora, the depart- nity so people can make an informed Kate Carlson / [email protected] tancy among ethnic and racial minor- vaccine,” Jones said. “Historically the ment’s medical director, said during the decision, and in order to do that we (real estate & development, small biz) ities to get the vaccine. atrocities that have taken place particu- GVSU West Michigan Health Forum. have to be talking and we have to be Contributing Reporter Furr-Holder cites Genesee County larly with the African American commu- talking often in reaching a wide spec- Josh Sanninga nity and the medical community are well Contributing Photographer and the Flint area where she works. Better partnerships trum of our community,” Greene said. The public health department has a known. That distrust has been devel- Mercy Health Saint Mary’s now is Katy Batdorff

waiting list of 30,000 people who want oped, so that’s legit. To be able to com- The pandemic brought to the forefront planning to set up “pop-up” vaccine clin- VP of Production & to get the vaccine, and the list grows municate to the African American and health care disparities that care provid- ics, and this week was going to embed a Audience Development by about 2,000 people per day. Data Latinx communities about the need to ers have said they commit to resolve. vaccine administrator at its Clinica Santa Kristi Kortman / [email protected] from the U.S. Centers for Disease take the vaccine — and yet respect their With the vaccine, equal access Maria on Grandville Avenue in Grand Digital Specialist Control and Prevention also show decision not to — weighs heavily on me.” “is a huge issue,” said Dr. Andrew Rapids that serves a Latinx population. Danielle Affholter / [email protected] that African American parents gen- In another example of racial dis- Jameson, director of infectious dis- The goal is to “try to meet people when Graphic Designer erally vaccinate their children at the parities in the response to COVID-19, ease at Mercy Health Saint Mary’s they show up” for medical appoint- Kaylee VanTuinen / [email protected] same rates as white parents. Furr-Holder points to how African in Grand Rapids. The health system ments, Jameson said last week during a In COVID-19 vaccinations, “the American-owned businesses were partnered with Spectrum Health and media briefing. Senior Advertising Consultant problem is there is this disconnect” the smallest recipients of federal the Kent County Health Department “We’re going to try to meet people Shelly Keel / [email protected] that is not about the vaccine itself, Paycheck Protection Program loans. on the DeVos Place clinic. where they’re at, so as they see their Sales & Marketing Associate she said. Given historic inequities, includ- The West Michigan Vaccine doctor and as they get to a situation Lauren Frailey / [email protected] “It’s more like skepticism, but ing in access to health care, “How is it Collaborative now looks to partner and environment they trust, they can it’s not skepticism of the vaccine. now people are supposed to believe, with groups such as Latinx organiza- then schedule an appointment for a Circulation For address corrections or It’s skepticism that there’s an actual, ‘We care so much about you, we want tions and the Grand Rapids African vaccine, and it may be at that time,” subscriptions, contact MiBiz at authentic commitment from our you to have this very important layer American Health Institute (GRAAHI) Jameson said. 1-877-443-1977 or [email protected] nation and our leaders that African of protection,’ when all of these other on outreach to minority communities Americans emerge and recover from important layers weren’t prioritized?” on creating understanding of the vac- MiBiz Managing Editor Andy Balaskovitz MiBiz the pandemic equally as their white Furr-Holder said. cine, Hustak said. contributed reporting for this story ISSN 1085-4916 • USPS 017-099 Established 1988

MiBiz is published every other week by The CAA board of direc- Minor League Baseball Hrnyak as the new CEO to MiBiz, Inc., P.O. Box 1629, Grand Rapids, tors approved an option club the West Michigan replace Richard Lacks Jr., MI 49501. Telephone (616) 608-6170. Fax BIZ BRIEFS agreement on Feb. 5 to Whitecaps, which owns who has been in the role (616) 608-6182. E-mail: [email protected]. A recap of recent stories from MiBiz.com. purchase 11.6 acres of city- and operates what has since 1999. Lacks will tran- Subscription changes: subscribe@mibiz. com. Periodicals Postage is paid at Grand owned property at 201 been known as Fifth Third sition to become executive Rapids, MI. CSM Group exec aims plans to grow CSM’s plat- Market Ave. SW to build Ballpark for the last two chairman of the board. form on a national scale. an outdoor amphitheater. decades, struck a new multi- to be leader for women Hrnyak was previously POSTMASTER: Send address changes “There is a lot to unpack The Grand Rapids City year partnership with Lake company president and to MiBiz, P.O. Box 1629, Grand Rapids, MI in construction being a female leading a Commission followed with Michigan Credit Union, made headlines as the first 49501. Subscriptions are available without Julie Byrne was recently unanimous approval of the construction company,” which includes renaming the non-family member to hold cost to qualified readers. Paid subscriptions appointed as president of Byrne told MiBiz. “I’m option agreement on Feb. 9. facility as LMCU Ballpark. that position in company are available to those not meeting qualified CSM Group Inc. after work- excited about being a role “This agreement can be With a 8,942-person history. He joined the com- circulation requirements. Paid subscriptions ing at the construction man- model for women, not only transferable, so that if at capacity, the facility at 4500 pany in 2002 as a divisional are $99/year. Single copy and back issues agement firm for 15 years. in construction, but as a some time Grand Action or W. River Drive in Comstock (when available) are $3 each, plus first class director of sales and moved During her time at the leader for women in top potentially another entity Park is home to more than postage. Call 1-877-443-1977 to order. on to manager and vice company, Byrne helped leadership positions of com- steps up to get engaged in 200 events each year, which president roles. streamline the project panies in general.” the process, that’s antici- will include Whitecaps Additionally, Lacks start-up process by devel- pated in the agreement,” home games beginning in MIBIZ INC. oping CSM’s pre-construc- Convention/Arena said Rich MacKeigan, its upcoming 2021 season. announced that CFO Mike 1059 Wealthy St. SE, #202 regional general manager of Clover would become presi- Grand Rapids, MI 49506 tion department. CSM Authority, city advance Group is headquartered in DeVos Place and Van Andel Nick Hrnyak named dent while controller Scott 616-608-6170 phone • 616-608-6182 fax Kalamazoo, and also has plan for GR riverfront Arena. Chaudoir was promoted CEO of Lacks COPYRIGHT ©2021. All Rights Reserved. offices in Grand Rapids and amphitheater to the CFO role. The trio of Reproduction or use of any portion without Dickson, Tenn. The Grand Rapids-Kent Whitecaps home Enterprises amid executives combine for more permission of the publisher is prohibited. As one of the few women County Convention/Arena field renamed leadership changes than 40 years of experience to serve in a top leadership Authority and the city of LMCU Ballpark Tier-1 automotive sup- with the company, which role at a construction com- Grand Rapids have taken West Michigan’s largest out- plier Lacks Enterprises Inc. produces finish solutions for pany, Byrne hopes to set an another step to advance door entertainment venue is recently announced several the auto industry and stands example for others while plans for an outdoor amphi- rebranding following a new changes to its front office. as the fourth-largest pri- working to increase diver- theater on riverfront prop- partnership announced this The Cascade Township- vately held employer in West sity in the industry. She also erty near downtown. month. based company named Nick Michigan.

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 3 MANUFACTURING

Whirlpool emerges as key partner with statewide Industry 4.0 accelerator

By JAYSON BUSSA | MiBiz collaboration of three Michigan-based, manu- [email protected] facturing technology-focused entities. Whirlpool is the only West Michigan-based s a manufacturer with a reputation corporate partner for the Industry 4.0 acceler- for skating the cutting edge of tech- ator program, which is powered by Troy-based nology, Whirlpool Corp. leverages resource center Automation Alley, Jackson- relationships with organizations based manufacturing technology accelerator and researchers globally to uncover Lean Rocket Lab, and Lawrence Technological Aemerging technology capable of transforming University’s Centrepolis Accelerator. its operations. As the only Industry 4.0 accelerator in North “I think one of the things we focused on America, and one of the few in the world, the more recently is not going after necessarily the program seeks to bring the top innovators latest technology but the technology that is from around the globe to Michigan by invest- Invisible AI was awarded $10,000 as part of a Michigan-based Industry 4.0 accelerator’s 2020 transformational in the long run,” Leonel Leal, ing in their businesses and providing coach- Pitch Night in October. The startup was named Best Manu-Tech Hardware Company of 2020. Whirlpool’s director of global advanced manu- ing and resources. One of the most important COURTESY PHOTO facturing engineering, told MiBiz. components is establishing a foot inside the door of an impressive list of Michigan- for how they’re going to take their manufacturing “Manufacturing is a slow- headquartered corporate partners, which operations into the future.” includes names like Denso Corp., Magna moving industry. Finding International Inc. and Whirlpool. First dibs the right people is definitely When it came to finding a high-profile corporate partner for its growing ecosys- For corporate partners, the arrangement is mutu- valuable. The accelerator tem, Whirlpool stuck out. ally beneficial, as Michigan-based manufactur- has done a great job to “For us, it was two things: Whirlpool is ers get first crack at innovations that range from provide resources on certainly already recognized as an indus- AI-fueled technologies to machine vision. try leader. They’re an innovative company. Whirlpool’s Leal said his team has carefully plot- all fronts. Finding even Leal Sachdeva Seneff We always use their products — probably ted a roadmap to operational excellence, and in small customers to talk The Benton Harbor-based appliance manu- every day,” said Ken Seneff, co-founder of Lean doing so, is able to find the current gaps in its oper- facturer can look closer to home to find these Rocket Lab. “Second was their focus and their ation. With this knowledge, Whirlpool can lean on to is incredibly valuable emerging tehcnologies thanks to an Industry willingness to look at new technology. Whirlpool, the Industry 4.0 accelerator program, among other because we want to build 4.0 accelerator program created last year, a from our impression, had a very strategic mindset resources, to find technology to fill those gaps. “We already know where we see gaps, there- a technology that helps fore we’re not just going after something we hear everyone, not just the big for the first time,” Leal said. “We’re pretty strate- players.” gic in the areas we know we want to advance in.” FOOD-GRADE OR PHARMACEUTICAL, Leal said Whirlpool is in talks with a number of the startups associated with the Industry 4.0 — PRATEEK SACHDEVA accelerator program, and that the company is Co-founder and COO, Invisible AI WE ARE CERTIFIED TO MEET ALL YOUR especially interested in technology capable of documenting continued efficiency on produc- WELDING AND FABRICATION NEEDS! tion lines, including finding opportunities to improve manual operations. takes time to learn how the technology can be “A lot of manual operations are hard to build applied to specific processes and how it might connectivity with, but when you’re able to then play a role in the broader scope of its manufac- apply some of these solutions that can monitor turing operations. manual operations, that’s a great opportunity to “We always think of the global aspect — see and learn,” Leal said. not just for that particular factory,” Leal said. Whirlpool is in talks with a startup called “We try to look at how this is going to impact Invisible AI, which was co-founded two years (Whirlpool) overall.” ago by University of Michigan graduate Prateek Sachdeva, who is also Invisible AI’s chief oper- Foot in the door ating officer. The company has created AI-enabled cam- For Sachdeva, whose professional history is eras that watch assembly workers to spot mis- rooted in self-driving cars, getting in with big- takes or inefficiencies during manual assembly name manufacturers is crucial for Invisible AI. processes. The camera monitors wrist, hand and By his account, it’s just one of the many benefits body movements — the assembler does not have that the Industry 4.0 accelerator has provided. to wear sensors — to determine if the assembler “It’s very hard to get access to customers like has deviated from the standard assembly process. that,” Sachdeva said. “Manufacturing is a slow- The company was founded in the Bay Area moving industry. Finding the right people is defi- but established a second office in Ann Arbor. Its nitely valuable. The accelerator has done a great Midwest operations will be based in Michigan job to provide resources on all fronts. Finding going forward. even small customers to talk to is incredibly valu- “I enjoyed that one,” Leal said of Invisible AI. able because we want to build a technology that “We’re looking to work with them on deploying helps everyone, not just the big players.” some pilots with Invisible AI. That’s a very prom- While Sachdeva deferred to Whirlpool for any ising one that I think is applicable in a lot of oper- details on Invisible AI’s relationship with the com- ations where you have manual operations and pany, he did say that Whirlpool fits the mold for manual processes.” what AI is looking for right now to prove its value. Whirlpool has a rigid process for testing new “It’s tough to find innovative players in man- innovations before they can be built into its oper- ufacturing who are willing to move fast because EASTMUSKEGON.COM ations. This includes pilot, trial, deployment and that’s what’s required to be a successful startup — roll out phases. that velocity,” Sachdeva said. “Other partners we’ve During the pilot and trial phases, Whirlpool talked to have had the same experience.”

4 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com HEALTH BIZ

the market support industry R&D that costs average copays of $20 for generic drugs and $60 Rising prescription drug costs billions. for brand-name drugs. Copays averaged $80 for MichBio, the statewide trade association for drugs that were listed on a health plan’s third tier. the industry in Michigan, opposed much of the Drugs listed on higher tiers had a copay for 20 legislation that lawmakers considered in 2020. percent of the cost, for a maximum $250 for the likely to be revisited in Lansing Recommendations in the task force’s report offer fourth tier and $450 for the fifth, according to The little new beyond what lawmakers considered Employers’ Association. last year, MichBio CEO Steve Rapundalo said. Representatives from health insurers in By MARK SANCHEZ | MiBiz or generic drugs. Many of the task force’s recom- The report “was a foregone conclusion and Michigan argue that imposing caps on drug [email protected] mendations were covered in legislation that law- a done deal right from the get-go,” and also was copays written into employer health plans does makers considered in 2020. Some of the bills had “anti-industry” and “anti-innovation, and done nothing to alter the course of rising prices. n the surface, the position appears legislative hearings, but none ultimately passed. without an independent assessment or analysis Dr. James Forshee, senior vice president and completely counter to what a busi- The report from the bipartisan task force sets the on health care costs,” Rapundalo said. chief medical officer at Priority Health, said ness organization would typically foundation for the reintroduction of bills in 2021. If lawmakers want to make prescription drugs some 800 brand-name drugs had price increases advocate. “It sets up, hopefully, a more robust policy dis- more affordable for consumers, they should start this year that average 4.5 percent. Specialty drugs Yet the ever-rising costs for pre- cussion on these issues,” Johnston said. “Given with out-of-pocket costs rather than forcing commonly used by Priority Health members Oscription medications has led the Grand Rapids the bipartisan nature of the task force, we’re hop- drug makers to part with confidential, propri- have gone up an average of 7.9 percent this year, Area Chamber of Commerce to support requir- ing that could signal some potential agreement.” etary pricing data, Rapundalo said. Publishing or about $6,800 more annually, Forshee said. ing pharmaceutical companies to explain certain Whitmer noted the task force’s report in last list prices for drugs would mean little to con- Even insulin that once costs $20 or $30 a month’s State of the sumers, “because that’s not what they’re paying month many years ago now costs as high as State address. She and there are so many middlemen in between,” $1,000 monthly, Forshee said. pointed to the bipar- Rapundalo said. “That’s the issue. It’s not whether you tisan nature of recom- “Insurance design reform is where you want have a $100 copay. It’s the overall total cost,” mendations and the to start if you really want to impact out-of-pocket he said. “Eventually, someone’s covering rising cost of prescrip- costs,” he said. that total cost. We can get lost and hung up tion medications. MichBio would support bills to ensure sav- on where are the copays and where are the “Now, let’s get this ings from rebates negotiated between pharma- deductibles. I’m not sure that isn’t a distract- on the legislature’s ceutical companies and PBMs are passed directly ing discussion from the fact that the prices to-do list,” Whitmer to consumers and to ban gag clauses that are also have gone through the roof.” Forshee Johnston Pallone Rapundalo said. included in PBM contracts with retail pharma- increases in drug prices, the costs to research, cies, Rapundalo said. Transparency needed develop and manufacture a drug, and how much Rising costs, varying interests “The consumer should know when they go to it invests in clinical trials. a pharmacist if a copay is cheaper in cash than Transparency on drug prices and how they are That kind of transparency — embedded in a The task force report found that over the past six it is through the insurer, and if it is they should set remains the top legislative priority for the state task force’s report on drug costs — would years, the average prices for drugs to treat “dia- know that and be allowed to pay for that. Yet there Michigan Association of Health Plans (MAHP), begin to create greater public understanding on betes, heart disease, depression and other com- are agreements in place that forbid the pharma- which represents HMOs in the state. how prescription drugs are priced as health care mon conditions have more than doubled. These cist from disclosing that, and that’s not fair,” he The MAHP has long advocated for greater costs remain a top concern for employers, said prices are set with little transparency but with said. transparency in drug costs, said Executive Andy Johnston, vice president of government tremendous consequence.” Director Dominick Pallone. affairs at the Grand Rapids Chamber. Prices for common medications older adults Employer health plans “At the end of the day, there’s only one entity “We’re unique (among) business groups with use increased at 10 times the rate of inflation over that sets the list price, and that’s manufacturers. this position,” he said. “When it comes to health five years, and the average price for prescrip- Many employers have varying tiers in their drug At the very beginning of the price-setting issue care costs, it’s a significant burden on American tion drugs grew nearly 60 percent from 2012 to benefits that require higher copays for name- are manufacturers,” Pallone said. “This is the only businesses and it places us at a disadvantage in 2017, according to the report. Survey data indi- brand and higher-cost drugs. The higher the tier, product that I know of that the longer it’s avail- the global marketplace. Also, given the amount cate that in 2017, nearly one-third of Michigan the higher the required copay. able, in some cases, the prices go up.” of taxpayer dollars spent on these, it seems like adults stopped taking a medication because of Prescription copays nationally in 2020 ranged While supporting greater price transparency, a reasonable regulation to support.” the costs. from $11 for drugs that appear in the first tier of the MAHP would object to greater regulations That’s why the Grand Rapids Chamber last “Prescription drug prices have been rising at a prescription benefit, to $116 for costlier fourth- on PBMs that act as a go-between and negoti- year backed statewide legislation to require phar- unsustainable rates,” according to the task force tier drugs, according to an annual survey on ate pricing between pharmaceutical companies, maceutical companies to report an itemized report. “Residents across Michigan must often employer health care costs by the Kaiser Family health plans and pharmacies. account of what goes into a drug’s price when its choose between filling life-saving prescriptions Foundation. The cost of a family health plan in “PBMs are an important player for our indus- wholesale or treatment costs exceed $10,000 in a and paying rent, buying food, or obtaining other 2020 averaged more than $21,300 nationally, or try right now. They help bring size to the nego- year. The report to the Michigan Department of critical essentials.” more than triple two decades ago. tiation with pharmacies on one end of the equa- Health and Human Services would have required The issue and the complex way drugs are In West Michigan, where the average cost tion, and negotiation with manufacturers and the total costs for making and distributing the priced pits varying interests against one another. of a family health plan last year was more than wholesalers on the other end of the negotiation,” drug, R&D costs by the company or a third party In a statement emailed to MiBiz, the industry $17,300, employers answering an annual sur- Pallone said. “Without PBMs our prices would be or the cost of acquiring the drug, and what the trade association Pharmaceutical Research and vey by The Employers’ Association reported higher.” firm spent on its marketing and advertising. Manufacturers of America (PhMRMA) put part of the cost issue on insurance drug copays that have Revisiting the issue risen over the years, particularly for name-brand and costlier medications, as employers sought to The issue will likely resurface in Lansing in the mitigate rising premiums. KALAMAZOO SPACE new legislative term. A task force formed a year “We are committed to working with Gov. Warehouse | Office | Manufacturing ago by Gov. Gretchen Whitmer issued a report Whitmer and the Michigan Legislature to sup- that called for greater transparency from phar- port legislation that will save Michiganders maceutical companies and pharmacy benefit money at the pharmacy counter,” PhMRMA managers on prescription drug costs and how said. “Policy solutions that lower out-of-pocket prices are set. costs for patients will require that all actors The Prescription Drug Task Force issued sev- across the supply chain do their part. To effec- eral policy and legislative recommendations on tively address patient affordability challenges, The Trinity I need space!!! cost transparency, accessibility, affordability and we need long-term, common-sense reforms like accountability. They cover issues such as publicly lowering patient cost-sharing, allowing patients reporting data on drug prices and price controls to spread their costs throughout the year and Group, Ltd. that include setting caps on prescription copays requiring insurance companies and pharmacy built into health insurance policies. The recom- benefit managers to share negotiated rebates and mendations also suggest prohibiting so-called discounts with patients.” “gag clauses” by pharmacy benefit managers In a legislative hearing last spring on bills to 269.345.4546 (PBMs) that prevent pharmacies from telling cus- address rising drug costs, a representative from trinitywarehousing.com tomers about lower-cost alternative medications PhRMA explained that prices for drugs now on

