First Annual CFE NEO Deal Summit

The Center for Free Enterprise hosted our first annual Deal Summit with THREE engaging and insightful panel discussions.

Panel 1: Buying a Business

• Jill Arena, Arena Enterprises
• Mathew Hanson, Emprise Partners
• Thomas Dugan, The Reserve Group
• Moderated by Ben Calkins, The Calkins Law Firm, Ltd.

Panel 2: Selling a Business

• Forest Bookman, Focus CFO
• Elias Ladon, Enterprise DR
• John K. Lane, Inglewood Associates
• Rudy Sangari, PARS Capital
• Moderated by Jim Myers, Hanna Business Advisors

Panel 3: Financing a Business

• Jerry Benko, Middlefield Bank
• John Klehm, Spectrum Commercial Finance
• Carrie Malotte, Westfield Bank
• Moderated by Shawn Ely, Lazear Capital Partners

We opened with breakfast and networking. CFE founder Ben Calkins kicked off the programming with a welcome and introductory remarks.

At noon we concluded with a luncheon and Presentation of First Annual CFE NEO Dealmeister of the Year Award to John K. Lane, President of Inglewood Associates:

John K. Lane, CEO/Managing Director of Inglewood Associates for 22 years, has over forty-five years of broad financial and operational experiences with middle market and entrepreneurial companies in a wide range of industries, serving as board member, CEO, CFO, Financial Advisor, Receiver, Chief Restructuring Officer (CRO) and a partner at Price Waterhouse (now PWC). 

He has directed fraud audits, served as an expert witness, arbitrated issues relating to the break-up of a business, mediated disputes between owners, calculated and presented damages in a variety of cases.

With respect to mergers and acquisitions, John has performed numerous sell side advisory, valuations, due diligence, quality of earnings, structuring, and negotiations.  In every engagement that John has been involved with, he seeks to understand the available options, the core drivers for the transaction and the motivations of the various parties involved with the transaction.  Never ascribing to the zero-sum game, John seeks to make the transaction a “win” for all parties.  By doing so, he quickly determines the most likely, and best supported, path to a successful transaction. 

John has even stated that he prefers the messier engagements as they provide the greatest opportunity to make a positive impact.  Some examples include:

• • RW Sidley – Engaged to serve as exclusive sell side advisor in the sale of their Silica Business.  The sell side process resulted in five strategic buyers bidding as finalists and a sale at 8x EBITDA.  This was shortly after management had sold another division, without a sell side process, at 3.25x EBITDA. 
  • Quaker Steak & Lube – Company had been for sale for a year before John was engaged as Interim CFO.  Within 11 days of being engaged, he helped identify the ultimate buyer of the Company’s assets and designated the ultimate transaction price of $25 million, a price approximately double what the investment banker was seeking and a price that led to all creditors being paid in full. 
  • Corso’s – Was retained to assist family perennial nursery business obtain $20 million in financing after the company experienced its worst loss year in its history due to a series of significant issues.  Utilizing an approach of outlining all of the issues that the company had faced, and the steps the company had taken to resolve them, ending up in being a critical factor to having three banks submitting bids to fund the company.
  • The Robbins Company – Appointed to serve as receiver for this designer and manufacturer of tunnel boring machines, with projects located in US, China, India, Australia, Russia, Europe and South America. In the midst of COVID and while dealing with litigation in China, Austria, Germany and the US, John assisted the company in restructuring its balance sheet and then sold the business.  Creditors will be paid approximately 30% or more of what they were owed.

• • BioEnterprise – Appointed to serve as President, Treasurer and Independent Director to oversee the sale of certain real estate and transition of operations. BioEnterprise had entered into an agreement to sell its real estate, but that agreement languished for over a year.  Within three months of appointment, was able to get the transaction closed and a significant number of transition issues resolved. 
  • American Processing – John was appointed as Receiver for this steel processing company, placing all sales, operations, accounting and administrative functions under his control. Immediately improving operations and improving cash flows, John’s team quickly identified that the owner was processing a number of jobs and placing the cash proceeds in his personal account.  The financial results were recast to include these additional revenues and then the company was sold for approximately four times the bids that the owner had previously obtained prior to the receivership.
  • American Heritage Billiards – John was appointed as receiver for American Heritage Billiards, a $50 million game room and patio furniture designer, distributor and retailer. The company had closed its doors and terminated all of its employees a week prior to Inglewood’s appointment.  With very limited assistance and a starting cash balance of $0, John’s team was able to access the financial systems and finally determine what assets in the 168,000 square foot warehouse were available for sale.  Given that the receivership had no cash, all sales were “where is, as is” with the buyers being required to remove the inventory at their cost.   

