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HANDS ON AT STIHLUnique Apprenticeship Program Sets High Standards

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Kai Lucks: Low Dollar- A Perk for Shoppers?

Special Report:DEinternational

Harriet P. Higgins:Board Talk

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T R A N S A T L A N T I C T I C K E RGerman American Company News 4

S P O T L I G H T SHands on at Stihl 6

Cautious Optimism 12

S P E C I A L R E P O R TDEinternational: Business Partner Search 17

G A T O N - S I T EDream Catchers Series: Part 2Baum Wine Imports 21

B U S I N E S S T O O L SPart 2 of 3: Speaking Out 24

M E M B E R P R O F I L ERSM McGladrey 28

F R O M T H E R E G I O N SGACC Highlights for January & February 2008 30

E V E N T C A L E N D A RFuture Events, Delegations & Trade Fairs 33

B O A R D T A L KHarriet P. Higgins, Citigroup 34

I N S I G H T

Apprenticeship programs, which have a long tradition in Germany, are now emerg-

ing in the U.S. After experiencing a need for highly skilled technicians, German man-

ufacturing company Stihl pioneered its own apprenticeship program at its Virginia

Beach headquarters.

Cautious optimism is felt by German subsidiaries in the U.S.

in spite of the current economic slow-down and weak dollar.

This is one of the findings of two recent surveys by GACCs in

New York and Chicago. Another spotlight focuses on a ranking

of German M&As in 2007 in the U.S.

The quarterly special report on DEinternational the new

worldwide GACC service brand, showcases practical work

examples of the GACC consulting departments. The GACCs

support small and medium sized German companies as well as established companies

in their efforts to enter and expand their business in the U.S. market – for example,

through a business partner search.

Board Talk is a new series in which representatives from the various GACC boards of

directors discuss current topics. In this issue Harriet Higgins, serving on the GACC

New York board of directors, gives her perspective on investor sentiment from her posi-

tion as financial advisor with Citigroup.

Stefanie Jehlitschka, Assistant Editor, Atlanta

[email protected]

C O N T E N T S

Exclusive cartoon by Heiko Sakurai www.sakurai-cartoons.de

60958_GACC_ACG 2/25/08 9:21 AM

WestLB to cut 25% of its staff

WestLB said it will cut about 25

percent of its work force as its

owners agreed to provide $7.2 bil-

lion to bail out the German bank,

which is reeling from trading and

subprime-related losses. The bank

will shift securities into a new off-

balance-sheet unit and cut as

many as 1,500 of its 5,900 staff to

save about 300 million euro a year

by 2010. • Herald Tribune

Viega increased annual sales to US$ 250 mln

Viega, a family-owned German

company, has grown from about

$6 million in annual sales to more

than $250 million since Dan

Schmierer joined the company as

the first president of Viega North

America – which has now become

Viega LLC – only a few years ago.

The manufacturer of plumbing

and heating technology products

has been in America since 1999

and established its headquarter in

Wichita in 2006. • The Wichita Eagle

SAP says holds 95% of Business Objects

SAP AG said it had acquired 95.35

percent of Franco-American software

maker Business Objects by the end

of a second offer period. The world's

largest maker of business software

plans to proceed with a squeeze-out

of remaining minority shareholders

and delist Business Objects, it said in

a statement. • Reuters

SAP plans to expand facilities in Delaware County

SAP Americas Inc. is expanding its

Newtown Square facilities by con-

structing a new 220,000-square-foot

building that will house 800 addi-

tional employees. The new building

is phase one of a two-phase expan-

sion project. The first building is

expected to be completed by spring

2009. This new facility will allow

SAP to consolidate two companies it

recently acquired – Lighthammer

and Triversity of Exton, PA, and

Bristol, PA – onto one main corpo-

rate campus. • Select News

Deutsche Bank purchases U.S. hedge fund administrator

Deutsche Bank AG purchased U.S.

hedge-fund administrator Hedge-

Works LLC, adding clients with

$10 billion in assets. HedgeWorks

provides administrative services to

more than 100 hedge funds, Frank-

furt-based Deutsche Bank said in an

e-mailed statement. HedgeWorks,

based in Carlsbad, California, has

about 30 employees. • Bloomberg

Wacker finalizes Polymer JV acquisition

Wacker Chemie AG has successful-

ly concluded its acquisition of full

ownership of Air Products Polymers

(APP) and Wacker Polymer Systems

(WPS), its two joint ventures with

Air Products and Chemicals, Inc.

The transaction announced in

December 2007 has now been

cleared by the European and U.S.

antitrust authorities. • Press Release

Pfleiderer AG’s successful expansion

Pfleiderer AG, a leading manufac-

turer of engineered wood

products, announced an expan-

sion of its North American

laminate flooring business. The

company unveiled plans to roll

out the new Pergo Prestige collec-

tion at all Home Depot retail

locations in the U.S. in the second

quarter of 2008. • Business Wire

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60958_GACC_ACG 2/25/08 9:21 AM

T-Mobile International added 12 million users

Deutsche Telekom significantly

increased its worldwide customer base:

T-Mobile International added 12 mil-

lion users, including 7 million outside

Germany, for a total of 120 million at

the end of 2007, Chief Executive Offi-

cer René Obermann said. Among all

divisions T-Mobile USA once again

made the largest contribution to con-

tinued growth abroad. In the fourth

quarter of 2007, the company gained

951,000 net additions in the U.S.,

recording a total of 28.7 million cus-

tomers. • Bloomberg/Inar.de/AP

DHL denies sale to FedEx

Viega, a family-owned German

company, has grown from about $6

million in annual sales to more than

$250 million since Dan Schmierer

joined the company as the first pres-

ident of Viega North America –

which has now become Viega LLC

– only a few years ago. The manu-

facturer of plumbing and heating

technology products has been in

America since 1999 and established

its headquarter in Wichita in 2006.

• Memphis Business Journal

Continental CEO predicts innovative products

Continental Automotive is well-

positioned for the changing times

that require innovative products,

said William Kozyra, CEO of

Continental Automotive Systems

of North America. For example,

Continental is working on the

next generation of telematics sys-

tems for Bluetooth and Wi-Fi.

Kozyra also predicted a driverless

vehicle will one day be a reality

and “Continental will be at the

forefront”. • Crain's Detroit Business

DHL Express finalises plans for transatlantic 767 operation

DHL Express placed orders for six

General Electric CF6-80C2-pow-

ered 767-300Fs a couple of months

ago – with deliveries due to begin in

2009. Now DHL Express Aviation

chief executive Charles Graham said

that details of the 767 operation are

being finalised. Although the express

carrier is still evaluating how we will

crew the operation, Graham expects

to be in a position to disclose this

and details of where the aircraft will

operate to in the USA from its Euro-

pean hub in Leipzig, Germany, in

the second quarter. • Flightglobal.com

Siemens makes Wisconsin its U.S. water research center

Siemens AG makes the shores of

Lake Michigan its U.S. water

research center. “Wisconsin easi-

ly is the most important state for

us,” said Roger Radke, president

and chief executive of Siemens

Water Technologies Corp. The

company already relies on two

Wisconsin acquisitions to drive

growth in its water technologies

division: Envirex in Waukesha

and Zimpro Environmental near

Wausau. • Journal Sentinel

Crossgate AG Announces Expansion of US Subsidiary

Crossgate AG, a global leader in

electronic data interchange, will

expand its American operations:

Crossgate, Inc. is responsible for

delivering “on demand” B2B

solutions to midsize and large

companies in the United States

and the Americas. The Atlanta

headquarters builds on an existing

operational base that was estab-

lished in 2005 in New York City.

• PR Newswire

EADS to “continue to target” mid-sized US acquisitions

EADS chief executive Louis Gallois

said the company will ‘continue to tar-

get’ mid-sized acquisitions in the U.S.

The company will “invest heavily” in

an A330 site in Mobile, Alabama, if it

wins the U.S. KC-X tanker competi-

tion. EADS had been formed in 2000

by the merger of DaimlerChrysler

Aerospace AG of Germany, Aérospa-

tiale-Matra of France, and Con-

strucciones Aeron·uticas SA (CASA) of

Spain. • Thomson Financial

Find the latest news onwww.gaccny.com

5

G E R M A N A M E R I C A N T R A D E M A R 0 8

60958_GACC_ACG 2/25/08 9:21 AM

With raised eyebrows Walter

Weber closes the drawer

in the apprenticeship

tool room and sends out a

warning look, “This is not

orderly.” Everyone in

the class knows how

much emphasis their

supervisor puts on

tidiness, accuracy

and correctness.