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 5 FINANCE Grand Angels and affiliates reorganize to accommodate growth, promote diversity

By MARK SANCHEZ | MiBiz A new subsidiary, MCN Ventures, manages The structural changes should better accom- specifically for each invest- [email protected] Grand Angels’ three venture capital funds and modate continued growth and “greater impact ment and that MCN Ventures plans to launch a fourth later this year. The ven- and better impact” from investments, said Carl will manage. Michigan restructuring for Grand Angels in ture capital funds maintain a focus on investing Erickson, chairman of the Michigan Capital Capital Network will “rely 2021 aims to create understanding primarily in the Great Lakes region. Network. on trusted partners” around about angel investing and greater Paul D’Amato, who’s been with Grand Angels “Any organization as it grows needs to peri- the state — including Invest diversity among investors and their since 2015, leads MCN Ventures as CEO and odically look at its structure and adapt that struc- Michigan, Invest Detroit, deals. managing director. Dale Grogan, who joined ture to handle the growth and the new things Michigan Rise, and Lean AThe Grand Rapids-based angel investing net- Grand Angels late last year from Charter Capital that it’s been doing,” Erickson said. “We are just Rocket Lab — to source, vet, work umbrella organization Michigan Capital Partners, works alongside D’Amato. a different organization than we were historically. conduct due diligence, and Erickson Network has transitioned into a nonprofit trade The reorganization comes 16 years after This reorganization takes the successes that we negotiate deals, Erickson said. Members can also association. Under Michigan Capital Network, Grand Angels formed as a loose-knit group of had and the opportunities we see in the future invest in later-stage deals through MCN Ventures. led by Interim Executive Director Janet Wylie, angel investors in West Michigan. Since then, and aligns the organization better to take advan- Grand Angels and its affiliates in Kalamazoo, Grand Angels has grown membership, added tage of that.” Building on experience Detroit and Flint now work to “educate, grow, the venture capital funds and became a broader, Individual members of the Grand Angels and diversify early-stage investors in communi- more sophisticated organization that has network and its affiliates will now invest in Through the new structure, Michigan Capital ties across Michigan.” invested more than $40 million over the years. deals through special purpose entities formed Network wants to grow to eight affiliated angel groups across the state with 250 members, from about 100 members today. The organization has been talking to potential new affiliate partners in two more markets in Michigan. Additional affili- ates could come through partnerships with exist- ing angel groups or the formation of new groups, Erickson said. Erickson cites one recent estimate showing there were 4 million people in the U.S. who met the federal definition for an accredited investor but only 300,000 are active angels investors. “In that sense, there’s a whole bunch of people Native News Online who could be doing this but aren’t, and I think that’s driven by a lack of familiarity and educa- tion, which is why we have made education front and center in our purpose,” Erickson said. “If you don’t even know about this or feel confident in it or even know how to invest responsibly and suc- cessfully, no way are you going to be doing this.” Erickson also cites his own experience as an example. The founder of Grand Rapids soft- ware developer Atomic Object LLC, Erickson was first introduced to Grand Angels more than a decade ago by a client who had received an investment. At that time, he had done very little early-stage investing. “That made me aware of the organization. I joined and just learned a ton, sort of informally by just listening to the questions asked (and) by hanging around people who had more experi- ence than me,” he said. “We want to take that dynamic of peer-to-peer learning and we want WORK FROM HOME WELLNESS to complement it with a formal educational cur- riculum so that every single meeting has an edu- cational presentation.”

More diversity Free 50-minute webinar | Tuesday, March 16 - 11 a.m. | Register: mibiz.com/wellness Statewide in 2019, 14 angel organizations with 1,322 investors invested individually or through a group, according to the 2020 annual Many companies adopted work-from-home strategies in 2020 as a way to cope with COVID-19. Now, a growing number research report by the Michigan Venture Capital of those firms are considering WFH their “new normal” for 2021 and beyond. They’re also helping employees prioritize their Association. physical, mental and emotional health by creating productive workspaces and healthy habits at their new home offices. To bring more angels into the fold, Grand Angels created two new member classes. They are emeritus members “who have aged out of Join MiBiz and wellness consultants GIG Design, LLC for this free 50-minute webinar on Tuesday, March 16 at 11 a.m. early-stage investing” and offer “wisdom, expe- We’ll explore the impact of working from home on employee health, wellness and productivity. Plus, we’ll share actionable rience, and relationships” to emerging members who are “the future business leaders and accred- strategies that companies can utilize to help their employees thrive while working from home. ited investors,” Erickson said. “They’ll benefit from the connections, men- toring, and education we provide,” he added. “We’re planting seeds for future early-stage investors.” To register visit mibiz.com/wellness. In planting those seeds, Michigan Capital Network wants to create greater diversity and have more women and people of color become involved in early-stage investing, according to

6 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com MICHIGAN “The idea is that if we “We’re really looking to connect with could really find a way people that share our values, our passion for Angel diversity OPPORTUNITY Michigan, and believe that you can leverage to connect with these our investment activities as a force for good One of Grand Angels’ restructuring goals is FUND to create jobs and support Michigan commu- to create greater diversity among investors businesses and partner Continued from page 1 nities, all while delivering superior returns,” and investments. Here’s a look at 2019 U.S. with them, and to focus Helminski said. “We want to connect with angel investments in companies by gender for the kind of capital the fund plans to invest. like-minded individuals, families and orga- and ethnicity of their CEO: and bring resources and “In our discussions, this is a market that nizations that share those beliefs and invite sometimes isn’t always served or may not be support to them in a them to be part of this with us.” served totally, meaning you may have pockets different way, maybe we One of those like-minded individuals is if it’s around a big city or somebody gets con- can be helpful.” Roger Penske, the 83-year-old chairman of nected, but maybe it’s just not as serviced as Bloomfield Township-based Penske Corp. fully as it could be. That’s what we’re trying to In a statement on the fund’s formation, do,” DeVos told MiBiz. “We want to be a spark — DOUG DEVOS Penske said that “it is an honor to partner with in the neighborhood and maybe we can have a Co-chair of Amway Corp. the DeVos family and other Michigan inves- role to play in making things better or creating tors in this endeavor, and I look forward to the an environment where businesses can thrive at economic vitality the fund will usher in across an even higher level going forward.” the state, from Detroit to Grand Rapids and all While partners are reluctant at this point “We built the fund to broadly support points in between.” to discuss how much they intend to raise, the Michigan businesses regardless of where they’re “The Michigan Opportunity Fund presents fund could become substantial, given the con- at in their need for capital or the evolution of the unique opportunity for local investors to nections of DeVos and his their life cycle,” Helminski said. “We wanted to invest directly in the future of our great state, family office’s involvement, make sure we had a wide enough angle on the supporting its family-owned businesses and plus the existing inves- lens that we’re looking through for investment the communities in which they operate — and tors in Auxo Investment opportunities so that we could see all of the at a particularly pivotal moment,” Penske said. Male 73% Partners that they intend opportunities that are out there and consider Female 27% to approach. all of those opportunities.” Respecting legacies “We want to keep mak- The fund’s first deal could close within 60 ing friends,” DeVos said. days, he said. The fund’s focus on attracting Michigan investors “This is north, south, east, and family offices to invest in Michigan-based west, across all of Michigan companies represents a “big selling point” when DeVos Creating connections — wherever there’s friends, scouting for prospects, according to Helminski. wherever there’s people The idea for Michigan Opportunity Fund Oftentimes, sellers of family-owned companies interested in this.” started last spring as DeVos talked with col- have concerns about their legacies in their com- As well, the fund will leagues at the West Michigan Policy Forum, munities under the new ownership, particularly offer companies more than where he serves on the board of directors, and when they sell to out-of-state investors. simply financial invest- the Grand Rapids Area Chamber of Commerce “If you’re a family-owned business that’s ments. Partners bring to the regarding how best to respond to the COVID-19 reached the point of deciding it’s time to sell fund their own networks of pandemic and its effects on small and medium- the business because there is no next genera- people who can offer advice sized businesses. tion, the prospect of … partnering with a group and guidance to the com- “The idea is that if we could really find a way like us, which is made up of other well-known Helminski panies that it backs. to connect with these businesses and partner and highly respected families who have built “That’s what good partners do: They intro- with them, and to focus and bring resources and businesses similarly to the acquisition targets duce you to the next partner, or the next friend support to them in a different way, maybe we we have, will be very appealing to people — and or connection. Those are the things you want to can be helpful,” DeVos said. comforting,” Helminski said. “They are trusting White 86% Asian 3% bring because sometimes just throwing money Those discussions led to Auxo Investment their legacy and their employees’ future into the at a problem isn’t the solution. It’s the ingenu- Partners and the partnership to create the hands of people that are going to treat it with the Black 6% Other 6% ity, it’s the creativity, it’s the people,” DeVos said. Michigan Opportunity Fund. The partners are respect and with the care that they would have “You’re going to need some money somewhere launching the fund not only amid the pandemic, if they continued to own it.” Source: 2020 Angel Funders report, Angel Capital Association along the line, but what you really need are but also as an entire generation of entrepreneurs He expects the fund will likely make 12 to great people and great ideas, and people who will need to retire and exit their businesses. 15 investments over a four-year period, after understand the bigger issues of what a business In the last few years, business leaders and which partners would then consider forming is trying to accomplish, what value they’re try- economic developers have voiced concerns a successor fund. Erickson. Women are underrepresented in angel ing to provide for their customers, what envi- about the sale of local businesses to owners “I would love nothing more than for this to investing while people of color are “dramatically ronment they want to create for their employ- from outside of the region, or to out-of-state be the first of many and to have what ultimately underrepresented,” he said. ees, and what role they want to play in their private equity investors who lack ties to the becomes a perpetual pool of capital that we can Erickson sees the drive for greater diversity communities.” community. continue to invest in Michigan businesses as in early-stage investing as a social justice issue. “We’re living it as business transitions from they grow over time, and as more get to the “If you believe that this asset class of early- Investment targets one generation to the next,” DeVos said. point of meeting those generational transi- stage investments is an important one and can be Many businesses are poised for growth and tions,” he said. a potential wealth-building one, then we should Partners intend to target an array of sectors that need capital, “but just making that next step or have everybody participating and benefitting,” he include health care, technology, food and bev- connection is a tough one, so maybe we can said. “The more diversity and life experience that erage, consumer products, manufacturing, dis- help on that front, too,” DeVos added. we have, the better we all will be as investors and tribution, and business and industrial services. Organizers have been approaching fam- “We built the fund to learning from each other. … I have no doubt that The fund will consider companies with ily offices, institutions, and other prospective a diversity of our membership would help us with owners and management teams that want investors around the state to back the fund, broadly support better diligence and deal sourcing.” to grow the business, or cases in which the which “isn’t so much focused on a particular Michigan businesses The most recent annual Angel Funders report founder or family owners want to sell and retire. dollar amount as it is focused on finding the regardless of where from the Angel Capital Association shows that Investments will go toward companies with rev- right group of capital partners to be part of this nationally, women and people or color remain enue of $10 million to $200 million with $2 mil- with us,” Helminski said. they’re at in their need for underrepresented as CEOs of companies that lion to $20 million in earnings before interest, capital or the evolution of received an angel investment and “we saw vir- taxes, depreciation, and amortization (EBITDA). Local focus tually no change from 2018 to 2019.” Despite Organizers are building the fund “to have their life cycle.” efforts in recent years for greater diversity in a pool of capital that supports just about any Key differentiators for the fund compared to investments, “angel portfolio companies are still Michigan business, regardless of the type or many private equity firms are maintaining local — JEFF HELMINSKI overwhelmingly being led by white male CEOs,” need it has for capital,” said Jeff Helminski, co- ownership and owning companies well beyond Managing Partner at Auxo Investment Partners according to the Angel Capital Association’s 2020 founder and managing partner at private equity the typical timeframe of many PE investors, per- Angel Funders report. firm Auxo Investment Partners. haps indefinitely in some instances, he said.

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 7 FOCUS: WORK FROM HOME

Remote working highlights struggles, long-term opportunities for workers with disabilities

By KATE CARLSON | MiBiz incapable. If you can find some way to meet us in the [email protected] middle or where we’re at, we can be just as productive as any other individual. We’re not asking for more rights, dvocates for people with disabilities are hope- we’re asking for a chance to be a part of society in all fac- ful that the work from home trend spurred by ets, not just some.” the COVID-19 pandemic will make employ- The pandemic has also given the general population a ers more open to accommodations workers better idea of what isolation and the inability to interact might need in a post-pandemic workplace. with their community feels like — a feeling so often felt ANot all companies have been able to switch to a work by people who have a disability. from home model, but most business that is conducted “This has never really been talked about or a concern in a traditional office setting has been mandated to have until now,” VanDyke said. “This gave people who don’t employees work remotely when possible to slow the have disabilities a chance to see what life was like for spread of the virus. people with disabilities, and I hope it ultimately turns A year ago, it would have been unlikely for employ- out to be a teaching tool for all of us.” ees to get work from home accommodations from their employer, said Disability Advocates Seeking social opportunities of Kent County Executive Director David Bulkowski. Part of the orga- Working and learning remotely has had mixed effects nization’s work involves teaching for people on the autism spectrum, said Joanna Lofton, people with disabilities about how community resource specialist at the Autism Alliance to talk to their employer and ask for of Michigan. accommodations that will make Individuals on the autism spectrum have had varying them more productive at work. experiences during the pandemic, but the lack of social “I’m excited about the addi- skills and general sensory issues that come with remote Bulkowski tional level of accommodations working have generally presented extra obstacles for peo- (work from home) could lead to,” ple with autism, Lofton said. Bulkowski said. “First and fore- “There are a lot of people we serve who need the daily most the accommodation process structure of getting up and going to work, but now they is a dialogue — there should be a have been laid off,” Lofton said. “This difference in hav- give and take. But I don’t think most ing idle time can show itself as aggression or withdrawal employers will just snap back to the — idle time is not good for them.” automatic ‘no,’ like the way things The Autism Alliance of Michigan has seen a vast were before the pandemic.” increase in families seeking assistance during the A home office concept by Steelcase Inc. COURTESY PHOTO Now that employers have seen pandemic, primarily people looking for social oppor- workers maintain productivity while tunities, Lofton said. The organization also has seen an Lofton working remotely, Jeffrey VanDyke increase in adults reaching out to the Alliance because hopes it will open more opportunities for people with they suspect they are on the autism spectrum and need disabilities. VanDyke is a graphic design specialist for an assessment or to be connected with the appropri- Pandemic sends furniture Disability Network West Michigan, where he also leads ate resources. a digital peer support group. “For those who have been able to continue work- “(Working from home) can be hard on your men- ing, it’s been OK if they can actually go into the office tal health, but the positive side for me is I do not have — that routine has been important,” Lofton said. manufacturers’ work from to fight through the snow this winter as a chair user,” “One of our concerns is when an individual is able said VanDyke, who was born with Cerebral Palsy. “Now to go back to work or school, it’s still a change, which that we’ve seen consistently people of all ability levels is one of the most difficult things for people on the — whether you’re born with a disability or not — can spectrum.” home plans into overdrive work from home, I’m hoping that will open up more Lofton suggests that people travel back to their work- opportunities.” place before they are called back to refamiliarize them- selves with the routine, and reach out to employers to find By JAYSON BUSSA | MiBiz ‘Asking for a chance’ out what the changes will be ahead of time to prepare for [email protected] resuming in-person work. Before the pandemic, VanDyke primarily did graphic “Many of our individuals are worried about getting or the large West Michigan-based office furniture manufacturers, remote design work for the Disability Network and lent his COVID-19,” Lofton said. “Most people on the spectrum working was a familiar concept and a demand they were prepared to perspective as a keynote speaker at various in-person do have co-occurring disorders, so you have to be really fulfill. events. But his role at work has changed some with the careful about them being exposed and what that might While names like Steelcase Inc., Herman Miller Inc. and Haworth pandemic. He has started leading a digital peer support look like for them. A lot of times, it’s hard for them to Inc. were keeping an eye on the transition to higher percentages of group, which has been a lifeline for many who have dis- identify that they are sick.” Fremote workers, the COVID-19 pandemic and ensuing mass exodus from tra- abilities, he said. The Autism Alliance of Michigan has worked closely ditional offices lurched that evolution forward. “Before the pandemic hit, (working from home) was with some companies on how to better assist their Ryan Anderson, vice president of global research and insights for Herman never really a possibility — or supposedly it wasn’t in employees on the spectrum, Lofton said. Miller, pointed to the fact that the Zeeland-based furniture maker developed its some people’s opinions,” VanDyke said. “People with “It’s basically just them understanding autism better, first work from home solutions back in the 1950s and — despite always cater- disabilities couldn’t really get jobs.” and understanding that these individuals want to work ing to that growing market — the company had to make some adjustments to VanDyke isn’t sure whether the work from home shift and can be the absolute best employees,” Lofton said. accommodate the seismic shifts caused by the pandemic. will stick over time, but he is hopeful that it will. “It’s all about expectations and understanding what kind “I think 2020 acted as a major catalyst toward where we already thought “One of my biggest messages overall is to just give us of accommodations they’ll need. They can be your best it was going,” Anderson said. “And from our standpoint, we had already a chance,” VanDyke said. “We may do things differently employees and definitely have a lot to offer. We have some developed a work from home offering — a dedicated e-com(merce) or it may take us a little longer, but it doesn’t mean I am highly skilled and loyal individuals.” channel.