John has participated in numerous education panels, has written several articles and has been quoted in several publications.  He is currently serving as the independent director of BioEnterprise Corporation.  Previously served on the board of Knotice, Ltd. and on the advisory board of Hudson Business Products.  Additionally, he previously served on the boards of various non-profit entities.  He is also Chair of the Income Tax Board of Review, Village of Gates Mills, Ohio.

PANEL 1: BUYING A BUSINESS

About Jill Arena:

Jill Arena is an accomplished Business Development Expert and Mergers and Acquisition Intermediary. She has enjoyed an award-winning career for more than 25 years. Her extensive experience working with small to medium-sized businesses as well as large corporations has enabled her to assist executives and business owners reach their respective organic growth goals for three decades.

In 2011 Arena added Buy-Side Intermediary services to her offerings, working with Investment Banks, Private Equity Groups, Strategic Buyers and Individuals. Arena provides search, analysis and deal structure services to regional and national buyers. She has helped numerous Buyers in Cleveland and nationally find and acquire companies.

Arena is adept at consultative selling, an expert on strategic alliance development, prospecting, turn-around projects and business brokering. She has recruited sales professionals, built top-producing sales teams, helped organizations pioneer new areas for revenue generation, trained sales professionals on her branded sales methodology, and developed programs for organizations to exceed their organic growth goals.

Jill Arena is a 2011 recipient of the SMEI Distinguished Sales & Marketing Award®. She was recognized as an outstanding sales and marketing professional with unparalleled standards of sophistication and skill in her industry. The award was given to recognize, promote, and honor Jill’s excellence, professionalism, and outstanding achievement in sales and marketing. Earning this award illustrates Jill’s high standards, experience, training, and commitment to excellence.

Born in Rochester New York, Arena began her career at Paychex. Prior to founding Arena Enterprises in 2000, Jill was a top-producing Sales Representative with Paychex. After moving to Cleveland in 1994, Arena spent five years in sales leadership roles at ComDoc/McHale Us Connect (now Xerox ) where she earned President’s Club distinction each year, and 7 years with the VAR CompuCom. Arena lives in Solon with her husband Harley, daughter Lauren (who is attending Kent State) and son Nate (who is attending Ohio University). Arena is passionate about “all things Cleveland” and facilitating economic growth in this region. She is a self-proclaimed aficionado on museum-quality fine art, the NY State Finger Lakes region, yoga and kindness.

About Mathew Hanson:

Mathew Hanson is the Managing Director at Emprise Partners, a merchant banking firm specializing in transactions with lower middle market – companies in the range of $5-$25M in sales volume. Since 1989, Mathew has completed both buy-side and sell-side transactions with a unique combination of financial and operating experience.

Early in his career, Mathew identified an investment opportunity in the collision repair industry, ultimately becoming the majority owner of a collision repair company. In a fragmented and evolving market, Mathew built the business with nine direct repair – insurance company – relationships and eventually sold it to a large and well-capitalized industry consolidator.

Previously he was a Vice President at a regional investment banking and brokerage firm in Cleveland, OH. As an investment banker, Mathew oversaw public stock offerings, issuance of high yield bonds and managed mergers and acquisitions of privately-held companies.

After graduating from Case Western Reserve University with a Bachelor of Science in Accounting he worked in the tax department for a Big Eight accounting firm in Cleveland, including a tour in the London Office to assist in the preparation of expatriate tax returns. He is a Certified Public Accountant, Inactive.

Mathew is a former President of the Association for Corporate Growth-Cleveland Chapter and recipient of a Deal Maker of the Year Award.

About Thomas Dugan:

Started August 2022 as CFO for The Reserve Group, a family office managing leading industrial manufacturing companies in North America. Most recently Sr VP Finance with First Brands Group LLC, an aftermarket automotive parts supplier. From 1999 through 2018, was with Shiloh Industries, Inc. holding various leadership roles including Director of Finance & Treasurer, VP Finance & Treasurer and acting CFO. Prior to that, was Director of Finance at Carter Lumber Company. After graduating from the University of Notre Dame in 1987 with a Bachelor of Business Administration, began career working as an auditor for Arthur Young in Cleveland, OH and post merger, with Ernst & Young. Spent 13 years with the firm and was a Senior Manager in the Akron, OH office before leaving for Carter.

About Ben Calkins:

CFE co-founder Ben Calkins is an honors graduate of Harvard College and the University of Michigan Law School. His “new model” law firm, The Calkins Law Firm, Ltd. is a premier boutique law firm that specializes in business law and focuses on business transactions and business disputes. He maintains a perfect 10 “Superb” rating from Avvo.com and was presented the Client Distinction Award by Martindale Hubbell. Ben is the former President of both the Harvard Club of Northeast Ohio and Ohio Venture Association. Mr. Calkins co-founded the North Coast Angel Fund, one of the largest angel funds in America, as well as the Center for Free Enterprise.