Although he

has been liv-

ing in

the U.S. for many years,

he is German after all,

Weber frankly admits.

Stihl set up its first U.S. plant more

than 30 years ago. Well-known for

its chain saws, the company steadily

expanded and meanwhile built sev-

eral production and warehouse

facilities on its 83 acres in Virginia

Beach. Here, 1,800 employees pro-

duce millions of chain saws, grass

trimmers, leaf blowers, hedge trim-

mers, edgers and other outdoor

6


S P O T L I G H T S

Text & Photos by Andrea Roeder

Unique Apprenticeship Program Sets High Standards

Hands on at Stihl

The diploma I will receive from here is priceless.

Earl Chapman, 2nd Year

“”

60958_GACC_ACG 2/25/08 9:21 AM

power equip-

ment annually.

In the late

1970’s, Stihl

Inc., short of

craftsmen who

could build and serv-

ice the machines that make

its outdoor power tools, decided to

implement an intensive 4-year

apprentice program.

An increasing need for highly

skilled technicians and the lack of

potential candidates in the job mar-

ket forced Stihl to find new ways of

recruitment. “If you are a forward

thinking company, you have to

think about where your future

employees are coming from,” says

Roger Phelps, promotional com-

munications manager for Stihl Inc.

“If they are not developing out of

the high schools, then we need to

do something to help foster that.”

Indeed, Stihl’s executive vice presi-

dent Peter K. Mueller had a very

German idea: the dual concept of

practical in-house training and theo-

retical lessons at schools. “The

combination of hands-on experience

and schooling equips young people

with unique qualifications”, he says.

While candidates in Germany are

external applicants, the ones for

Stihl’s program are recruited from

the company’s existing staff. Every

employee can apply and take part in

the selection process. The dark-gray

overalls with

“Apprentice”

stitched on

the sleeves in

bright orange

letters are very

much in demand.

Last year, 68 workers

submitted their applications.

At the end of the recruitment

process, which consists of tests and

interviews, only 5 or 6 candidates

are selected. Apprenticeship classes

at Stihl are always this small to

guarantee attention and high qual-

ity education. New Jersey born

Julian Gonzales (35) was admit-

ted to the latest group of

trainees. He had been with Stihl

for eleven months before

becoming an apprentice.

Others have been with the com-

pany much longer before being

selected for the program. Second-

year trainee Earl Chapman (32)

from Norfolk joined Stihl in

2004. “Having been select-

ed meant a lot to me,”

the young father of

three says, “I know that

I am going to put a lot

of effort into this.”

Third-year appren-

tice Jason Riley (30)

from Texas has

already been with

the company for

nine years. “I want to

make myself marketable and for

that I need something on my wall

showing what I learned.”

The program is Stihl’s own curricu-

lum with inspiration from large

German conglomerates including

some in the automotive and elec-

tronic fields. Many of the

hands-on projects are also widely

used in apprentice programs

throughout Europe. The theoreti-

cal lessons are held at nearby

community colleges. Most of the

apprentices usually take two

evening classes on at least three

days a week.

S P O T L I G H T S

I want to makemyself marketable.

Jason Riley, 3rd Year

“ ”


7

Third-year apprentice Jason Riley (30)

60958_GACC_ACG 2/25/08 9:21 AM

Some even take up to 12 or 15

credits per semester because they

plan to obtain an associates degree

in combination with their achiev-

ing of a journeyman certification.

The entire program lasts three and

a half to four years and is divided

into three phases. It begins

with eight months initial

training, personally

observed and guid-

ed by Walter

Weber. “We call it

‘Walter’s boot

camp,’” Simon

Nance, manager of

training and develop-

ment, says with a smile.

During this training period the

apprentices learn not only techni-

cal basics but also how to always

keep their work stations clean, do

their homework properly, and be

punctual and precise.

Although Weber expects a lot from

his class, first-year apprentice

Julian Gonzales assures the pro-

gram has so far been “a wonderful

experience.” Working in the tool

room, the most interesting thing is

to see how everything comes

together. “When you see the final

piece,” he says, “you look at it and

think, ‘Wow, I made that myself.’”

After the initial basic training pro-

gram, the apprentices are sent

throughout the plant to get famil-

iar with all steps of the

manufacturing processes. Once

they’ve completed the two initial

phases, they branch off into differ-

ent departments where they learn a

specific trade – tool and die maker,

maintenance mechanic, or CNC

technician, or even the most

advanced mechatronics technician,

which combines both mechanical

and electrical skills. Since the

apprenticeship program serves

internal purposes, “that decision is

made in accordance with our man-

ufacturing capabilities,” explains

Nance. The recent expansion in

injection molding even led to a

new career path for polymer mold

set-up technicians. In addition,

one QA materials laboratory tech-

nician starts an apprenticeship

with Stihl every other year.

Besides the practical accomplish-

ments, the trainees take about 18

courses at the community colleges

during the program. For example,

they study math, physics, chem-

istry, statistics, mechanics,

technical drafting, industrial tech-

nology, pneumatic and hydraulic

systems, automated manufactur-

8


S P O T L I G H T S

Our program is as good, if not better

than a degree.Julian Gonzales, 1st Year

“”

Apprenticeship Coordinator WalterWeber had been an apprentice himself:

He became a tool and die maker in Germany in 1959.

60958_GACC_ACG 2/25/08 9:21 AM

ing, and safety standards. The

schedule includes almost as many

credits as university students com-

plete for an associates degree in

applied sciences. “There are only

six courses missing,” Weber proud-

ly points out. Stihl’s trainees

generally score very well too. “We

do not have any C students.”

By the time they graduate, the

apprentices have completed more

than 8000 hours of practical and

theoretical training. It is a tough

program and demands a great deal

of hard work and dedication. Yet,

the dropout rate is zero. “Because

the payoff is huge,” says executive

vice president Mueller. “Coming

out of the 4-year program, tool and

die makers earn US$ 40,000 to

50,000. With some overtime

included, their earnings can be

higher than a starting engineer

newly out of college.”

“They are the best of the best,”

training manager Nance adds. The

diploma the young technicians

receive from the Virginia Depart-

ment of Labor and Industry

complies with the standards of the

U.S. Department of Labor and

enables them to apply for positions

all over the country.

Of course, Stihl will do its best to

keep the young professionals, in

which it’s made a considerable

investment. Mueller calculates an

apprenticeship’s cost to Stihl at

$50,000 or more per year per

trainee. A sum that would make

most small companies wince.

However, “this is money well vest-

ed in our future,” he adds.

Although the production is highly

automated and robots can be seen

everywhere in the facilities, the

company values its employees and

has never eliminated jobs due to

the implementation of automa-

tion. Employees are retrained for

other positions, says Mueller. “This

company is noted for its quality

and precision,” says Phelps, “and

you cannot achieve that just with

machines.” Once the apprentices

complete their course, attractive

career opportunities await them.

Graduate-to-be Jason Riley remem-

bers why he started the program. “I

was looking for more responsibility

in the job and I wanted to be able

to move up.” That it does not nec-

essarily take a college degree to

climb the career ladder is common

sense to Stihl appren-

tices. “College degrees

do not guarantee any-

thing anymore,”

Julian Gonzales

believes, “and

our program is as good, if not bet-

ter than a degree.”

While universities usually pursue a

diverse, broad approach, the spe-

cialized, technical skills needed in

industry can be better adopted in

practice, supervisor Weber is con-

vinced. In contrast to the “detour

route” through a college, Stihl’s

S P O T L I G H T S

9


Walter’s bootcamp: In the toolroom, under Walter Weber’s guidance, the apprentices learn the basic steps of the trade.

Second-year apprentice Earl Chapman (32) from Norfolk, joined Stihl in 2004.

www.stihl.uswww.doleta.gov

60958_GACC_ACG 2/25/08 9:21 AM

program gets him right to where he

wants to be, second-year appren-

tice Earl Chapman agrees. “The

diploma I will receive from here is

priceless, it can take me anywhere.”

Considering the advantages of an

apprenticeship and the actual

dropout rates at universities, Stihl’s

training manager Nance does not

understand the widespread “need

of pushing all kids into college.”

Unfortunately, the idea of appren-

ticeships is not very popular in the

United States. Often even high

school guidance counselors are not

aware of the alternative track their

students can choose.