8 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com We redesigned packaging able to order and take delivery literally within where we’ve really tried to be a good corporate to fit through residential door- days. We’ve seen good success on it.” citizen in helping our clients and those in the ways and was easy to break Nemschoff said he plans further enhance- community we live and work in to be better pre- down. All that happened well ments to Haworth’s e-commerce site, which will pared and better oriented as they work forward.” before the pandemic.” roll out before the end of February. Office furniture manufacturers are finding them- “We stepped on the gas selves as go-to consultants for businesses that are for sure in terms of pro- Workplace consultants struggling to pin down the right approach to work- moting it and talking about ing from home, an office or a hybrid of the two. it, and it worked out great Haworth has also harnessed its digital presence Herman Miller, which staffs in-house consul- Poel because we saw an over 270 for more than just selling furniture. Through a tants, received so many requests that it launched percent increase in work web series called Haworth Connect, the company a digital tool to assess the health of a person’s work from home sales last year,” welcomes guest speakers to talk on topics ranging from home setup. Since launching last summer, he added. from resilience in challenging times to engage- 17,000 people have used the tool, Anderson said. Grand Rapids-based ment and inspiration. The events never mention “We learned a lot from it, too,” Anderson said. Steelcase found itself in a simi- Haworth products. “We (launched it) partly because of this tidal wave lar position. While the furniture “As much as we believe that it’s important for of requests. Now the requests (from clients) are manufacturer’s core business us to give people at home, or anywhere else, a really around, ‘How do we help people work centers on large enterprise cli- great product to work with, there is a huge mental wherever they want?’ … People are starting to A home office concept by Haworth Inc. ents and central offices, it also component to this,” Nemschoff said. “And that’s figure it out.” COURTESY PHOTO Nemschoff filled remote work and work from home niches. When the pandemic hit and nationwide shut- downs seemed potentially temporary, Steelcase was compelled to react. “We didn’t have a choice — consumers pulled us,” said Rob Poel, Steelcase’s general manager of work from home and new business innovation. “Orders just started spiking. We had a team in place at that time that was focused on our online store and retail business. But it was sized appro- Whether it’s the living room priately for the market at that time.” “We had to quickly marshal resources from a number of areas of the company, and after that or the board room, we formed a newer and enhanced team to focus on that market,” he added. “That’s when I came into my role here.” we’re here to connect New products, e-commerce race and empower you. When it came to addressing the physical needs of working from home, a few specific items emerged as top sellers. An ergonomic work chair was at the top of that list. A home office concept by Steelcase Inc. COURTESY PHOTO “Not a large portion of the population has a dedicated home office,” Poel said. “Many are creating temporary spaces. These are the people who might be sitting on a folding chair or some- thing else. … An ergonomic seating solution is clearly the No. 1 thing.” Poel said that height-adjustable desks were another in-demand item in addition to small tools and accessories, like a second monitor or a phone charging solution that would be readily available at an office. During the pandemic, Steelcase launched a sit-to-stand desk called Solo, which has proven to be popular among clients and fits the needs of this new brand of customer. “Some of the products that we developed before were being installed in an office by a profes- sional installer,” Poel said. “Now, you’re shipping it FedEx, it’s being dropped on your doorstep and it needs the average consumer to be able to assemble it. (Solo) is one product that we launched … and we envision more in the year ahead.” Not only were in-demand products changing, but also the method in which clients were buy- ing swung to e-commerce, where many furniture manufacturers found themselves enhancing their digital presence. It’s a frontier in which Haworth has been espe- cially active over the last year. The Holland-based furniture maker launched an entirely new corporate website in July 2020 and updated its e-commerce site in the second quarter. “Everything (in the online store) is in inven- tory,” said Paul Nemschoff, Haworth’s vice presi- dent of global strategy and marketing. “They’re

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 9 FOCUS: WORK FROM HOME Commercial real estate experts optimistic despite work from home uncertainty

By KATE CARLSON | MiBiz said JLL Senior Research Analyst Harrison West. [email protected] “Some companies will be looking to shed a por- tion of their office space, leading to an increase in he West Michigan commercial real sublease space in Grand Rapids and Detroit. Not Downtown Grand Rapids. PHOTO COURTESY OF EXPERIENCE GRAND RAPIDS estate market has been relatively stag- at the scale of coastal markets, but we’re starting nant during the pandemic-induced to see an increase in subleasing.” office and live in the suburbs, where you will be Tucker said. shift to remote working, but advisers Subleased office space comes at a discount, more likely to work from home.” “These little communities are figuring out see some room for optimism ahead of a with rates approximately 10-20 percent below mar- they have these amenities and pieces that will Tvaccine rollout and with several recent office deals. ket rents, according to a Bradley Co. office market make people want to be a part of that company Companies driving change “No matter what industry we’re talking about, insights report. Sublease deals right now include and come to work,” Tucker said. I think the driving force is people’s attitude — benefits such as short-term leases, furniture, rent Pharmaceutical manufacturer Perrigo Co. plc’s JLL’s office market report also points to which used to be fear, but that is no longer the abatements or subsidized tenant improvements. plan to relocate its North American headquarters Integro Builders LLC moving its office from case,” said Chip Bowling, senior adviser and prin- This rise in subleased space hasn’t had a major to downtown Grand Rapids could cause other Chicago to Grand Junction, just east of South cipal at Bradley Co. “People have been pent up effect on landlords so far, as most are receiving similarly big moves by corporations, Bowling said. Haven, as an example of a company consider- and want to get back out to a social environment.” the majority of their rental payments, according Insurance giant Acrisure LLC has also relo- ing a low-cost office alternative amid the work Amid the lingering uncertainty around the to the Bradley Co. report. But subleased space cated its headquarters to Studio Park in Grand from home trend. future of office space, Bowling expects many will soon put pressure on market rates and could Rapids and is in the process of taking occupancy “We’re also starting to see lowering the den- office tenants to make long-term decisions ultimately put pressure on landlords to drop their at the new location. sity of how many people are working at an office toward the end of the first quarter of 2021. rates if they want to compete for new tenants in “It’s our prediction the companies that come space, and people are being spread out,” said JLL’s Global real estate services firm JLL Capital the open market. downtown will have a competitive advantage to Senior Vice President Bob Horn. “We are seeing Markets’ office insight report for the fourth quar- Companies that choose to work from a physical recruit young talent,” Bowling said. some footprints stay as they had been, but with ter of 2020 showed market-wide vacancy rates in office going forward will need amenities that help Downtown is still a sought-after location despite fewer people.” Grand Rapids at 10.1 percent, a year-over-year attract talent, said Jeff Tucker, senior managing businesses shutting down in 2020 under pandemic The office trends are hard to predict, but Horn increase of 0.4 percent. Year-end leasing volume director of brokerage and principal at Bradley Co. restrictions — especially as the city pursues activat- expects the market to be soft for the next 18 months. plummeted 60.1 percent from 2019. Average “Amenities in an office setting will have to ing the riverfront with multiple planned develop- “It’s not a (one size fits all) approach,” JLL’s West direct asking rents slid 1.3 percent. be as good or better than an employee’s house,” ments, including an amphitheater, Bowling said. said. “Some companies realize working remotely is “There will be an increase in subleased space Tucker said. “An amenity driven workplace will A similar trend could play out in smaller cities working for them, but others need to be face to face as some of these office occupiers are reassessing draw people who prefer to be in-person and like Holland and Muskegon by attracting larger in an office that is collaborative.” their office footprint and working from home,” engaged as opposed to if you have a suburban companies to their downtowns for office space,

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10 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com M+A DEALS & DEALMAKERS AWARDS

THE DEALS MUST GO ON DEALS OF THE YEAR Manufacturing Introducing the winners of the top deals and dealmakers over a The Shyft Group most atypical year for mergers and acquisitions Real Estate Development Gun Lake Investments/ Waséyabek Development Co. LLC he MiBiz M&A Deals & Dealmakers risk for the buyer — largely went virtual as well, from which other companies can pluck best Banking/Finance Awards are back for their 8th install- particularly in the case of international deals. practices. ChoiceOne Financial Services Inc. ment to highlight best practices However, the old adage seemingly proved Just as in the M&A environment, COVID- and excellence in what can only be correct: Necessity is the mother of all invention, 19 also upended our plans for these awards, Life Sciences described as one of the most atypi- and dealmakers across West Michigan got cre- which were originally scheduled for an event Tetra Therapeutics Inc. Tcal deal environments of all time. ative to keep deals alive and get them across the in October. While we’re forgoing that in-per- As in most other areas of business, the finish line. Whether some of these new prac- son celebration this year, we hope you join us Health Care COVID-19 pandemic upended long-standing tices stick around for the long term remains to in recognizing these companies and individ- Priority Health norms that had driven M&A transactions and be seen, but these companies’ resourcefulness uals as prime examples of the best that West Professional Services dealmakers for decades. All of a sudden, buy- and entrepreneurial thinking are undeniable. Michigan has to offer. Acrisure LLC ers and sellers could no longer meet in person. The panel of judges had their pick of inter- Perhaps most notably, the due diligence esting, strategic and challenging deals as a Retail process — that peek under the hood of a com- result of the unique situation, but their selec- Zeigler Automotive Group pany to ensure that it matches the seller’s tions of the deals profiled on the following Economic Development description and that it doesn’t pose any undue pages rose to the top as examples of excellence Joe Boomgaard, Editor Perrigo Co. plc Technology Foxbright Nonprofit Mel Trotter Ministries THE SHYFT GROUP COMPLETES 2020 WITH A Judge’s Choice America’s Bride FLURRY OF M&A ACTIVITY, CORPORATE CHANGES Honorable Mention Auxo Investment Partners By JAYSON BUSSA | MiBiz “We had a target of 10 percent adjusted [email protected] EBITDA in 2020,” Adams said. “The other DEALMAKERS divisions are running mid-teens and lower Executive he Shyft Group was busy in 2020 — teens. And ER was going to maybe break even Jeff Lambert, and a couple of major deals were and it was taking a lot of management’s time. Lambert & Co only part of the dizzying year. When we saw it wasn’t going to be the same In a change in corporate direc- growth level as the other divisions, it was an Adviser tion, The Shyft Group — formerly easy decision.” Jeff Ott, Tknown as Spartan Motors — divested from its The nature of the deal, which shed 25 per- Warner Norcross + Judd LLP emergency response vehicle division in a deal cent of the business, was a bit new for The Shyft Investor that also sent its company name to the buyer. Group — the first carve out the company had The Shyft Group President and CEO Daryl Adams. COURTESY PHOTO John Kerschen, The Shyft Group also acquired aluminum truck ever embarked on as it sold the division to Charter Capital Partners body and accessory manufacturer F3 MFG Inc. Wisconsin-based REV Group Inc. for roughly Meanwhile, the company re-branded $50 million in cash. MANUFACTURING Rising Star under its new name and relocated its corpo- “It was a carve out, so we had to change Matthew Baas, rate headquarters from Charlotte to Novi — the campus in Charlotte a little bit and they Small Business Deal Advisors all while grappling with the limitations of the bought a couple of the buildings in the deal THE SHYFT GROUP COVID-19 pandemic. and got the employees so we had to do some The pair of company-shaping deals was separation agreements and things. Maybe they Top executives: Daryl Adams (president and CEO), Jon JUDGES honored in this year’s M&A Deals & Dealmakers weren’t hurdles, but it was new learning for us,” Douyard (CFO), Todd Heavin (COO), Ryan Roney (chief n Awards, netting the honor for Deal of the Year Adams said. legal officer and secretary), Chad Heminover, (president, Dustin Daniels, member in the manufacturing sector. Investors reinforced the decision by Shyft Fleet Vehicles & Services), Steve Guillaume of Miller Johnson Snell & Daryl Adams, who took over as company responding favorably. The Shyft Group’s stock (president, Shyft Specialty Vehicles) Cummiskey PLC CEO in 2015, admitted that he did not have ticked up 58 percent for the year. Annual sales: $757 million in 2019, n Tanya Gibbs, partner at much experience in the emergency response While The Shyft Group exited emergency from continuing operations Rosette LLP vehicle industry, nor did many members of his response vehicles, it leveraged that money n John Kerschen, president team. While analyzing the viability of the seg- to invest more heavily in its specialty vehi- Total Michigan employees: 430 and managing partner at ment, the team started to realize the inherent cles division, where it purchased California- Company: The Shyft Group offers vehicle Charter Capital Partners pitfalls that came with the market. based Royal Truck Body in September 2019 manufacturing, assembly and upfit for the Not only did fire truck sales nosedive by 30 and then F3 MFG Inc. in October 2020, which commercial, retail and service specialty vehicle n Remos Lenio, partner at percent during the Great Recession — sales included the DuraMag and Magnum brands in markets. The company is organized into two core Tillerman & Co. LLC that never recovered — but municipalities its portfolio. The acquisitions grew the compa- business units: Shyft Fleet Vehicles & Services n Julie Metsker, executive now find themselves with more frequent bud- ny’s capabilities in steel and aluminum service and Shyft Specialty Vehicles. Its family of brands director of ACG Western get constraints. bodies and provided greater margins. includes Utilimaster, Royal Truck Body, DuraMag Michigan All factors considered: Emergency response “Maybe not right now, but in the next few and Magnum, Strobes-R-Us, Spartan RV vehicles are a tough market for finding success. years, we believe there is going to be a signifi- Chassis, Builtmore Contract Manufacturing, and n Pete Roth, partner at Adams said The Shyft Group lost “a lot of cant amount of infrastructure money spent corresponding aftermarket provisions. Varnum LLP money” in 2015 but slowly brought the division in the U.S. because the roads are crumbling n Advisers on the deals: F3 MFG, Inc. acquisition: Stephen Waterbury, partner at to a break-even point and slightly profitable in and the bridges are crumbling,” said Adams, Warner Norcross + Judd LLP 2019, when management sat with the board of whose company manufacturers key compo- Donnelly Pennman & Partners (investment bankers); Varnum LLP (legal). Sale of emergency response n directors to discuss its fate. nents for those and other service vehicles. Jeff York, member of In 2019, the emergency response business “Eventually there is going to be some large vehicle segment to REV Group Inc.: Robert W. Baird & Dickinson Wright PLLC Co. Inc. (investment bankers); Varnum LLP (legal). delivered $260 million of revenue out of a total infrastructure funding so we wanted to get of $1 billion for the company. a jump on that.”

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 11 M+A DEALS & DEALMAKERS AWARDS TRIBES LEVERAGE SIMILAR INVESTMENT PHILOSOPHIES IN MCKAY TOWER TRANSACTION

By JOE BOOMGAARD | MiBiz “We’d talked for years about how tribes should [email protected] be partnering with each other and how it doesn’t happen as frequently as it should,” said Trevan, a he seeds for the joint purchase of citizen of the Match-E-Be-Nash-She-Wish Band the iconic McKay Tower building of Pottawatomi Indians, or Gun Lake Tribe. in downtown Grand Rapids took Trevan got word through a relationship with root years ago when the CEOs at a broker that the Borisch family’s Steadfast Waséyabek Development Co. LLC Property Holdings planned to put McKay Tower Waséyabek Development Co. President and CEO Deidra Mitchell (left) and Gun Lake Tand Gun Lake Investments started talking about on the market, and immediately took an interest Investments CEO Kurtis Trevan. MIBIZ PHOTO BY KATY BATDORFF doing deals together. in the commercial property. Initially, he planned Gun Lake Investments CEO Kurtis Trevan to pursue the transaction solely for Gun Lake Nottawaseppi Huron Band of Potawatomi. “Like and Waséyabek President and CEO Deidra Investments, with the tribal entity taking on any strong relationship, it requires a lot of com- REAL ESTATE + DEVELOPMENT Mitchell both started in their respective non- “some level of debt” to finance the purchase. munication up front about how we’re going to gaming tribal economic development roles at “Before we moved too far with that conversa- manage the building and what the expectations GUN LAKE INVESTMENTS about the same time, and both also planted tion, we thought, ‘This feels like it could be a really are for making improvements and returns. It their companies’ headquarters in downtown good transaction to partner on with Waséyabek,’” makes it a little more complicated, but that’s true Top executive: Kurtis Trevan, CEO Grand Rapids. Trevan said, noting his familiarity with the firm’s of any partner that you go into business with.” Annual sales: Not disclosed Along with economic development leaders investment strategy and governance. The two firms worked together on due dili- from other American Indian tribes across West His instincts proved correct. gence and ended up closing on the $17.5 mil- Total full-time West Michigan Michigan, Trevan and Mitchell began to meet “Kurt called and we talked about it, and I said, lion transaction on Jan. 13, 2020. Because of their employees: 350 on a quarterly basis to build inter-tribal rela- ‘That’s perfect — that would be a great co-acqui- similar governance structures, they were able to Company: Non-gaming economic tionships and share collective experiences. Over sition,’” said Mitchell, whose firm serves as the negotiate the transaction at the management development entity of the Match-E-Be- time, a common theme emerged. non-gaming economic development arm of the team level, which is notable in Indian Country Nash-She-Wish Band of Pottawatomi where many economic development firms Indians with a portfolio of 15 investments, require tribal governments to sign off on projects. including four operating companies Gun Lake Investments and Waséyabek split Advisers: Rosette LLP (legal), BDO USA the cost evenly and share 50-50 ownership of LLP (accounting), Barnes & Thornburg LLP the 18-story, 154,000-square-foot building at 146 (legal for the tribal partnership) Monroe Center St. in the heart of the downtown business district. The joint acquisition was selected as the win- WASÉYABEK ner in the real estate category of the 2021 MiBiz DEVELOPMENT CO. LLC Deals of the year Awards. To run the building, Trevan suggested a gov- Top executive: Deidra Mitchell, ernance structure modeled after best practices President & CEO from family owned business enterprises by cre- Annual sales: Not disclosed POTENTIAL CUSTOMERS ARE SEARCHING. ating a three-person board with a seat for each of the tribally owned firms and an independent Total full-time West Michigan third-party member. The partners recruited Scott employees: 93 (330 across the portfolio) Spoelhof from Holland-based Bayside Capital Company: Non-gaming economic Management LLC to fill out the board. development entity of the Nottawaseppi WILL THEY FIND YOU? “With large buildings like McKay, there’s Huron Band of Potawatomi Indians that maintenance, capex and other improvements includes commercial businesses, federal that we need to invest in to make sure the build- contracting firms and commercial real estate ing remains in great shape, and those things cost a lot of money,” Trevan said. “You need to balance Advisers: Dickinson Wright PLLC (legal), how does that fit within your strategies — and we Barnes & Thornburg LLP (legal for the tribal have two distinct sets of strategies between GLI partnership) and Waséyabek — and ultimately what are your key stakeholders expecting? “We needed to have somebody with some inde- So far, the partners remain bullish on the future pendence who’s going to see things with a different of the building and the prospects of continuing to perspective and help us elevate out of the weeds a work together. While the pandemic affected the gives your business the tools it needs to maximize its SEO potential. bit. It’s really provided a lot of clarity around how building’s retail tenants most acutely, the commer- we plan for this in a way that we can all be aligned.” cial and residential space has remained “remark- To find out more, call Jesper at 616.457.0300 or email [email protected]. Similarly, GLI and Waséyabek opted to work ably stable,” Mitchell said, noting her belief that with a property management firm that aligned the iconic building will hold its value for years to with their values and could deal with the day-to- come under the tribal stewardship. day operations, ultimately selecting Grand Rapids- “We’re excited to be here and feel extremely based Rockford Construction Co. Inc. for that role. blessed to have that trust and relationship with “Neither Kurt nor I had heavy experience in com- Waséyabek,” Trevan said. “We did something that mercial real estate, so their experience across the has happened very few times in Indian Country, industry has been very, very helpful,” Mitchell said. so we hope that it serves as a model for what Affordable, common-sense websites. In particular, Trevan cited Rockford’s assistance tribes can do together. We can be doing more of as being a “huge asset” after McKay Tower suffered that, and I think that’s really important for our damage during the social unrest last spring. tribes and for diversification plans.”

