Business owners spend years, and in many cases decades, building their companies. These businesses are often not only their largest asset but a major component of their identity. Legacy, for one’s family, one’s employees, and one’s community, is a major factor for many business owners. The decision to monetize a business can feel like “the end”, the tax bills can be eye popping, and the ongoing stewardship of the company is less certain as new ownership takes the reigns.
An Employee Stock Ownership Plan (ESOP) can be an attractive liquidity strategy for the right company, business, and set of employees.
The ESOP transaction can achieve significant tax benefits for selling shareholders, serve as an economic driver for employees, and allow a business owner to structure an “extended hand off” of their business.
All that said, ESOPs aren’t right for every company, come with some level of complexity, and typically involve debt as a key component of the transaction.
EPI Greater Philadelphia has assembled a panel of entrepreneurs who’ve successfully executed ESOP transactions for their companies. These business owners are willing to share their stories, what went right, the challenges that arose, and what they might do differently this time around.
Learning Objectives:
- How does an entrepreneur begin examining their exit options?
- What advisors are involved in the exit planning framework? What traits make a business an attractive candidate for an ESOP.
- How does the transaction work? What are the tax benefits?
- How are key executives and employees factored into the ESOP effort.
- What is it like running an ESOP-owned company?
- With hindsight, how would these successful entrepreneurs change their transactions?
About the Presenters:
Hear from industry experts Ronald Bauguess, Executive Vice President and Partner, The Tri-M Group LLC.; Dave Krysiak, Chairman of L & M Distribution and Logistics; Richard Futterer, Vice President/Partner at Forcine Concrete and Construction Company; Ann Bowman, Chief Financial Officer at Forcine Concrete & Construction Co., Inc.; Charles Higgins, CFA, Managing Director at Centri Business Consulting; and moderator Charles R. Kedra, CFP, CEPA, AIF, Wealth Advisor and Partner, FPA Wealth Management.
Thank you to our Sponsors
Event Location
Event Details
Who Should Attend?
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Wealth Managers
You’re a skilled relationship person. Being entangled into your clients’ professional lives matters as you build a strategy to manage their wealth upon them harvesting it from their business. Exit planning allows you to build a deeper relationship with your client, expands your COI network, while giving you an early seat at table well before the liquidity event.
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Attorneys
You have close relationships with clients, and can benefit from being the first advisor to introduce the idea of exit planning.
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CPAs/Accountants
Owners participating in the State of Owner Readiness research continue to indicate that you are the No. 1 "Most Trusted Advisor." You are a natural fit to lead the exit planning team and deepen your relationship (and retention) of next generation owners.
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Financial Advisors
One of the critical ‘legs of the stool’ is personal financing planning. An owner must have a strong financial plan & contingency plan post-transition to enable them to thrive in the next act of the lives personally and financially. Exit planning brings this future mindset into the present. Exit is now.
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Valuation Analysts
Valuation is both a billable engagement AND an opportunity to provide owners some perspective on how to accelerate value drivers (and deal with value killers). Use exit planning to make that valuation into a longer term value acceleration engagement.
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Investment Bankers
Only 2 of every 10 businesses that come to market actually sell. Learn how exit planning can bring attractive AND ready business to your purview.
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Estate Planners
Exit planning is a natural fit for estate planners who want to operate more holistically with their owner clients.
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Strategic Consultants
One of the most critical roles in exit planning is building transferable value. Strategic consultants have the ability to expand options and drive rapid business value that affect performance today.
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Insurance Professionals
Exit planning addresses the 5 D's. So do you. Approach the risk conversation differently with exit planning.
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Mergers & Acquisition Advisors
Proper exit planning causes less deals to fall through at the last minute. Connect with CEPAs to build your healthy deal flow network.
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Commercial Lenders
One of the best relationships a business owner makes is with their banker. How can you help your corporate clients think about the future and ensure financial continuity? Answer: exit planning.
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Family Business Advisors
More than 50% of lower middle market business owners would prefer to transition to the next generation. Help them succeed with exit planning strategies.
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Other Professional Advisors
Regardless of your unique specialty, there is seat at the exit planning table for you. Learn more at www.EarnCEPA.com.
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Private Business Owners
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Professional Advisors
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Members of Family Business Boards
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Other Business Professionals
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Business Consultants
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Business Owners & Their Trusted Advisors
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Business Owners
EXIT PLANNING IS GOOD BUSINESS STRATEGY
The Exit Planning Institute, provides Financial Advisors, Accountants, Consultants, and other advisors of business owners with the critical education to differentiate themselves and add value to their existing client relationships through a credential, conference, courses, and content. Download the CEPA brochure for more information.
ABOUT THE PRESENTER
Meet Charles Kedra:
As a CFP® and CEPA®, Chuck has been helping successful families and businesses achieve their financial goals for 30 years. Chuck has had a diverse career in the financial services marketplace.
He holds a BS degree in accounting from the University of Scranton and an MBA from Penn State University. He achieved his CPA designation and worked for Arthur Andersen and J.P. Morgan. In 1992 he began his career as a financial advisor with New England Financial and completed his MBA during that time. In 2004, Chuck joined Legacy Planning Partners as a founding partner and over his 13-year tenure, he helped grow the firm from 7 advisors in two offices to 21 advisors in three offices with over $1 billion in assets under management. In 2018, Chuck joined FPA Wealth Management as a senior wealth advisor and director of exit planning services. This move was designed to achieve greater independence and access to resources to better serve the unique needs of his clients.
FPA Wealth Management has built a goal-driven and planning-focused model for helping clients. This model emphasizes the delivery of objective advice. This goal-driven approach allows us to give advice that extends beyond investments and financial markets. We serve as financial planners and problem solvers. We focus on the big picture not the daily headlines. Building a diversified investment portfolio is easy. Building a financial plan that asks the right questions and listens to the answers is tough. Pulling everything together to create a customized strategic plan is even tougher.
David Krysiak is an investor and entrepreneur, currently serving as Chairman of 2 ESOP owned companies.
Krysiak co-founded a used textbook company during his sophomore year at Cornell University and became the sole owner in 2005. Under his direction, the company grew to serve 800 campuses across the US and employed 2000 independent contractor book buyers. After stepping down from his operational role in 2013, Mr. Krysiak became a full time investor. Some of his investments include positions in residential real estate, industrial real estate, health care, warehousing and transportation, temporary staffing, and others.
Ron began his career with Tri-M as an apprentice electrician. Within the next few years, he became a journeyman electrician and transitioned to the High Voltage team. Ron’s electrical knowledge and leadership ability propelled him to the position of Project Manager, and then to General Manager for the entire Electrical Construction team in Kennett Square. In January 2016, he became a partner in Tri-M and Executive Vice President. Ron has served as Chairperson of the Eastern Pennsylvania Chapter of Associated Builders and Contractors (ABC) and served on the Board of Directors for the Chester County Chamber of Business and Industry as well as the Board of Directors for the Southern Chester County Chamber of Commerce.
Rich joined the Forcine Concrete and Construction company in the early 1980’s as a summer employee and has been in the construction industry ever since. Upon graduation from Bloomsburg University, Rich continued to work at FCC as the company expanded. He became a company partner and oversees all aspects of Business Development supervising Project Estimation and Management working with building owners, developers, and contractors.
Charles is a managing director at Centri Business Consulting with more than 30 years of experience providing valuations, fairness opinions, and solvency opinions in connection with ESOPs, going private transactions, spin-offs, related-party transactions, and restructurings. He is a CFA Charter Holder and received an MBA with concentrations in finance and information management from the University of Texas at Austin and a BS in business administration from Rider University.