In July, the 5th U.S. Court of Appeals ruled in Asadi v. G.E. Energy (USA) LLC that whistle-blowers aren’t entitled to protection under the Dodd-Frank Act’s anti-retaliation provision unless they report directly to the Securities and Exchange Commission (SEC).
This ruling — currently limited to Texas, Louisiana and Mississippi — may provide incentive to bypass the internal process for reporting suspected fraud or misconduct.
When going directly to the SEC, employees not only get monetary awards for information that leads to successful enforcement actions but also have the assurance of protection against retaliation, says Carolyn Bremer, senior manager in Forensic and Litigation Services at Weaver.
“Already, many companies are struggling to keep internal compliance programs strong, actively looking for ways to encourage employees to utilize their internal reporting processes,” she says.
Smart Business spoke with Bremer about how to instill trust in your internal compliance program in the Dodd-Frank era.
What has been the impact of Dodd-Frank on whistle-blower reporting to the SEC?
According to its annual report on the Dodd-Frank Whistleblower Program for fiscal 2012, the SEC received 3,001 whistle-blower tips and awarded a second whistle-blower award this past June. There may be an uptick in tips because of the announcement of these recent monetary awards, the expected increase in future awards and the court ruling.
Why do employees hesitate to internally report fraud or suspected misconduct?
Employees often hesitate because of bad experiences either personally or from co-workers’ stories. Reasons for not reporting potential fraud or misconduct include the fear of not remaining anonymous, fear that no one will believe them, or fear of retaliation such as losing their job, not receiving a raise or being demoted. They also fear discrimination or isolation from co-workers, or sense that the tone at the top doesn’t support the policies.
What can be done to alleviate hesitation?
A company can instill trust in reporting internally by focusing on strengthening its hotline process and whistle-blower policy.
Your hotline must provide a way to report in confidence, while being monitored by an appropriate party. Avoid having tips go directly to human resources or management. Employees should see the monitor as more independent — such as in-house counsel, head of internal audit or a compliance officer — especially if they fear retaliation.
Ensure there are clearly defined timelines or checkpoints for follow up, which include communicating back to the whistle-blower that the tip is being handled discreetly and the issue is being addressed appropriately.
Have a documented whistle-blower policy that addresses retaliation protection. What is considered retaliation and the penalties for it should be clearly outlined. For example, ‘harassment or victimization for reporting concerns under this policy will not be tolerated’ is insufficient. A better statement is: ‘No employee who in good faith reports a violation of the code of conduct or potential fraud or misconduct shall suffer harassment, retaliation or adverse employment consequences. An employee who retaliates against someone who reported in good faith is subject to discipline up to and including termination of employment.’
By voluntarily extending the whistle-blower protections afforded under Dodd-Frank to all employees who report internally, companies introduce additional trust.
Why is it important that employees feel comfortable reporting matters internally?
In bypassing internal compliance, employees deprive the company of the opportunity to investigate and remedy a wrongdoing before regulators get involved. Many tips don’t warrant the SEC’s attention but do warrant corrective action or communication within the company. However, management can’t address a problem they don’t know about.
Nevertheless, there are obvious instances that warrant direct reporting to the SEC, and it’s always advisable for employees to seek legal advice when deciding whether to report internally or externally.
Strengthening your hotline process and whistle-blower policy, and educating your employees, can be key to instilling trust in internal whistle-blower reporting.
Carolyn Bremer is senior manager of Forensic and Litigation Services at Weaver. Reach her at (972) 448-6951 or firstname.lastname@example.org.
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Any business that leases anything for an extended period of time — generally, more than one year — will be impacted by a proposed new accounting standard.
“This may appear arcane to some, but the new rules will have a major impact on the reported financial position of many companies. It has been estimated that this may add hundreds of billions of dollars to the existing liabilities on businesses’ balance sheets nationwide,” says Gerald Weinstein, Ph.D., CPA, a professor and chair of the Department of Accountancy at the John Carroll University John and Mary Jo Boler School of Business.
“Therefore, it is likely that your firm’s financial statements will be affected. At a minimum, expect to see changes in the ways in which leases are being conceived of for recognition and measurement purposes,” says Weinstein.
Smart Business spoke with Weinstein about what the proposed accounting standard would do and how businesses can prepare for the change.
What do you need to know?
