June 8 – 10, 2014
“OMG, I Grew My Business”
Strategic Planning and Exit Strategy for ACDBE Concession Operators
Tuesday, June 10, 2014
Success for an ACDBE is the ultimate goal. How does one plan to be
successful. What steps are involved in moving from a single concession
operator to a multi-unit / multi- brand / multi- airport operator? As you
achieve certain benchmarks do you strive to compete as a Prime? Do
you pursue an exit strategy of selling your business or do you pass it
along to the next generation? This session will engage in a discussion
around these topics and offer some perspective from industry
professionals as to the value of strategic planning as a key component
in improving the likelihood of success as a concession operator.
• Panelists:
• Moderator:
Carolyn Sawyer, CEO, Tom Sawyer Company
Donata Russell Major, CEO, Concessions
International
Brian Lacey, CEO, BGB Enterprises LLC
Demetrius Carney, Esq., Bryan Cave LLP, Co-Chair
Airport Concessions Practice
Joseph Q. McCoy, Esq., Bryan Cave LLP, Co-Chair
Airport Concessions Practice
Industry Overview and Changing Industry Landscape
• Where are we now and where have we come from?
• What are the current trends (i.e. Airline Consolidation)?
• Are there real opportunities for growth? Fewer or more than in the
past?
• How have the changes in the industry impacted the ACDBE as an
individual or multi-unit operator?
• Where do we think the industry is going?
Strategic Planning
• Where are you now? (i.e. start-up? mature operating company?
Ready for transition?)
• Are you looking to expand?
• Are you planning for a sale?
• Do you want to transition the business to a family member?
Strategic Planning
• Are you running your company or working for your company?
• Do you want to be a multi-state operator? WHY?
• When do you pass on an opportunity?
• How do you manage your certifications? When do you get certified in the
next state?
• Have you mapped out when you would graduate either due to net worth or
hitting the revenue cap?
• Do you want to be a Prime?
• When do you establish your exit strategy?
Solidifying Systems for Growth – How do you set up systems to
manage growth?
• How do you work to grow the space that you are operating in?
• What systems do you have/ need in place to manage growth?
• Will you entertain investors? [Do you understand the ACDBE rules?]
• Do you know how to value an investment into your company?
Solidifying Systems for Growth – How do you set up systems to
manage growth?
• Do you have a financial framework in place to be able to take
advantage of new opportunities? [traditional vs other financing
sources][what might you have to leverage to get the money?]
• How do you grow from 2 units to 10? From 1 airport to 3? Do you
have an infrastructure that will support this growth?
• Have you contemplated a partnership (working with other
companies) framework? (Are you the holder of the certification?)
Succession / Transition Planning
• How does one effectively transition its business to a third party?
• Implications of Selling the Business to a Third Party
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Valuation / Use of Investment Banking Professionals
Understanding your concession agreements
Are you a franchise operator? Understanding your franchise agreements
Are you in a joint venture? Did you negotiate the right to sell your interest?
Are you in a direct lease situation with an airport or are you a
subconcessionaire?
• What consents are necessary?
• Realistic timing of a transaction
Succession / Transition Planning
• Discussion on Valuation (Are we selling to family or a third party and
does it matter?)
• Impact of the Regulatory Environment (Is a new certification
needed?)
• Other Legal Considerations
• Second Generation Business Considerations
• Are there any Best Practices?
Biographies
Carolyn Sawyer, CEO, Tom Sawyer Company
• Carolyn Sawyer is the Founder and Chief Executive Officer of the Tom Sawyer Company (TSC). She has served as its
President and set the strategic direction for this fast growing Communications firm since its inception in 1996.
• TSC's core competency is Communication Contact, which includes full service Call Center Operations, Strategic
Instructional Training and Public Outreach.
• This talented communicator has parlayed her mastery of mass media into creating a firm with capital sales
exceeding the multi-million mark. Her cutting-edge business practices have garnered attention from USA Today
(March 2004), where she was cited for optimizing Wi-Fi communications access to augment her business
capabilities years before it became a mainstream operational tool.
