Glens Falls Business Journal

Business Report: Increase Value With Commercial Due Diligence

June 17, 2021

Patrick Farrelly is a managing director with UHY Advisors.

By Patrick Farrelly

You are evaluating a target company that had higher than normal revenue growth in 2020. The target company presents you with a five-year forecast that maintains the above average growth experienced in 2020.

Is the target company’s spike in growth a one-time outlier event or is the growth sustainable? This is a common question many private equity firms currently face following a volatile 2020 business environment.

The answer to this question is critically important since it impacts the target company’s valuation and your firm’s return on investment.

The prior example highlights the importance of the buy-side due diligence process given the uncertainties in today’s market. In the past, your firm may have engaged a third party for only financial due diligence (or quality of earnings – Q of E). However, complementing your financial due diligence with commercial due diligence can help mitigate deal risk, increase return on investment, and improve deal structure and price.

What is commercial due diligence?

The goal of commercial due diligence is to assess the growth and profitability potential of your target company. Target companies’ future financial forecasts often project high growth and profitability over the buyer’s planned holding period. Commercial due diligence helps to validate the assumptions driving your target’s financial forecast.

Business Report: Why You Should Pay Attention To Inflation

June 17, 2021

Rick Schwerd, vice president, senior investment officer, Arrow Financial Corp.

By Rick Schwerd

There’s a lot of talk about inflation, but truly understanding its impact can help you plan for the long term. Let’s take a closer look.

What is inflation?

Going back to basics, inflation is the increase in the average cost of goods and services over time. We see this at play in our daily lives. The cost of a loaf of bread in 1990 was 75 cents, $1.99 in 2000 and $2.99 in 2010. Inflation can be a positive or a negative. We all like to see inflation in our wages. It’s a different story at the gas pump or with our grocery bill.

Fast-rising inflation, or hyperinflation, can devastate an economy as money becomes less valuable, goods are hoarded or become scarce, and demand escalates prices. On the other hand, deflation is also a negative, as consumers are rewarded with lower prices for delaying purchases. Consumer demand drops and economic activity falls, creating a harmful downward spiral.

How is inflation measured?

The Consumer Price Index (CPI) is the most common measurement of inflation. Compiled by the Bureau of Labor Statistics, CPI tracks the change in the cost of consumer goods and services, such as vehicles, food and housing. One of the Federal Reserve’s mandates is to maintain stable prices. This has been defined as an average inflation rate of 2 percent annually.

How does inflation affect your savings and investments?

Business Report: Everyday ABCs Of Leadership

June 17, 2021

Wendy Waldron, the owner of Waldron Works, is a Professional EOS Implementer®.

By Wendy Waldron

As we build the new normal and reconstruct our economy, let’s take a moment to get back to the basics. Whether you are an owner, foreman, manager or director, there are three things that every leader needs to be doing to make the most of every day. Bring the ABCs to the jobsite.

A – Avoid Busy-ness.

“Quick, look busy, here comes the boss.” It’s so classic it’s almost a cartoon, and yet most of us fall into this trap of “busy-ness” on a regular basis. Is it enough to “keep the guys working?” Well, are they doing profitable work? What do you really know about an office worker’s “production” by walking by their desk? When so many switched to work from home, did you lose a sense of knowing what they were doing?

Do you know what drives the profit in your business? What key activities should be done each week and who is responsible for accomplishing those actions?

You need information now, not at the end of the quarter. Maintain a weekly scorecard listing the priority activities, the goal, and who is responsible for making them happen.

B – Boss Mode.

You are not leading a social group or choosing a restaurant for dinner. It’s important to make your expectations known. Imagine that you are coaching a basketball team. It’s your job to clarify the rules of the game. Do you really want all of the players running together in a pack playing offense and defense simultaneously? How can your team deliver if they don’t know exactly what’s expected?

‘Winklepickers’ In Lake George Is A Shop That Has Gifts, Home Decor Items And More

June 17, 2021

From left, Dave Dutra, Rachel Dutra, and Jeremy Iaquinto own and operate Winklepickers, a shop that has gifts, home decor, spices and more on Canada Street in Lake George.
Andrea Harwood Palmer

By Andrea Harwood Palmer

A new variety store, Winklepickers, has opened at 204 Canada Street, Suite 8, in Lake George.

The shop is owned and operated by Rachel and Dave Dutra, and Jeremy Iaquinto.

The Dutras also own and operate Rachel’s Spice Co. & Café in Glens Falls.

Iaquinto also owns Barn & Brick Co. in Queensbury, which features repurposed and newly built items for décor and collection.

The Winklepickers space, located at the end of the Village Mall in Lake George, was completely renovated. Iaquinto and Dave Dutra built everything in the shop. Most of the storage and display pieces are built from vintage cabinetry, ladders and other repurposed items.

