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2019 Year-end Summary to clients, partners and friends

Strategic Incentives - Leadership, Ownership, Stewardship
Leadership - How Do We Scale
  • Long Term Incentive Plans
  • Synthetic Equity
  • Change in Control Bonus Plans

  • Nonqualified Deferred Comp

  • Qualified/401(k) Plans

Ownership - How to Be Resilient
  • Buy-Sell Agreements
  • Entity/Ownership Structure
  • Profits Interest
  • Restricted Stock & Options
  • Sales to Insiders/ESOP
Stewardship - How to Harvest
  • Succession Planning
  • Retirement Planning

  • Estate/Charitable Strategies

  • Risk Management

  • Investment Planning

We Are Proud to Share Two of our High-Impact Assignments for 2019

Comprehensive Owner Planning

Founders of a $50M GovCon services firm sought three different succession paths: immediate cash out, grow & sell, and a perpetual entity. We mitigated many related conflicts via a dual-track succession planning.

  • Foundationally, we assessed and confirmed each family’s very different succession readiness.
  • We modified a “fair” entity structure via a internal redemption plan, stock options and a purchase price adjustment thereby right-sizing payouts to each owner across different scenarios including future sale.
  • We program-managed the entire 9-month project across valuation, estate planning, tax-reduction, leadership succession and third-party sale evaluation.

RESULT | Succession roadmap resolved deep owner conflicts

Talent Retention to Drive Maximum Value

Institutional Investors of a $300M financial technology (FinTech) firm sought a resilient incentive design to attract and retain top industry talent through an eventual sale at maximum company value.

  • Amid a complicated and nuanced ownership structure, we offered a welcome visibility to execs and owners via rigorous scenario analysis around payout triggers.
  • We facilitated decision-making process in designing a unique value share structure with gradually rising pool allocation with min/max, based on level of sales proceeds.
  • The unit-based synthetic equity plan with fully committed grant provisions fit the company culture and harmonized stakeholders, hailed by senior leadership as a life saver.

RESULT | A “Life Saver” retention plan helped enable a $2+ Billion exit

Harmonizing the Capital of Business and Life® Bring Us Your Questions.

The BOLD Value Service Line is Dedicated to the Specific Needs of Middle Market Business Owners. Mark Bronfman* and his BOLD Value team members are registered Representative of Lincoln Financial Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker/dealer. Member SIPC. Investment advisory services offered through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. The BOLD Value trademark is personally owned by Mark Bronfman. This article is intended for privately held companies and is not intended to address taxation or policy related to publicly held companies. Bold Value is a marketing name for registered representatives of Lincoln Financial Advisors Corp.

* Licensed, not practicing.

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