Weber and Nance hope for some

governmental action to help pro-

mote apprenticeships and raise

awareness among parents, teach-

ers, and students.

Although things

won’t change overnight, the

Department of Labor (DOL) start-

ed some initiatives. In a recent

report, it discussed how to “lever-

age” apprenticeships since they are

“a critical component of talent

development strategies across the

country.” Furthermore, the DOL

proposed new regulations “to align

the national apprenticeship system

with the tools and flexibility need-

ed for the 21st century economy.”

Presently, the department is also

working on an update of the

National Apprenticeship Act of

1937 – last amended 30 years ago

– to respond to the “significant

changes in the American economy

and workforce.”

Meanwhile, Stihl Inc. is setting an

example of how things can be taken

forward. On its site in Virginia

Beach, the company is currently

building an apprenticeship training

center. The facility will offer work

space for 19 persons including 12

work benches and 7 machines, a sep-

arate mechatronics training area and

an office for a full-time supervisor.

The new training center will be inau-

gurated in Summer 2008. GAT

1 0


S P O T L I G H T S

S K I L L E D P E O P L E A R E T H E K E Y

P E T E R K . M U E L L E R , E X E C U T I V E V I C E P R E S I D E N T

“College is not right for everyone. Parents want their children to

have a better life. That is natural. But some young people simply

want to work with their hands first. The apprenticeship is an alter-

native for them, and it pays off because it results in successful

careers. The increasing automation in manufacturing causes a shift

from unskilled labor to highly trained technicians. We need them to

run our sophisticated machines, robots and computer programs, and

also to stay competitive with countries like China. Skilled people

really are the key. Without them, you are not going to make it.”

New Jersey born JulianGonzales (35) was admittedto the latest batch of trainees

60958_GACC_ACG 2/25/08 9:21 AM

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According to a survey con-

ducted by the German

American Chambers of

Commerce (GACC) in February,

81% of German companies in the

United States perceive the weak

dollar as a disadvantage to their

business. The perceptions vary

immensely between service

providers (68%), manufacturers

(74%) and distributors (97%).

Naturally, companies relying heav-

ily on EU imports are more

affected than firms that operate

more independently from the

comparably expensive Euro. High

import costs “hurt a lot”, says a

German distributor, and another

small-sized company confirms the

weak U.S. currency “severely dis-

rupts our costing, quotations and

contracts, and we have no counter

trade to offset the dollar loss.”

For some firms the effect has been

neutral. “The weak dollar should

help our exports”, explains a trans-

portation service provider, “on the

other hand we have lived from

imports for so long that we have to

continue to hold our noses and

keep buying from overseas.”

Others “enjoy a slight advantage at

this time,” as one company states in

the survey. “We are manufacturing

our products in the U.S. while our

German competitors must export.”

Another German subsidiary discov-

ers one more interesting side effect

of the economic crisis: “There is

less pressure to relocate manufac-

turing to ‘low cost countries’.”

While 19% of the firms do not

plan to adjust their business strate-

gy due to the current economic

conditions, one quarter is contem-

plating which action to take

Cautious OptimismGerman American firms in the U.S. are prepared to cope with an overall slowdown

� Cost Cutting� Not Decided Yet� More Investments in the US� None at All� 5% Less Investments in the US� 5% Other Measures

19% 19%

25%27%

F IGURE 1 : PLANS TO ADJUST THE BUS INESS STRATEGY

� Improve Significantly� Improve� Stay the Same� 5% Decline

F IGURE 2: OUTLOOK FOR 2008 SALES REVENUES

� Improve Significantly� Improve� Stay the Same� Decline

F IGURE 3: PROF ITAB IL ITYPROJECT IONS FOR 2008

65% 51%

11%11% 11%19%

27%

1 2


S P O T L I G H T S

60958_GACC_ACG 2/25/08 9:21 AM

(Figure 1). Yet a majority has

already taken steps: Although 27%

plan cost cutting measures, every

fifth company (19%) wants to

increase its investment in the U.S.

Only 5% intend to spend less

money in the local market. Anoth-

er 5% have chosen to change all

their contracts to Euro, look into

other industries, or do more

aggressive marketing.

Nevertheless over half of the more

than 120 poll participants think

the crisis is a short-term slowdown,

while 12% think it is just a panic.

“The confidence of the American

consumer is shaken and a lot of

people are running out of money,”

says a service provider, “during an

election year however, the govern-

ment will do everything to stoke

up the economy.”

Only one third of all respondents

fear a long-term recession. “It is

going to last throughout 2008”,

a manufacturer assumes. Very

few fear that “it will get worse.”

Similar opinions can be sporadi-

cally found among service

providers and distributors as

well, who expect a recession

in 2008/09 or even

2009/10. Yet,

overall the senti-

ment among German companies

in the U.S. is optimistic.

This goes hand-in-hand with a

regional survey conducted by the

German American Chamber of

Commerce of the Midwest (GAC-

CoM) in January. In general, while

most respondents predict a turndown

for the overall U.S. economy in

2008, they are nevertheless optimistic

about the outlook for their respective

companies. Fully 55% of respon-

dents expect the economy to worsen

or to worsen significantly, while 34%

expected it to stay roughly the same.

However, more than three-quarters

of members surveyed responded

that they are optimistic about the

prospects for their own companies

and predict improved sales revenues

for 2008 (Figure 2). The companies

also project a profitable year ahead,

with over 60% expecting improved

profitability and about one-quarter

predicting to be roughly as prof-

itable as they were in 2007 (figure

3). Almost 90% of the

respondents expect to either

increase their number of employees

or to remain the same size.

About half of the firms surveyed by

GACCoM predict a slight rise in

the U.S. inflation rate, while one

quarter each predicts the inflation

rate to either stay the same or to fall.

Interestingly, the average inflation

rate predicted for January 2009 is

4.276%, which is slightly lower

than the current rate of 4.31%.

In regard to the Euro/Dollar

exchange rate in 2009, the average

prediction was 1 Euro to 1.474

Dollars, a rate that is close to the

range in which the exchange rate

has recently been fluctuating.

The significant impact that the

development of the exchange rate

will have on transatlantic merger

and acquisition operations is dis-

cussed by M&A expert Kai Lucks

in the following commentary for

the GAT. GAT

By Nicola Michels, Andrea Roeder & Janka Pieper

S P O T L I G H T S

1 3


60958_GACC_ACG 2/25/08 9:21 AM

Statistics prove: there is no

direct connection between the

dollar exchange rate and

M&A activities between countries.

Only in a few brief time periods of

declining dollar rates did takeovers

of U.S. companies by German

buyers exceed the long-term mean;

one example would be the period

between 2002 and 2003.

At first glance the current situation

appears to be a paradox. Despite

the cheap dollar German acquisi-

tions of U.S. companies are down.

On the other hand, even though

the euro is expensive from the U.S.

perspective, Americans have again

stepped up their pace of acquiring

German firms.

When you take a second look, the

situation becomes plausible: the low

dollar and costly euro reflect current

contrasts in economic perspectives in

the United States and Europe. Put in

terms of an average enterprise, the

outlook for a U.S. company, devel-

oping in tandem with the U.S.

economy, is to lose in value. Profes-

sional buyers form independent

assessments of a target firm’s value by

including simulated calculations

based on assumptions on economic

developments. Experience shows

that in the face of such considera-

tions the value perceived by the

potential seller and that of the inter-

ested buyer take sharply divergent

directions. As a consequence lower

economic expectations outweigh the

now more favorable exchange rates.

But this explanation does not suf-

fice for long-term strategic

considerations. Companies active

around the globe have known for a

long time that creating value in

large currency regions is not only

the key to customers, but also serves

as a hedge against currency fluctua-

tions. It is, however, a fact that the

major German firms are already

established in the United States. In

their case, intensifying their pres-

ence by expansion to exploit the

cost advantages of a persistently low

dollar simply means capitalizing on

their years of organic investment.

Therefore most major German

firms do not qualify as candidates

for additional M&A activities. Mid-

sized German companies have

currently other priorities. To keep

up with current consolidation the

companies have to focus primarily

on building their presence beyond

the Federal Republic’s border in

Western Europe. In Eastern Europe

it is high time for them to commit

now to establishing a foothold in

the new marketplace and develop a

low-cost business base. Momentari-

ly the United States is not on top of

their list of priorities.