The shop features a wall of jerky, local art, new and vintage home décor, Lake George souvenirs and gifts, and an exhaustive collection of teas and spices from Rachel’s Spice Co. The company is working on adding gourmet popcorn and gourmet popcorn spices.

Rachel Dutra said the name for the business was inspired by a particular type of shoe, called a winklepickers, worn in the 1950s by British rock and roll fans. The shoe was made popular by the Beatles.

WorkSmart Moves Offices And Services Hub To Glen Street In Downtown Glens Falls

June 17, 2021

Christy Alexander, owner of WorkSmart, reviews office renovation plans with Fred McAvey of V&H Construction, which did the renovations for the new location.

by Andrea Harwood Palmer

Christy Alexander has moved WorkSmart to 237 Glen St. in Downtown Glens Falls.

Alexander is the sole owner of WorkSmart, and the anchor tenant for the historic 1914 building.

The structure most recently housed the downtown branch of TD Bank.

WorkSmart was previously housed in the Homestead Funding building on Warren Street near the traffic circle. When Alexander was initially searching for a new space for WorkSmart, 237 Glen St was for sale. She said she immediately saw the possibilities. With the vast amount of space, she felt the need to further validate the business idea before risking the investment.

“After testing the market and gaining traction, I began to dream bigger,” said Alexander. “We began to explore the opportunity to bring new life to the old lobby.”

V&H Construction was the general contractor on the renovations.

Alexander said planning the new space was a collaborative effort, with WorkSmart members giving feedback and insight throughout the process.

Alexander said the new space will impact existing and prospective clients tremendously.

“Offering fully furnished private offices with a premier business address will elevate our clients’ businesses,” she said. “Frictionless access to client meeting spaces makes it easy to project a professional image to clients. Creative spaces make these kinds of resources accessible with minimal investment.

Erbessd Instruments, Vibro-Laser Move Into Building In Downtown Glens Falls

June 17, 2021

By Lisa Balschunat

For six years, CEO Michael Howard ran his industrial equipment monitoring sensor businesses out of his home. First it was in South Glens Falls, then Queensbury. Now he is able to move his business to space at 19 Exchange St. in Glens Falls where he plans to cultivate business roots for years to come.

His two companies, Erbessd Instruments Technologies Inc. and Vibro-Laser, make equipment that assists over 2,000 clients worldwide in monitoring vital equipment, machines and engines, for companies and educational institutions including Aircoil, Amazon, Google, Harvard University, Halifax Fan, McGill University, Pfizer and the U.S. Navy.

Erbessd Instruments also supplies several local manufacturers in Warren, Washington and Saratoga counties.

“It’s hard for me not to geek out when I talk about the business and our capabilities,” he said. “Also, to be grounded in downtown Glens Falls is great. There’s a lot happening here and we want to be a part of it.”

There is presently ample space in Erbessd’s new location for its technical labs, think tank space, creative offices, teleconference center, shipping and additional square footage to accommodate future growth. Erbessd leases the 2,500-square-foot building from Patten Property Development with a future option to buy.

Erbessd Instruments, with its patented, compact high-tech sensors, diagnoses equipment and machines remotely before they become a problem, malfunction or create catastrophic damage or loss.

The company offers vibration analysis and monitoring, equipment balancing, on line monitoring systems, wireless triaxial accelerometer that are cloud based and universally adaptable, as well as sort-bearing suspensions for balancers, dynamic balancing machines and laser alignment systems.

Businessman Buys Adirondack Diamond Point Lodge; Renovations Are Ongoing

May 17, 2021May 17, 2021

Adirondack Diamond Point Lodge has been purchased by Todd Drake.
Courtesy Adirondack Diamond Point Lodge

By Christine Graf

Todd Drake, owner of Watervliet-based Cornerstone Building Corp. and Empire Real Estate Management, recently purchased Adirondack Diamond Point Lodge in Diamond Point for $900,000.

The 2.8-acre vacation property is located approximately three miles north of the village of Lake George and includes both cabins and traditional lodge suites. On-site amenities include a heated pool, fire pits, tiki bar cabana, basketball court, ping pong, shuffle board, a playground and an indoor recreation room.

Drake owns other cabin-style resort properties and an RV campground and first became aware of Adirondack Diamond Point Lodge almost 20 years ago. At the time, one of his business partners was involved with the property.

“He left that property several years ago, and when it came for sale, I thought it was a good time to get involved myself. I was familiar with the property and always enjoyed it. I do a lot of business in the Adirondacks with other types of lodging. I’ve always been interested in working in the Lake George area.”

According to Drake, the property caters to families. The cabins and suites are large. It is far enough from the village to be off the beaten path but close enough to allow guests easy access to the village.