12 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com We’re helping people get better.

Better access to affordable, quality care across Michigan.

Better costs on procedures and prescriptions.

Better ways to stay engaged in their health.

And, as we continue working toward our vision and values, we believe things will only get—you guessed it—better.

Priority Health is proud to welcome Total Health Care to its network of care.

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 13 M+A DEALS & DEALMAKERS AWARDS

2020 during the COVID-19 pandemic. FINANCE CHOICEONE’S TWO RECENT ACQUISITIONS The Community Shores Bank acquisi- tion was publicly announced just prior PROVIDE LESSONS ON VIRTUAL DEALMAKING to the pandemic’s outbreak and work CHOICEONE FINANCIAL to close the deal and integrate the bank SERVICES INC. By MARK SANCHEZ | MiBiz million in assets, extending the bank’s into ChoiceOne was done virtually. Top executive: Kelly Potes, [email protected] presence in the lakeshore market. Going through that process virtu- President and CEO Today, ChoiceOne Bank has 33 ally reinforces the best practice that he two acquisitions offices in West and Southeastern a cultural fit remains the key to a Annual revenue: $15.6 million ChoiceOne Financial Michigan with $1.91 billion in total good deal. That fit made both acqui- West Michigan employees: 232 Services Inc. closed over assets, plus a deeper talent bench and sitions go well, Potes said, particu- a 15-month period tri- greater ability to absorb the high cost of larly in the County Bank deal in which Company: Full-service bank pled the size of the Sparta- technology and regulatory compliance. ChoiceOne’s senior management team and financial services company Tbased bank holding company. “They’ve really given us some scale, post-transaction was an equal mix of ChoiceOne Financial Services Advisers on the deal: ProBank President and CEO Kelly Potes. ChoiceOne first acquired County which has been very good for our cli- executives on either side of the state. Austin (financial) and Warner MIBIZ PHOTO BY KATY BATDORFF Bank Corp. in Lapeer, the parent com- ents, our employees and our sharehold- “When you’re looking at doing a Norcross + Judd LLP (legal) for pany of Lakestone Bank & Trust. Billed ers,” President and CEO Kelly Potes said. deal, it’s not all about pricing, but also deals virtually will prove useful should the County Bank Corp. acquisition; as a “merger of equals” because of the The two acquisitions won culture. Luckily we were blessed with ChoiceOne pursue future transactions. Donnelly Penman & Partners Inc. banks’ similar size and culture, the $89 ChoiceOne Financial Services a 2021 the fact that we have a good cultural fit “One thing that we learned is that you (financial) and Warner Norcross million all-stock deal that closed Oct. MiBiz M&A Deals of the Year Award with both of these transactions, espe- can do transactions virtually. So, I can + Judd (legal) for the Community 1, 2019, doubled ChoiceOne’s assets in the finance category. cially when we did the merger of equals see in the future, even when restrictions Shores Bank Corp. acquisition. to $1.3 billion and included 14 offices As a much larger bank, ChoiceOne with County Bank Corp. Because the are lifted on social distancing, that these in parts of Lapeer, Macomb and St. today has a higher in-house lending cap sizes were so similar and you’re bringing transactions and these conversions can Clair counties. After the deal closed, of $17 million, compared to $10 million together two management groups, you be done more efficiently and be done former Valley Ridge Bank in Kent City — ChoiceOne moved from the OTC to previously. The ability to write larger really needed to have a good relationship virtually,” he said. “There’s always minor learned how to manage a transaction. the Nasdaq exchange, giving its shares loans enables ChoiceOne to retain com- going into that, and we have,” he said. glitches here and there, but you’re going “It really just enhanced everyone’s greater liquidity and trading under the mercial clients as they grow, rather than Despite the challenges of having to have that whether it’s done virtually skills and got everybody up to speed on symbol COFS. refer them to another lender or syndi- to virtually integrate the ChoiceOne or not. We didn’t feel we really lost any- doing transactions, and I think that will Just three months later, ChoiceOne cate a large credit request. and Community Shores systems, “it thing by doing them virtually.” pay dividends in the future. If we have announced another deal with the “It allowed us to grow with our cli- went very well without a hitch,” Potes After closing the two deals so close future transactions that come up, we acquisition of Community Shores ents and to handle bigger relationships said. Knowing the Community Shores together, ChoiceOne remains inter- have a playbook on how to do it,” Potes Bank Corp. in Muskegon. The $21.5 and not have to look at any participation leadership well helped to smooth the ested in future acquisitions if the right said. “We have an appetite to grow, but it million cash-and-stock transaction with other banks,” Potes said. “We can integration process, as “everybody just opportunity arises. In the County Bank has to financially make sense and it has that closed July 1, 2020 added four more handle the client’s whole needs at the rallied together and we made it hap- and Community Shores acquisitions, to culturally make sense on anything offices to ChoiceOne’s branch network bank. That was very much a big plus.” pen,” he said. ChoiceOne staff who had yet to go through that we would look at. As those oppor- — three in Muskegon County and one ChoiceOne completed the integra- Potes believes the technology plat- an acquisition — and were not with the tunities become available, we’ll certainly in Grand Haven — and more than $244 tion of Lakestone Bank & Trust in May forms used in completing the two bank when it merged in 2006 with the take a look at them.”

Congratulations to MiBiz M&A Deals & Dealmaker Awards finalists and winners, including John Kerschen, Charter President and Managing Partner, Dealmaker of the Year/Investor, for his leadership of the Charter Growth Capital Fund.

KNOW YOUR OPTIONS Charter Capital Partners helps our clients understand the full range of M&A options available to them. We are adept at identifying the ideal strategy and timing to meet your goals, whether you want to grow your business or portfolio to the next level, or exit entirely. Our expertise includes business sale and acquisition, capital raise, business valuation, and succession planning. To learn more about your options and how we can help optimize your position, visit knowyouroptions.chartercapitalpartners.com.

Broker dealer services offered through M&A Securities Group, Inc. Member FINRA/SiPC, a separate entity from Charter Capital Partners and Charter Private Capital Management.

14 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com Acrisure’s success is no accident.

Acrisure is already the fastest growing broker in industry history, backed by our exceptional Agency Partners.

And in 2020, we acquired the insurance assets of Tulco, a leading provider of Artificial Intelligence.

We’re combining our global distribution power with world-class AI expertise and transforming insurance brokerage and financial services.

Winner: Mergers & Acquisitions, For more information, visit acrisure.com MiBiz 2020

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 15 M+A DEALS & DEALMAKERS AWARDS

TETRA THERAPEUTICS’ SHIONOGI DEAL BUILDS LIFE SCIENCES

RESOURCES OF LARGE PHARMACEUTICAL COMPANY TETRA THERAPEUTICS INC.

By MARK SANCHEZ | MiBiz Tetra’s deal with Shionogi & Co. won a 2021 Top executive: Mark Gurney, Chairman [email protected] MiBiz M&A Deals of the Year Award in the life sci- and CEO ences category. Annual sales: Not disclosed fter years of raising millions in cap- While specific terms of the deal that closed ital and federal grant funding for May 26, 2020, remain undisclosed, the total trans- West Michigan employees: 11 Tetra Therapeutics Chairman and CEO Mark Tetra Therapeutics Inc. — which was action value may reach up to $500 million if Tetra (Grand Rapids and Kalamazoo) Gurney. MIBIZ FILE PHOTO developing a new drug that could Therapeutics meets certain regulatory and com- Company: Startup drug developer potentially treat Alzheimer’s disease mercial milestones. The deal followed a prior $35 original investment. Participants in an earlier July Advisers: Honigman LLP and Cooley LLP and a form of autism — Mark Gurney in 2020 finally million strategic investment Shionogi & Co. made 2013 debt offering got an ROI that’s close to 13 times A (legal); Nomura Securities Co. (financial) found the big money he needed to get to the end. in Tetra Therapeutics in late 2018. their investment. The Grand Rapids-based Tetra Therapeutics Prior to the Shionogi deal, Tetra conducted “That was one of those exits that an early- last spring sold to Japanese pharmaceutical com- research and development on its new drug com- stage investment fund counts on — that one out pany Shionogi & Co. Ltd. in a deal that could reach pound, known as BPN14770, at the Southwest of 10 returns that covers the others. So, it was very $500 million. Under the agreement, Shionogi & Co. Michigan Innovation Center in Kalamazoo with successful,” BRCC Executive Director Stephen upcoming Phase 2b study on the company’s com- acquired Tetra and its portfolio of drug compounds the backing of capital from private investors and Haakenson told MiBiz last May. “This allows us to pound to treat Alzheimer’s disease. The Osaka, for treating Alzheimer’s disease, Fragile X syndrome $27 million in federal grant funding. continue to put further funds out the door.” Japan-based Shionogi in a recent presentation on and other brain disorders associated with cognitive Investors in Tetra included Grand Rapids-based The BRCC invested $450,000 in Tetra and quarterly results listed the Tetra compound’s poten- or memory conditions. Grand Angels and its Ka-Zoo Angels and Muskegon received an ROI that was in the “many multiples,” tial to treat Alzheimer’s and Fragile X among eight The Shionogi acquisition provided the finan- Angels affiliates, Kalamazoo-based Apjohn Group Haakenson said. core R&D projects in its drug pipeline. cial backing that Tetra needed to conduct and LLC, Traverse City-based Northern Michigan Tetra has reported “quite encouraging” results As he prepares to lead Tetra toward the final legs complete later-stage clinical trials, secure regula- Angels, Ann Arbor SPARK, the Michigan Economic from a mid-stage trial involving 30 patients at Rush of a lengthy journey to market, Gurney said the best tory approval, and bring the new drugs to market Development Corp.’s Invest Michigan fund, and the University Medical Center in Chicago, where the practice he advises other life sciences startups “is in the years ahead. The company today operates as Bioscience Research & Commercialization Center company has worked with renowned researcher the same as voting — vote early and vote often,” a a Grand Rapids-based wholly owned subsidiary of (BRCC) at Western Michigan University, plus a num- Dr. Elizabeth Berry-Kravis on its compound to treat reference to the old Chicago tongue-in-cheek politi- Shionogi and without the deal would have had to ber of local high net worth individuals. Fragile X syndrome, an orphan disease that affects cal expression. raise millions more in capital to support the upcom- One of the largest exits ever recorded for a about 60,000 people in the U.S. Tetra expects to “For dealmaking, you need to start early and you ing later-stage clinical trials. Michigan-based life sciences startup, the deal move into a Phase 3 trial involving upwards of 300 need to keep at it,” said Gurney, whose first meeting “We now have the resources of a large pharma- generated a strong return on investment for West Fragile X patients in mid-202, a step that’s needed with Shionogi came in 2017. ceutical company behind us. That gives us greater Michigan-based investors who backed Tetra for seeking approval from the U.S. Food and Drug “Doing a deal like this for the acquisition of your speed and will still retain the same flexibility of a Therapeutics early. Administration that could come in late 2023. company … takes a while. People need to evaluate startup,” said Gurney, Tetra’s chairman and CEO Investors in a $7.2 million Series A capital round While Tetra prepares for the Phase 3 trial the science,” he said. “It’s very difficult to achieve who founded the company in 2011. Tetra raised in 2016 got a return of five times their for Fragile X, Shionogi is planning to handle an an exit.”

Congratulations JEFF LAMBERT DealmakerMERGERS & ACQUISITIONS yearof the

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16 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com PRIORITY HEALTH MOVES TO BECOME MORE STATEWIDE HEALTH PLAN AFTER TOTAL HEALTH MERGER

Acrisure co-founder, President and CEO Greg Williams. COURTESY PHOTO By MARK SANCHEZ | MiBiz [email protected] AMID HIGH VOLUME OF DEALS, ACRISURE riority Health wanted to build a book of business in Southeast Michigan for its Medicaid HMO. BREAKS INTO ARTIFICIAL INTELLIGENCE Total Health Care Inc. wanted to connect with a larger partner to bet- By MARK SANCHEZ | MiBiz Pter compete. [email protected] PROFESSIONAL SERVICES Leaders of the two nonprofit health plans Priority Health Chief Financial Officer and Senior Vice President of Operations Mary who had known each other for years started reg Williams was looking for a com- Anne Jones. COURTESY PHOTO talking in early 2019 about what they could pany that could move global insur- ACRISURE LLC offer one another and potentially partner on. Total Health Care CEO Randy Narowitz ance brokerage Acrisure LLC into By August of that year, they worked out a deal described the deal as “a great fit for both compa- the world of artificial intelligence. Top executive: Greg Williams, co- to merge Total Health into the Grand Rapids- nies.” The merger into Priority Health would give He found the right one in tech founder, president and CEO based Priority Health, Michigan’s second-largest Total Health Care “additional resources and stabil- Gentrepreneur Thomas Tull and his AI company, Annual sales: $2.1 billion in 2020 health plan with 1 million members enrolled ity, and allow us to continue to provide our mem- Pittsburgh-based Tulco LLC. statewide in group, individual, Medicare and bers with the quality care they have come to expect After a mutual investor in both companies West Michigan employees: 625 Medicaid policies. from Total Health Care at a price they can afford,” introduced Williams and Tull, the two met in Company: Global insurance brokerage “It was a great combination of two longstand- Narowitz said in an announcement of the merger. Pittsburgh in early 2019. They quickly found Advisers on the deal: Varnum LLP and ing Michigan-based health plans,” Priority Health Under terms of the deal that closed Jan. 1, common ground and soon formed a joint Skadden, Arps, Slate, Meagher & Flom Chief Financial Officer and Senior Vice President 2020, Priority Health and Total Health Care com- venture that ultimately led to Acrisure buy- LLC (legal) of Operations Mary Anne Jones said. “It was a mitted to sharing best practices for the Medicaid ing Tulco’s insurance practice. The all-stock great complement and fit for Priority Health market in Michigan. Priority Health also com- transaction, valued at $400 million, closed July and Total Health to come together. We are state- mitted $25 million over three years for a foun- 29, 2020, providing the Grand Rapids-based wide and have a very strong focus in Southeast dation to support health initiatives to improve Acrisure the artificial intelligence and machine- Michigan, but we were not able to serve the care and social determinants of health in the learning technology that Williams sought. to continue to grow. As we’re bringing more work Medicaid population there. To be able to bring Detroit area. “That transaction singularly transforms into the business and into the home office (in that into our offerings just made a lot of sense.” Forming the foundation was “the most inter- every facet of our business,” said Williams, Grand Rapids), we’re just doing that with the help Judges in MiBiz’s 2021 M&A Deals of the Year esting” and a unique aspect of the deal, Jones said. Acrisure’s co-founder, president and CEO. of robotic processing,” Williams said. Awards named Total Health Care’s merger into The foundation has been receiving grant requests crisure’s acquisition of Tulco’s insurance For clients, Acrisure uses AI in modeling Priority Health as the winner in the health care from organizations across Southeast Michigan and practice was named a winner in the 2021 MiBiz to gain better insights on their risk, “bringing category. should award its first grants soon, she said. M&A Deals of the Year Awards in the profes- opportunities and identifying opportunities for One of the oldest health plans in Michigan Since the deal closed, Total Health Care has sional services category. our sales force they wouldn’t otherwise have,” that was formed in 1973, Total Health Care at operated as a subsidiary of Priority Health as Williams and Tull decided initially to “test and creating a competitive advantage, he said. the end of 2019 had a combined membership its two health plans focus on Detroit and sur- the waters” through a joint venture, known as “It gives us that insight to where that risk of more than 87,000 members. That included rounding communities. Total Health’s structure Altway Insurance, that narrowly focused on life profile exists to where we know we can help 48,919 members enrolled in its Medicaid HMO, as a subsidiary could change as Priority Health insurance and other individual benefits. The them,” Williams said. “It really is identifying, and another 39,412 enrolled in group and indi- now works this year to fully integrate the com- joint venture validated the role of AI and a digi- in some cases, the unmet needs or the unex- vidual commercial policies sold through Total pany’s operations and HMO plans, Jones said. tal platform in the insurance industry, as Altway pressed needs of our clients that we should Health Care USA. “From an integration perspective, we really Insurance generated sales growth of 10 percent be talking to them about that we haven’t. The Should the state re-bid Medicaid HMO con- took the first year of 2020 to just make sure that or more a week for 24 straight weeks during the insights gained from this are vast and significant tracts in the next few years, the Total Health we kept the Total Health operations and systems COVID-19 pandemic, Williams said. in terms of how we can help clients, while at the merger puts Priority Health in a stronger posi- in place to assess how we want to do the inte- The joint venture’s success led to last year’s same time grow our business.” tion, Jones said. gration. In 2021 we are working on integrating acquisition. Tulco’s insurance practice became One of the world’s largest insurance broker- “It really has moved us to become a more our back-office systems and employees into Acrisure Technology Group, the Austin, Texas- ages, Acrisure has nearly 600 offices worldwide statewide (health plan) in serving Medicaid, and combined teams,” she said. “They will continue based AI division led by Tull, who is a significant and for years has grown rapidly through an that’s very important in our mission,” she said. underneath Priority Health. We’re still assessing minority shareholder in Acrisure. aggressive acquisition strategy. The company if they will continue long term as subsidiary enti- “After almost half a year of 10 percent growth last year made 110 acquisitions and another 30 ties or products within Priority Health, but we per week, I said to Tom, ‘We’ve kind of proven the have closed or are under letter of intent in 2021. HEALTH CARE will be continuing the Total Health products.” case. This was a success we could only dream Acrisure put together the Tulco deal while The initial discussions in 2019 were key about. We really need to then take this AI capa- maintaining a torrent of acquisitions in 2020. PRIORITY HEALTH to bringing the two companies together. bility and this AI talent and apply it to and deploy The company for years has by far been the largest Executives focused first on culture and fit that it across all Acrisure products,’” Williams said. acquirer of independent insurance agencies in the Top executive: President Praveen set the foundation for a “very thoughtful, holis- The AI and robotic-processing ability that U.S, closing on 464 acquisitions from 2016 to 2020, Thadani, who succeeded former CEO tic” process today that focuses on processes, the acquisition gave Acrisure now gets used in according to Optis Partners LLC, a Chicago-based Joan Budden in January after her technology and “how we can best combine our back-office administration and sales and mar- firm that tracks M&A in the insurance industry. retirement talent and teams,” Jones said. keting functions, he said. Key to the Tulco deal, just as with buying an “The relationships we built before we even In the back office, robotic processing saves agency, was following long-held best practices. Annual revenue: About $5 billion (2020) started discussing a merger positioned us really about 1,800 hours of work a week and improves “Philosophically, we’ve always placed at the West Michigan employees: About 1,600 well to know that we had a strong fit,” Jones said. the productivity and efficiency of Acrisure staff, top of the list the party that we’re doing a deal Company: Statewide health plan with group, “We intentionally took the time to really assess Williams said. The technology has not dis- with, the integrity of the people, the cultural fit individual, Medicare and Medicaid policies how we wanted to go through our integration pro- placed staff at the fast-growing company, which and the things that we emphasize,” Williams said. cesses and build those relationships, and that has recorded 2020 revenue of about $2.1 billion, “All of those things are really relevant to our stan- Advisers on the deal: Did not disclose built a lot of confidence and trust with the Total more than three times the $650 million of 2017. dard, everyday M&A and that was also relevant Health staff and leadership team there.” “We’re still going to continue to hire, still going here.”