Under existing Generally Accepted Accounting Principles (GAAP), leases that are in essence purchases of all of the inherent value of a leased asset are capitalized. Capitalization requires both that the leased asset and related liability for future lease payments be recorded onto the balance sheet. GAAP dictates use of four indicators, any one of which is considered evidence of a so-called capital lease.
Leases that do not meet at least one of the four criteria are operating leases, and are not capitalized. Operating leases are accounted for by expensing the lease payments as they accrue. An example is leasing an office inside an office building owned by another entity.
An operating lease is generally favored by businesses, as it makes the accounting simple in that it avoids recording the liability and depreciating the underlying asset. Further, not booking a liability can improve a company's debt related ratios. Users, however, would prefer to know about all liabilities the entity has and hence want these liabilities booked. These cross-purposes are being resolved in the proposed standard by essentially requiring all leases to be capitalized.
What will the new standard change?
What defines a lease as a capital lease is changing under an exposure draft (ED) issued jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on May 16, 2013, and the four indicators noted above will no longer apply. Everyone will be affected if this becomes a final standard in 2014.
All leases, with one exception, would be recognized with a lease liability for the present value of the payments, which must be made over the lease term. As lease payments are made, the effective interest method is to be used to accrete the liability. An asset would be reported and written off to expense over time.
The ED defines the manner of write-off. It depends on the type of asset of which two are defined. A Type A asset is personal property whereas Type B is generally real property. Type A assets are amortized on a straight-line basis unless another method better represents the pattern of use. For Type B leases, the amortization would be the difference between the annual straight-line expense and the interest incurred on the liability.
The most notable change in terms of the direct financial impact is that what has previously been accounted for as an operating lease will now be treated as if it were an owned asset, even if title to the asset will never transfer to the lessee. An office suite leased inside an office building would be accounted for as a balance sheet asset and subject to annual amortization.
What is the exception?
Lessees can elect a policy wherein leases with a maximum possible lease term including options to renew of 12 months or less, are accounted for using a method like that currently available for an operating lease.
How is a leased office akin to an asset purchase?
Leases are being redefined as a contract that conveys the right to use an asset for a period of time in exchange for consideration. The contract must depend on the use of an identified asset and convey the right to control its use. The use of the asset can be either explicit or implicit, such as the lease of a floor of a building. ‘Right to control use’ is slightly different from existing GAAP, which calls it the ‘right to use’ an asset.
Why should you care about recording such a lease as an asset?
Companies should be concerned because booking the asset also means booking the liability. For most businesses, this will have a negative impact on solvency ratios, including debt to assets and debt to equity. This change in the standards could cause your bank loans that have covenants requiring certain solvency ratios to go into technical default.
What can you do to be ready?
Companies should determine which leases they have that will now need to be capitalized, prepare pro forma financials, and determine the impact your solvency ratios. If the new accounting rules cause your debt ratios to deteriorate, consider contacting your lending institution to see if you can re-negotiate the covenants.
While the final standard may undergo some tweaking, changes to lease accounting have been in the works since 2005 and professional accountants expect the standard to be finalized in its current form. The comment deadline on the ED is Sept. 13, 2013.
Gerald Weinstein, Ph.D., CPA, is a professor and chair of the Department of Accountancy at the John Carroll University John and Mary Jo Boler School of Business. Reach him at (216) 397-4609 or Weinstein@jcu.edu.
Insights Executive Education is brought to you by John Carroll University
With so many provisions and mandates under the Affordable Care Act (ACA), it is not surprising some things have changed or been delayed along the way.
In fact, on July 5 the Obama administration released a 606-page document with final regulations on some of the ACA’s key provisions and mandates. In addition to providing new details about how the health insurance marketplaces will operate beginning Oct. 1, the document included changes that will impact the way employers shop for insurance.
Separately, on July 2, the U.S. Treasury issued guidance delaying the penalties to be imposed on large employers that fail to provide coverage to full-time workers and also reporting requirements applicable to insurers and self-insured businesses.
“When you are looking at changes impacting the health care delivery system in this country — including the way health insurance companies do business — delays and changes are expected,” says Marty Hauser, CEO of SummaCare, Inc. “The best thing employers and individuals can do is to stay informed and make the best decisions possible when it comes time to shop for a benefit plan.”
Smart Business spoke to Hauser about some of these changes and delays and what they mean for employers.
What are some ACA mandates that have been delayed that directly affect employers?
Components of the employer mandate have been delayed until 2015 to give employers more time to prepare for changes and requirements. The mandate, often referred to as ‘pay or play,’ requires employers with 51 or more employees to offer health insurance or risk paying a penalty. The delay of the mandate’s penalty portion gives employers an additional year to consider their options for offering insurance.