“It’s in a relaxed setting in the trees, and it’s only eight minutes from village. In my view, it’s the best of both worlds. You’re out of the asphalt jungle, but you can go down and visit and go to the beaches and stores and attractions. It’s on the trolley stop, and it’s also close to Bolton Landing.”

Area Hospitality Industry, Restaurants Are Struggling To Find People To Fill Jobs

May 17, 2021May 17, 2021

Many employers throughout the region are having a hard time finding people to fill jobs.

By Susan Elise Campbell

Adirondack Regional Chamber of Commerce CEO and President Michael Bittel has noted that “when the time is right and we are fully open again, people will get out again locally and spend money to support our region.”

Vacationers appear to be ready, as are locals who want to enjoy summer at the lakes, resorts, restaurants, shops and venues in the North Country. But it will be difficult for businesses to post profit this season, according to people in the hospitality and retail industries, without adequate staff to serve consumers.

“It’s not just Lake George. Hiring is a problem across the country,” said Gina Mintzer, executive director of Lake George Chamber of Commerce.

The region had low unemployment going into the pandemic, Mintzer said. Now the demand for workers greatly exceeds the supply. The reasons include changing family schedules, safety fears, fewer immigrant worker visas, bigger unemployment checks and transportation gaps, said the experts.

“Families are juggling fluctuating work schedules,” said Liza Ochsendorf, director of Warren County Employment & Training Administration. “This doesn’t allow parents to have a consistent routine with work, school and child care.”

Adirondack Thunder Will Play 72-Game Schedule; First Home Game Set For Oct. 23

May 17, 2021May 17, 2021

The Adirondack Thunder will play 72 games for the 20-21 ECHL season.
Courtesy Adirondack Thunder

The Adirondack Thunder, the ECHL affiliate of the New Jersey Devils, have announced the schedule for this upcoming season.

The 72-game campaign features two trips to St. John’s, a voyage to Idaho and three out-of-division opponents making a visit to Cool Insuring Arena.

This season also introduces Trois-Rivières to the North Division, an opponent that the Thunder will face eight times in 2021-22.

Officials said the schedule is subject to change. It is as follows:

October

Saturday, Oct. 23 vs. Newfoundland, Cool Insuring Arena, 7 p.m.; Wednesday, Oct. 27 vs. Worcester, Cool Insuring Arena, 7 p.m.; Saturday, Oct. 30 vs. Reading, Cool Insuring Arena, 7 p.m.

November

Friday, Nov. 5 @ Newfoundland, Mile One Centre, 7 p.m.; Saturday, Nov. 6 @ Newfoundland, Mile One Centre, 7 p.m.; Sunday, Nov. 7 @ Newfoundland, Mile One Centre, 4 p.m.; Friday, Nov. 12 vs. Utah, Cool Insuring Arena, 7 p.m.; Saturday, Nov. 13 vs. Utah, Cool Insuring Arena, 7 p.m.; Sunday, Nov. 14 vs. Utah, Cool Insuring Arena, 3 p.m.; Wednesday, Nov. 17 @ Idaho, Idaho Central Arena, 9:10 p.m; Friday, Nov. 19 @ Idaho, Idaho Central Arena, 9:10 p.m.; Saturday, Nov. 20 @ Idaho, Idaho Central Arena, 9:10 p.m. Wednesday, Nov. 24 vs. Newfoundland, Cool Insuring Arena, 7 p.m.; Friday, Nov. 26 vs. Worcester, Cool Insuring Arena, 7 p.m.; Saturday, Nov. 27 vs. Maine, Cool Insuring Arena, 7 p.m.

Amy Potter Hired By EDC Warren County As Marketing And Communications Director

May 17, 2021May 17, 2021

Amy Potter was previously corporate contributions director for Stewart’s Shops.
Courtesy EDC Warren County

By Lisa Balschunat

EDC Warren County has hired Amy Potter, formerly of Stewart’s Shops, as its marketing and communications director.

The EDC has been strengthening its staff over the past year in the wake of the death of its long-time president, Edward Bartholemew, in 2020. Last July, Jim Siplon, former CEO of JUST Water, was named interim president and CEO. In March he was made permanent in those roles.

Potter has been tasked with assisting in “retaining, growing and attracting business to Warren County,” an ongoing purpose of the EDC.

“I am looking forward to connecting with the EDC’s 100 members and future members in the coming months.” Powers said. “I see the potential for growth on several levels, especially with key initiatives in the investment in broadband, housing and infrastructure improvements that drive economic growth.”

Powers said she will be reaching out to members “to discuss initiatives that work for their businesses.. I’ll be managing our social media on Facebook, Instagram and LinkedIn, and I’m looking forward to learning about area professionals who are sharing their relocation stories on the EDC blog, ‘The Upside.’”