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 17 M+A DEALS & DEALMAKERS AWARDS

and Zeigler’s new dealerships had to crawl ZEIGLER AUTOMOTIVE KEEPS M&A MOMENTUM through a number of restrictions. Once restric- tions were lifted, sales picked up in a big way. In fact, Zeigler has seen a sales bonanza com- BY ADDING LUXURY BRANDS TO PORTFOLIO pany-wide throughout most of the pandemic, which has continued into 2021, when the busi- By JAYSON BUSSA | MiBiz Maserati, Fiat and Chevrolet in the same market. ness just recorded its best January ever. [email protected] The acquisition infused the regional dealership It also proved to be a good time to acquire the with 5,000 new units each year with a projected luxury brands that Zeigler Automotive Group did. espite its wide footprint throughout a tri- value of $350 million in sales annually. This boosts “The luxury brands were more in demand state area, Zeigler Automotive Group the company’s annual sales numbers to the neigh- than any other brands we had,” Zeigler said. “And still found itself lacking a few of the big borhood of $1.6 billion on 40,000 units sold. I don’t know why that is. Even during the shut- name luxury brands in its portfolio. Per an early 2020 report by Automotive News, down, they still performed well.” “The one franchise I got asked Zeigler Automotive Group was ranked No. 61 in Zeigler continues to keep his ear to the ground Dabout most was Mercedes,” said Aaron Zeigler, dealerships nationwide for new car sales units, for opportunities, and he expects significant president and CEO of Kalamazoo-based Zeigler which was 15,888 vehicles and listed sales of M&A activity in this space as a whole. Automotive Group, which operates 75 franchises almost $1.3 billion. “I think there are going to be a lot of opportu- and 29 stores throughout Michigan, Indiana and The deal, which was prompted when Motor nities out there,” Zeigler said. Illinois. “That was probably No. 1 on our wish list. Werks approached Zeigler, was also the largest The second one I got asked about the most that we one for Zeigler in terms of price. Zeigler noted didn’t have was Land Rover.” that Hoffman Estates and Schaumburg are high- RETAIL Zeigler and his team were able to check those volume markets in the Midwest. and other names off of their wishlist at the begin- No stranger to scooping up available dealer- ZEIGLER AUTOMOTIVE GROUP ning of 2020 when the company acquired three ships, Zeigler said that his team is able to stream- Top executive: Aaron Zeigler, President and CEO luxury dealerships from Barrington, Ill.-based line the integration process. Motor Werks Auto Group. “When we go to buy a new dealership, or mul- Annual sales: $1.6 billion The deal was recognized as the winner in the tiple dealerships, the acquisition team will show up Total West Michigan employees: 750 in 2021 MiBiz M&A Deal of the Year Awards in the and get all the systems integrated so we mirror the West Michigan; 1,800 company wide retail category. systems we have in our other dealerships, which Company: A Midwest auto group that features Through the deal, Zeigler Automotive Group really streamlines things for us,” he said. “We were 29 locations throughout Michigan, Indiana and acquired an Infiniti store (its second in the mar- able, in this particular case, to bring those stores Illinois, featuring a wide variety of brands. ket) and a Mercedes-Benz and Sprinter store in into our fold and really not miss a beat.” Hoffman Estates, Ill., in addition to a Jaguar Land The deal was completed before the COVID-19 Advisers on the deal: Varnum LLP Zeigler Automotive Group President and CEO Rover store in nearby Schaumburg, Ill. pandemic took hold in the U.S. Even through the Aaron Zeigler. MIBIZ FILE PHOTO Zeigler also deals Chrysler, Alfa Romeo, pandemic, Illinois never shut down completely,

‘LANDMARK PROJECT,’ COLLABORATION BRINGS ECONOMIC DEVELOPMENT PERRIGO HEADQUARTERS TO MEDICAL MILE PERRIGO CO. PLC Top executive: Murray Kessler, president and CEO By KATE CARLSON | MiBiz venture between Rockford Construction Co. [email protected] Inc. and Rockford Development Group, Walsh Annual net sales: $5 billion Construction Co. Inc. and Walsh Investors, Total West Michigan employees: 4,000 ocal economic development lead- Murphy Development Group LLC and Michigan ers have long sought to bring a global State University. Company: Generic pharmaceutical, headquarters to downtown Grand Facilitating the relocation also involved the wellness and self care product manufacturer Rapids, and it will soon become a real- Michigan Economic Development Corp., the ity as Perrigo Co. plc moves its North city of Grand Rapids and The Right Place Inc. LAmerican corporate offices to the Medical Mile. Finalizing plans for Perrigo to relocate to Grand apartments downtown, as well as many restau- The pharmaceutical giant will occupy three Rapids took about a year and a half, said Birgit rants, offices and retail buildings, Mraz said. upper floors of a building in Michigan State Klohs, the retired president and CEO of The Right “What we really strive to do is connect those A rendering of Perrigo’s planned headquar- University’s Grand Rapids Innovation Park at Place who led the economic development orga- employers and employees with an opportunity ters in downtown Grand Rapids. COURTESY PHOTO nization for 33 years. to live nearby and experience what downtown “These projects are complex,” said has to offer,” Mraz said. “That collaboration is potential to become the “Silicon Valley of Klohs, whose retirement was effective at already beginning. Companies are already work- self-care.” the end of January. “There is a lot of work ing together even though the buildings aren’t “The development of Medical Mile and that goes on under the surface when you completed yet.” that ecosystem that has developed around pull together the resources, and hiccups “We all instantly thought it was a perfect fit for health and life sciences over the last 20 years that happen that you never see once the Perrigo,” Mraz added. “It really took many teams was one of the key drivers of this project,” deal is done.” to bring this to fruition. This is a landmark proj- Klohs said. The complex nature of the project ect for us and we’re very proud to be able to be The project is part of creating an ecosystem earned it recognition as a 2021 MiBiz Deal a part of it.” that will draw other companies to invest in down- Klohs Mraz Kessler of the Year Awards winner in the economic Perrigo is domiciled in Dublin, Ireland, town Grand Rapids, Klohs said. Helping to secure 430 Monroe Ave. NW in what will be a $44.8 mil- development category. but is run from its existing offices in Allegan, the Perrigo deal was a capstone project to end lion project. Perrigo announced plans to relo- Rockford Construction and Michigan State where the company was founded more than 130 her career on at The Right Place, and even more cate its offices to downtown Grand Rapids on University were already a well established team with years ago. Despite Perrigo’s local ties to West noteworthy because it was all done virtually dur- Oct. 27, the same day the Michigan Strategic a high level of trust before the request for proposals Michigan, a company as large as Perrigo had ing the COVID-19 pandemic, Klohs said. Fund board approved a $2 million Michigan for the space at the innovation park in Grand Rapids other choices for its North American headquar- “If you would have told me two years ago that Business Development Program grant, which was sent out, said Mike Mraz, president of Rockford ters, Klohs told MiBiz. The company was also we could do a deal of this magnitude without ever was based on the anticipated creation of 170 Construction’s real estate development team. considering Chicago and Southwest Florida for meeting with the company in person, I would say, jobs in Michigan. A key piece of the equation that will help its office. ‘No way,’” Klohs said. “It can be done. Economic The deal to bring the Perrigo offices to down- Perrigo’s employees integrate into the local One of the big selling points was Grand development is a team sport and you never pull town Grand Rapids was led by Health Innovation community involves the fact that Rockford Rapids’ Medical Mile, which company CEO this off without collaboration from others. I’m Partners, a real estate and development joint Construction serves as the landlord of 700-800 Murray Kessler previously told MiBiz has the very proud this all came together.”

18 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com ‘EVERYTHING KIND OF FELL INTO PLACE’ WITH HANNAH LAWRENCE’S FOXBRIGHT ACQUISITION

By JAYSON BUSSA | MiBiz [email protected]

annah Lawrence remembered the car ride home after closing on the acquisition of her first business — a moment of brief panic. “I remember just thinking, ‘What did I just do?’” laughed Lawrence, who H Mel Trotter Ministries President and CEO Dennis Van Kampen. COURTESY PHOTO purchased Grand Rapids-based Foxbright in January of 2020, becoming the new owner of a company that specializes in website and com- munication solutions for schools. MEL TROTTER’S RECENT MERGERS SIGNAL “I took on some debt to finance the acquisi- tion,” she added about her apprehension. “You go from not a whole lot in debt to suddenly A COMING SHIFT IN PHILANTHROPY you’re on the line for a whole lot and you have employees that you need to make sure you pay. There is a lot of responsibility associated with By ANDY BALASKOVITZ | MiBiz NONPROFIT that. But, a few months in, you settle into it and [email protected] it’s like, OK, things are going fine.” A little fleeting buyer’s remorse is natu- el Trotter Ministries’ acquisitions MEL TROTTER MINISTRIES ral in a deal involving an individual buyer like of two other Grand Rapids non- Top executive: Dennis Van Kampen Lawrence. Her purchase of Foxbright earned the profits in 2020 marked the start 2021 Deal of the Year status in the technology of a significant, long-term shift Total budget: $13.25 million sector of MiBiz’s M&A Deals and Dealmakers for the nonprofit that executives West Michigan employees: 198 Awards. Foxbright owner Hannah Lawrence. Msay will fundamentally change the organization. Still, business ownership was seemingly MIBIZ PHOTO BY KATY BATDORFF In early January 2020, Mel Trotter announced Company: Faith-based nonprofit focused always in the cards for Lawrence, who has expe- a merger with Heartside Ministry, which pro- on homelessness and recovery rience in both finance and the project manage- Clients and potential clients were gener- vides similar services for individuals experienc- Advisers: Beene Garter LLP (accounting) ment side of technology. ally quiet in March amid all the uncertainty. ing homelessness. The primary driver of the deal and David, Wierenga, and Lauka PC (legal) She previously served as CFO of Grand However, business has picked up since. was to reduce duplicate services, said Mel Trotter Rapids-based property management firm Lawrence and the team were still productive President and CEO Dennis Van Kampen. For Eenhoorn LLC and then went on to work for in COVID-mired 2020, releasing the fifth and lat- about two years, officials with the two organiza- have already started around converting the site Northgate Resorts, which is primarily run by est version of Foxbright’s content management tions had discussed ways to collaborate before the to low-income or market-rate housing. her father and brother and manages a portfolio system in October, which created a modern, rel- merger was finalized. That collaboration included Mel Trotter has also previously purchased of camps and resorts. evant, user-friendly platform for clients. sharing human resources responsibilities, facil- two homes from Next Step to help move people She was bitten by the entrepreneurial bug Lawrence also grew Foxbright’s client base ities and maintenance and I.T. support that out of homelessness. In 2021, Mel Trotter antici- when she managed marketing, financing and by 7 percent in 2020. Heartside would contract through Mel Trotter. pates bringing another four or five houses online sales operations for a home sales entity called Some of that growth can be attributed to Mel Trotter announced a second merger in that Next Step has purchased and redeveloped. Dolce Vita in Arizona, which was being posi- COVID-prompted interest in addition to the July 2020, this time with Grand Rapids-based In the end, the two mergers served separate tioned to sell. emphasis Lawrence has put on the sales and mar- Next Step of West Michigan, a nonprofit that purposes for Mel Trotter: merging duplicate ser- “I had a lot of fun with that small business keting piece, including working with a third party provides job opportunities and performs con- vices in the case of Heartside, and growing its aspect, having control over sales and market- for (pay-per-click) and SEO marketing campaigns. struction, property maintenance, assembly and workforce development and housing resources ing — it triggered the desire to really look for “It’s been a lot of trial-and-error,” Lawrence production services. with the addition of Next Step. something,” Lawrence said. said. “My next step is really looking to bring on a The pair of deals earned Mel Trotter the Deal Meanwhile, the COVID-19 pandemic That’s when Foxbright became available sales individual and a marketing individual, and of the Year Award in the nonprofit category. brought some organizational challenges when after founder Catherine Ettinger planned to exit bring that in house and really focus on client While Heartside provides similar services as merging the organizations, on top of what Van a business she established in 2002 with Paula growth from a development side. The product Mel Trotter, Next Step is “really a business. They Kampen described as routine cultural changes Whisman, who remained with the company as we offer is really solid.” employ people to either create a product that that come when companies join forces. an employee. goes to the market or to flip foreclosed homes The experience also taught company leaders “I felt comfortable coming in with very lit- into low-income housing,” Van Kampen said. about the value of having sound business deci- tle tech experience and being able to focus on TECHNOLOGY The Next Step merger aligned with Mel sions driving such a move. areas that they haven’t historically — the sales, Trotter’s long-term vision of boosting its reve- “One thing that’s critical is the business marketing and business side versus the techni- nue through social enterprise businesses. Over plan — the numbers have to work,” he said. cal side,” Lawrence said. “Everything kind of fell FOXBRIGHT the next 10 years, Mel Trotter seeks to derive 70 “One thing that frustrates me about nonprofits into place, from the size of the company … as Top executive: Hannah Lawrence, percent of its revenue through these enterprises, in general is they tend to not follow good busi- well as the cultural fit. To me, that was huge.” president and owner shifting from a mostly donor-based model. ness practices because they’re providing a social Lawrence said that the transaction was “Our gain was a workforce development pro- service. I’d argue: If you want to have the great- Annual sales: Around $800,000 smooth. However, not long into her tenure gram we didn’t have to create,” Van Kampen said. est impact with services you provide, then you Foxbright, the COVID-19 pandemic domi- Total West Michigan employees: Four “A social enterprise allows us to fund growth have to follow the same principles and practices nated public life and thrust schools into rela- (One part-time employee) that’s necessary to fulfill our vision, which is a business would.” tive chaos. Company: Provider of website and ending homelessness. We have a massive hous- Van Kampen maintains that the deals posi- “There were some specific sales and mar- communication solutions to the education ing crisis, which not only contributes to people tion Mel Trotter well in a shifting philanthropic keting agendas I wanted to pursue in the first industry becoming homeless but also makes it far more landscape. 13 months — some product changes — but I difficult for them to get out of homelessness.” “I’m very confident in saying the staff and lead- decided that I’m not going to get really aggres- Advisers on the deal: First National He added: “These mergers allow us to have a ership of all three organizations believe that what sive about this because of the COVID situation,” Bank of Michigan, Bratschie & Born greater impact on the housing crisis.” we did is the right thing to do,” Van Kampen said. she said. “I needed to put the brakes on some P.C., D. K. Weiss, Holt & Associates PLLC The wheels are already in motion since “One way or the other, this is the future of nonprof- of it and really focus on relationships with the (buyer side). Warner Norcross + Judd the Next Step merger. In December, Next Step its. In 10 years, we won’t have as many standalone team and making sure they knew I wasn’t going LLP, VanderPloeg, Bergakker & Associates acquired a vacant industrial property across the nonprofits as we have today because the donor to come down on them for ridiculous things (seller side). Calder Capital (broker). street from its south-side Grand Rapids headquar- support isn’t there. I think we’re going to see many during this time.” ters. Van Kampen said preliminary discussions more nonprofits do exactly what we did.”