While some people argue that the delay in penalties effectively delays the entire mandate, it’s important to note that the mandate for large group employers to offer insurance still exists, but with no penalty for not complying. It is in the employer’s best interest to work with their broker, benefits consultant or insurer in an effort to comply with the law and figure out the best solution next year and in preparation for 2015.
At the time of this printing, this delay in the employer mandate does not change the individual mandate, effective Jan. 1, 2014.
A delay impacting small employers (with up to 50 employees) has also occurred related to the Small Business Health Options Program (SHOP). The functionality enabling employers to offer employees a variety of qualified health plans (QHPs) from different carriers has been delayed until 2015. This means that in 2014, small group employers may only offer one QHP to their employees shopping through the marketplace in an effort to give the exchange additional time to prepare.
It’s also important to mention that the SHOP is available to employers with up to 50 employees in 2014 and 2015, and expands to include employers with up to 100 employees in 2016.
What should employers keep in mind as they see marketing campaigns about the changes that become effective next year?
First and foremost, employers should work with their broker, benefits consultant, or insurer to help determine what mandates and provisions of the ACA apply in 2014 and beyond, in order to make the best benefits decisions for their employees and budget. They should also be prepared to receive and answer questions from employees regarding coverage in the coming year.
Additionally, since marketplaces open Oct. 1, 2013, for 2014 effective dates and employers are required to notify employees of the availability of the health insurance marketplace by the same date (Oct. 1), employees will likely be looking to their employer for guidance on coverage options and want to know what their employer plans to do by way of offering benefits. Employers should be ready to educate their employees on how the new laws will or will not affect them and their benefits.
It’s also important to remember that although the penalty portion of the employer mandate has been delayed, there are ACA requirements employers must still meet, including reporting and payments, marketplace notification, distribution of Summary Benefits and Coverage documents upon renewal or enrollment, and distribution of rebates, when applicable.
Marty Hauser is CEO at SummaCare, Inc. Reach him at email@example.com.
Insights Health Care is brought to you by SummaCare, Inc.
Executives often wonder why they need to have machinery and equipment appraised, but these appraisals are important components of business today.
“Typically, appraisals are performed because of buy/sell agreements, mergers and acquisitions, business valuations, partnership dissolutions, insurance, bankruptcy, property taxes, financing and Small Business Administration lending. Other reasons would be divorce, estate planning or other estate issues, retirement planning, cost-segregation analysis and litigation support,” says Theresa Shimansky, a manager at Cendrowski Corporate Advisors LLC.
Smart Business spoke with Shimansky about how machinery and equipment appraisals are typically handled.
What is the useful life of an appraisal?
Generally, an appraisal is good for three years, but it depends on the current market, economy and industry. An appraisal’s useful life also depends on the availability of the type of equipment being appraised. The value can drastically change with economic factors such as supply and demand.
Is a machinery and equipment appraisal beneficial when buying or selling a business?
Absolutely. Buyers want to know the breakdown between real and personal property. This is a cost segregation analysis or study. Appraisals are completed for many reasons, but most importantly for tax reasons — breaking the assets into different categories for depreciation purposes.
What information and documentation will an appraiser require?
The appraiser will need to know the manufacturer, model, serial number and age of the equipment. This information typically can be found on a plate attached to the equipment. Mostly, it will be visible; however, sometimes locating this plate can be tricky. For example, restaurant equipment will occasionally have a kick plate covering the information plate. Machines may have the plate attached inside a compartment or near the motor, while others may not have one at all. When a machine does not have a plate, it is helpful if the owner has the original manual or sales invoice that should list most of the information.
The appraiser also needs to know about the condition, special features and upgrades. Important questions to keep in mind are:
- Does it work well?
- Has it had any major repairs or is it in need of any?
- Is it maintained according to manufacturer specifications? The appraiser may request to see maintenance logs or ask about special attachments or upgrades.
- Is its software up to date?
An appraiser will evaluate and photograph each piece of equipment. When this is not possible, appraisers will note in the report which equipment could not be visually inspected and explain they are relying on the representations of similar machines’ condition and other pertinent information.
What is a ‘qualified appraisal’?
A ‘qualified appraisal’ is clearly defined in Internal Revenue Service (IRS) Publication 561, where the appraisal:
- Is made, signed and dated by a ‘qualified appraiser’ in accordance with appraisal standards.
