Client Pictured:
Kauffman Tire

 Pictured above is Mark Kauffman, President of 

Kauffman Tire, with 

his banker, Sandy Bowen, Senior Vice President.

  

Why Atlantic Capital?

"At Kauffman Tire, we know that business is about people and building strong relationships," says Mark Kauffman. "No matter what kind of products or services you sell, you should always be focused on people. Atlantic Capital has the same mindset. Sandy Bowen and his team have been responsive and accessible. When helping us evaluate our financing options, they looked at us as a company, not just as numbers on a page. They helped us to successfully gain the financing that we needed to continue to grow and expand."

 

Juan Lago Joins ACB as SVP of Specialized Lending
 Juan F. Lago
SVP, Specialized Lending
 
Atlantic Capital Bank is pleased to welcome Juan Lago to the Corporate Financial Services Team. Juan
is an expert in the Atlanta small and emerging growth business market, and his addition signifies the inception of Atlantic Capital's Small Business Administration (SBA) lending program. 

 

"Juan has broad experience in the SBA lending segment and is extremely knowledgeable about the strict rules and regulations of this government program," says Kurt Shreiner, EVP of Corporate Financial Services. 

Please contact Juan at 404.995.6095.
 
Catch us on WSB
 Atlantic Capital Bank sponsors the Closing Bell report on WSB radio (95.5FM and AM750). Listen at 6pm weeknights to hear a message from Doug Williams and other members of the Atlantic Capital Bank leadership team.
 
Contact Us
Atlantic Capital Bank
3280 Peachtree Road NE
Suite 1600
Atlanta, GA 30305
404.995.6050
atlanticcapitalbank.com

Atlantic Capital Bank's eNewsletter

Second Quarter, 2012

Atlantic Capital Celebrates Fifth Anniversary
by Doug Williams, President and CEO of Atlantic Capital Bank

 

On May 15, 2012, Atlantic Capital Bank marked its fifth anniversary. Thanks to all of our clients and friends who have helped to make the past five years a success. 


In 2007 we opened the bank with a few employees, no clients, and $125 million in capital. Just five years later, despite a severe recession, Atlantic Capital has grown to over $1 billion of assets, 85+ employees, and a client base of over 450 corporate clients and a comparable number of private client households. We attribute this success to strong relationships with our hard-working clients and friends.


A lot has changed in the last five years, but our vision of creating a "better" bank for Atlanta remains the same. Our goal is to provide you with the best service, advice, and counsel in the industry. We hope that you come to view us not only as your bankers, but also as your allies, your advisors, and as champions of your business. Here's to another incredible five years. We look forward to serving you for many years down the line.

When will the economy improve?
by Doug Williams, President and CEO of Atlantic Capital Bank
Doug Williams

Douglas Williams,

President and CEO of Atlantic Capital Bank

 

The litany of problems is familiar - persistently high unemployment, anemic personal income growth, depressed residential and commercial property values, and excessive debt in household and public sectors.  Quarter after quarter as I write this commentary, the question remains, "When will the economy improve?"


From the first rumbling of excesses in mortgage finance in the summer of 2007 to a major financial market meltdown in 2008 and the severe recession of 2009-10 and on to a historically weak recovery since, good news on the economic front has been fleeting.  Recent data indicate twenty years of accumulated household wealth has been destroyed in the housing correction.  In metropolitan Atlanta, net job growth over the last decade has been around 50,000 and the region is not expected to fully recover to peak employment levels until 2020.


The normal recovery catalysts of accommodative monetary policy, government fiscal stimulus, and increased export sales through currency devaluations have had limited effect.  While these remedies have worked in typical business cycles past, it is increasingly apparent that we have not experienced a normal recession; rather, we are in the midst of a historic adjustment to new economic realities.


At the core of these new realities is the burgeoning cost of social welfare programs in industrialized countries.  The cost of these programs in OECD countries is growing at a faster pace than the economy.  As more resources are directed toward comprehensive benefits across the demographic spectrum, investment in creative economic development suffers.  The result is subdued demand, yawing government deficits, and an explosion in public sector debt.


Adjustment to these realities through deleveraging of public and household sectors, realignment of social welfare programs to those most in need, and promotion of pro-growth economic agendas with sensible regulation and a fairer and more efficient tax system will accelerate recovery.  These changes will occur and the economy will improve when households, businesses, and governments decide a brighter future is worth giving up a legacy of excess.

