Aviation Deal Report Q2 2018

Today’s heated political climate creates new set of potential internal/external conflicts

By James S. Cassel

Although the World Cup has traditionally been divisive on a country basis, people in the U.S. have generally retained their civility. The same cannot be said about the impact of today’s highly charged political climate on the U.S. middle-market workplace. It is creating new internal and external corporate divides with the potential to cause significant harm to businesses, including everything from their corporate culture to their bottom lines.

Increasingly, companies big and small are struggling with many of the conflicts nations are facing — with the added pressure of ensuring they do not encroach on their employees’ freedom of speech while they manage any potentially damaging conversations.

Consider when Delta Air Lines moved to end a discount for National Rifle Association members, a Republican politician spearheaded a fight in the legislature to kill $40 million in jet fuel tax breaks for the airline. Similarly, politics is causing companies to lose long-term customers, simply because business owners or employees have made their political views known.

Employees today are trying to shape who their companies do business with based on their own political or religious views. Some have voiced disapproval with doing business with governmental agencies, including the US Defense Department. Do we want countries like China having access to the best technology people and the U.S. not? These are complex, controversial issues.

Currently, if you and/or your company share political views on social media, your company might be judged for it, and you may lose valuable employees, clients, and community partners. For some, expressing their political views and standing up for their principles has become more important than retaining employees or clients. The key is to make conscious decisions and be prepared for the consequences.

Following are some considerations and guidelines based on our experience working with middle-market business owners:

First, you should decide whether and how your business will become involved in what might become controversial issues. Evaluate the companies that have gotten involved on both sides of the immigration issue and how this has impacted their businesses. For many businesses, expressing political viewpoints and/or taking sides is part of their culture and they should perhaps continue. Appropriate company policies — including rules for employee behavior on social media and other public forums — should be developed.

Companies of all sizes are beginning to learn this the hard way. Following its widely publicized firestorm last year after an employee circulated a memo regarding the role of gender differences in keeping women underrepresented

in the technology industry, Google introduced new rules for internal company debate within its hallways and online discussion forums, according to news reports. The rules are designed to help minimize the fallout of future controversies by managing the conversations before things spiral out of control publicly..

Effectively implementing policies will require mutual understanding and buy- in. Company-wide workshops should be considered.

If you are finding divisiveness among your employees and decide that you should get involved, consider sensitivity training or developing ways to help them find common ground. Political debates can be healthy when the participants respect each other and understand that everyone does not have to agree. Everyone should strive to understand each other’s viewpoints and ultimately make their own personal decisions. If the discussions become divisive, they should simply agree to stop talking about it from a company standpoint and continue working together productively. Civility is key.

Clearly, unlike with the World Cup, there are moral and political issues at stake that have significant impacts on people, their lives and our country. Companies that implement the right policies and protocols to manage the differing viewpoints will protect their best interests and position themselves for continued success — no matter how divisive our political climate continues to become.

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Q2 2018: Tech Deal Report

Cassel Salpeter & Co. Acts as Exclusive Financial Advisor in Sale of CORD:USE

Cassel Salpeter & Co., LLC, a middle-market investment banking firm providing merger, acquisition, divestiture and corporate finance services, represented CORD:USE Cord Blood Bank (“CORD:USE”) in its sale to Cryo-Cell International, Inc. (“Cryo-Cell”).

CORD:USE, based in Orlando, FL, is a leader in the cord blood and cord tissue banking industry. CORD:USE operates a family bank in Orlando and a public bank based out of the Duke University Medical Center in Durham, NC. Co-founded by a board-certified obstetrician, Dr. Edward Guindi, and his business partner Michael Ernst, together they assembled a world class team of experts in the field and established relationships with some of the leading obstetrical centers in the U.S. Known for their high quality, the CORD:USE banks participated in over 660 stem cell transplants since inception.

Cassel Salpeter advised CORD:USE in evaluating strategic alternatives and ran a process to contact both potential financing sources and acquirers and solicit offers for the Company. During this process, several entities tendered offers to acquire the Company. Cassel Salpeter advised CORD:USE throughout this process, which resulted in Cryo-Cell  acquiring substantially all of CORD:USE’s assets. In connection with the transaction, Cassel Salpeter provided a fairness opinion to the Board of Directors of CORD:USE. Ira Leiderman, Managing Director, Healthcare, who has years of experience helping quality, middle-market life science companies raise capital and complete mergers and acquisitions, joined Vice President Laura Salpeter in leading the Cassel Salpeter team.

CORD:USE Chief Executive Officer Dr. Edward Guindi said: “The Cassel Salpeter team was at our side throughout the transaction. They continuously advised us through the many twists and turns of the deal and their determination did not waiver. It was a pleasure to work with them.”

About Cassel Salpeter & Co.

Cassel Salpeter & Co., LLC is an independent investment banking firm that provides advice to middle market and emerging growth companies in the U.S. and worldwide. Together, the firm’s professionals have experience providing private and public companies with a broad spectrum of investment banking and financial advisory services, including: mergers and acquisitions; equity and debt capital raises; fairness and solvency opinions; valuations; and restructurings, such as 363 sales and plans of reorganization. Co-founded by James Cassel and Scott Salpeter, the firm provides objective, unbiased, results-focused services that clients need to achieve their goals. Personally involved at every stage of all engagements, the firm’s senior professionals have forged relationships and completed hundreds of transactions and assignments nationwide. The firm’s headquarters are in Miami. Member FINRA and SIPC. More information is available at www.CasselSalpeter.com.