- Does not involve a prohibited appraisal fee.
- Includes, but is not limited to, a description of property, condition, date of value, terms of the engagement agreement, qualifications of the appraiser, method used to determine value and basis for value.
Generally, an appraisal is considered qualified if it follows the Uniform Standards of Professional Appraisal Practice, developed by the Appraisal Standards Board of the Appraisal Foundation.
What should you look for in an appraiser?
When searching for an appraiser, only use a ‘qualified appraiser.’ This is an individual, as defined by the IRS, who has earned an appraisal designation from a recognized professional organization for demonstrating competency in valuating property. Also, qualified appraisers regularly prepare appraisals for which they are compensated, and demonstrate verifiable education and experience in valuating the type of property being appraised.
Theresa Shimansky is a manager at Cendrowski Corporate Advisors LLC. Reach her at (866) 717-1607 or firstname.lastname@example.org.
Website: For additional information, please visit our website at www.cca-advisors.com.
Insights Accounting is brought to you by Cendrowski Corporate Advisors LLC
Wakefulness is not the first trait you may think of for effective leadership. Empathy and reflection aren’t typically considered strategic business values. And that emotional intelligence should be a factor in hiring is foreign.
However, corporate America should be about more than just the bottom line — a stakeholder approach with social responsibility is key, says Joan F. Marques, Ph.D., Ed.D., assistant dean of the school of business, chair and director of the BBA Program, and an associate professor of management at Woodbury University.
“Effective leadership consists of a mix of hard and soft skills,” she says. “A major part of being an effective leader is being human, vulnerable, seeing the big picture, the purpose to what you do.”
Smart Business spoke with Marques about the responsibility of corporate leadership.
How does the notion of the awakened leader sync up with the bottom-line mentality that drives corporate America?
Is corporate America awake? Yes and no. In the past two decades, we’ve seen evidence of corporations run by individuals excessively focused on profits. A great many leaders are still driven by a bottom-line mentality. It even drives our students — I once had an MBA student who wanted a ‘massive bank account.’ But the process of waking up involves realizing there is more to life than money. Many people go through life sleepwalking, never questioning it. In the book ‘True North,’ Bill George writes of ‘crucibles,’ suggesting that most people wake up only when confronted with loss, illness or something painful.
There needs to be a middle path. You cannot ignore profit, but it should not happen at the expense of others. If you consider the well-being of customers, suppliers, employees and other stakeholders, getting to a certain level of profitability will probably take longer, but your conscience will be intact.
Thankfully, a growing number of business schools are awakening to this trend. Many are addressing the responsibility MBAs have to the larger community, taking into account workplace spirituality and ethical leadership. It’s a break from the kinds of leaders they were grooming in past decades.
You’ve suggested that empathy and reflection are key corporate values. What’s the best way to ensure they find their way into corporate best practices?
Empathy and reflection are personal and interpersonal values, and the best way to incorporate them is on those levels, preferably starting at the top. Of course, some believe these values don’t belong in the workplace — just as so many examples prove the necessity of including them.
Consider Starbucks. Their products aren’t cheap, and on price alone there doesn’t appear to be much empathy. But below the surface, the company has done a lot. Empathy and reflection were foundational for the company, stemming largely from Howard Schultz’s personal experience growing up. For years, Starbucks has been providing health insurance to part-time workers, the company ceased using milk that includes bovine growth hormone, and it has looked at how it uses and conserves water.
Another example is Costco, which works with only a 15 percent markup. Costco employees get stellar salaries for that industry, resulting in a happier workforce that treats customers better.
Cases like these show that empathy and reflection have value, long-term.
Businesses are good at hiring for cognitive intelligence, but how are they at screening for emotional intelligence?
Generally, businesses don’t screen for emotional intelligence, which is inherent in stakeholder approach and social responsibility. In order to screen for it, they would need to practice emotional intelligence first.
We did a study on how business students, especially undergraduates, look at leadership values. Empathy ranked lowest in perceived importance for leaders while charisma and networking came out on top. Respondents saw no place for emotional intelligence.
So far, there has been a mutually supporting dynamic at play: the business world demanded short-term profits and students delivered it upon entering. As business educators, we are facing the immense task to evoke a paradigm shift. We’re diligently working on it.
Joan F. Marques, Ph.D., Ed.D., is assistant dean of the school of business; chair and director, BBA Program; and associate professor, management at Woodbury University. Reach her at (818) 394-3391 or email@example.com.
