Negocios Now

www.negociosnow.com Diciembre 2013 15 negociosnow negociosnow By Clemente Nicado T he meteoric rise of entrepre- neur David Hernandez began with bad news in December 2001, when his energy industry employer filed for bankruptcy. The Cuban immigrant used the oppor- tunity to finish the business plan for what would eventually form Liberty Power. The company he co-founded with Alberto Daire was born in an adverse environment. In the wake of the 9/11 terrorist attacks, the country was suffering from a credit crisis, growing unemployment, a volatile energy market, and widespread economic uncertainty. It was hardly an ideal time to start a business, but Hernan- dez and his partner remembered the phrase, "No hay mal que por bien no venga," or, as they say in English, "Every cloud has a silver lining." The insight he gained at his former employer helped him spot oppor- tunity and gave him the experience needed to meet future challenges successfully. "At that company I lear- ned about the deregulation of the energy industry and how firms were fighting to eliminate the monopo- ly that existed in one of the most important economic sectors: the energy sector," Hernandez recalls. Working in the company's who- lesale and retail electrical services trading division, he realized there was a market niche that wasn't being adequately served within the highly competitive energy industry. "While other companies within the industry went after large-scale customers, no one was providing service to small and mid-sized customers," he says. This was the logic that drove the creation of Liberty Power, a leading Hispanic enterprise that provides electricity to businesses, government agencies and consumers nationwi- de. Headquartered in Fort Lauderda- le and with an office in Chicago, its 2012 revenue exceeded $700 million. The co-founder and CEO of Liberty Power immigrated to the United States as a young boy, and he shared his parents' enthusiasm for the potential this country offered. But he soon learned that an entre- preneurial spirit was not enough; he also would need to study. His moti- vation earned him the distinction of being the first in his family of seven siblings to finish college. Hernandez graduated magna cum laude from Palm Beach Atlantic University in Florida with a bachelor of science degree in accounting and earned an MBA from New York University — all before undertaking his electrifying business venture with Alberto Daire, president of Liberty Power. What specifically does Liberty Power do? Liberty Power is a retail electricity supplier, which means we supply electricity to end-user consumers in restructured or deregulated energy markets where consumers can shop for their electricity supply like any other product or service. We work with the local distribution company to deliver our customers' electricity over the utility's poles and wires. In most markets the customer still receives one bill separated into two main parts – supply and delivery. The supply portion is what they pur- chased from Liberty Power, while the fees for delivery service go to the local distribution company (Con Ed in the Chicago area). Can you explain the reasons behind your company's success? Liberty Power is an entrepreneu- rial company. Our competitive edge is our nimbleness which sets us apart from our competitors, many of which have parent companies in the Fortune 500. As the company continues to grow, we continue to maintain a small business atmos- phere where we can quickly shift resources and focus in order to capi- talize on opportunities that arise across our national footprint. Lar- ger companies are often set in their ways and don't react and evolve as quickly as Liberty Power. What were the greatest challenges Liberty Power faced, and what are the biggest challenges of today's marketplace? We faced many challenges over the years, from risking every cent we had to start the business to discove- ring additional obstacles along the Courtesy David Hernandez, co-founder of Liberty Power, recognized as largest independent retail elec- tricity provider in US and the largest US Hispanic owned company in 2013. opportunity sparks creation of the nation's largest independent retail electricity supplier www.negociosnow.com Febrero 2014 15 negociosnow negociosnow www.negociosnow.com negociosnow negociosnow perfiles perfiles Febrero 2014 Pág. 15 David Hernandez: From Cuba to Liberty Power pasa a la página 16 • Recognized as Largest Independent Retail Electricity Provider in the United States by KEMA • Ranked #1, Largest US Hispanic‐ Owned Company in Energy Industry by Hispanic Business in 2013 • Ranked #9, Largest US Hispanic‐ Owned Company by Hispanic Business in 2013 • Finalist, 2013 Ernst & Young Entrepreneur of the Year® for Florida • Named 2013 Minority Retail Energy Firm of the Year Award by the U.S. Department of Commerce's Minority Business Development Agency (MBDA) • Recognized as part of inaugural class of Inc.'s Hire Power Awards honorees for job generation in 2013 • Ranked #5, Largest Private Job Creator in Energy Industry by Inc. in 2012 • Ranked #8, Largest Private Job Creator in Florida by Inc. in 2012 • 2011 MBE Supplier of the Year Award from the Southern Florida Minority Supplier Development Council (SFMSDC) • Finalist, 2010 Ernst & Young Entrepreneur of the Year® for Florida • 2009 Supplier of the Year Award in Energy from Frito‐Lay, a division of PepsiCo (awarded in 2010) • Ranked #3, Largest US Hispanic- Owned Companies in Retail Industry by Hispanic Business in 2009 • Ranked #21, Hispanic Business 500 in 2009 • Ranked #1581, Top 5000 Fastest- Growing Private Companies in America by Inc. in 2009 • Ranked #462, Top 500 Fastest‐ Growing Private Companies in America by Inc. in 2008 • Bill Alcorn Supplier Diversity Award from JC Penney 2008 • 2008 BRAVO Award for Diversity Best Practices from the US Hispanic Advocacy Association • Designated #1 Fastest Growing Hispanic‐Owned Business by Hispanic Business in 2007 LIbErTy PowEr AwArDS & ACCoMPLIShMENTS

• Cover