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 19 M+A DEALS & DEALMAKERS AWARDS JEFF LAMBERT PATIENCE IN A OVERSEES PANDEMIC HELPED STRONG YEAR FOR GUIDE A BUSY YEAR ACQUISITIONS, FOR JEFF OTT

STARTUPS By MARK SANCHEZ | MiBiz [email protected]

By JAYSON BUSSA | MiBiz s the economy abruptly ground to [email protected] a halt last spring under COVID-19 restrictions, Jeff Ott stayed busy. s the COVID-19 pandemic was just Lambert & Co. CEO Jeff Lambert. Working from home, he was the starting to set in last spring, Jeff COURTESY PHOTO main legal counsel for four bank Lambert jotted down the words Atransactions. A couple of the deals closed prior “positively legendary” on a sticky firm nationally and if there is any IR firm for sale, to the pandemic’s onset, while the legal work note. we’re looking at it nationwide.” for others remained in progress and continued AFor the Lambert & Co. CEO, it was a In the spring of 2020, Lambert & Co. made virtually amid the state-imposed restrictions. Warner Norcross + Judd Partner Jeff Ott. reminder to make 2020 a memorable one, and a local acquisition in West Michigan-based “It was a very odd year, obviously, and the COURTESY PHOTO by most standards, it was. Fairly Painless Advertising, a 30-year creative deal work dropped off. But I was fortunate to Lambert, whose company stands as the services agency. The deal, which was com- have a number of transactions that were in the largest public relations and investor relations pleted at the height of the pandemic, added works essentially right before the pandemic hit, ADVISER firm in Michigan, said that 2020 was the most copywriters, web developers and graphic so they played out over the course of the year,” active year in company history, complete with designers to Lambert’s strategic communi- said Ott, an M&A attorney and partner at the three different acquisitions and launching cations and capital markets team. Grand Rapids office of Warner Norcross + Judd JEFF OTT, PARTNER two startups. “The Fairly Painless acquisition was really in LLP who specializes in bank mergers. Warner Norcross + Judd LLP “Any one of those would have been a high- response to our clients looking for more depth “As the pandemic kind of came on, it was light of a year in the past,” said Lambert, who and integrated marketing and advertising so it interesting how people were looking at the was named winner in the executive category made sense to add that 30-year track record to transactions and saying,‘Oh, gee: What do we transaction going through remote meetings and of the 2021 MiBiz M&A Dealmakers of the Year Lambert,” he said. do here?’” Ott said. “It was just very good moni- electronic means for exchanging documents. Awards. Finally, Lambert & Co. acquired the PR toring and confidence on the merger partners “What I learned was when you’re dealing Lambert & Co. gobbled up deals in 2020, team of Houston-based national advertising that got them through, closed the deals, and that with things like the pandemic, you just have which kicked off with a December 2019 deal and media buying firm 9thWonder, entering was great.” to be patient. You have to take each day as it that saw an acqui-hire of Michelle Olson and into a joint venture with the top-50 agency in Working with partner Charlie Goode, Ott led comes and work through the deal with things her Phoenix-based team, who were part of New which the duo will continue pursuing addi- the legal teams that handled the transactions in that come up and move on to the next issue,” York-based Fingerpaint Marketing. The move tional acquisitions. the latter half of 2019 and into 2020, including he said. “That’s fundamental with any transac- netted Lambert & Co. clients in automotive and “The addition of 9thWonder and joint ven- two acquisitions by Sparta-based ChoiceOne tion because you’re always going to get thrown a mobility and real estate in addition to expand- ture was to take the Fairly Painless platform and Financial Services Inc. His work earned him problem that you didn’t expect. … This one just ing its national footprint. put it on steroids — to really be able to have a an the 2021 MiBiz M&A Dealmaker of the Year happened to be a monster problem.” Just two months later, Lambert & Co. acquired national and global brand strategy firm in our Award as an adviser. The legal work included negotiating a trans- New York-based Casteel Schoenborn Investor family of companies,” Lambert said. The deals in which Ott led the legal teams action and preparing merger agreements and Relations & Corporate Communications, Deals aside, Lambert & Co. also launched were: supporting documents, preparing securities which has a seasoned investor relations prac- fintech startup TiiCKER, which uses incentives • ChoiceOne’s $89 million acquisition of registration statements and disclosure docu- tice with a specialty in financial services and the to convert retail investors into consumers while Lapeer-based County Bank Corp., the former ments, due diligence and reviewing reports from banking sector. also getting consumers to invest in the brands parent company of Lakestone Bank & Trust, that management, coordinating and preparing reg- “That was in an area that’s national expertise that they enjoy and interact with regularly. was announced May 25, 2019, and closed Oct. ulatory applications, reviewing contracts, and for us — investor relations,” Lambert said of the Also, Lambert & Co. funded and launched a 1, 2019. The two banks completed their integra- reviewing communications to shareholders and CSIR deal. “So, we’re a top five investors relations minority- and woman-owned diversity, equity tion in May 2020. public announcements on the deals. and inclusion consultancy and diverse board • ChoiceOne’s subsequent $20.8 million Ott not only represented banks in the trans- development firm called EQUALSIGN. The firm acquisition of Community Shores Bank Corp. actions but also public companies that had to landed clients spanning higher ed institutions, in Muskegon that was publicly announced Jan. pivot and hold their annual shareholders meet- EXECUTIVE nonprofits and public companies, and was 6, 2020, and closed July 1. The banks completed ings virtually. That meant setting up electronic timely in a year that saw racial tensions boil over. their integration in mid-October. voting for shareholders to vote on proposals. JEFF LAMBERT The breakneck pace is not one that Lambert • The $42 million acquisition of North When working on a transaction, Ott said the said his company will slow down any time soon, Star Financial Holdings Inc., parent com- best practice to follow is focusing on fashion- Company: Lambert & Co. noting that Lambert & Co. has the goal to com- pany of Main Street Bank in Bingham Farms, ing a deal that’s based on what a client needs plete two acquisitions in 2021 in addition to by Hancock-based Keweenaw Financial Corp., to accomplish, rather than getting the best of Annual sales/revenue: $15.5 million launching one innovation or startup. the parent company of Superior National Bank the other side. Total West Michigan employees: 75 While the COVID-19 pandemic certainly and Trust. Announced on Sept. 18. 2019, the deal “I always approach the transaction not Company: Michigan’s largest public threw its share of hurdles at Lambert through- closed Feb. 20, 2020 with integration in the sec- as a game or not trying to win negotiating relations and investor relations firm. out the acquisitions process, he did come ond half of the year. points. I sit down with the client and figure Lambert is also owner of Fairly Painless away learning a few of the benefits that come • A $15 million debt offering in December out what their objectives are. There’s typi- Advertising, founder of fintech startup with this socially distanced approach at buy- 2020 by Sturgis Bancorp Inc., the parent com- cally a couple of fairly significant business TiiCKER, and partner in diversity, equity ing and integration. pany of Sturgis Bank & Trust, to support further points that are important to your client, and and inclusion consulting firm EQUALSIGN. “When looking at multi-market acquisitions growth across Southwestern Michigan. it’s those things that you need to make sure or certainly non-local acquisitions, the ability to Some of the transactions overlapped and — fall on your side or as close to your side as pos- Company Advisers: Warner Norcross + do onboarding, training and even culture build in the ChoiceOne deal with Community Shores sible,” he said. “At least from my perspective, Judd LLP (legal), Camber Engage, K&L has gone virtual so the speed of integration is — extended into the pandemic that added being reasonable in the documents … creates Gates (on the TiiCKER deal), Mercantile actually magnified,” Lambert said. “Honestly, complexity to the deal, reinforcing the need for a better deal atmosphere. It’s easier for the Bank of Michigan (financial), EHTC we were concerned about the impact on our patience when putting together a transaction various parties to work together to address (accounting). M&A relative to COVID. It actually will become and to work through problems as they arise. the points that need to be addressed for each part of our playbook — the combination of vir- “It was different,” Ott said of 2020 and the side of a deal and get to the place where you tual and in-person.” pandemic-related challenges with keeping a want to be.”

20 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com — or a combination of both — in lower middle- The fund has also backed Ann Arbor-based CHARTER CAPITAL market companies in the Great Lakes region that driving school All Star Driver Education that need $1 million to $5 million in capital to grow, operates in 16 states; Envirolite LLC in Coldwater recapitalize the business, or make an acquisi- that produces specialized foam products; and PARTNERS FINDS tion. The fund targets profitable companies with Traverse City Products, a producer of custom annual revenues of $10 million to $50 million. roll formed and stamped products. In addition to the $31 million raised from more The fifth investment, which closed in January, NICHE WITH MIDDLE- than 40 investors, predominantly from Michigan was for die-casting company Premier Engineered and the Midwest, the fund has secured another $10 Products in Abingdon, Va. million in available debt financing to support deals. Beyond the financing, the Charter Growth MARKET COMPANIES The Charter Growth Capital Fund’s formation Capital Fund provides portfolio companies earned Kerschen the 2021 MiBiz Dealmaker of advice, guidance and other support. During the the Year Awards as an investor. COVID-19 pandemic, Charter Capital Partners By MARK SANCHEZ | MiBiz Investments through the five deals col- also worked with portfolio companies on plans [email protected] Charter Capital Partners President and lectively total about $15.5 million in subordi- for safe operations, developing contingency Managing Partner John Kerschen. nate debt and minority equity, Kerschen said. plans and projections, and helping them secure COURTESY PHOTO ince launching in July 2019, the Focusing on the lower end of the middle market federal Paycheck Protection Program loans. Charter Growth Capital Fund has where there’s demand for capital and less com- “That was a big undertaking in the first year made five investments and raised $31 INVESTOR petition for deals has enabled the fund to “pick of the fund, getting through a major disruption million to make minority investments our spots where it fits our criteria and we connect in the economy and the manner of doing busi- in growing, middle-market compa- well with the entrepreneur,” he said. ness,” Kerschen said. “We were able to retain Snies that need growth capital. JOHN KERSCHEN Kerschen expects the fund to invest in 12 their employees and help everybody just get The investments and activity to date validates President and Managing Partner companies by late 2022, and “then we’d have to through this challenging time. We had to hun- John Kerschen’s view that there was an existing Charter Capital Partners think about what’s next.” ker down in some cases, and in some cases we’re market gap and need for a new mezzanine fund Four of Charter Growth Capital Fund’s not back all of the way.” in Michigan that targets the lower end of the five investments were in companies based in Meanwhile, Keystone Solutions transitioned middle market. Mezzanine funds typically serve might be doing $1 million, $2 million, $3 mil- Michigan. Among them are Keystone Solutions in the pandemic to packaging and selling swabs, a market upstream from the segment the Charter lion of EBITDA and they need that incremental Group in Kalamazoo, which provides product test kits, and various COVID-related products. Growth Capital Fund intended to target. capital to buy out a shareholder or expand to take design for the medical device, aerospace and Running the Charter Growth Capital Fund “We really found a good, underserved niche in on a new line of business, or to recapitalize their automotive industries, and contract manufac- through the pandemic reinforced to Kerschen the market. That was our belief before we started, balance sheet. It’s beyond conventional lenders, turing for medical devices. and his partners the need for business owners but deal flow has been really good,” said Kerschen, and up-market there are other capital providers Keystone Solutions President Jim Medsker to guard against overleveraging their companies president and managing partner at Grand Rapids- that will do this stuff, but they try not to come told MiBiz in October 2019 that the company had and “not to push your resources right to the edge.” based Charter Capital Partners. Kerschen runs below $10 million,” he said. “Deal flow and just grown revenues “in the 40-percent range” and “That’s ultimately what got our portfolio compa- the capital fund with two partners, Managing the need for capital in this segment of the market that the next few years “could be similar,” with nies through the pandemic,” Kerschen said. “They Director Hector Bultynck and Director Mike Palm. has exceeded our expectations.” growth rates of 30 percent to 50 percent. had flexibility on their balance sheets and they had “In the low end of the market here there just Charter Capital Partners created the mezza- “We’re growing like crazy,” Medsker said. access to cash resources, so when business stopped aren’t that many choices for a business that nine fund to make debt or equity investments “This helps us to stay on that path.” or got disrupted, we had the flexibility.”

MATTHEW BAAS ASSEMBLES GROWING NUMBER OF DEALS FOR ‘MAIN STREET’ COMPANIES

By JAYSON BUSSA | MiBiz smaller businesses — restaurants, retail shops, [email protected] franchise re-sales — that submitted inquiries. RISING STAR AWARD These business owners found themselves ax Friar, managing partner at trapped on an island, generally unable to foot Grand Rapids-based M&A firm the bill for the fees associated with working with MATTHEW BAAS Calder Capital LLC, routinely a traditional M&A firm while finding cookie-cut- Co-founder and Managing Partner, found his company passing on ter business brokers to be ineffective. Small Business Deal Advisors potential clients because of the “That was the biggest thing: You’re going to Company: Small Business Deal Advisors Msize of their businesses. end up with kind of a crusty old business bro- was borne out of Grand Rapids-based Wanting to do business with these small, ker,” Baas said. “A lot of times, they have this M&A firm Calder Capital LLC. SBDA utilizes “Main Street” companies, Friar tapped then- Rolodex, and once they get through the Rolodex resources from Calder Capital and tailors intern Matthew Baas to develop a way to har- with calling for a day, they kind of just sit and them to suit the needs of small, “Main ness Calder Capital’s existing infrastructure and wait. Typically their contracts are two years Street” businesses looking to buy or sell. resources to provide a helpful, cost-effective ser- exclusive. The seller is stuck. Our goal was to vice for this brand of businesses. shake that up.” That’s when the idea for Small Business Deal The model adopted by SBDA featured a Advisors LLC was born and Baas, now age 24, month-to-month, non-exclusive contract with Friar pointed to a recent deal as an example of found himself leading the venture. the sellers along with 8 percent commission Baas’ handywork. In January of 2020, Baas man- “Matt was instrumental in the founding and rates. The flexibility and affordability spoke to aged the successful closing of Rochester, Ind.- the initial running of all SBDA deals,” said Friar. small business owners. based Topps Safety Apparel. Before becoming “I would not have done it alone. Presently, Matt “The flexibility around the non-exclusivity is a client of Calder Capital, Topps Safety Apparel is the ‘glue’ — a CEO/COO that makes sure new a huge selling point,” Baas said. “If they’re able was being advised by another investment bank. clients are on-boarded, set up, the prep work is to go and find a buyer on their own without us After years into the process without success, the coordinated and clients get out to market (in a) involved, they don’t owe us anything.” company engaged Calder Capital and Baas was timely (way).” SBDA officially launched in 2017 and closed asked to lead the sale. Baas, who also works for Calder Capital, its first transaction in October of that year — the He repositioned the business for relaunched was this year’s Rising Star Award recipient for sale of Echo Hair Salon in Grand Rapids. marketing efforts and did extensive market Small Business Deal Advisors Co-founder and Managing Partner Matthew Baas. the 2021 MiBiz M&A Deals and Dealmakers Small Business Deal Advisors has closed 40 research to identify hundreds of prospective MIBIZ PHOTO BY KATY BATDORFF Awards. transactions since its inception, including 19 strategic buyers and eventually sold it. Baas originally came to Calder Capital in 2016 deals in 2020. While it relies on Calder Capital Baas said his age doesn’t necessarily creep emphasized the team we had and the systems as an intern following his sophomore year of col- for leads and other resources, SBDA is beginning into the conversation much anymore — espe- and infrastructure we built,” Baas said. “Luckily, lege at Michigan State University. Assuming a to generate leads of its own. cially with so much experience to his name. it wasn’t critically important that I have decades role in which Baas said he learned about every Baas’ jurisdiction is not confined to SBDA, “Back as an early intern (with Calder Capital) of experience because of those factors. I was just phase of the M&A process, conversations soon either. He also leads larger transactions for or with the newly founded SBDA, I tried to willing to put my head down and work and the sparked about ways to effectively serve the many Calder Capital. avoid conversations about my age and really rest came together.”

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 21 M+A DEALS & DEALMAKERS AWARDS

