Defining the Essential Elements for Growth and Success

ACG Special Section

  Ayuda Management Corp. has grown 7,000 percent since 2007. ReadyTalk has more than 5,000 customers in 70 countries. Imperial Headwear, closing in on a century in business, cranks out 10,000 caps a day. What's their secret? Ask the leaders of Colorado's hottest companies for the five essential elements for growth and success, and you'll probably get six. Or seven. Or four. At Ayuda, they talk about the "four D's: desire to be the best; determination to succeed, even in the face of rejection; dedication to customers and employees; and daring to take risks to further our goals and dreams." Clearly, that's been a winning formula for the 10-year-old company, a provider of services in general contracting/construction management, construction-defect repair, homeland defense consulting/security system design and installation, environmental consulting and. . .

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A Stronger Economy and Deal Diversity Driving Private Equity Aid

ACG Special Section

Nobody in the private equity funding business is arranging a ticker-tape parade just yet, but investing in confetti futures may not be such a bad idea. "Without patting ourselves on the back, we had a fantastic year last year, in 2011," says Warren R. Henson, president and senior managing director of Denver-based investment banker Green Manning & Bunch. "We had a really fabulous year. The middle market, from $10 million to $250 million in this part of the country, was very active. Two-thirds of our companies were sold last year to strategic buyers. That means large Fortune 500 companies or foreign companies coming into Colorado and buying local businesses." Luckily, Henson keeps track of more than his own firm's success, and the data Green Manning & Bunch compiled for private equity and venture capital investment in 2011 reflects a couple of important points. First, the comeback. . .

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State of the state: Tourism

Women's Final Four brings hoops madness to Denver

For the past four years, Kitty Hook and Carrie Besnette Hauser have been part of the Denver Sports team leading the effort to bring the NCAA Women's Final Four to Denver. It's about glory. It's about prestige. It's about time. Sure, having one of the premier collegiate women's sporting events will be great for Colorado tourism and secure lots of TV time and publicity for the Mile High City April 1 and 3 at the Pepsi Center and during related community and educational activities that week. Promotional materials for the 31st edition of the women's championships speak of building a "lasting legacy." That's more than fluff for Hook and Hauser. Hint: They're both tall. And they remember when sports for girls. . .

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Corporate Growth Award Winner: Schomp Automotive

ACG Special Section

  You would have to be a very recent Colorado transplant not to have heard of Schomp Automotive. First off, the company is a fourth-generation family business this year celebrating its 70th anniversary, a phenomenon about as rare as a 1954 DeSoto Coupe. Second, the voice of company president Lisa Schomp, media pitchperson for the company, is as ubiquitous as the '54 DeSoto is unusual. Yet while the media image of Schomp is all Lisa, the force behind the scenes these days for the most part is 28-year-old Aaron Wallace, eldest child of Lisa Schomp and longtime General Manager Mark Wallace. Business is usually a team sport, and the younger Wallace cheerfully describes his company's success as a combination of genes, hard work, family togetherness and team spirit. Those qualities, plus long-term profitability, combined to make Schomp Automotive this year's winner. . .

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Guest column: Economists’ ethical crisis

By George DeMartino At its annual meetings in Chicago in January, the leadership of the American Economic Association (AEA) voted to adopt new rules that urge economists to give full disclosure of any potential conflicts of interest when they provide economic expertise. The issue first arose a year ago in reaction to Charles Ferguson's Oscar-winning documentary "Inside Job," which exposes what appear to be stunning failures of leading academic economists to reveal the large incomes they received from business interests when writing reports and taking positions on policy matters of direct concern to those interests. In response to the film the business press hounded the AEA leadership into addressing the issue in a serious way - something the AEA had. . .

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Tech startup: ValveXchange Inc.

  INITIAL LIGHT BULB Before moving to Colorado to start ValveXchange in 2007, biophysicist Dr. Ivan Vesely worked at the Cleveland Clinic, the Children's Hospital Los Angeles, and the University of Southern California. His concept for a better valve system in mechanical hearts is the basis of the company's product, the Vitality Heart Valve System. Larry Blankenship, who has been involved with numerous medical-device startups in his career, met Vesely when he moved to Colorado through his position on the board of the Colorado BioScience Association and came aboard as CEO soon thereafter. Blankenship worked with a Minnesota-based mechanical heart valve company in the 1990s, and the experience opened his eyes to the problems with existing options for. . .

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Emerging Company of the Year: Alpine Waste & Recycling

ACG Special Section

  Lots of people lately have accused businesspeople of being motivated by greed. As far as Alpine Waste & Recycling CEO John Griffith is concerned, at least, they have the prime motivator all wrong. "It's funny because when people ask me that, I've always said that fear is the best motivator," Griffith says. Fear has followed Griffith throughout the decade-plus history of Alpine, from its earliest days as a business plan with zero funding to 2011 as a company with about $25 million in annual revenue. Regardless of motivation, the ongoing successes of Alpine Waste earned it this year's Association for Corporate Growth-Denver's Emerging Company of the Year Award. Nobody would blame Griffith for feeling anxiety over the launch of Alpine. The company began in 1999 when he learned he was due to be laid off by BFI Waste Services, a giant trash removal. . .