More wakefulness quotes, points to ponder and action plans can be found in Joan’s book, “Joy at Work, Work at Joy: Living and Working Mindfully Every Day.” Find it on Amazon.com.
Insights Executive Education is brought to you by Woodbury University
NEO Ernst & Young Entrepreneur of the Year
Distribution and Manufacturing
owner and president
HB Chemical Corp.
HB Chemical Corp. started as a distributor of carbon black in 1986 and has since expanded its product line offering to more than 300 under Jeffery Rand’s vision and leadership. Rand joined HB Chemical in 1998 as a sales rep after working for a competing chemical distributor. The founder of HB Chemical, Hill Browning, was looking for assistance to successfully grow the business, as well as a successor.
Rand soon became minority shareholder and by 2006 had assumed the role of president. In November 2009, he purchased the company from the retiring owner during one of the most difficult economic periods.
The company’s solid performance in times of economic uncertainty has helped to strengthen HB Chemical’s relationship with its bank and has allowed the company to continue to expand both physically as well as economically where others ceased operations.
Rand is committed to finding ways to improve the distribution process through privately owned warehousing capabilities. With a privately owned warehouse, HB Chemical can serve a wide variety of customer sizes and fulfill orders from entire containers and pallets of product to five gallons of product. This would not be possible in large public warehouses.
This capability along with fulfilling same-day orders with no upcharge and no price gouging of customers during times of rising prices has differentiated HB Chemical from competitors.
Rand also strives to look for ways to improve HB Chemical’s global footprint as evidenced by the decision to move into Mexico. He believes the most likely expansion strategy will be to look for financial partners in international companies who don’t currently have North American distribution capabilities.
Today, HB Chemical is a clear reflection of Rand’s vision. Its distribution strategy with the use of private warehousing has resulted in a 60 percent increase in sales in the last two years with a corresponding increase in net income of 190 percent.
How to reach: HB Chemical Corp., www.hbchemical.com
NEO Ernst & Young Entrepreneur of the Year
Health Care and Pharmaceutical Services
founder and CEO
As the founder and CEO of the mobile medical equipment company ForTec Medical, Drew Forhan leads through a collaborative, creative and competitive environment. His leadership qualities include integrity, perseverance and a bias toward action.
Forhan says he has an innate entrepreneurial spirit and drive that has been his personal motivation since he started ForTec at the age of 27 with one truck and one laser. He saw a need in the medical field for a new model to give hospitals and physicians access to innovative technologies. Ultimately, ForTec offers a business model that provides hospitals and physicians a simpler/less expensive way to utilize the latest and greatest medical tool technology.
The concept is such that when a medical operation requires a certain piece of technology a hospital system cannot afford to buy, ForTec’s service can be utilized to gain access to the equipment. The ForTec service also provides a trained technician, all for which there is a one-time usage fee.
This model eliminates hospitals capital expenditure or operating lease commitment for new technologies, which can cost nearly $2 million per piece of equipment. ForTec’s service simplifies hospital operations, but it was no easy task to get this idea off the ground. ForTec’s service has a number of moving parts that need to work in unison to maintain a profitable operation.
Forhan encountered many difficulties along his path, one of the toughest being financing. Each piece of equipment requires a large amount of capital expenditure, and often new technology is introduced annually. So the company’s model is all about logistics, demand and turning profit within the year.
In 2012 ForTec served roughly 2,000 hospitals in 40 states. The ForTec team — now almost 300 — has delivered specialized medical equipment and the related service team in 50,000 surgeries, through 26 different facilities throughout the United States.
Forhan’s future vision for ForTec includes growing through deepening relationships and strategic acquisitions.
How to reach: ForTec Medical, www.fortecmedical.com
NEO Ernst & Young Entrepreneur of the Year
president and CEO
Scot Lowry is president and CEO and the entrepreneurial force driving the growth and innovation at Fathom, a digital marketing and analytics company. Lowry, along with a business partner, purchased Fathom in 2007 from the company’s founder.
Although Lowry bought the company, the founder remained a vital operating component to the business by adding sales and marketing expertise. Working together, they leveraged their individual strengths to continue to grow the company. However, the sudden death of Fathom’s founder in 2010 proved to be a formidable challenge.
Lowry had to provide leadership, compassion and guidance to all his employees and clients shaken by the event. He then worked to replace the valuable sales and marketing resource that he had lost. Through it all, he was able to identify new talent and refocus his existing team toward an exciting new future.