AMERICA’S BRIDE AUXO INVESTMENT PARTNERS MANAGES OWNER REFLECTS INTERNATIONAL COMPLEXITIES IN 2020 DEAL ON EXPANDING By JAYSON BUSSA | MiBiz BUSINESS, [email protected] he team at Grand Rapids- ACQUIRING based private equity firm Auxo Investment Partners has a saying that BRIDAL GALLERY every deal has to die once Tbefore it closes. “That tends to be the way these By KATE CARLSON | MiBiz things work — you often come across [email protected] things that look like they could be deal killers and you just have to find orking in the wed- America’s Bride owner Jennifer a way to work through them,” said ding industry dur- Elenbaas. MIBIZ PHOTO BY KATY BATDORFF Jeff Helminski, managing partner ing the COVID- of Auxo, which invests in growing 19 pandemic and 2020. The Tapps first founded Bridal founder- and family-owned indus- widespread restric- Gallery, located at 749 44th St. SE in trial, manufacturing and business- Wtions on large gatherings has been Grand Rapids, in 1985. services companies. stressful for Jennifer Elenbaas. “Bridal Gallery has been around Helminski and his team at But the bridal shop owner suc- for so long and they have exclusive Auxo encountered plenty of those cessfully opened a new location of rights to sell Allure Bridals gowns, so instances in its 2020 acquisition of America’s Bride and acquired Bridal I was very excited for that,” Elenbaas Indianapolis-based Precision Parts Gallery of Grand Rapids during 2020, said. “This has been a dream for me, Group Inc. despite many couples opting to can- purchasing Bridal Gallery gives me Precision Parts Group’s two divi- Auxo Investment Partners Managing Partner Jeff Helminski. COURTESY PHOTO cel or push back their wedding dates. more options.” sions included Paramount Tube, Elenbaas’ determination in grow- Acquiring Bridal Gallery is not the which manufactures highly engi- of the travel limitations, even she had Auxo caught a serendipitous ing her business has earned the only growth Elenbaas’ business saw in neered and custom small diameter to rely on an additional partner on break. One of Auxo’s founding inves- Allendale resident the judge’s choice 2020. After hearing that the Dressbarn spiral-wound and extruded tubu- the ground in China to carry out the tors is also the founder of a Chicago- award in the MiBiz M&A Deal of the at 3165 Alpine Ave. in Walker was clos- lar products, and Euclid Medical crucial phase of the deal. based private equity firm, which Year awards. ing at the end of 2019, Elenbaas nego- Products, which manufacturers sin- “Building a relationship with coincidentally owned PPG previously “I’ve always definitely been a cal- tiated with the landlord and took over gle- and multi-dose pharmaceutical them, getting to know them and hav- when Hooe took over as CEO. This culated risk taker with a lot of deter- the 8,500-square-foot space to open a packing systems. ing them trust us was important and helped to build a bridge between mination,” Elenbaas said. “Nobody luxury flagship store for America’s Bride. Precision Parts Group operates that was a challenge,” Helminski said. Auxo and PPG. could have predicted what hap- Construction took place through- out of the Midwest region with a joint “In terms of the operational diligence, With these latest experiences under pened to all of the businesses with out 2020 and the store opened in venture operation in China. we had to rely on a third-party adviser its belt, Auxo Investment Partners con- the shutdowns, but I have big goals October. White marble floors were By closing on the deal in really almost two steps removed.” tinues to seek out deals. Helminski said for myself, and weddings are going to installed with runway carpets while September of 2020, Auxo was able Navigating the due diligence of an the firm is eying a European deal as a come back.” Swarovski crystal chandeliers hang to establish a platform in the spiral- extremely niche market was also a hur- potential add-on acquisition for one of America’s Bride has a staff of from the ceilings. wound tubular products and phar- dle for Auxo. The team worked to map its existing companies. seven while Bridal Gallery includes Elenbaas fell in love with wedding maceutical packaging industries. out the state of the market, determine “We’re usually looking for good five employees. Elenbaas had to hire dresses when she was looking for her By Helmisnki’s assessment, the where PPG stood in the space, uncover companies that we think we can help people to fill many positions through- own in 2000, and ended up pushing transaction came with a particularly opportunities to dominate the indus- make a little better, but mostly grow out 2020 as employees chose to leave back her wedding when she couldn’t complex set of characteristics and try and cultivate industry relationships. them over time with our hands on, the state or pursue a different career find the right dress. This is where her dynamics that the team had to finesse Auxo tackled this through consulting operationally active engagement with because of COVID-19 and operating passion comes from to help brides in order to close the deal against the with industry experts and conduct- the company,” Helminski said. restrictions for the business. find the right dress for their big day, backdrop of the ongoing COVID-19 ing independent research, which was “Since the new year, things have she said. pandemic, a potential deal-killer of a challenge during a time of economic definitely started picking back up and “We wanted to create that experi- its own. and geopolitical uncertainty. I am preparing because gowns take ence that you dream about from the The deal earned a nod in this A New York City-based private HONORABLE MENTION six to eight months to come in on spe- time you’re a little girl and putting a year’s M&A Deals of the Year Awards equity fund was the primary seller cial order,” Elenbaas said. “We’re pre- pillow case on your head and imagin- as an honorable mention. of PPG. However, the largest share- paring to have a big selection to sell ing your wedding one day,” Elenbaas The international component holder was the incumbent mez- AUXO INVESTMENT off the rack.” said. was one distinguishing factor of zanine lender who also desired to PARTNERS Elenbaas opened the first loca- the deal, marking the first time that remain in the deal as both a lender tion of America’s Bride in 2014 at Auxo has acquired a company with and equity owner. Top executive: Jeff Helminski, 746 Four Mile Road in Walker, which JUDGE’S CHOICE international operations. However, This left Auxo to negotiate a managing partner was recently converted into an out- the firm’s team members did have transaction with a singular partner Company: Private equity firm let store stocked with wedding dresses AMERICA’S BRIDE plenty of experience in the interna- at the mezzanine lending firm who specializing in investments in ready to purchase off the rack. When tional space. was both the largest shareholder industrial, manufacturing and Elenbaas learned Bridal Gallery was Top executive: Jennifer Elenbaas The Chinese joint venture, called and subordinated debt holder. At business services companies for sale, she knew she wanted to pur- Annual sales pre-COVID: PPG International, was partially the same time, the party was the chase the store, which has been a sta- owned by a minority shareholder new subordinated debt holder Auxo Advisers on the deal: Buyers: $750,000 at America’s Bride; Miller Johnson (legal), Barnes & ple for West Michigan brides for the $500,000 at Bridal Gallery who led the operation in the country. had to negotiate with, and they past several decades. The challenges arose when Auxo desired to be an equity investor in Thornburg LLP (legal), Mercantile Elenbaas first met with the found- Total West Michigan was unable to connect with members the deal going forward. Bank of Michigan (financing), ers of Bridal Gallery at the end of 2019, employees: 12 of the joint venture in person and — Precision Parts Group CEO Greyrock Capital Group (financing), BDO (accounting). and worked with the owner couple Company: Bridal gown retailer because of a travel ban — had to rely David Hooe was the second larg- — Judi and Ralph Tapp — and Small on a consultant for onsite opera- est shareholder and had been with Sellers: Brown Gibbons Lang & Business Deal Advisors’ Max Friar on Advisers: Small Business Deal tional due diligence. Auxo’s consul- the company for 30 years. Hooe was Company (investment banking); the deal, which closed in September Advisors tant splits time between Michigan concerned with the legacy of the com- Ropes and Gray LLP (legal). and her home in Austria, but because pany and the fate of its employees.

22 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com FOOD BIZ

FUTURE OF growing uncertainty about who will want to work “The ghost kitchen concept was in restaurants going forward. so great during COVID-19 for RESTAURANTS “I foresee a lack of potential employees for many restaurants, and hopefully Continued from page 1 restaurants in the next couple years,” Martin said. “If I were a young person trying to figure out my that can help other businesses “It was a good patch for us to be able to pull direction right now, I wouldn’t be pursuing culi- down the road outside of the in some extra revenue,” said Hops at 84 East nary, but maybe there are people who are looking pandemic. They could use that Executive Chef Robert Repp. “I think it makes a at that as an opportunity with less competition lot of sense for large restaurants that have larger currently in the field.” to adapt and see where they kitchens. For the size of our dining room, our The staffing landscape is “pretty rough” over- could be most successful.” kitchen is actually really small, so for us to oper- all at restaurants right now, Repp said. ate two separate restaurants is really difficult. But “I’m 31 years old, and when I was learning we knew we wouldn’t be able to make the num- how to cook, you were lining up for a cook job,” —EJ MARTIN bers to have a full staff on for lunch hours without Repp said. “It isn’t like that any more. Our service General Manager and Executive Chef, Olive’s trying something like this.” staff and kitchen staff are still pretty young, but Restaurant & Bar Ghost kitchens could potentially provide a path there aren’t as many career cooks. A lot of them for newer restaurants to explore different concepts have gotten into different industries.” and find their niche after the pandemic, said EJ The pandemic has pushed some people into Martin, general manager and executive chef at industrial work and other professions, Repp Based on what Repp saw at Hops at 84 East Olive’s Restaurant & Bar in East Grand Rapids. said, but it’s hard to say if that will be a long- when it was able to reopen for indoor dining in “The ghost kitchen concept was so great dur- term trend yet. July 2020, this year has the potential to be a boom ing COVID-19 for many restaurants, and hope- for business if capacity restrictions ease soon. fully that can help other businesses down the Marketing critical “We were really busy last summer, it was really road outside of the pandemic,” Martin said. exciting to see,” Repp said. “After the first shut- “They could use that to adapt and see where they With less of an in-person experience than ever, down, we were like, ‘What is going to happen, is could be most successful.” marketing was vital for restaurants this past year, anybody coming out?’ But then we got flooded Amore Trattoria Italiana in Comstock Park Arcidiacono said. with customers on our first day we reopened.” experimented with a pop-up concept by offer- “We’re out there hustling on social media tell- Arcidiacono is less optimistic about the pre- ing nachos every Thursday during the summer. ing people what we’re doing and hoping they’re dicted pent-up demand. It was a hit, but also time consuming, said owner listening,” she said. “I’m very vocal on social “People are very leery and will be for a long and head chef Jenna Arcidiacono. media and I think it helps a lot. It’s all about com- time, which is to the detriment of all of us,” “It’s confusing for guests — it’s not my favor- munication right now — people really want to Arcidiacono said. ite idea,” Arcidiacono said. “It ended up being hear about how you’re being safe and clean, so Restaurants that are successful with takeout really popular but also a lot of extra prep work we talk a lot about that because a lot of people menus will thrive, but fine dining establishments to do. We had to add a lot of extra stuff to our are scared.” like Amore Trattoria will have to kitchen and most of it had to be used that week The pandemic has also pushed upcharge menus and create an or else it would go bad. But we have some really restaurant employees to be more FOOD BIZ upscale experience for its custom- talented cooks in my kitchen who had a lot of hands-on and take on more NEWS ers, Arcidiacono said. That is how fun with it.” responsibilities, Moreno said. In — her restaurant reopened earlier CDKI Dining Group, which operates MeXo addition to cooking and putting Sponsored by: this month at 25 percent capacity. DAN VOS and Sandy Point Beach House restaurants, didn’t together the restaurants’ menus, CONSTRUCTION Amore Trattoria created a chef’s launch an entirely new restaurant pop-up dur- Moreno is now also mopping COMPANY tasting menu for dine-in guests ing the pandemic, but the restaurant group floors, washing dishes and doing that has three options for each did streamline its operations by working out of whatever else he can to keep his course for $59 per person. MeXo’s kitchen for both of its concepts. restaurants in business, he said. “We just decided to go that way for right now. “With ghost kitchens you have to be careful “I’ve gotten more involved with promoting the We’re trying to figure out the best way to do dine- the way you advertise it so you don’t confuse peo- restaurant, creating videos and sharing pictures in,” Arcidiacono said. “For some people, this will ple,” said Executive Chef Oscar Moreno. “In our and information,” Moreno said. “It’s important be too expensive, but we still have our take-out case, we were just trying to consolidate the two to educate our guests about how we do things.” menu as well.” concepts in one with the lack of help we had.” Martin feels strongly that activity will bounce Pent-up demand? back for the restaurants that are able to stay open. “People love going out and I think it’s just From top: Robert Repp, executive chef at Staffing challenges Hops at 84 East; EJ Martin, general manager Restaurants that are able to weather the pan- something that everyone has on their agendas and executive chef at Olive’s Restaurant & Restaurants vary in how they have dealt with demic could possibly see a boom in business a couple times a week,” Martin said. “Once the Bar; Oscar Moreno, executive chef with CDKI staffing levels in the past year, but most have as some in the industry expect to see pent-up vaccine makes its rounds and we go up in capac- Dining Group; Jenna Arcidiacono, owner and cut down on staff sizes significantly with a lack demand as restrictions are lifted and the vaccine ity, my hopes are the industry will bounce back head chef of Amore Trattoria Italiana. COURTESY of dine-in guests. Chefs in general are seeing rollout is successful this year. and it will feel like we didn’t skip a beat.” PHOTOS

Design Build General Contracting Construction Management

Dan Vos Construction Company www.danvosconstruction.com Ada, MI

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 23 v Sandy Ward and her late husband, Cedric developed a children’s program at Circle Theatre and supported many programs aimed at engaging people of color in community arts throughout their life together.

With the help of Grand Rapids Community Foundation, Sandy will create a scholarship fund after her passing to support students involved in theatre. The fund will bear their names and honor Sandy and Cedric’s legacy, always and forever.

LET US HELP YOU GET STARTED We’re here to help you understand your options and explore creative ways to leave your mark on the community and causes you love. Give us a call at 616.454.1751.

grfoundation.org LEAVE YOUR MARK

24 FEBRUARY 15, 2021 / MiBiz Visit www.mibiz.com NONPROFIT ORGANIZATIONS

Nonprofits less likely to draw from second round of federal PPP loans

By JOSH SPANNINGA | MiBiz “While we may be authorized expenses. If less than 60 per- [email protected] cent of the funds previously dispersed able to qualify, we went to employees’ payroll, that non- he full effect of the COVID-19 pan- profit will not qualify for a second draw. demic on the national economy was don’t feel like we still largely unknown when the first need it. We want to Arts, education nonprofits round of federal Paycheck Protection among hardest hit Program loans was announced in late March 2020. make sure that the Nonprofits that focus on the arts are T Caldwell Gustafson Van Dyke State governments were just beginning to among the organizations most affected issue stay-at-home orders and restrictions on dollars are available by COVID restrictions. Unlike food banks, shel- Caldwell, of the Council of Michigan local businesses. It was unclear how long these ters and other human service-based organiza- Foundations, says the letter addresses a critical restrictions would last, as well as just how exten- to organizations that tions that may have seen an uptick in donations issue. sively regulations would affect local businesses, truly need them.” last year, arts nonprofits often rely on ticket sales, “The core appeal here that the nonprofit including nonprofits. memberships, gift shop sales, event rentals and community is making is for the federal relief Nearly a year later, the economic reper- other similar forms of revenue that simply aren’t to understand that nonprofits are frontline cussions of the pandemic are still unfolding. —MICHELLE VAN DYKE coming in right now. human services and businesses that need In ongoing efforts to ease financial stress on President and CEO, Heart of West Michigan The Grand Rapids Public Museum is no unique and careful support in the CARES Act,” struggling small businesses and nonprofits, United Way exception. he said. “And wanting to make sure that they Congress approved an additional $284 billion “It definitely hits the museum’s earned rev- realize nonprofits are small businesses, but in PPP loans in December. This includes at least enue, but we are seeing that people are engaging the nonprofit business model doesn’t allow for $25 billion set aside for eligible borrowers with with the museum both on a limited basis in per- them to charge the customer more or to think a maximum of 10 employees, or loans of up to son and also digitally. We know there’s a hunger of the other creative solutions that for-profit $250,000 for eligible nonprofits in low- or mid- percent reduction in quarterly revenue in 2019 out there for the museum,” said Kate Kocienski, enterprises have.” income neighborhoods. to the same period in 2020. The MNA recieved a Grand Rapids Public Museum’s vice president of While PPP loans can prove crucial, they’re still While the application window for the second $255,242 loan in the first PPP round. marketing and public relations. “The PPP would one of many options local nonprofits can pursue round of loans is open until March 31, it is unclear “Thankfully, many were able to have a record allow us to continue our normal operations and to obtain additional funding that include grants how many Michigan nonprofits will benefit. year for donations from individuals or accessed continue to create our educational content. So and charitable giving. “I honestly haven’t heard from anyone who’s relief through some of the emergency relief it’s really filling in that decrease in earned rev- In order to make funding available to strug- been taking it,” Michelle Van Dyke, president grants provided by foundations,” Gustafson enue that we’re not getting right now because gling nonprofits who may not qualify for a first or and CEO of Heart of West Michigan United said. “Unfortunately, due to that, they may not we’re not operating at 100 percent.” second draw PPP loan, the Council of Michigan Way, said of nonprofits seeking the second be able to show a reduction in revenue. The issue The Grand Rapids Public Museum was Foundations has included a comprehensive list PPP round. is whether these funds raised and received will approved for a $644,000 PPP loan in April 2020 of various COVID-19 relief funds available across Heart of West Michigan United Way was sustain them, and for how long.” and has applied for a second loan. the state. approved for a $672,575 PPP loan in April Another barrier some nonprofits face is the Many arts nonprofits have had to get creative Caldwell’s organization has “been monitor- 2020, which Van Dyke says “was very helpful lack of an existing relationship with banks lend- to continue offering their services, which often ing up to 50 pooled funds” that members can for us to bridge the gap.” The organization will ing the PPP loans. Smaller and minority-owned involves boosting their online presence. The Grand access for emergency relief and that “create the not be applying for a second draw, however, and operated nonprofits, for instance, are often Rapids Symphony, for instance, turned to stream- funding social net we need coming in (during) as Van Dyke says the federal funds are likely less likely to have such banking relationships as ing concerts virtually last year. While this means the pandemic.” needed elsewhere. larger nonprofits. Additionally, banks aren’t typi- audiences continue benefiting from the services “While we may be able to qualify, we don’t feel cally used to dealing with the nonprofit business they offer, it still doesn’t make up for lost ticket sales. like we need it. We want to make sure that the model, experts say. Additionally, offering streaming services and rede- dollars are available to organizations that truly Kyle Caldwell, president and CEO of the signing a website can be costly upgrades. PPP by the numbers need them,” she said. Council of Michigan Foundations, said banks “To run a virtual operation is expensive,” Van Nonprofit organizations qualified for both According to research published in July from face unique challenges when serving such a wide Dyke said. “You’ve got laptops, and you’ve got rounds of the federal Paycheck Protection Grand Valley State University’s variety of nonprofits. CMF recieved instructors … it’s just a different model for these Program. While the second round closes Dorothy A. Johnson Center for a first-round PPP loan of $464,195. nonprofits. They continue to have challenges not March 31, Grand Valley State University Philanthropy, nonprofits received “There was a lot of learning just operationally, but how they deliver the ser- NONPROFITS researchers last year analyzed data from approximately 3.7 percent of all going on about different needs vices in the right way and in an efficient way to NEWS the first round in 2020: PPP loans that were dispersed last — based on the size of nonprofits,” the people who need them.” year. In total, 181,680 nonprofits Sponsored by: Caldwell said. “It’s a little bit dif- GRAND RAPIDS n 4.1 million: The number of jobs benefitted, though an estimated ferent with a nonprofit human COMMUNITY A call to Congress nonprofit organizations helped protect 452,000 nonprofits were likely eli- FOUNDATION service agency with several hun- gible for PPP assistance, research- dred employees and what that Meanwhile, the Michigan Nonprofit Association n 181,680: The number of loans made ers found. means versus a one- or two- has been promoting a letter drafted by the National to nonprofits employee shop.” Council of Nonprofits calling on the Biden admin- In addition to revenue and banking barri- istration to ensure nonprofits are able to receive Nonprofit barriers n 3.7%: The percentage of all PPP loans ers, the second PPP round includes new restric- the funds they need to continue their work. that went to nonprofits Based on initial responses to the second draw, it tions that may prevent some nonprofits from “Specifically, the letter calls for nonprofit-spe- appears even fewer nonprofits may benefit this applying. For instance, in order to qualify for cific grants and forgivable loans for nonprofits of n 40%: The amount of eligible time around. a second draw, nonprofits have to employ all sizes, an increase and extension of charitable nonprofits that received a PPP loan Joan Gustafson, external affairs officer at the 300 people or fewer — a sharp drop from the giving incentives, full coverage of unemployment Michigan Nonprofit Association, said some 500-employee cap for first draw loans. costs of reimbursing (self-insured) employers, Source: Dorothy A Johnson Center for Philanthropy nonprofits aren’t applying for a second round Nonprofits applying for a second round and financial aid to state and local governments,” because of a new requirement to show a 25 also must have used up first-round funds on Gustafson said.