• Following TSC's award-winning unveiling of South Carolina's historic African American History Monument on the
Statehouse grounds, former US Senator Fritz Hollings nominated Sawyer to serve on national Commission
commemorating the 50th Anniversary of Brown v. Board of Education, et al. As the Marketing Communications
Chairwoman, Sawyer helped shape the Commission's worldwide publicity efforts, highlighting the landmark
Supreme Court decision that ended school segregation in America.
• Ms. Sawyer was a founding member of the Boston chapter of the National Coalition of 100 Black Women and
previously served on the Board for the National Association of Blacks in Journalism. Ms. Sawyer is a graduate of
Washington State University where she earned a Bachelor of Arts degree in Communications.
• A former network correspondent and anchor for ABC News, LIFETIME Television Network, and NBC News, Sawyer
has authored an inspirational guidebook for entrepreneurs Forget the Glass Slipper: Build Your Own Castle —10
Traits of a Million Dollar Business and co-authored ABC's of Media. She regularly contributes guest columns on
topics of communications and business.
Biographies
Donata Russell Major, CEO, Concessions International
• Following in her father's business-savvy footsteps, Donata Russell Major has been a member of
Concessions International's leadership team since 1985. It's this stable leadership, along with her
involved, committed senior executives which has led to significant growth for the company.
• As chief executive officer of one of the country's leading operators of food and beverage concessions
throughout major airports in the United States and the Virgin Islands, she ensures that her familyoriented work environment encourages and builds character in addition to unparalleled excellence in
performance.
• As a diversified hospitality management company, Concessions International meets the needs of
customers, clients and partners through the delivery of quality products and services, and maximizes
financial performance. In her role as chief executive officer, Ms. Major manages key client and partner
relationships, special projects and business development.
• Ms. Major is a graduate of the University of Pennsylvania with a Bachelor of Economics in Management
and Marketing. She is a member of the Board of Directors of H.J. Russell Company.
• Ms. Major is committed to supporting various community-based initiatives, including her board
involvement with Atlanta Partners for Education, The Whitefoord Community Program, Early Learning
Property Management, Inc. (ELPM) and I.M.A.G.E. Afterschool Program. She is also a member of Delta
Sigma Theta Sorority, Inc.
Biographies
Brian Lacey, CEO, BGB Enterprises LLC
•
Brian Lacey is a veteran of the foodservice industry, working for conglomerates such as American Can and the Coca- Cola Companies, as well
as multi-concept, mid — cap companies like AFC Enterprises, The Ground Round, and Delaware North Companies Travel Hospitality Services.
His range of experience includes C-Level roles in Operations, Franchise Development, Marketing, and HR.
•
Currently, he is President/CEO of BGB Enterprises, LLC, a business development company. BGB Enterprises offers professional management
and franchise development consulting services through a network of experts from each business discipline. Prepares responses to RFPs and
packages, proposals, provide operating and business infrastructure, negotiates purchase agreements and lease terms, develops license
agreements, and builds financial pro-formas.
•
Brian structures partnerships and limited liability companies to create competitive advantage and operating effectiveness. Provides sell side
and buy side advice and brokerage to franchise buyers and sellers. Is certified as an ACDBE.
•
Under his leadership at Delaware North Companies, the company won 7 new airport food, beverage, and retail contracts, extended 7 current
contracts, and added the NYS Thruway Travel Plaza account which opened a new growth channel with long term profitability. Additionally,
he teamed with Operations to develop strong client and brand relationships, and helped to rebuild DNC's reputation in several markets.
•
Lacey was the Senior Vice President, Franchise Development for The Ground Round Inc., a subsidiary of American Hospitality Concepts, Inc.
He led the franchise sales, development services, and opening support functions.
•
As the COO of Popeyes domestic Operations, the Company achieved aggressive new unit and remodeling growth objectives. He guided an
outstanding team of company and franchise operations specialists, business development, real estate, construction and design professionals,
and a system support team that opened or managed 300 new units, improved system-wide performance of 1,300 units, and managed 300
franchisee relationships and agreements. Brian's team achieved 3 years of same store sales and profit improvements. Prior to joining
Popeyes in July 1998, he was Vice President of People Resources and Planning for AFC Enterprises. Joining AFC in late 1994, he played a key
role in building the talent infrastructure to acquire and operate new brands including Chesapeake Bagel Bakery, Seattle Coffee Company, and
Cinnabon.