A look at the situation in the West-

East direction provides a mirror

image: the potential value of German

firms to U.S. buyers has risen faster

than the negatives resulting from cur-

rency exchange factors. Disregarding

the expensive euro, those armed with

well-stocked war chests should seize

the opportunity. Consolidation in

Europe is moving ahead rapidly.

Europe has become the hottest M&A

market in the world. In light of grow-

ing market concentration

companies are becoming even

more expensive in Europe.

Buying into a German firm

provides access to the entire

European market - all of it -

from the attractive consumer

markets in Western Europe to the

growth regions and low-cost sites in

the East. The window of opportunity

has opened extra wide: since mid-

2007 the subprime damper has cut

price tags on German enterprises sig-

nificantly and at a faster rate than the

dollar declined against the euro.

1 4


S P O T L I G H T S

GAT

Commentary by Kai Lucks, Siemens Head of M&A Integration, General Manager MMI Institute

Kai Lucks

Low Dollar: A Perk for Shoppers?

Translation into English by Angela Jacobson Associates, New York

60958_GACC_ACG 2/25/08 9:21 AM

S P O T L I G H T S

1 5


# OF VALUE OF07 RANK DATE/US TARGET DESCRIPTION ACQUIROR ACQUIROR ULTIMATE PARENT ACQUIROR DESCRIPTION SHARES TRANSACTION

ACQ. ($M)

01/01 Hostmann Steinberg Printing ink Micro Inks GmbH Michael Huber Munchen GmbH Printing ink 100

01/08 ISC Biological products, except diagnostic substances BT Investment Partners Inc Deutsche Bank AG Investors, nec 100

01/23 Midcom Inc Electronic coils, transformers, & other inductors Wurth Electronik GmbH & Co KG Wurth Electronik GmbH & Co KG Printed circuit boards 100

01/24 Sensory Networks Inc Prepackaged Software Deutsche Asset Mgmt(Australia) Deutsche Bank AG Management investment offices, open-end

01/24 UGS Corp Prepackaged Software Siemens Automation & Drives Siemens AG Process control instruments 100 3,500.00

01/25 Aldus Equity Investment advice RREEF Alternative Invests Deutsche Bank AG Investors, nec

01/29 Glastic Corp Plastics products, nec Rochling Engineering Plastics Roechling Gruppe Plastics materials and synthetic resins 100

01/31 FHP Manufacturing Co Refrigeration and heating equipment Robert Bosch GmbH Robert Bosch GmbH Motor vehicle parts and accessories 100

02/14 Pilot Software Inc Prepackaged Software Systeme Anwendungen Produkte Systeme Anwendungen Produkte Prepackaged Software 100

02/20 Transaction Publishers- Books: publishing, or publishing & printing Springer Science+Bus Media Springer Science+Bus Media Books: publishing, or publishing & printing 100

02/22 Mesa Environ Sciences Inc Semiconductors and related devices SunTechnics Solartechnik GmbH Conergy AG Semiconductors and related devices 100

02/27 Pathmark Stores Inc Grocery stores Great Atlantic & Pacific Tea Tengelmann Grocery stores 100 687.721

02/28 DMR Electronics Inc Electronic components, nec Detroit Diesel Remanufacturing Daimler AG Internal combustion engines, nec

03/05 Xspect Solutions Inc Industrial machinery and equipment Wenzel GmbH Wenzel GmbH Special industry machinery, nec 100

03/06 Benaroya Co-Oregon Technology Operators of nonresidential buildings SolarWorld AG SolarWorld AG Semiconductors and related devices 100 40

03/06 Municipal Capital Markets Grp Security brokers, dealers, and flotation companies DEPFA Bk PLC Hypo Real Estate Holding AG Banks 100 12

03/06 Pohl Corp Current-carrying wiring devices Vossloh AG Vossloh AG Railroad equipment 100 21

03/08 Becton Dickinson & Co-Certain Surgical and medical instruments and apparatus Siemens Medical Solutions Inc Siemens AG Electromedical and electrotherapeutic apparatus 100

03/08 Clarient Inc-Instr Sys Bus Electromedical and electrotherapeutic apparatus Carl Zeiss MicroImaging Inc Carl Zeiss AG Laboratory analytical instruments 12.5

03/26 Novartis AG-Biologics Mnfg Pharmaceutical preparations Bayer Schering Pharma AG Bayer AG Pharmaceutical preparations 100 200

04/04 Cleveland Track Material Inc Construction machinery and equipment Vossloh AG Vossloh AG Railroad equipment 100 42.5

04/05 webMethods Inc Prepackaged Software Software AG Software AG Prepackaged Software 100 548.03

04/30 Intl Sec Exchange Hldgs Inc Security and commodity exchanges Eurex AG Deutsche Boerse AG Security and commodity exchanges 100 2,821.35

05/02 Alter Trading Corp-Distn Scrap and waste materials Namasco Corp Kloeckner & Co AG Metals service centers and offices 100 2.1

05/03 Precision Pulley-DistnFacility Hardware, nec Namasco Corp Kloeckner & Co AG Metals service centers and offices 100 2.5

05/10 OutlookSoft Corp Prepackaged Software Systeme Anwendungen Produkte Systeme Anwendungen Produkte Prepackaged Software 100 500.27

05/24 Premier Steel Inc Miscellaneous structural metal work Namasco Corp Kloeckner & Co AG Metals service centers and offices 100 14

05/31 Stoneville Pedigreed Seed Co Cotton Bayer CropScience AG Bayer AG Nitrogenous fertilizers 100 310

06/27 Archemix Corp Biological products, except diagnostic substances Merck KGaA Merck KGaA Pharmaceutical preparations 29.8

07/05 Gish Biomedical Inc Surgical and medical instruments and apparatus MEDOS Medizintechnik AG MEDOS Medizintechnik AG Surgical and medical instruments and apparatus 100 7.5

07/11 New Brunswick Scientific Co Laboratory apparatus and furniture Eppendorf AG Eppendorf AG Laboratory apparatus and furniture 100 108.749

07/12 ESM Group Inc Structural steel erection SKW Stahl-Metallurgie Hldg Ag SKW Stahl-Metallurgie Hldg Ag Electrometallurgical products, except steel 100 75

07/25 Dade Behring Holdings Inc In vitro and in vivo diagnostic substances Siemens Medical Solutions Inc Siemens AG Electromedical and electrotherapeutic apparatus 100 7,131.40

07/31 Metastorm Inc Prepackaged Software ABS Capital Partners LP Deutsche Bank AG Investors, nec 5 30

08/06 Natl Starch & Chem Co-Adhesive Specialty cleaning and polishing preparations Henkel KGaA Henkel KGaA Perfumes, cosmetics, and other toilet preparations 5,506.92

08/20 LSI Corp-Mobility Prod Bus Semiconductors and related devices Infineon Technologies AG Infineon Technologies AG Semiconductors and related devices 100 500

08/22 CrossPoint Energy Hldgs LLC-Ho Gold ores Erfrischungsgetranke GmbH Germany Bottled & canned soft drinks & carbonated waters 2.27

09/11 Nabi Biologics Biological products, except diagnostic substances Biotest Pharmaceuticals Corp Biotest AG In vitro and in vivo diagnostic substances 100 185

09/17 SunCom Wireless Holdings Inc Radiotelephone communications T-Mobile USA Inc Deutsche Telekom AG Radiotelephone communications 2,399.18

09/19 Renovis Inc Pharmaceutical preparations Evotec AG Evotec AG Biological products, except diagnostic substances 141.446

09/25 Flatiron Construction Corp Residential construction, nec Hochtief AG Hochtief AG Industrial buildings and warehouses 100 240

09/25 Inland Western Reit-Portfolio Operators of nonresidential buildings KanAm Grund KG mbH KanAm International GmbH Real estate investment trusts 100 270.8

10/04 Airtricity-North American Bus Cogeneration, alternative energy sources E ON AG E ON AG Electric services 100 1,373.00

10/07 Business Objects SA Prepackaged Software Systeme Anwendungen Produkte Systeme Anwendungen Produkte Prepackaged Software 6,079.28

10/17 Midland Co Fire, marine, and casualty insurance Muenchener Ruckversicherungs Muenchener Ruckversicherungs Fire, marine, and casualty insurance 1,324.66

11/29 Renal Solutions Inc Surgical and medical instruments and apparatus Fresenius Medical Care AG & Co Fresenius SE Electromedical and electrotherapeutic apparatus 100 190

12/05 Undisclosed Water System Water supply New Jersey American Water Co RWE AG Water supply 100

12/11 Air Products & Chemicals Inc- Industrial gases Wacker Chemie AG Wacker Chemie AG Chemicals and chemical preparations, nec 265

12/13 JetBlue Airways Corp Air transportation, scheduled Deutsche Lufthansa AG Deutsche Lufthansa AG Air transportation, scheduled 18.9 305.34

12/17 Sterling Life Insurance Co Life insurance Muenchener Ruckversicherungs Muenchener Ruckversicherungs Fire, marine, and casualty insurance 352

German Acquisitions in the U.S. in 2007

60958_GACC_ACG 2/25/08 9:21 AM

60958_GACC_ACG 2/25/08 9:21 AM

A WORLDWIDESERVICE-PORTFOLIO

17

German American Trade March 08

With the beginning of 2006, the consulting departments

of the German Chambers of Commerce abroad have

been operating under a new brand: DEinternational.