Support Our Sponsors:

• The Calkins Law Firm, Ltd. – Business Attorneys
• Lytkowski & Co. Inc. – Accountants
• Creative Gold Media – Video Productions

PANEL 2: SELLING A BUSINESS

About Forest Bookman:

Area President of Focus CFO. Over 25 years of experience in corporate leadership, sales & marketing and operations working directly with small business entrepreneurs. Experience in the Manufacturing, Distribution and Wealth Management industries including family owned enterprise. Involvement in multiple mergers and acquisitions. Strong executive management experience driven to promote corporate vision, strategy and financial balance.

About Elias Ladon:

Elias is a Business Intermediary and Business Appraiser servicing Sellers and Buyers of small and low-end-medium size companies with their transactional and/or business development needs. He is the principal of Enterprise Development Resources, Inc. (www.EnterpriseDR.com ).
He is providing such services by relying on his diverse experience and training both in the corporate and small business world (has worked for large companies (Battelle Memorial Institute, BP Amoco, Kraft General Foods and W. R. Grace & Co.) and a small company of his own (acquired a specialty chemical company, Chemitron, Inc. and after turning it around and expanding it, sold it to McGean-Rohco Inc. of Cleveland, OH). Elias has also invested in a couple of small technology based businesses.
In addition to his sales, corporate financial and management skills, Elias has diverse experience in Manufacturing, Technology Management and Commercialization. Elias’ experience is founded on a diverse business and Science education at the graduate and postgraduate. He has further enhanced his skills with continued education as part of Certification programs and earned certifications in Business Brokering and Appraisal as well as State and U.S. Government required licensing (securities and real estate licensing). Elias is a registered investment banker with Colorado Financial Service Corporation, a FINRA Broker – Dealer.

About John K. Lane:

John K. Lane is CEO/Managing Director of Inglewood Associates LLC (www.ingw.com), a turnaround, crises management and business/operations management consulting firm. John has had over forty-five years of broad financial, management, operational, technical and international experiences with middle market and entrepreneurial companies. Have also been recognized by the turnaround industry having been awarded the 2021 Lifetime Achievement Award and the 2016 Turnaround/Transaction of the Year by the Northern Ohio Chapter of the Turnaround Management Association.

John has run numerous companies as either a CEO, CRO, crisis manager or receiver and has participated in all facets of business, including strategy, sales and marketing, operations, mergers and acquisitions, financing, accounting, information systems, performance measurement, employee benefit and other incentive plans.

John was appointed President of BioEnterprise to lead the transition its operations to its founders. He also is serving as the court appointed receiver for the Robbins Company, a $100+ million developer and manufacturer of advanced, underground construction machinery, suppling equipment for tunneling projects around the world including the United States, China, India, Australia, Russia, Europe and South America. Previously, while at Inglewood, John served as the Interim CFO of Quaker Steak & Lube and was instrumental in finding the buyer for that business and in structuring the transaction. That transaction won the Ohio Chapter of the Turnaround Management Association’s (TMA) Turnaround/Transaction of the Year.

Additionally, while at Inglewood, John and his team were engaged by American Roll Formed Corp. to improve operations of this 85% ESOP owned business and to provide strategic consulting advice. Subsequently, John was appointed CEO to lead the management team to accomplish, among others, increasing the sales pipeline from $15 million to over $100 million and the sales backlog from $4 million to almost $9 million, reducing average scrap rates by 25% and set up hours by 40% and opening a new Las Vegas facility, producing the first parts only three months after Board approval of the expansion.

Prior to Inglewood, John was the Managing Director of the Cleveland Office of The Revere Group, a business and technology consultancy; the Managing Director of Evergreen Partners Ltd., assisting firms with corporate strategy, capital structure, acquisitions and divestitures; and a Partner at Price Waterhouse (now PricewaterhouseCoopers).

John is a Certified Turnaround Professional (CTP) and a past president of the Ohio Chapter of TMA. He obtained a BBA at the University of Notre Dame.

About Rudy Sangari:

Mr. Sangari is the founder and Managing Partner of Pars Capital Partners, LLC. Mr. Sangari has over 20 years experience in LifeSciences space beginning in Medical Devices at Siemens. Prior to founding Pars Capital, he served as a Managing Director at BrokerBank Securities, LLC a FINRA registered Investment Bank focusing on capital formation projects in the Biotech. Mr. Sangari also has extensive experience in shale and heavy crude, underwriting over $500 million in North American shale. Prior to BrokerBank Securities, Mr. Sangari served as an Advisor at Merrill Lynch and Morgan Stanley.

Mr. Sangari is a Previously Registered Investment Advisor and holds FINRA Series 7 and 66 licenses.

