Two partners of a tech savvy private equity (“PE”) firm acquired complementary businesses. Then, the PE realized that unequal contributions to the respective qualified plans put the entire roll-up at severe risk.

• We explained to the PE the obscure math of ERISA non-discrimination testing rules and the consequence of testing failures.
• We explored the IRS limits on the maximum “disparity” related to profit sharing contributions attributable to highly and non-highly compensated employees.
• An arcane problem required an arcane solution, namely the rarely used Qualified Second Line of Business (“QSLOB”) strategy across the qualified plans.

A $100M healthcare tech firm was facing significant risk of talent drain post-Covid. Industry norm bonuses and incentives threatened the firms’ financial health and possible reduced return for shareholders.

• Navigating a delicate human capital company history, we helped identify key “metrics that matter” along with a tracking mechanism over a pivotal strategic period.
• Our custom scenario modeling was instrumental in crafting a “share the upside” nuanced synthetic equity solution tied to metric-driven sizing and payout flexibility.
• The design offered a significant pay for growth with self-correction for owner protection against surprises. Key talent was empowered for massive growth opportunities.

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.

CRN-6216738-011224