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Executive edge: Greg Anton

A competitive spirit drives the founding partner of Denver CPA firm

  Growing up in Massachusetts, Greg Anton would take a 30-second ride on a ski lift to zip down a 300-vertical-foot run at Blue Hills ski area. He would read about Colorado in ski magazines and dream of someday skiing here. So when it came time to go to college he set his sights on the University of Northern Colorado, where he earned a bachelor's degree in accounting, would go on to become a founding partner of Denver-based Anton Collins Mitchell LLP and be named to Accounting Today's 2011 100 Most Influential People in Accounting.   "I always had a vision early in life that I would own my own business," said Anton, 48, whose firm grew from 30 people in one office in 2002 to 90 people working today in offices in Denver,. . .

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Sports biz: Don Elliman’s Olympic questions

Don Elliman has a larger-than-life resume, an impressive pedigree in sports business, and connections everywhere. So when he was named co-chair of an Olympics exploratory committee for Denver last December, it sent a signal that this was a serious effort involving serious players. Elliman, who is executive director of the University of Colorado's Charles C. Gates Center for Regenerative Medicine and Stem Cell Biology, was previously chief of Colorado's Office of Economic Development and International Trade. Before that, he ran Kroenke Sports Enterprises, owner of the Denver Nuggets and Colorado Avalanche, and in the 1990s, he was president and publisher of Time Inc.'s Sports Illustrated magazine. Working with him as committee volunteers are 20 Colorado business and community figures including Olympic skier Jeremy Bloom, attorney Steve Farber and Elliman's co-chair. . .

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The Economist: What does 2012 hold for Colorado?

I'm encouraged when I read the economic consensus is that growth will be really slow in 2012, much slower than the consensus expected six months ago. That's because, in my 35 years of forecasting, I've found that the consensus is almost always wrong. It's not going to be a great year. But it will be a better one than we've seen for quite some time. One of my personal indicators is whether economic data are being revised up or down. The upward revision in the employment figures, both nationally and in Colorado, is good news. Over the years, when I've been asked what to watch if you only have time to pay attention to one economic statistic, this is what I tell people to focus on. Employment in the U.S. at the end of 2011 was about where it had been in April 2000, at the end of the long 1990s expansion. Yet there were 11 million more people in the labor force. . .

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Tax time 2012

Tips for businesses and individuals

With tax season right around the corner we turned to Jack Allgood, tax partner at Anton Collins Mitchell LLP for advice on tax issues in 2012. Q. Considering the state of the U.S. Treasury and the government's projected deficit spending, has the IRS stepped up the audit process? A. Yes, clearly the IRS has increased the numbers of returns being audited. The IRS audits more small companies than big ones and the gap is widening - a policy that costs both the IRS and its targeted taxpayers. As you might imagine, per an average audit hour, the audit of large companies yields a significantly larger collection of tax dollars than audits of small companies. Q. What areas is the IRS focusing on? A. For starters, foreign reporting and international activities. In March of 2009, the IRS issued an internal memo to ensure examinations with offshore transactions and entities continue to. . .

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New Way Out: Exit strategies for owners

ACG Special Section

  There's a lot more to selling a business than signing papers and getting a big check. Chris Younger, managing director of CapitalValue Advisors in Englewood, says business owners are often surprised at the steps they must take before selling a company. "They may not fully appreciate how much due diligence the buyer is going to do. That can require a certain amount of detail, investigation and document work," he says. First, Younger says, determine what you want to accomplish with the sale of your business. "Without a goal or objective, the process is likely to yield less satisfactory results," he says. The second step is to determine the value of the business. Some business owners overestimate this value, Younger says, because they can't view it objectively. If there is a gap between what you'd hoped was the value, and what the buyer and investment banker. . .

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Economy expected to grow slow and steady in 2012

ACG Special Section

  Doomsday might just have to wait. The Mayan calendar might end on Dec. 21, 2012, but most astute observers believe the coming year will bring Colorado's economy more of the same sluggish growth it experienced in 2011. For one, Patricia Silverstein, president of Littleton-based Development Research Partners and chief consulting economist to the Metro Denver Economic Development Corp. and the Denver Metro Chamber of Commerce, is neither bullish nor bearish on the state's economic prospects for 2012. "In general, our expectations are that 2012 is going to be similar to what we saw in 2011," she says. In other words, expect economic growth in the lackluster ballpark of 1 percent. Why can't the economy get out of first gear? "There's a lot of uncertainty as of yet," Silverstein says. Despite more traction nationally, the specter of a eurozone collapse haunts. . .

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Colleges handle job placement woes

Advisers help students and alumni prepare for careers – but they need to find jobs on their own

  Here's some good news for college students: Hiring is expected to increase 4 percent, across all degree levels, for the current group of soon-to-graduate students, according to Michigan State University's annual Recruiting Trends study. Still, near-grads are nervous about their job prospects. College career-services offices are responding with new programs, online assistance and even extra staff to help students learn how to write a resume, prepare for interviews and network. One thing the offices don't do, however, is find a job for the student. "We don't use the word ‘placement' anymore," says Bridgette Coble, director of the Office of Career Services for Metropolitan State College of Denver. "What we. . .

