Journal of Corporate Renewal

Sept 2016

Spotlight
The Next Wave
2016 TMA Western Regional Conference | July 13-15

The morning of the 2016 Western Regional Golf Tournament started off cool and foggy. By the time the last foursome had teed off at the Aviara Golf Course, the gloom had dissipated, the sun shone brightly, and the 8th Annual TMA Western Regional Conference had officially begun. Nearly 170 attendees convened at the Park Hyatt Aviara in Carlsbad, California, July 13-15 for the event hosted by the TMA Arizona, Northern California, Rocky Mountain, and Southern California Chapters.

The following morning marked
the first full day of professional
development sessions and began
with a discussion about the future
of private equity. Panelists explained
that deal flow has slowed across
the board, but what has increased
is the number of strategic buyers
completing deals as opposed to
financial buyers. Panelists predicted a
continuation of this trend for the near
term, adding that what will become
of all the dry powder in this arena
remains an open question for now.

Attendees then heard from a panel
sharing general insights on retail
bankruptcies, touching on evolving
demographics, online competition,
and wavering consumers, before
switching their focus to specifics
of the recent Sports Authority
bankruptcy. In that case, a multitude
of issues arose related to vendors,
leases, and consignment. One
factor that paved the road toward
bankruptcy was that Sports
Authority “was not a business people
were looking to put a lot of new
money into,” said Robert Klyman
of Gibson, Dunn & Crutcher.

In the “Impact on Banking” session, panelists explained how the legal and regulatory burdens on special asset managers in the U.S. are “becoming massive.” The extensive training that is required to ensure that individuals can meet these requirements diminishes the time they can spend working directly with borrowers. Lenders’ outside “vendors”—attorneys, accountants, and consultants—must also comply with numerous regulations to provide services to banks, forcing banks to manage third-party risk compliance in addition to their own.

The conference’s featured speaker was Todd Buchholz, an economist, former White House director of economic policy, and a frequent commentator on economics, fiscal politics, and business strategy. Buchholz talked about a global economic revitalization and said that the next president will have to make it clear “America is open for business” or its economy will remain “lackluster.” Day One concluded with a poolside reception overlooking the beautiful Batiquitos Lagoon.

“Disruption in Silicon Valley” commenced Friday’s half-day of professional development. Businesses are moving away from traditional business models and toward the on-demand industry exemplified by companies such as Uber, Sprig, and Airbnb. Speakers explored reasons for the growth of this industry, the major players and investors, and the resulting change in valuations.