This service-portfolio of the Chambers includes basic services

which are offered and requested worldwide and special services

which are developed individually in different places.

The goal of the brand implementation is to better utilize

the global network, provide similar services and achieve

a worldwide standard.

The German American Chambers of Commerce (GACC) are

enlarging the range of services for promotion of foreign trade.

Particularly for medium size German companies this would mean:

better market access, better client orientation, and also transparency

and use of the networks.

The GACC offices presently promote the following DEinternational

services which not only support small and medium-sized German

companies who are expanding their business abroad, but also offer

services geared towards firms already established.

BASIC SERVICES • Address Research • Market Studies

• BUSINESS PARTNER SEARCH • Legal Information

• Payment Collection • VAT Refund

SPECIAL SERVICES • Business Representation

• Trade Show Services • Recruitment

In quarterly reports the GACC offices will introduce one

of the various DEinternational services, including detailed

information about procedures as well as actual case studies.

In this issue the German American Chamber of Commerce

of the Southern United States (GACC South) presents

Business Partner Search referring to the example

of the German manufacturer mbo Osswald.

60958_GACC_ACG 2/25/08 9:21 AM

18 German American Trade March 08

German companies possessing pri-

or experience with the American

market are offered assistance

with establishing a sales subsidiary and

finding the right location for their pro-

duction facility. Companies with limited

knowledge of the U.S. market are typical-

ly presented with market analyses and

business partner searches.

One of the newcomers to the United

States was the German manufacturing

entrepreneur mbo Osswald GmbH & Co

KG. When founded in 1967 in Baden

Württemberg, Germany, the idea of

becoming a globally recognized leader

in linking technology was merely a

vision. Today, mbo employs over 70

employees and has business partners

spanning many parts of the world.

mbo achieved this level of success by

providing its customers with the highest

quality and accessibility of its products.

Throughout the years, mbo continuous-

ly upgraded its manufacturing

techniques and increased product avail-

ability to meet European customer

needs. In 2006, the company decided it

was ready to expand its business into

the United States.

Organized by the international net-

work of the German Chambers of

Commerce and the economic department

of Baden Württemberg, mbo and five

other companies traveled to North

America. Toronto, Chicago and Atlanta

were the main three destinations on the

itinerary. The goal of the German com-

panies was to meet with various

industry leaders and explore different

collaboration possibilities.

It was then that mbo decided to work

closely with the German American

Chamber of the Southern United States

(GACC South) in Atlanta in its venture

to enter the American market. Since the

company was new to the U.S., the

GACC South suggested it start with a

market research and business partner

search. During the first five months the

GACC South obtained market informa-

tion and identified potential business

partners. The next four months were

BUSINESS PARTNER SEARCH

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Mating piece for clevisesBall joint

60958_GACC_ACG 2/25/08 9:22 AM

19

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German American Trade March 08

spent contacting current and prospec-

tive customers through mailings and

phone follow-ups.

Dr. Manfred Osswald, CEO, expressed

his sincere gratitude, stating that the

alliance has been very successful. “From

developing a sound business plan to

establishing potential partnerships with

other companies, the GACC South was

of great help.” As a result, before the ini-

tial nine-month contract ended, mbo

and the GACC South confirmed a further

business representation plan for 2008.

One of mbo’s next steps in March of

this year will be made at the “Conex-

po/AGG 2008”, a trade show for

professionals in the construction indus-

try, in Las Vegas. There, mbo and two

representatives of the GACC South will

be exhibiting linking components.

Moreover, mbo is aiming to further edu-

cate the two GACC South representatives

about the product and specific industry

applications. “Attending this expo will

really help us to sell the product even

better”, says Yvonne Harper from the

GACC South in Atlanta who has been

the main sales and business representa-

tive for mbo. “Knowing the market is

one thing, but having hands on experi-

ence promoting the linking technology

to a live audience is priceless”, she adds.

In the end, mbo hopes that this exhi-

bition will introduce their linking

technology to potential buyers first

hand. “This is a very exciting and

important event for us”, explains Lothar

Winkler, Sales Promotions & Marketing

Manager at mbo, “creating brand recog-

nition is what we aim for.”

As a result, both the GACC South and

mbo are looking forward to their future

endeavors. The Chamber will continue

to support mbo in their effort to enter

and expand their business in the U.S.

market - and that is what DEinternation-

al services are about.

The DEinternational service Business

Partner Search is offered by the GACC

offices in Atlanta, Chicago, New York,

San Francisco, and Texas. For contact

details see next page.

A BASIC SERVICE OF

mbo’s owner and manager: Dr.jur. Manfred Osswald(CEO, right) and Dipl.-Ing. (FH) Dipl.-Wirt.-Ing. (FH)

Rainer Osswald (CEO/CTO)

mbo’s production and storage hall with 800 squaremeters, in Kuelsheim – Steinbach, Germany

60958_GACC_ACG 2/25/08 9:22 AM

GERMAN AMERICAN CHAMBER OF COMMERCE OF THE MIDWEST, INC.Mark TomkinsDirector Consulting Services401 North Michigan Avenue, Suite 3330Chicago, IL 60611Direct: +1 (312) 494 - 2172Tel: +1 (312) 494 - 2173Fax: +1 (312) 644 - [email protected]

GERMAN AMERICAN CHAMBER OF COMMERCE, INC. NEW YORKJulia ArnoldDirector Consulting Services75 Broad Street, Floor 21New York, NY 10004Direct: +1 (212) 974 - 8853Tel: +1 (212) 974 - 8831Fax: +1 (646) 405 - [email protected]

GERMAN AMERICAN CHAMBER OFCOMMERCE INC. CALIFORNIA BRANCHNicholas WagnerConsultant 201 California Street, Suite 450San Francisco, CA 94111Tel: +1 (415) 248 - 1255Fax: +1 (415) 627 - [email protected]

GERMAN AMERICAN CHAMBER OF COMMERCE OF THE SOUTHERNUNITED STATES, INC.Steffen BayerDirector Consulting Services530 Means Street, Suite 120Atlanta, GA 30318Direct: +1 (404) 586 - 6827Tel: +1 (404) 586 - 6823Fax: +1 (404) 586 - [email protected]

GERMAN AMERICAN CHAMBER OF COMMERCE OF THE SOUTHERNUNITED STATES, INC. TEXAS OFFICEJan Christoph Wiedemann Managing Director Texas Office1900 West Loop South, Suite 880Houston, TX 77027Tel: +1 (713) 629 - 8787

+1 (832) 533 - 2817 Cell: +1 (404) 234 - 2245Fax: +1 (713) 629 - [email protected]

CONTACT

www.DEinternational.us

20 German American Trade March 08

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60958_GACC_ACG 2/25/08 9:22 AM

2 1


G A T O N - S I T E

In the summer of 1946 I was born

in the small town of Schweinfurt

in Franconia, Germany. From a

young age, I truly believed that

there was no better career than one

in food and wine. My grandfather

taught me that people will always

drink, both in good and bad times.

He owned vineyards in Franconia

and looking back on it, that’s where

my dreams began.

A friend told me a long time ago

there must be a little bit of gypsy

in me.

I lived in South Africa, Australia

and Brazil before settling here in

the U.S. Once here, I moved from

Chicago to Milwaukee, to San

Francisco, to Kansas City, and for a

short period, to West Palm Beach

and then finally back to Chicago.

Before I knew

it, I was 38

years old and I

needed to find a

wife. I was lucky

enough to find a

Hungarian girl

and since I was

in hurry, we

married within

a few months.