Lowry’s vision and strategy has enabled Fathom to grow beyond its singular offering of search engine optimization to a company with a full suite of digital marketing services. Lowry led the transformation from one to more than 15 marketing service capabilities.
He has molded and shaped Fathom’s clever strategy approach. With ideas such as “devote to the moat” and “pick a niche,” Fathom expands its competitive advantages and keeps focused on niche markets like health care and education.
In addition, the company’s “easy in, impossible out” strategy ensures Fathom is committed to expanding its intellectual property and technology capabilities. To survive in the fast-paced digital marketing world, Fathom must stay ahead of the changing technology landscape. Every day there are changes online that can impact clients, so Lowry promotes “making order from chaos.”
Lowry has helped create these capabilities by investing in people, intellectual property, technology integration and acquisitions. By hiring results-oriented technology professionals and encouraging them to explore and expand creative solutions, Fathom has developed proprietary customer solutions and broadened solutions offerings to support its strategy of “easy in, impossible out.”
How to reach: Fathom, www.fathomdelivers.com
NEO Ernst & Young Entrepreneur of the Year
Health Care and Pharmaceutical Services
Dale Wollschleger’s experience in the pharmacy industry is vast. He held positions at Medic Pharmacy and at Lutheran Family Pharmacy before he requested an early buyout from the latter pharmacy in 2004.
In 2006, he started a durable medical equipment business, called Family Home Care, which he operated out of the back of the Lutheran Family Pharmacy. During his time at Lutheran, he worked with a large population of psychiatric patients taking several medications each with very different sets of instructions such as dose size and frequency.
These experiences helped Wollschleger identify a widespread need in the pharmacy market for compliance packaging to enable patients to manage their prescriptions and adhere to instructions associated with their medications. He was particularly drawn to this idea because of the business opportunity and the positive affect it could have on patients his pharmacy served.
With this idea, he founded ExactCare Pharmacy in 2009. Wollschleger’s main focus was to develop “an easy-to-use multi-medication packaging solution for administering medications” named the ExactPack.
The ExactPack started out as a manual process dividing patient’s medications into separate packages to be taken throughout different times of the day. This process became automated with a machine that produces the ExactPacks. Within the ExactPack, there is a separate packet of medications to coincide with each different time during the day in which a patient is required to take their medications.
Like most pharmacies, the packaging and shipping of the prescriptions is free; ExactCare generates profits through the sale of the prescriptions. This new business rapidly expanded and by 2010 Wollschleger moved ExactCare out of Lutheran to a new space to better accommodate his growing operations.
ExactCare’s workforce grew from three employees to 70 and serves patients throughout Ohio. In 2011, Wollschleger purchased an additional pharmacy in New Jersey in which he implemented this same business strategy.
How to reach: ExactCare Pharmacy, www.exactcarepharmacy.com
NEO Ernst & Young Entrepreneur of the Year
Brendan Anderson and Jeffery Kadlic
co-founders and managing partners
Evolution Capital Partners
When Jeffery Kadlic and Brendan Anderson met, the experience and business knowledge of each turned into the evolution of a new way of investing within small and midsize markets. They realized that there was a niche in small and midsize markets that was begging for the attention of investors to obtain the appropriate capital and business plan that could lead to success and growth.
Kadlic and Anderson took a leap of faith in 2005 by co-founding Evolution Capital Partners, and as managing partners of the firm, they quickly became entrepreneurs assisting the small business market.
Their passion for wanting to see small businesses succeed is uncanny, and something both Kadlic and Anderson take pride in. Evolution distinguishes itself from other private equity firms by taking control of the investments and building the company’s success rather than buying a company, trimming down the investment, and then selling.
Evolution’s specialty and passion is helping small businesses navigate that difficult territory between startup and becoming a large, professional firm. Kadlic and Anderson know the challenges that arise during this phase of a company’s growth, and they are experts in providing business owners with the resources, both financing and advising, they need to grow a small business into a booming company.
In addition, Kadlic and Anderson know that small business financing is only one part of developing a business, so Evolution offers a comprehensive approach. The company won’t just hand over capital and wish a business good luck. Rather, Evolution will become partners with a business, taking on the burden of any risk involved and offering advisory services to ensure that those companies have the resources to make the right decisions.
The company’s continuing ability to reach out to the small business community and grab the attention of businesses looking for an answer to achieve success has delivered significant growth.
How to reach: Evolution Capital Partners, www.evolutioncp.com