20160530-NEWS--1-NAT-CCI-CL_-- 5/27/2016 2:35 PM Page 1 NOT YOUR For great business solutions with equally great service, visit EVERYDAY fnb-online.com/greenwich. CUSTOMERSERVICE EQUAL HOUSING LENDER, MEMBER FDIC VOL. 37, NO. 22 MAY 30 - JUNE 5, 2016 Source Lunch Business of Life Jeremy Paris, Group Plan Commission Executive director has steered Public Square’s $50 million rebuild. Page 22 Artist Susie Frazier The List CLEVELAND BUSINESS Largest public companies works to build a brand Pages 25, 27 Page 21 SPORTS BUSINESS Nearly ready for prime time TECHNOLOGY Force Crowdfund were way law off to ahead of slow start Cleveland Whiskey, the times StartMart among By KEVIN KLEPS first to raise cash [email protected] @KevinKleps from the masses By CHUCK SODER Scott Wolstein takes in the the- atrics — the fire-breathing score- [email protected] board, T-shirts being tossed or cata- @ChuckSoder pulted into the seats, the show-stopping player introductions The highly publicized crowdfund- — when he attends Quicken Loans ing revolution did not begin with a Arena. bang. He always makes sure to point out On May 16, it became legal for pri- when and where it all started. vate companies to raise capital on- “I share that with my friends every line from just about anyone — not time we go to a Cavs game: None of just wealthy people who qualify as this stuff existed before the MISL,” accredited investors. Wolstein said. Thirty-six companies had signed The Major Indoor Soccer League up to take advantage of the new eq- only lasted 14 seasons before it fold- uity crowdfunding law through May ed in 1992. The Cleveland Force — 25, according to the U.S. Securities owned by Wolstein’s parents, Bart and Exchange Commission’s web- and Iris, for all but one of their 10 site. Among them are two local com- seasons — didn’t even make it out of panies: the Cleveland Whiskey dis- the 1980s before the family pulled tillery and StartMart Cleveland, the plug. Photographs by McKinley Wiley which rents out desks and offices to But its impact, especially in the entrepreneurs and freelancers. fan experience aspect of sports, lived After a $50 million facelift, the newly revitalized Demand for equity crowdfunding on. has been “somewhat underwhelm- “We used to say anything short of and reimagined Public Square officially reopens in ing,” according to Bob Cohen, CEO human sacrifice we would try,” said June. But one big question remains: Who will be of the Braintree Business Develop- Cleveland Cavaliers CEO Len Ko- ment Center in Mansfield. He has moroski, who got his start in the in- responsible for keeping the project a safe, vibrant, been a member of the Crowdfund- dustry as the community relations ing Professional Association since it director of the MISL’s Pittsburgh year-round Cleveland jewel? A smart operational was formed in 2012. That year, Con- Spirit in 1983. “It was just remark- gress passed the Jumpstart Our Busi- able.” structure and long-term funding will be the keys. ness Startups Act, which ordered SEE FORCE, PAGE 8 EDITORIAL, Page 10 SEE CROWDFUNDING, PAGE 23 Entire contents © 2016 by Crain Communications Inc. INVESTING GUIDE What the new federal fiduciary rule means to you Crain’s Superstar 10 list Who’s investing, and in what? FOCUS, Pages 15-20 20160530-NEWS--2-NAT-CCI-CL_-- 5/27/2016 12:26 PM Page 1 Attracting talent with employee benefits “ Here in Cleveland and nationwide, demand for skilled workers is surpassing even the need for traditional capital. Investing in employees is fast becoming an essential growth strategy for companies both locally and globally.” John Masters, Managing Director Bank of America Merrill Lynch “ Offering robust benefits tailored to your employees’ needs and preferences can help you build a stronger workforce — and gain a lasting competitive edge.” Sam Prentis, Market Executive Bank of America Merrill Lynch Now hiring Rethinking tradition Best of both worlds Adding a multi-generational perspective Workers of all ages now expect basic benefits, Health Savings Accounts (HSAs) are has become a priority for most companies. such as health insurance and retirement. quickly becoming popular. Companies can Hiring millennials — people born after But several newer, non-traditional benefits consolidate HSAs with other plans to gain 1980 — can help you adapt to changing are also gaining momentum. Understanding efficiencies, and employees can save for both customers, technologies and other which benefits your workers value—and short- and long-term medical costs. Education disruptive innovation. At the same time, tailoring your package accordingly—can help is essential to helping your workforce use this adding experienced workers can inject increase your appeal to employees. powerful tool to prepare for retirement and valuable