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The Power of Perserverance

ACG Special Section

By Norm Thiele "I'm convinced that about half of what separates the successful entrepreneurs from the nonsuccessful ones is pure perseverance." - Steve Jobs. Steve Jobs was right. Today's business leaders must find ways to point their companies in the direction of profitability and growth despite an economic storm that continues to buffet business. And doing so requires smart decisions and the perseverance to see them through. Company chiefs face pressures unforeseen in generations past; pressures that require a new path forward, paved with ingenuity, fortitude and resilience. Revitalizing core competencies and accessing new avenues of growth are vital to thriving in a shifting, dynamic global economy. At no other time in business has sound preparation and smart strategy been more important. Careful planning, vision - and a healthy dose of fortitude- are essential for. . .

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Rundles wrap-up: Twinkies

I'm turning 60 this month and like a lot of people in my situation I am wondering about my future. I suppose everyone is wondering somewhat about their future, even young people, but the concerns are different. Young people are wondering about their careers and family plans, while foremost in my mind are retirement and old age. With the perspective of now-looming old age, I can say with some assurance that it is the young people who should change focus. Truth be told, when we were your age promises were made. "They" told us not to worry, that Social Security and company pensions would sustain us in our Golden Years, and like the naïve guppies we were, we bought that BS hook, line and sinker. What got me thinking about this in more detail. . .

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Realism returns to real estate

Hot fix-up market means work for skilled tradesmen

  If you're sick of hearing about the poor economy and downturn in the real estate market, you're not alone. Most of the economic antagonists (many of them journalists) love to talk about the sky falling when in fact all that financial rain is producing some substantial growth and not just from artificial means like government stimulus, which is really the financial equivalent of pigs eating sausage - definitely not sustainable. Investment in new businesses, construction and capital investment in existing business is very much on the rise. While the current economic figures don't yet show it, they most certainly will by the end of the summer. A brief glance around your neighborhood - or most any other neighborhood along the Front. . .

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M&A Activity is Back—With a Caveat

ACG Special Section

  Welcome to the new normal. After a tough few years Colorado M&A is back almost all the way. That "almost" caveat comes because mergers and acquisitions continue to require an extraordinary amount of hand-holding and due diligence, delays, hesitation - all of which add up to increased transaction risk. Still, deals are getting done, particularly but not entirely within the middle-market M&A bracket occupied by most Colorado professionals. Internationally, mergers and acquisitions negotiated a tough year, especially against the background of Europe's sovereign-debt crisis. Locally, deal professionals had more fun. This had a lot to do with their sub-bulge bracket clientele. Middle market means different things to different people. Denver-based Integris Partners defines its target market in the $10 million to $100 million range. "The bulge-bracket. . .

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Colorado cool stuff: Leashlocket, glide-on wax, Flexfire

LEASHLOCKET After running a collection agency in the Denver area for years, the husband-an s xd-wife team of Dave and Valerie Marshall dove headfirst into the pet products industry with the LeashLocket last year. Available in two sizes and four colors, the LeashLocket contains a 6-foot retractable leash, then snaps onto your dog's collar when not in use. "Our tag line is ‘Let your dog carry the leash for a change,'" Dave says. "It's especially good for taking your dog to the dog park." Almost six months after its launch, the product is "getting some traction," he adds. "We've got leashes in the U.K. and Japan, and we've got a big order coming from Australia." $24.99 retail. Made by LeashLocket Ltd., Denver,. . .

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Former HP chief took on Senate campaign in California

Carly Fiorina to deliver keynote address at ACG-Denver conference in March

  Carly Fiorina didn't wait too long to work on her second act. After leaving Hewlett-Packard in 2005, the first woman to run a Fortune 20 company took on another big challenge: running for U.S. Senate. While campaigning in 2010, the Republican challenger to incumbent Democrat and ultimate victor Barbara Boxer faced personal hardship but continued her political fight. Fiorina will deliver the keynote address at ACG-Denver's Rocky Mountain Corporate Growth Conference, capping the March 13-14 gathering at the Inverness Hotel and Conference Center. In an exclusive interview with ColoradoBiz, she talked about her personal struggles on the campaign trail and her recipe for restoring the economy. I loved running for office. I loved it because it's challenging, and I like a challenge. You meet so many fantastic people that you wouldn't have had a chance to meet. I. . .

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State of the state: Energy

Energy Secretary Makes Case for Federal Support for Innovation

After responding to critics in Congress about the $534 million loan to bankrupt Solyndra, Energy Secretary Stephen Chu flew to Colorado in November to make the case for an active federal hand in energy innovation. His prime witness: PrimeStar Solar, a homegrown manufacturer of solar-film technology developed in a federal laboratory and then nudged into the marketplace with a small federal loan. "The public and private sectors can, and should, work together to make sure clean energy technologies are invented in America, made in America and sold around the world," said Chu, still wearing safety goggles after touring PrimeStar's existing factory in Arvada. As for the Solyndra bankruptcy, he called it "truly unfortunate," but would not admit. . .

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