We have 2

P E R S O N A LB A C K G R O U N D

German Entrepreneurial Spiritin the United States

Part Two tells the story of Illinois based

Udo M. Heinz from Schweinfurt.

P A R T T W O

60958_GACC_ACG 2/25/08 9:22 AM

G A T O N - S I T E

2 2


great children. Our son, Filippe,

who just recently graduated from

University of Iowa in International

Business, is currently doing a sales

and management program, near

my home town in Germany. Our

daughter Nina studies business and

languages in London at the Euro-

pean Business School.

Why America

May 15, 1975: I remember it like it

was yesterday, it was 2:30 in the

afternoon and as I stepped off the

747 a wave of Chicago summer

humidity hit me. I walked out of

this huge airport with my suitcase

in my left hand and my briefcase in

my right, and right there I knew:

That was it. I was in America,

“The land of dreams, dem Land

der unbegrenzten Möglichkeiten.”

Let’s face it, all you have to do is work

smart and hard and there is no end to

the possibilities you can achieve.

Cultural Surprises

It is still amusing, after living here

for over 27 years, how Americans

torture their steak, keeping in mind,

that every culture has their own way

of eating with a fork and knife.

Biggest Challenge

Trying to convince potential cus-

tomers in northern Wisconsin in

the 70s that wine needed to be con-

sumed in glasses instead of coffee

mugs. To tell you the truth, it was

hard enough convincing them that

wine was something you drink!

Greatest Inspiration

My father. A very positive

human being by nature, he

always had a way of turning neg-

atives into positives. And I can

say the same thing about my

beautiful wife who is very posi-

tive. Some of my friends inspired

me, as well. While growing up,

many of my friends were born

with a “silver spoon” and I was

always jealous of all that they

had, but not anymore.

FAST FACTS BAUM W INE GROUP INC .

Name of President: Udo M. Heinz

Hometown: Schweinfurt

Age of President: 61

U.S. Company Locations: Chicago, Denver, Los Angeles, Milwaukee

Telephone: +1 (630) 616-1690

Year Founded in the U.S.: 1972

Business Activity: Wholesalers/distributors of alcoholic beverages (import/export)

Number of Employees: 45

Revenue: US$ 25 Million

60958_GACC_ACG 2/25/08 9:22 AM

G A T O N - S I T E

2 3


www.baumwinecolorado.com

Before leaving for the German Air

Force, I did an apprenticeship in a

men’s clothing shop. I did not like it!

Realizing that going back to school

was my only option, I attended the

University of Nürnberg and eventu-

ally graduated with a business degree,

“Diplombetriebswirt (MBA)”. After

that, I followed my feet to South

Africa, where I worked as an assistant

to the managing director for

MAN/MPU, while Rhodesia was

under a trade embargo.

Reason for Starting Business

When I returned to Germany in

1974 I didn’t even try to apply for

jobs in the German market. WIV

Wine International AG advertised

a position for teaching people

about wine; the position was in the

U.S. It was clear to me then that I

needed to go somewhere overseas

and I’ve never ever looked back.

The Baum Wine Group already

operated in the U.S. when I came

here in 1975. I became President

& CEO in 1982.

Source of Start Up Capital

Since the subsidiary already

existed, I was luckily never

in the position of needing a

start-up capital besides the

few dollars that I needed to

cross the Atlantic. However,

the first 10 years were hard,

especially due to all the regula-

tions in the U.S. It took us about

10 years until we finally figured out

the American alcoholic beverage

market, and from there we have

been successful since.

Biggest Obstacle

The alcohol beverage industry is

extremely regulated and laws are

very different in every state. The

so-called “3 tier system”, created

during prohibition is old and

needs over-hauling. Just imagine

finding an incredible bottle of

wine while visiting Napa Valley

and not being able to ship it back

to your home state. I recommend

you check the restrictions. It’s

almost impossible!

Future Goals

The sky is the limit! There is so

much room to grow. After all, this is

the land of unlimited opportunities.

I know I have a long way to go, and

so what, I’m only 61 years old.

B U S I N E S SB A C K G R O U N D

I have enjoyed greathealth, at a great age

because every day since I canremember I have consumed a bottle

of wine. Except when I have not felt well. Then, I have consumed two bottles.

“

”GAT

60958_GACC_ACG 2/25/08 9:22 AM

As a business executive, you will

probably have to make a pres-

entation at a press conference

at some time. Following the five sim-

ple rules below will help you to do so

successfully. There is also a sixth rule

that is so obvious that it shouldn’t

have to be mentioned; but here it is:

If you have nothing newsworthy to

announce, keep your mouth shut

and don’t hold a press conference.

Understand your objectives and explain them quickly

Structure your presentation

to make the important points

quickly. Many presenters

seem to have little idea of what

the primary objective of the

presentation is. Understand

WHAT you want to present and

concentrate on that. So-called

“witty remarks” or platitudes about

the city you are now presenting in

usually ring false and just waste

time. Drop them. If protocol

demands that you must recognize

important corporate officials or

visitors have your company moder-

ator or public relations person han-

dle this for you before you get into

your presentation.

If you are introducing a new prod-

uct, you will obviously discuss its

features and performance. It prob-

ably makes sense to discuss how it

fits into your overall line of prod-

ucts. You might even take a veiled

swipe at your competition by

pointing out how much quicker, or

quieter, or cleaner, or taller, or

lower, or whatever, it is than your

competitor’s products.

If you are talking about a new

service, restructured organization

or a new factory, obviously you’ll

give statistics about benefits the

service provides, management

levels flattened, or projected

widgets per year, or some such

similar statistics.

Speaking OutPress Conferences Five Rules for Success

By John BulcroftP A R T T W O O F T H R E E

www.bulcroft.com

B U S I N E S S T O O L S


2 4

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Don’t read a speech

While you will need printed copies

of your presentation, don’t hand

them out beforehand. And, most

importantly, don’t read your presen-

tation line-by-line. Either action will

lead to a distracted and/or bored

audience. Condense your presenta-

tion’s main topics to bullet points on

index cards and rehearse and speak

from these. Your presentation will be

more natural and more effective. If

you don’t understand and know

your material well enough to make a

presentation in this manner, stop

making presentations until you can.

Also, be sure that the printed copies

of you presentation carry the dis-

claimer “The spoken word rules.”

Understand the media

As a well informed and intelligent

corporate executive, you probably

understand the fact that the “media”

come in wildly varying degrees of

competence. For every bright,

sharp, reporter who does his or her

homework and gets the facts right,

there are probably twenty who plod

along just trying to stay employed.

When making a presentation, slant

your remarks to the intelligent ones

and forget the others since they’ll

probably get it wrong anyhow. By

taking this approach, you won’t

have to give everyone a short course

on economics or world trade. The

bright ones follow the business,

financial, and trade media and will

know what you are talking about.


2 5


60958_GACC_ACG 2/25/08 9:22 AM


Remember – less is more

As an executive presenter it is

strongly suggest that you turn over

the technical or economic details

to someone else. Your job should

be to present the important mat-

ters in a simple, clear, effective

style. You are the one to introduce

the new Whiz-Bang product and

mention that it is faster than a

speeding bullet and more powerful

than a locomotive. Then, sit down.

Let a tech person describe just how

fast a speeding bullet really is, how

many revolutions it makes on its

way to the target and what really

defines a locomotive. When all the

tech explanations are done, get up

again and close the presentation.

Control the Q&A Session

Prepare a Q & A book to antici-

pate the toughest and nastiest

questions that the media may ask.

Then, be sure that you review the

approved answers with everyone in

your company who may take part

in the Q & A session with you.

They too should have microphones

and be ready to respond. Even if

you are unsure they will be called

on, have them there and prepared.

One person should “direct traffic.”

He, or she, should control the flow

and be sure questions and respons-

es are heard. Microphones should

be placed in the audience or hand

carried to questioners. If someone

insists on not using a mike, or if

there is a mike failure, the “traffic

cop” must repeat the question over

the podium mike.

If an executive has trouble with the

English language, a competent inter-

preter should be at his or her side

throughout the session. It is better to

get a correct answer through an inter-

preter than a garbled or unclear

answer which could be misconstrued

by the media. When questions start

to die out, cut off the session cleanly

and crisply.

In addition to following the five

rules when planning your next press

conference presentation here are

three basic “knows” to remember.

