2020 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 2020

Creating a Transferable Business

A 60 year-old founder of a $45M construction firm was in search of leadership and capital succession. We explored strategic incentive alternatives centered on the top three executives, selecting ESOP as a preferred exit strategy.

  • Via a feasibility study, the parties agreed that an ESOP structure presented a highly competitive offer and terms compared to a possible outside sale.
  • We helped with comprehensive ESOP deal shaping including the use of warrants: 20% upside to the founder and 10% upside to the executives.
  • We leveraged tax, gifting and estate planning strategies to achieve multi-generational and asset protection objectives (inclusive of company shares and warrants).

RESULT | All stakeholders benefit from robust owner planning

Strategic Alignment Where it Matters

Following a major strategic transition, a founder of a $60M GovCon was looking to transform its exec comp initiatives for next phase of growth, with low friction but high visibility and accountability for the team.

  • We formulated a combination plan of cash incentives and synthetic equity ownership, turning around from the complicated 409A tax issues of the existing plan.
  • We fostered strategic alignment via instituting critical “metrics that matter” – thereby raising visibility and core tenants of long term value creation.
  • With comprehensive estate and financial planning, the founder and key executives were able to execute a new approach to stewardship and succession for the firm.

RESULT | True alignment spanning strategic metrics to succession

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.