•
His industry associations include the Atlanta Business League, Metro Atlanta Chamber of Commerce, International Franchise Association, and
the Multi-Cultural Food Service & Hospitality Alliance. He has served as a conference panelist on franchise development and diversity
economics.
•
Lacey received his M.B.A. from Emory University in Atlanta, Georgia and his bachelor's degree from Brown University in Providence, Rhode
Island. He and his wife Bessie reside in Alpharetta, GA and have two children and one grandchild.
Biographies
Demetrius Carney, Senior Counsel, Co-Chair Airport Concessions Practice, Bryan
Cave LLP
•
Demetrius Carney is a Partner with more than 35 years of experience in public finance, business, and real estate government
relations. Mr. Carney began his career as a public finance lawyer representing issuers, underwriters and credit enhancers in tax and
tax exempt transactions including private development, school districts and airport development projects.
•
Over the course of his career, Mr. Carney has represented local and national developers involved with land acquisition, zoning and
financing for commercial real estate developments. He has also counseled public and private corporate clients on merger and
acquisition transactions as well as structured financing projects.
•
A current focus of Mr. Carney's practice is creating public/private partnerships between local government agencies and private sector
clients for the purpose of stimulating mutual economic development.
•
Mr. Carney is co-leader of the firm's Airport Concessions Practice, with emphasis on 1) structuring legal joint venture agreements for
ownership and operation of an airport concession; 2) negotiating license agreements for specific use of a company name and
trademark with specialty retailers and food and beverage concession operators; 3) representing airport authorities auditing
concession operations and airport improvement programs; 4) negotiating concession lease and sublease agreements with local
airport authority; 5) providing counsel to joint venture concession operators under audit investigation by local government
authorities; 6) representing concession operators on ACDBE certification and recertification issues; 7) representing concession
operators on ACDBE certification and DOT joint venture guideline issues 8) representing ACDBE certified companies in appeals
process after being denied renewal certification; 9) representing concession operators in structuring supply chain model to achieve
ACDBE participation consistent with federal regulations; 10) structuring the investment of private funds into ACDBE certified
companies; 11) representing concession operators in negotiating and documenting Letters of Intent and Memorandums of
Understandings for their business dealings; and 12) representing concession operators in disputes under a National Development
Agreement.
•
Mr. Carney has a strong commitment to public service and currently holds leadership positions with several organizations, including
the Economic Club of Chicago, the Chicago Cultural Center Foundation, and the Chicago Police Board (President). He currently serves
on the Bipartisan Screening Committee for the Northern District of Illinois that advises U.S. Senator Richard Durbin on the selection of
candidates for recommendation to the President for appointment as Federal Judges, U.S. Attorneys and U.S. Marshals.
Airport Concessions Team Leaders
Demetrius E.
Carney, Partner
Joseph Q.
McCoy, Partner
Mr. Carney and Mr. McCoy are the leaders of the Airport Concessions
Team. Their work focuses on counseling concession operators in all facets
of their business operations including without limitation, financing issues,
labor issues, equity issues, acquisition and disposition of concession
businesses, certification issue and joint venture issues.
Airport Concessions
Team Members
John E.
Goebel,
Partner
Chicago
Don
O’Bannon,
Partner
Dallas
Manuel
Martinez,
Partner
Denver
Brandy R.
McMillion,
Associate
Chicago
Dan White,,
Partner
St. Louis
Greg
Worthy,
Partner
Atlanta
Simone A.
Randolph,
Associate
Chicago
Questions/Comments?
For additional information, please contact:
Joseph Q. McCoy, Esq.
Bryan Cave LLP
161 North Clark Street, Suite 4300
Chicago, Illinois 60601
Phone: 312.602.5176
Email: jmccoy@bryancave.com
Demetrius E. Carney, Esq.
Bryan Cave LLP
161 N. Clark Street, Suite 4300
Chicago, Illinois 60601
Phone: 312.602.5178
Email: dcarney@bryancave.com