1 Know your material. Know all

the facts. Know all the numbers.

Know all the names. And, if all else

fails and you forget something;

know where you can retrieve the

information immediately.

2 Know your audience. The same

presentation that wowed the local

Chamber of Commerce is proba-

bly not suitable for a group of

international financial analysts.

3 Know when to shut up. Keep

the presentation short – interest

lags after 10 or 15 minutes – and,

don’t forget to say thank you.

Following these rules and “knows”

won’t guarantee that you will make

a great, memorable presentation.

They will go a long way, however,

to assure that you don’t make a fool

of yourself.

John Bulcroft writes and edits Englishlanguage presentations for corporate CEOs,particularly German executives. His interestin German companies began as a marketingexecutive for the Porsche and Audi organizations in the US. It developed further as President of his own consultancyThe Advisory Group, Ltd. In addition to speechwriting, Bulcroft consults with hisclients on matters involving marketing and public relations. A

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60958_GACC_ACG 2/25/08 9:22 AM

Performance improvement is not an art form. Rather, it is simply a matter of properly directing a company’s existing strengths. The key to doing this is found in the combination of target-based strategic management with efficient processes and with meaning-ful management accounting and controlling systems. Using our integrated consulting approach – accompanying you from project concept phase through realization and training – we can help unlock the untapped potential within your firm and escape the confines of ”business as usual”. You can learn more about our special approach to management consulting at www.horvath-partners.com

ww

w.b

eauf

ort8

.com

The Performance Architects

60958_GACC_ACG 2/25/08 9:22 AM

2 8


More than 600 clients and

friends joined the partners

of the certified public

accounting firms Goldstein Golub

Kessler (GGK) LLP and

McGladrey & Pullen (M&P) LLP

in New York recently to celebrate

the integration of the firms’ audit

practices. The partners of GGK

joined M&P in a limited asset pur-

chase agreement. Attendees toasted

the newly-integrated firm’s growth

over cocktails, hors d’oeuvres and

conversation at Manhattan’s exclu-

sive Gotham Hall.

New York Office Co-Leaders Don

Lipari, CPA and Steve Mayer, CPA

and many other McGladrey Manag-

ing Directors

and Partners

were on

hand to welcome guests. Also in

attendance were RSM McGladrey

President Steve Tait, COO Doug

Opheim, CFO Rene Ordogne, Chief

Human Resources Officer Kimpa

Moss, and M&P Managing Partner

Dave Scudder, among others.

Acknowledging the importance of

the firm’s clients to its growth, Co-

Leader Steve Mayer said, "On behalf

of the entire firm, I would like to

express gratitude to our loyal clients

and friends who, over the years, have

contributed to our success and who

now share in our excitement.

McGladrey is recognized as the 5th

largest accounting firm in the New

York area, and we can all be proud of

this achievement.”

The integration between GGK and

McGladrey bolsters and expands

several of McGladrey’s New York

practice areas, its overall talent base

M E M B E R P R O F I L E

ToastingGrowth

McGladrey & Pullen’s New York Offices

Celebrate Integration and Expansion

Over 600 guests joined McGladrey principals to celebrate at NYC's elegant Gotham Hall.

60958_GACC_ACG 2/25/08 9:22 AM

M E M B E R P R O F I L E

2 9


and growth potential. Plans for the

New York Office include strength-

ening select practice areas such as

alternative investments, healthcare,

not-for-profits, among others, and

expanding banking, real estate, tech-

nology and other industry sectors.

According to Co-Leader Don

Lipari, one of the many benefits

GGK brought to the table was a suc-

cessful international and hedge fund

practice. “We will leverage this suc-

cess,” said Lipari, “to grow other

alternative investment practices.”

In addition, McGladrey’s banking,

real estate and technology practices

also benefit from the integration.

“We are actively investing in these

and other service areas with the

hiring of additional professionals

and associates to increase our client

services in these important indus-

try sectors,” continued Lipari.

Guests enjoyed music provided by

the Gramercy Brass Orchestra, cui-

sine provided by Between the Bread,

a leading New York caterer, and

ambience provided by Gotham Hall,

an ornate and historic former savings

bank rotunda located on Broadway.

RSM McGladrey Inc. is a leading

professional services firm providing

accounting, tax and business con-

sulting. RSM McGladrey operates

in an alternative practice structure

with McGladrey & Pullen LLP, a

partner-owned CPA firm that deliv-

ers audit and attest services.

Through separate and independent

legal entities, they work together to

serve clients’ business needs.

Together, the companies rank as the

fifth largest U.S. provider of

accounting, tax and business con-

sulting services (source: Accounting

Today), with 8,000 professionals

and associates in nearly 100 offices.

RSM McGladrey Inc. and

McGladrey & Pullen LLP are mem-

ber firms of RSM International, an

affiliation of independent

accounting and con-

sulting firms. RSM

McGladrey is the

official account-

ing, tax and

business consult-

ing firm of The

PGA of America.

The New York Office of

RSM McGladrey reflects the

knowledge, vitality and challenge

that is New York City. Recently

ranked by Crain’s New York Busi-

ness as one of the largest

accounting and consulting firms

in the New York area, we provide

a broad range of accounting, tax,

consulting, and business advisory

services to a variety of local,

regional, national and interna-

tional businesses and individuals.

As an alternative to the “Big

Four”, our structure is designed

for companies seeking expertise

comparable to the leading nation-

al firms and competitive fees.

Our partners attend closely to our

clients’ needs, providing proac-

tive, high-level service.

GAT

To learn more about McGladrey & Pullen,

please visit www.mcgladrey.com or contact

Markus K. Veith, CPA, Partner in the

Financial Institutions Practice of the

New York Office of McGladrey & Pullen,

at 212.856.4317 or at

[email protected]

AB

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CO

MP

AN

Y

McGladrey Co-Leader Don Lipari (left) and Director of International Assignment Services Practice

Marie Castronovo (right) toast the firm’s integration.

RSM McGladrey President Steve Tait (far right) poses with 3 guests at Gotham Hall.

GAT

60958_GACC_ACG 2/25/08 9:22 AM

1/25 Minnesota Chapter Maskenball

2/28 MN Chapter - Business Card Exchange

with Holtkötter International

1/15 Reopening of the German

American Chamber of Commerce

(GACC) Houston Office

F R O M T H E R E G I O N S

1/16 Free Brez’n at Uberstein

for the YEC Stammtisch

1/31 Annual Economic Forum

2/13 Thiedmann & Edler Breakfast

“Shift Happens” with Dr. Michael Thompson

GACC HighlightsJanuary & February 2008

• Retained Execu ve Search• Compensa on Consul ng• Board of Directors

Leading management consul ng firm with 30 years experience focusing on German business interests in the North, Central and South America.JRB&Company support services:

Boston781.229.5804

Chicago630.203.2120

Miami561.955.0012

60958_GACC_ACG 2/25/08 9:22 AM

F R O M T H E R E G I O N S

3 1


Chicago, IL

Houston, TX

Atlanta, GA

1/17 New Year’s Reception

and Luncheon at the University Club

2/5 YEC Seminar on “German Originality

- 400 Years of Germans in America”

with the German National Tourist Office

2/5-2/6 Green Power conference

on “Voluntary Carbon Markets”

2/7 Discussion and Luncheon

on “How the financial crisis affects German American

business relations” with Dr. Bernd Pfaffenbach,

Secretary of State in the Federal Ministry

of Economics and Technology

2/27 Trainee Fraternity enjoyed

an evening at the Apollo Theater

1/22 New Year’s Reception with new

members and VIP sponsors as well

as honoring long-standing members

2/5 YEC Event

“Super Tuesday” @ cbs46

2/26 After Hours Business Networking

sponsored by Hall, Booth, Smith & Slover

1/17 CBS3-Tour: News anchor Larry Mendte

welcomed guests of the international Chambers

1/30 Celebrating 325 Years of German immigration

to the U.S.: Special guests Dr. Jürgen Rüttgers,

Prime Minister of North-Rhine Westphalia,

and Gregor Kathstede, Mayor of the city of Krefeld.