Visit www.mibiz.com MiBiz / FEBRUARY 15, 2021 25 Pandemic, social unrest lead GR IN THE NEWS M&A EXPANSION commissioner to n Service Express LLC, a private equity-backed n Harbor Steel & Supply Corp. will be investing Grand Rapids-based firm that provides third-party $2.4 million for a 34,000-square-foot expansion on the form new company data center maintenance services, acquired Blue west end of its existing facility at 2385 112th Ave. in Chip Customer Engineering Ltd., which is head- Holland Charter Township. quartered in Bedford, England, but has locations Through the expansion, A Q&A with Grand Rapids throughout the U.K. and Europe. Established in the company expects to 1987, Blue Chip serves as a third-party maintenance retain its 24-person workforce, as well as create an- City Commissioner and The provider and managed services provider and also other 10 jobs over the next two years. An all-in-one has a software development division in Sri Lanka. metal services company, Harbor Steel has operated in Hekima Group President and The deal for Blue Chip marked the first international Holland since 1986. The company measures, process- CEO Joe Jones acquisition for Service Express. Prior to the deal, the es, cuts and distributes metal products for a number two companies had maintained a partnership and of industries and applications. Harbor Steel operates rand Rapids City Commissioner Joe Jones recently stepped down from his full-time provided shared client services. Terms of the deal four West Michigan locations in total — Holland, Mus- job as CEO of the Urban League of West Michigan to launch a consulting firm focused were not disclosed. Service Express is a portfolio kegon, Spring Lake and Manistee — with additional company of New York-based private equity firm operations in West Virginia and Kentucky. on diversity, equity and inclusion strategies and other social justice advocacy. Jones Harvest Partners LP. launched The Hekima Group LLC (named after the Swahili word for wisdom) after a n Holland-based advanced touchscreen provider decade at the Urban League where he worked closely on the ongoing inequities for CONSTRUCTION TES America LLC acquired certain assets from n Grand Rapids-based real estate investor Tim En- people of color in West Michigan. Jones said he felt a calling to launch the consultancy following the G 3M Touch Systems, which is a subsidiary of 3M gen has formed a new company that will focus on nationwide protests after the killing of George Floyd, the COVID-19 pandemic’s disproportionate Company, with plans to breathe new life into the construction projects in the office, medical, indus- harm to communities of color, and his own personal brush with the virus in October. Jones spoke brand. One of the assets is trial and retail sectors. Engen, president of Vision with MiBiz to discuss his new venture and recent City Commission business. MicroTouch, a brand cred- Real Estate Investment at 140 Monroe Center ited for introducing the first NW, recently launched CarbonSix Construction Why did you decide to leave the Urban League after a decade, and what do you hope to capacitive touchscreen in Inc. The companies are housed in the same office accomplish with The Hekima Group? 1984. TES America plans to overhaul and expand building, although the plan is to construct a new of- There were conversations with the board over the last year or so about plans to transition out. I the MicroTouch line, including adding all-in-one, fice for the two companies as well as an additional felt like I had done what I was called to do in terms of helping to better position the organization multi-touch computer systems that are equipped to get back to its original mission of being very present in the community. tenant. CarbonSix is “starting out small” with six with the latest TES-patented technology. TES Amer- employees, and some serving in dual roles at Vi- I’m really feeling a call to lean in more aggressively to address inclusive economic growth. I ica also acquired Surface Capacitive and Projected sion Real Estate and CarbonSix, Engen told MiBiz. believe that West Michigan can’t be all that we want it to be until we’re creating more opportuni- Capacitive components and displays from 3M Touch CarbonSix offers services including construction ties for people to be what they desire to be. I think that’s been the disconnect for some time now, Systems. These components are used for commer- management, preconstruction estimating, design particularly for African American and Latinx residents not being able to take a bite at the apple and cial applications for such industries as casino gam- and build, and owner representation. The compa- not having access to economic prosperity compared to their white counterparts. ing, medical equipment and public kiosks. ny works in collaboration with VREI, but was also n The founders of Marquette-based Satellite Ser- formed to provide construction services to other In announcing The Hekima Group, you cited the ‘collateral damage’ from both the pandemic vices Inc. have sold the company to an employee owners throughout West Michigan, Engen said. and the social justice movements that launched last year. How do those two issues continue to stock ownership plan (ESOP). SSI is a provider of play out in Grand Rapids? The devastation that’s come by way of COVID-19: That chapter is still being written in terms of base operating support, facility operations and main- BANKING the damage that has been done and that will be done to African American, Latinx and histori- tenance, and military family housing operations and n Kalamazoo-based Consumers Credit Union cally marginalized communities in general. The lift is really to persuade or influence those com- maintenance services to government and commer- opened a new branch office on Wilson Avenue NW, munities to consider the vaccine. To be able to communicate to the African American and Latinx cial customers. Prairie Capital Advisors Inc., an across from the Meijer Inc. store in Standale. The communities about the critical need to take the vaccine, and yet respect their decision not to, Oakbrook Terrace, Ill.-based investment bank and full-service office is the weighs heavily on me. ESOP advisory firm, worked with the company on credit union’s 22nd in The killing of George Floyd, the aftermath, and the racial unrest was real. That was a significant the sale. Terms of the transaction were not disclosed. West Michigan and in- amount of pent-up frustration, anger and just rage where you had people saying: I need to make n Traverse City-based High Street Insurance cludes personal and commercial lending and invest- my voice heard and I need to make it known this is just not right. Those two events were very sig- Partners acquired Hillsdale-based insurance ment services. Grand Rapids-based CopperRock nificant in my decision making. agency Vested Risk Strategies Inc., according to Construction Inc. served as the contractor; Bosch a statement. The acquisition was the 18th for High Architecture Inc. of Kalamazoo designed the of- Did anything else play a role in your business decision? Street Insurance Partners since it was formed in fice. Consumer Credit Union had more than 108,000 I also tested positive for COVID in October. I started out with cold symptoms, which evolved into August 2018 by Detroit-based private equity firm members and $1.47 billion in total assets at the end a loss of taste and smell and a headache nonstop for five days. As I was dealing with it in isola- Huron Capital. of 2020. tion, I couldn’t help but think about my mortality. I’d often think about the fact that I could die n Wyoming-based Praxis Business Brokers LLC n Kalamazoo-based Arbor Financial Credit Union at any moment. COVID does a job on one’s physical body, but it also has done quite the job on worked on six transactions that were completed in opened a branch office on 32nd Avenue near I-196 one’s mental well being. It took a toll on me both physically and mentally. the fourth quarter of 2020. They were Muskegon in Hudsonville. The office is the 12th in the region for Awning and Fabrication’s sale to an Ada buyer, Arbor Financial, which at the end of 2020 had 44,666 What role do you see The Hekima Group playing, either working with companies or doing the sale of Coye’s Canvas & Awnings in Wyoming members, $813.6 million in total assets, and $634.3 issue advocacy? to a Grand Rapids buyer, Grand Rapids-based S&C million in total deposits, according to a financial state- I believe wholeheartedly in our ability to walk alongside folks trying to engage in being a more Plastic Coatings’ sale to a buyer in East Grand ment filed with federal regulators. just, equitable and inclusive organization. It’s bringing wisdom and strategy in areas like (diver- Rapids, a Bloomfield Hills-based buyer’s acquisition sity, equity and inclusion), strategic and multi-cultural communications, crisis management, of Lansing-based Melting Moments Ice Cream corporate responsibility and public affairs. All of these things are a reflection on the experience PUBLIC RELATIONS Treats, Kalamazoo Chuck Manufacturing and n Kristie Burns, a communications professional I’ve developed over the last 30 years. Service Center’s sale to a Barry County buyer, and with more than 20 years of experience, formed KB the sale of Fourth Coast Café & Bakery in Kalam- How can companies ensure their equity goals or commitments have staying power? Communications Inc. She operates the firm virtu- azoo to three partners from Valparaiso, Ind. Praxis Post-George Floyd, there were a number of companies, organizations and individuals who really ally out of Norton Shores after moving from Grand wanted to step up and be part of the solution. They were writing significant checks and making President Michael Greengard represented the sell- Rapids a year and a half ago. The firm’s services aggressive pledges to do better. But really, the jury’s still out on whether that same (energy) is still ers in all six transactions. include public and media relations strategies, cor- present, or if so, how can we maintain it. That’s a legitimate concern. porate communications, and content to positively JOINT VENTURE position companies within their industries, markets The City Commission just signed off an option agreement to move forward with the 201 Market n Acrisure LLC formed a joint venture with NFL and communities. The firm works with companies in Ave. property redevelopment. How can that project move forward with an equity lens? quarterback Russell Wilson of the Seattle Seahawks consumer products, health care and financial ser- One of the most glaring opportunities for that site in particular is around ownership opportuni- and Grammy-winning singer and songwriter Ciara to vices sectors. ties for contractors and other businesses to participate in its development. Those are two areas support increased access to insur- that if we as a city can pull off, then we’re definitely moving in the right direction. ance by minority-owned business- HEALTH CARE es in the U.S. Evolution Advisors n Catherine’s Health Center opened an addi- Similarly, how can the city help ensure equity within the city’s expanding cannabis industry? LLC will “immediately focus on tional location on the Streams of Hope campus at The city has shown itself as having a value on equity defined as leveraging our influence to be providing greater access and more 60th Street SE in Grand Rapids. The location offers intentional around removing and preventing barriers that have been created by systemic and effectively distributing insurance products to minority- medical and behavioral health care alongside a food institutional injustice. Historically, it has been an albatross around the necks of black and brown owned enterprises,” according to an announcement pantry, after-school tutoring, and other programs folks. Now that it’s legal, there’s not many on-ramps to opportunities because of the cost factor. of the joint venture. That includes companies certified It’s very costly to get into the industry. That’s a major barrier. operated by Streams of Hope. Additionally, Cath- as a Minority Business Enterprise, of which there are erine’s Health Dental Center opened on 36th Street more than 4 million in the U.S. with combined sales of SE in space that previously housed a dental center Interview conducted and condensed by Andy Balaskovitz. COURTESY PHOTO nearly $700 billion. that closed last August.

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PROJECT Viking Corporate Headquarters AGM worked with the design and construction team in a LOCATION Caledonia design-assist delivery on this project, to help develop and BUDGET $1,600,000 refine material selection and interface details as required ARCHITECT Byce & Associates to achieve design intent. This approach maintained a COMPLETION September 2019 desirable balance between cost, performance and schedule 2515 ALPINE AVE NW, SUITE C TEAM Project Manager: Bryan Dennis constraints. GRAND RAPIDS, MI 49544 Superintendent: Tom Freiberg ABCWMC.ORG

New political Jane Ghosh boundaries takes helm to emerge in at Discover 2021 Kalamazoo PAGE 16 PAGE 22

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Despite new state law, no solid plans for Kalamazoo HELP ON THE WAY event center

By KATE CARLSON | MiBiz More flexibility [email protected] comes with latest KALAMAZOO — A new funding tool recently signed into law is intended to help finance an event round of PPP loans center in downtown Kalamazoo, but it’s unclear if there is a desire or solid plans to move forward By MARK SANCHEZ | MiBiz with the venue. [email protected] House Bill 4816 was sponsored by former state Rep. Brandt Iden, R-Oshtemo Township, and was he new round of federal Paycheck signed into law by Gov. Gretchen Whitmer on Dec. Protection Program loans 30. The Regional Event Center Financing Act cre- includes a number of changes ates a financing program for potential venue proj- from the prior funding intended UPCOMING ISSUES ects in Kalamazoo, Ottawa, Muskegon, Ingham and to aid small businesses hurting Washtenaw counties. Tfrom the COVID-19 pandemic. “The impetus for this leg- As with the first round last spring and islation was basically to allow summer, borrowers working through a lend- access to another economic er can again use PPP funding from the U.S. development tool that larger Small Business Administration to pay oper- communities have like Grand ating expenses. Rapids and Detroit,” Iden told The new $284 billion PPP round MiBiz. “I have always sup- extends eligible expenses to property ported an event center down- damage incurred in last summer’s Iden town because I believe that civil unrest that was not covered by if urban core centers don’t insurance, supplier costs and worker grow, then they have a tendency to just die out.” protection expenditures. As well, eligi- Iden was term-limited out of office at the end of ble expenses now include costs to adapt 2020. He served on the Kalamazoo County Board of to the pandemic such as facility modifi- Commissioners for two years before he was elected cations, software and cloud computing to the state House of Representatives in 2014. and delivery services. “The event center was only ever discussed ILLUSTRATION: KAYLEE VAN TUINEN See PPP LOANS on page 12 in concept. There were never formalized plans or a formal agreement about the size and scope of the project,” Iden said. “It’s always been pre- liminarily discussed as a high-level concept for the community.” The new legislation requires an event center financing program to describe the proposed size, State expects ‘extremely high’ demand for $58.5M in small business COVID-19 relief location, cost and financing structure of the pro- posed facility, and to specify an assessment to be By MARK SANCHEZ | MiBiz has a relatively short applica- million Stages Survival Grant because of a “far, far greater levied under the program, which can’t exceed 4 [email protected] tion window based on previous Program beginning at 9 a.m. on need that exists than any amount percent of county-wide hotel room charges. The demand. Jan. 21. The applications window of resources that we are facili- assessment would effectively be a small increase he latest state effort Applications for the $55 mil- for Stages grants closes at noon tating,” Michigan Economic 3.1.2021 4.26.2021 to a county’s hotel lodging tax. to provide financial lion Michigan Small Business on Jan. 28. Development Corp. CEO Mark The financing act defines an event center as a aid to Michigan small Survival Grant Program open at The small window for the Burton said last week. Grant convention hall, auditorium, stadium, music hall, businesses and enter- 9 a.m. on Jan 19. The application Small Business Survival Grant programs last year to provide tainment venues that process closes at noon on Jan. 22. Program stems from an expec- relief for thousands of small See KALAMAZOO EVENT CENTER on page 3 Tare ailing from the COVID-19 pan- Entertainment and live music tation that demand will eas- businesses statewide quickly Education & Talent Development Culture & Generational Change demic and resulting restrictions venues can apply for the $3.5 ily outstrip available funding See MEDC GRANTS on page 10 PERIODICALS Trade, labor Contract Deadline: 2.17.2021 Contract Deadline: 4.14.2021 shortage among top ag priorities INSIDE: this year Industry 4.0 Going Pro funding PAGE 11 SEE PAGE 4Cannabis to address advocates: Equity manufacturing workgroup just a workforce shortage starting point PAGE 4 PAGE 13 3.15.2021 5.10.2021 FEBRUARY 1, 2021 • VOL. 33/NO. 8 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com Grand Haven sees economic development momentum Real Estate: Office Diversity/Equity/Inclusion around 3 key projects By KATE CARLSON | MiBiz [email protected] Contract Deadline: 3.3.2021 GRAND HAVEN — The West Michigan lake- Commercial Lending Quarterly: shore town is experiencing a boom in eco- A NEW nomic development interest as three key properties around the city’s core are eyed for new projects. Grand Haven is going through a large- scale master plan update for its Grand River waterfront, as well as determining Commercial Real Estate Lending Update the future of a decommissioned diesel SPECIAL YEAR-END ISSUE | DECEMBERplant on city-owned 21, property. 2020 The city| VOL. also 33 | NO. 5 | $3.00 just approved a planned 124-unit housing development on the former Stanco Metal PERIODICALS BizTONE groups back Biden’s early action property near downtown. Contract Deadline: 4.28.2021 Grand Haven Chamber of Commerce on COVID-19 and immigration; President Joy Gaasch looks at the most policy concerns remain recent redevelopments as a critical way to draw visitors to and retain talent in the community — and something that PRESIDENT BIDEN PHOTO BY NAVY PETTY OFFICER 1ST CLASS CARLOS M. VAZQUEZ II 3.29.2021 will help with a post-pandemic economic ILLUSTRATION: KAYLEE VAN TUINEN By ANDY BALASKOVITZ | MiBiz recovery, she said. [email protected] “This has been a year to do some good planning,” Gaasch said. “It’s been impor- ithin hours of his inauguration on tant that we’ve been able to engage people Whitmer, Jan. 20, President Joe Biden signed in the discussions, and certainly city staff executive orders seeking to bolster has been phenomenal in keeping on top of GOP legislature Utilities & Energy the country’s COVID-19 response these projects and making sure that people and issued a memo to top federal are informed and engaged.” compete over Wofficials to “preserve and fortify” a key immigration The city is going through a master plan- policy for certain undocumented immigrants. ning process to redevelop its waterfront COVID relief The actions were among more than a dozen exec- along the Chinook Pier and beyond, with a funding utive moves in Biden’s first few days in office. 5.24.2021 goal of increasing the connectivity between downtown and the riverfront. The munic- PAGE 17 See BIDEN OUTLOOK Page 16 M&A Roundtable ipality gathered public feedback over the summer about redevelopment concepts for the waterfront, which include constructing an all-seasons farmers market area, green space, play structures and shops. Efforts underway to improve broadband access in Ottawa, Kent counties Contract Deadline: 3.17.2021 Food Systems Despite the pandemic, city staff gath- ered public comment on the waterfront By MARK SANCHEZ | MiBiz needed and the potential costs, Ottawa County Ottawa County can then use the con- master plan concepts by setting up out- [email protected] will then look at how best to fill persistent ser- sultant’s data and updated, accurate maps door town hall meetings and displays out- vice gaps that have become even more glaring to encourage service providers to expand side where people could leave comments, ttawa County expects to have a bet- during the COVID-19 pandemic. broadband, or perhaps to form public-pri- Contract Deadline: 5.12.2021 said City Manger Pat McGinnis. ter understanding later this year of The work begins with correcting what vate partnerships to extend service. “Now we’re looking at how feasible exactly where gaps exist locally for Paul Sachs, director of Ottawa County’s “The intent is to give us a thorough this plan is, how likely it is and we’ll do broadband internet service so it Planning and Performance Improvement understanding of where our gaps are,” said some additional design work and see can begin to address the issue. Department, considers “woefully inaccu- Sachs, noting that low population density about engaging with private partners,” OOnce a consultant collects and analyzes rate” maps from state and federal agencies in rural stretches of the county and high McGinnis said. data on broadband access and identifies what’s on broadband access. See BROADBAND ACCESS on page 10 See GRAND HAVEN on page 3

PERIODICALS 4.12.2021 Commercial Lending Quarterly: 6.7.2021 Small Business INSIDE: Drinking Economy Lending Update Cybersecurity Real Estate: Multifamily PAGE 15 SEE PAGE 6 Craft Beverage Roundtable Contract Deadline: 5.26.2021 Contract Deadline: 3.31.2021

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*Transaction completed by Fifth Third Securities. Fifth Third Capital Markets is the marketing name under which Fifth Third Bank, National Association, and its subsidiary, Fifth Third Securities and investments offered through Fifth Third Securities, Inc.: Securities, Inc., provide certain securities and investment banking products and services. Fifth Third Capital Markets offers investment Are Not FDIC Insured | Offer No Bank Guarantee | May Lose Value | Are not Insured by any Federal Government Agency | Are Not a Deposit banking††, debt capital markets†, bond capital markets†, equity capital markets††, financial risk management†, and fixed income sales and trading††. Fifth Third Bank, National Association, provides access to investments and investment services through various subsidiaries, †Services and activities offered through Fifth Third Bank, National Association. including Fifth Third Securities. Coker Capital Advisors is a division of Fifth Third Securities. Fifth Third Securities is the trade name used ††Services and activities offered through Fifth Third Securities, Inc. by Fifth Third Securities, Inc., member FINRA / SIPC, a registered broker-dealer and registered investment advisor registered with the U.S. Deposit and credit products offered by Fifth Third Bank, National Association. Member FDIC. Equal Housing Lender. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Credit products are subject to credit approval and mutually acceptable documentation.

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