About Jim Myers:

Jim Myers leads the Hanna Business Advisory practice for Hanna Commercial. Hanna Business Advisors provides professional-level assistance to buyers and sellers of businesses of all kinds and all sizes throughout the United States. Hanna Business Advisors offers business brokerage services, investment banking services, valuations, receivership, and consulting engagements.

Jim brings a wealth of experience in buying, selling, and operating small and medium-sized businesses. He is intensely focused on providing excellent customer service. Prior to joining Hanna, Jim was a Managing Director of Inglewood Associates, a mid-market consulting firm. Jim’s practice focused on turnaround engagements, receiverships, real estate matters, and sell-side engagements. Jim previously acquired a minority stake in a regional truckload carrier and acquired and operated Summit Moving & Storage in Akron, OH. He has been an active investor in industrial properties. Before Inglewood, Jim worked at the Federal Reserve Bank of Cleveland, National City Bank (PNC), and GE Capital Equipment Finance Division. Jim graduated from the University of Akron with a finance degree, received his MBA from the University of Pittsburgh, and earned a certificate in Hotel Real Estate Investments & Asset Management from Cornell University.

Outside of Hanna Jim enjoys spending time and traveling with his wife of 30 years and two adult children. Jim enjoys travel (especially to Greece), hiking, golfing, and gardening. Jim belongs to Saints Constantine & Helen Greek Orthodox Church in Cleveland Heights where he formerly served as President, Treasurer, and Trustee. He has been an active volunteer at St Herman’s FOCUS, a men’s shelter in Ohio City.

PANEL 3: FINANCING A BUSINESS

About Jerry Benko:

Bio coming soon.

About John Klehm:

John Klehm is a Senior Vice President with SPECTRUM Commercial Finance, having over 30 years’ experience in commercial banking and asset-based lending. John joined in 2010 and is responsible for sourcing financing opportunities primarily in Michigan, Ohio and Indiana.

John started in banking at Comerica Bank and worked as an asset-based originator for GE Capital from 1998-2003.

John has a BS degree in Finance from Central Michigan University and an MBA in Finance from Wayne State University. He is active as a Board Member for the Detroit and Southern Ohio/Northern Kentucky Chapters of the Turnaround Management Association.

About Carrie Malotte:

Carrie knows that trust, honesty, loyalty, and compassion are part of community banking, and she approaches all business and personal interactions using those values. Being a part of a team at Westfield allows her to pledge valuable service and a comprehensive product line to all her clients. Carrie has been a part of the Westfield Commercial Banking team for over six years. In addition to her traditional lending role, she currently serves as the banks SBA resource and assists the commercial team on sourcing and closing SBA loans. Carrie lives in Stow and has two daughters, Keeley and Sienna. She is a 15+ year Rotarian and serves on several Boards.

Westfield Bank is known for building trusted relationships with our customers, partners, and employees. Thousands of businesses have chosen to bank with Westfield because we effectively combine a personalized, solutions-oriented approach with the lending capacity and comprehensive products of larger institutions. Westfield facilitates networking events and educational symposiums throughout the year that often result in valuable introductions and referrals for our customers. Westfield Bank employs a team of high caliber, experienced bankers. For our employees, Westfield is more than a job; it’s a career. Westfield aspires to become Northeast Ohio’s highest performing and most admired community bank.

About Shawn Ely:

Shawn is a Managing Director with Lazear Capital Partners and manages the Northeast Ohio/Cleveland market.

A Cleveland-area native, Shawn brings over 30 years of diverse corporate finance, investing, operations and advisory experience to Lazear. On the principal side, Shawn has spent over 15 years focused on the middle market and lower middle market, sourcing, evaluating and managing private equity investments with The Edgewater Funds (Chicago), South Franklin Street Partners and Cyprium Partners (fka Key Principal Partners). Several of these investments were in ESOP companies where he saw firsthand the compelling benefits and “win-win-win” nature of an ESOP transaction.

On the Investment Banking and Advisory side, Shawn has spent over 15 years working with a wide variety of client companies, founders and families, all in the middle market, helping them chart the appropriate course for their needs, whether it be a capital raise, a restructuring, a sale or a merger of their business. It was in this arena where he was first introduced to ESOP transactions. He worked with Carleton, McCreary, Holmes & Co. (nka Key Capital Markets) and Loughlin-Meghji and Company.

In addition to his PE/Investing and Investment Banking background, Shawn gained operating experience in his role as Senior Vice President of Operations and Administration at Big Rock Sports, a North Carolina-based distributor of hunting, fishing, camping and marine products and accessories, where he was responsible for the efficient operations of six warehouses across the country totaling over 500,000 sq. feet, with 300 associates and 110,000 sku’s.

Shawn received his B.S. degree, cum laude, from the undergraduate division of the Wharton School at the University of Pennsylvania where he was a member of the undefeated freshman football team. He received his M.B.A. degree, with honors, from the University of Chicago Booth School of Business.