2/28 Hax‘n Essen & Networking Event

Minneapolis, MN

New York, NY2/6 Inauguration of new joint

offices of The Representative

of German Industry and Trade

(BDI/DIHK) The German Aerospace

Center (DLR) The German Research

Foundation (DFG) Invest in Germany,

Guest of Honor State Secretary

Dr. Bernd Pfaffenbach with Bernhard

Welschke, Representative of German

Industry and Trade

Philadelphia, PA

Washington, DC

60958_GACC_ACG 2/25/08 9:22 AM

Atlanta

German American Chamber of Commerceof the Southern United States, Inc.530 Means Street, Suite 120

Atlanta, GA 30318

T 404-586-6800 F [email protected] • www.gaccsouth.com

Chicago

German American Chamber of Commerceof the Midwest, Inc.401 N. Michigan Avenue, #3330

Chicago, IL 60611-4212

T 312-644-2662 F [email protected] • www.gaccom.org

Houston

German American Chamber of Commerceof the Southern United States, Inc.Texas Office1900 West Loop S., Suite 880

Houston, TX 77027

T 713-629-8787 F [email protected] • www.gacctexas.com

New York

German American Chamber of Commerce, Inc. 75 Broad Street, 21st Floor

New York, NY 10004

T 212-974-8830 F [email protected] • www.gaccny.comEditor & Advertising Coordinator:

Nicola Michels • [email protected] 212-956-1770 F 212-974-8867

Philadelphia

German American Chamber of Commerce, Inc.Four Penn Center, Suite 200

1600 John F. Kennedy Blvd

Philadelphia, PA 19103-2808

T 215-665-1585 F [email protected]

San Francisco

German American Chamber of Commerce Inc.California Branch201 California Street, Suite 450

San Francisco, CA 94111

T 415-248-1240 F [email protected]

Washington, DC AFFILIATED ORGANIZATION

Representative of German Industry and Trade1776 I Street NW, Suite 1000

Washington DC 20006

T 202-659-4777 F [email protected] • www.rgit-usa.com

T R A D EG E R M A N A M E R I C A N

T H E M A G A Z I N E O F T H E G E R M A N A M E R I C A N C H A M B E R S O F C O M M E R C E

German American Trade is publishedmonthly except bimonthly in January andJuly by the German American Chamber ofCommerce Inc., 75 Broad Street, 21stFloor, New York, NY 10004.

Reproduction in whole or in part of anyarticle is prohibited without permission.

Unsolicited manuscripts cannot be returnedunless accompanied by a properly addressedenvelope bearing sufficient postage. Editorreserves the right to edit letters to bereprinted. Editor and publisher cannotaccept any liability for the accuracy or com-pleteness of any material published.Contributed articles do not necessarilyreflect the Chamber’s position. If you haveany comments regarding articles in thismagazine, please call 212-956-1770.

Application to mail periodicals postage ratesis pending at New York, NY and additionalmailing offices.

One Year Subscription: US$ 50 (Euro 50,-)

Single copy: US$ 5

U.S. postmaster send address changes to:German American Trade, 75 Broad Street,21 Fl., New York, NY 10004.

Office of publication: New York

Publication date of this issue: March 2008

© Copyright 2008 German American Trade

GAT Editorial Team

Nicola Michels GACC NY Editor

[email protected]

Barbara Afanassiev GACC NY, Philadelphia Branch

[email protected]

Stefanie Jehlitschka GACC South

[email protected]

Sabine Zimmermann GACC NY, California Branch

[email protected]

Janka Pieper GACC Midwest

[email protected]

Production

328 Commerce Street

Hawthorne, NY 10532

T 914-741-0445 F [email protected] www.thinkersdesign.com

60958_GACC_ACG 2/25/08 9:22 AM

Mar. 4

Energy Efficiency SymposiumSan Francisco, CA

Held by GACC CAwww.gaccsanfrancisco.com�

E V E N T C A L E N D A R

from Mar. 4th - Apr. 24, 2008Mar. 4

Business Seminar “Making your Website a Sales Tool”Atlanta, GA

Held by GACC Southwww.gaccsouth.com

Mar. 5

Roundtable Discussion and Reception with Bernhard Welschke, RGITColumbus, OH

Held by GACCoMwww.gaccom.org�

Mar. 6

YEC Event “The Power of Presentation”New York, NY

Held by GACC NYwww.gaccny.com

Mar. 6

International Green NetworkingAtlanta, GA

Held by GACC Southwww.gaccsouth.com

Mar. 19

YEC StammtischChicago, IL

Held by GACCoMwww.gaccom.org

Mar. 20

Siemens Open HouseCincinnati, OH


Mar. 28

Monthly Golf OutingAtlanta, GA

Held by GACC Southwww.gaccsouth.com�

Apr. 1-4

Energy Efficiency ConferenceHouston, TX

Held by GACC Southwww.gacctexas.com

Apr. 16

YEC StammtischChicago, IL


Apr. 4-6

Annual General MeetingHouston, TX


Apr. 14-17

Visit the GACCoM at SAE Booth 2636Detroit, MI


Apr. 24

Annual MeetingNew York, NY

Held by GACC NYwww.gaccny.com�

Apr. 19

First Tennis TournamentAtlanta, GA


Apr. 22

YEC After-Work Social MixerAtlanta, GA

Held by GACC Southwww.yecsouth.com�

Mar. 18

Annual Membership ReceptionPhiladelphia, PA

Held by GACC PHLwww.gaccphiladelphia.com

Mar. 11

International Green NetworkingHouston, TX

Held by GACC Southwww.gacctexas.com

Mar. 13

A Taste of Germany Gourmet DinnerAtlanta, GA


For all GACC Eventswww.ahk-usa.de

3 3


60958_GACC_ACG 2/25/08 9:23 AM

GAT: The markets still seem

extremely volatile; you work in

Wealth Management as a Smith

Barney Financial Advisor. Do

investors tend to over-react to this

roller-coaster ride?

HARRIET:Roller coaster? I prefer to

say that the economy moves in cycles,

first it is up, then down. I believe that

a flat economy is not such a good

thing. Investors need to recognize at

what stage in the boom/bust cycle we

are in and act accordingly. At Smith

Barney, we believe persistent prob-

lems in the housing and credit mar-

kets and their potential impact on

U.S. economic growth will continue

to cause volatility in the equity mar-

kets over the near term. With the

stock market down nearly 8% year-

to-date, stocks are cheap, good buy-

ing opportunities abound.

GAT: Which trends & challenges

do you foresee in the near future in

your industry?

HARRIET: In my industry of

wealth management, greater educa-

tion and understanding of an

investor’s situation is paramount. A

new type of working relationship

between financial

advisor and investor

is emerging, one where personal

experience combines with global

strength. We see a trend towards pro-

viding the broadest possible scope for

our clients’ financial lives. This is also

a challenge.

GAT: You have been a Director on

the Board of the German American

Chamber for one year now. How

do you see the role of our chamber

and how can our members benefit?

HARRIET: The GACC is a vital

resource to members. Today, accord-

ing to the ZEW Center for European

Economic Research, the German

Investor Confidence Index is at a 15

year low, yet the German economy,

which is the largest in Europe is now

recognized as one of the strongest.

The overall budget is balanced (feder-

al, state, local and social security) as

measured by the Maastricht criteria.

This is quite a curious paradox. The

GACC provides numerous venues

for prominent US and German busi-

ness people to discuss economic

news, exchange views and debate this

“Ugly Duckling Syndrome” of percep-

tion vs. reality.

Harriet P. Higgins is a financial advisor with Citigroup Global

Markets/ Smith Barney division. Since last year she has been serv-

ing on the Board of Directors at the German American Chamber

of Commerce New York. The GAT asked her about her perspective

on investor sentiment in view of the current market upheaval.

BO

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Harriet P. Higgins

Financial Advisor & Financial Planning Specialist

Citigroup Global Markets / Smith Barney Division

1-800-556-7008

[email protected]

Ugly duckling on a roller coaster?

A B O U T C I T I G R O U P

Citi, the leading global financial services company, has

some 200 million customer accounts and does business in

more than 100 countries, providing consumers, corpora-

tions, governments and institutions with a broad range of

financial products and services, including consumer banking

and credit, corporate and investment banking, securities

brokerage, and wealth management. Citi's major brand

names include Citibank, CitiFinancial, Primerica, Smith Bar-

ney, Nikko, and Banamex. Additional information may be

found at www.citigroup.com or www.citi.com

Smith Barney is a division of Citigroup Global Markets Inc. Member SIPC

GAT

B O A R D T A L K

3 4


60958_GACC_ACG 2/25/08 9:23 AM

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Individual care to see you through arrival.

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60958_GACC_ACG 2/25/08 9:23 AM

German American Trade

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