experience, knowledge and healthcare at the same time. decision-making skills into your business. Popular non-traditional benefits Percent of workers who value the following: HSAs do double duty Recruitment plans Percent of companies planning to hire: For more local insights, email us at [email protected] or [email protected]. Sources: CFO Outlook, Bank of America Merrill Lynch; 2016 Workplace Benefits Report, Bank of America Merrill Lynch General disclaimer for Bank of America Merrill Lynch, visit baml.com/disclaimer. ©2016 Bank of America Corporation. AR8WDNW3 05-16-0053.C 20160530-NEWS--3-NAT-CCI-CL_-- 5/27/2016 2:13 PM Page 1 CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 3 CBIZ at 20: Stronger, capable of more BY JEREMY NOBILE “We’ve had great success. And I share price Its stock price, now hovering Car Act, are creating a more com- think we are positioned for even plunged to $1.06. around $10.50 a share, is the highest plex landscape that bodes well for [email protected] greater success in the future.” The manage- it’s been since the company effec- companies like CBIZ. Employee @JeremyNobile ment team was tively collapsed under the weight of benefits consulting, payroll services The implosion refreshed around its own skyrocketing growth 16 years and the technology that brings it all Jerry Grisko has a billion dollars The 20-year-old company didn’t that time. Grisko ago. together are all highly targeted on his mind. always have such a promising out- moved to COO. With its 20-year anniversary, CBIZ growth areas. The president and CEO of Inde- look. Gerard came in as has completed what Grisko said is Similarly, the Medicaid consult- pendence-based CBIZ Inc. has told Grisko assumed the role as presi- CEO with a gen- the firm’s first truly comprehensive ing practice is a focus as well. And investors the company expects an- dent and CEO this spring as CBIZ Grisko eral goal of gluing strategic plan. That’s where the goal while CBIZ is already a heavy nual top line growth of 6% to 8% as chairman Steve Gerard handed the together the dis- to “out-national the local and out- provider of Medicare services at the it continues along a multiyear reins to him in a transition plan an- parate parts that were CBIZ’s many local the nationals” came from. state level, it wants to be a bigger growth path in the wake of the last nounced years prior. He most re- and varied acquisitions. The firm is still eyeing at least player at the federal level. financial downturn. cently served as president and chief As Gerard came in, the company three or four acquisitions a year, but Grisko admits the firm isn’t in At that rate, it’ll be but a few more operating officer, a position he took was facing negative cash flow, law- likely of slightly larger sizes com- every market it wants to be in, years until the company crosses the on in 2000 after first joining CBIZ in suits and $150 million in debt. pared with years’ past, Grisko said. though. $1 billion threshold for annual rev- 1998 as vice president of mergers “Those acquisitions were small- New markets and services won’t be They have nothing in the Pacific enues. At the end of 2015, CBIZ and acquisitions. to medium-size entrepreneurially quite as significant as improving Northwest. Markets around Port- cleared $750 million in that line, Prior to that, Grisko was an M&A run private businesses with great ex- certain segments of the business land, Seattle and San Francisco are growing about 4% over 2014 and lawyer with BakerHostetler. That’s pectations by the sellers at the time and specific markets. on their radar, as well as a beefed-up nearly 30% over 2011. when he prodded CBIZ in its very that the combination of all these “Prior to that strategic plan, we presence in Silicon Valley. The Car- So how will one of the nation’s early days to hire his firm for their businesses would create this hugely were less discerning among oppor- olinas, Texas and Atlanta are attrac- largest professional service firms, acquisition work — and there was successful behemoth,” Gerard said. tunities as long as they fit our core tive regions as well where the firm which gained size early on through plenty of it. “Not only did you have economic business and within our model,” has either no presence or a smaller, an aggressive acquisition strategy Between 1997 and 1999, CBIZ failures … but also the psychological Grisko said. “Today, we have a real- less developed one. that continues today, maintain such closed at least 140 acquisitions to impact of these people saying, ‘I ly strong platform in place, so let’s The Cleveland market also falls auspicious goals in an increasingly build out its two main business spent my whole life growing this look for acquisitions that make that into that category, Grisko said.