 

Client Spotlight: Forest Investment Associates
Timberland Investment Management Services
www.forestinvest.com

 

When pension funds or endowments need to diversify their portfolios with alternative investments, many look to Atlantic Capital Bank client Forest Investment Associates in Atlanta, a registered investment advisor that provides investment management services for timberland investors. FIA's team of 48 employees manages more than 2 million acres of timberland in the U.S. and has over $3 billion in assets under management. 


"We enjoy working with Atlantic Capital Bank because their organization operates so similarly to ours," said Michael Kelly, President. "As companies, we are both absolutely committed to working closely with our clients and giving them great service and excellent results every day. At FIA we've been completely pleased by the responsiveness that Atlantic Capital has shown to us and to others that we work with." 


Congratulations to Forest Investment Associates for recently completing its 25th year in business.

 

 To view more Atlantic Capital client stories, please visit atlcapbank.com/clientstories.  To learn more about Forest Investment Associates, please visit their website: forestinvest.com.

Succession Planning for the closely held company

By Maura McKenna, SVP of Corporate Banking at Atlantic Capital Bank

 
When it's time for you to retire or sell, what will happen to your company?  As a business owner, you should be able to answer this question.  However, with the daily challenges of growing a business and ensuring smooth operations, it is not uncommon for a company to lack a succession plan. If you as a business owner do not have a written succession plan for your company, read below for the basics of creating and updating a plan.

What is a succession plan?
A succession plan is a document that spells out how a company will be owned and run if the current owner/leader retires or is no longer able to participate in the company's operation.

What should a succession plan include?
First, a well-thought-out succession plan should define the owner's retirement or the owner's desires regarding a sale of the company. As an owner, do you plan to appoint your child or another relative as successor? Or do you plan to sell the business? If planning to sell the company, do you want to sell it to employees in an employee stock purchase plan, or will you look for an outside buyer?
Secondly, much like a personal will, a succession plan should spell out a contingency plan for emergency succession, allowing for an orderly transfer of leadership and business continuity in the case of unforeseen circumstances.

What are some key considerations when preparing to sell the business to employees?
1. Make sure that the company's valuation is current.  If the intent is to have key employees purchase the company, a business valuation, which estimates the value of the company, should be initiated and then updated each year.  Your banker can provide you a list of references for companies that can value your business.

2. Keep your company's Operating Agreement up to date, and provide the process and terms for the company's succession plan in that document.   Operating Agreements are extremely important in spelling out the terms of an employee stock purchase plan, providing parameters and pricing around stock redemption and re-purchase by the company, and in identifying possible distributions.  The importance of timing for employee stock purchases and the requirements in terms of tenure with the company for both eligibility and redemption are important issues that need to be clearly spelled out in this document. 

3. Create or update a separate employee stock purchase plan document that sets forth the parameters and limitations of such purchases and redemptions.  Outstanding performance and substantial contribution to the company's success should be the standards by which employees qualify for a purchase.   Tenure with the company should be the trigger for sale of stock back to the company by such employees. 

4. The employee plan above must fit with the owner/CEO's objectives with regard to tax and estate planning and wealth building.   There should also be a carefully crafted mechanism for the company's repurchase of his/her stock.

5. Lastly, employees should have some skin in the game - that is, they should be provided the opportunity to place some of their financial wealth on the line to purchase the company stock.  There may be several options available to them.  They may be able to purchase the stock outright for cash or alternatively, qualify for a loan to purchase this stock by providing the bank with appropriate collateral. More often than not, the company's primary bank may have to provide financing and place the proceeds in a collateral account or require that the company provide a guarantee or collateral for these loans.  

Who should be involved in the succession plan?
Succession planning should involve not only the company's owner/CEO, but also the company's Chief Financial Officer, banker, attorney and accountant to guarantee that the plan is well-understood and carried out at the appropriate time.

In summary, it is important that the business owner carefully structure a succession plan that will ensure the company's long- term stability and success.  I have found that the bank relationship manager can play a key role in this planning process and offer valuable insight and advice, as they often have a personal relationship with the owner and have been involved in the company's financial operations.   If you would like to talk more about your company's succession plan, please contact me, Maura McKenna: 404.995.6087.

Atlantic Capital Bank

atlanticcapitalbank.com

Member FDIC, Equal Housing Lender