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Financial Solutions 

Debt Re-Structuring

Lately, it seems too many executives and leadership teams have been forced into spending a majority of their time focused on cash.  Traditional lending institutions' over exaggerated fear of the building industry, have made capital raising so complicated and specialized, it is difficult for any executive team to find the time to become overnight experts and avoid being distracted by this sole topic every day.  As an extension of our Private Equity arm, Misura Group is pleased to announce a way we can help companies create Debt Re-Structuring options through leveraging those financial relationships.

As the current economic status has most of the traditional banks somewhere between uncomfortable and panicked, we are delighted to be in a position to provide options.

Our ability to reach over 300 private and innovative banking investors outside of your immediate network, who see this as an opportunity to invest capital and replace existing banking lines, provides a depth of resources that is beyond the normal reach of most company's financial relationships.  Arming our clients with Wall Street financial acumen combined with over 20 years of building products industry understanding is another key to success. Our goal is to help companies prepare in advance, develop the financial memorandum, and partner with you to negotiate the terms on your company's behalf.  Our team has developed a process to effectively communicate to the financial world a realistic view of the risk associated without the over dramatization and the upside opportunity. Knowing in advance what information the investment world expects and how to present it in a comprehensive tailored book has been successful.

No matter the size of your company, to learn more about your options please contact Tony at 612-326-3006.

In recent newsletters we introduced Steve Schroeder, an Executive Benefits Specialist and owner of Incentive Compensation Alternatives, Inc.  Starting this week, we will be highlighting various financial questions and options for leadership teams and owners.

What is an ESOP and its benefits?

Would an ESOP (Employee Stock Ownership Plan) be an advantage to your firm's owners and employees?

  • ESOP's are qualified retirement plans replacing or supplementing your firm's 401(k).
  • ESOP's have substantial tax incentives for the firm, the owners and the employees: 
    1. C Corporation owners selling some or all of their stock to the firm's ESOP pay no capital gains tax on that transaction if done correctly.
    2. As the ESOP repays principal and interest on the loan it may have taken out to buy the owner's stock, it does so with pre-tax dollars.
    3. That portion of an S Corporation owned by the ESOP pays no Federal or State income tax on its ongoing corporate profits.
    4. The employees have all the advantages of a 401(k) plus their ESOP Trust allocates the firm's stock to their account as the loan is paid off.  There is no income or capital gains tax as the employees accumulate that stock.
    5. The ESOP Trustee, not the employees, vote the stock owned by the ESOP.  That Trustee, utilizing careful fiduciary responsibility, can be the firm's old owner.
  • ESOP's are not for every firm.  They are relatively expensive to set up and to administer (all with tax-deductible dollars) and providing the benefit to the employees must be paramount in the firm's culture and the administration of the ESOP. 

For more information, you may contact Steve Schroeder via email at Schroeder.Steve@Princor.com.

 

 

Sincerely,

 
Misura Group

612-326-3006

info@misuragroup.com 

In This Issue
Debt Re-Structuring
What is an ESOP?
From the Library...
Featured Professionals
 
 
Recommended Reading
  
 

 

 

 

 

Featured Professionals

 

Steven W. Schroeder,

CLU, ChFC, MAAA

President of Incentive Compensation Alternatives, LLC

~Steve specializes in Selective Executive Benefit Programs

Email Steve

 

 

Margie Peskin

Owner Search Forward

~Margie provides resume writing and job search coaching www.search-forward.com

 

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