In this issue, Meg Shrum addresses financing in today's challenging lending market, Brian Wurpts discusses partial plan terminations, and Rob Edwards provides a timely reminder about the upcoming 409A deferred compensation compliance deadline.
Defined contribution (DC) plan sponsors face increasingly complex issues. Russell Investments has developed a priority list of eight ideas and actions to help plan sponsors guide their participants toward better decision-making as they save for retirement.
Ever ask: “How does our retirement plan compare to others?” Learn what Russell Investments believes all excellent DC plans share and actions you can take to help position your plan for excellence.
Defined contribution (DC) plan sponsors face increasingly complex issues. Russell Investments has developed a priority list of eight ideas and actions to help plan sponsors guide their participants toward better decision-making as they save for retirement.
Ever ask: “How does our retirement plan compare to others?” Learn what Russell Investments believes all excellent DC plans share and actions you can take to help position your plan for excellence.
Capital Markets Review for Financial AdvisorsCraig Wesley
Many Financial Advisors are looked to by their clients to explain market conditions. Here is a slideshare that may be useful to distill into a high level explanation for your clients.
www.optimalcapital.com
It is critical for fund portfolio managers and analysts as well as financial executives of the investee companies to understand when valuation of debt or debt-like securities is required and how the subject debt's economics impact the "synthetic" credit rating, estimation of required yield, and valuation methodologies. In addition, proper identification of features of the debt instrument(s) that may require additional accounting consideration is essential.
Clark Schaefer Hackett created this buyer’s guide to help you and other plan fiduciaries make an informed decision when hiring a quality auditor for your employee benefit plan audit. This guide covers your fiduciary responsibilities, the timing of a plan audit, audit quality, finding the right auditor and more.
Real Estate Workshop | Robin Banks | Wealth Mastery | Wealth MigrateWealth Migrate
As the world gets more digitized it brings with it unique opportunities and risks for you and your family. We are passionate about empowering you with the right information so that you can make the right decisions going forward.
From listening to you and your feedback, there is a clear demand for more intensive and thorough workshops (click here to book) so we can really get into the detail. Therefore in Nov we have planned workshops to ensure we can spend real time and you can not only get deep knowledge and understanding, you also have the ability to get involved and make sure that you can take the vital actions which are needed.
We have broken the day into 2 workshops which focus on two different areas: Property & Technology
• 09h00 - 12h00 How to create a Global Real Estate Investment Portfolio Workshop, hosted by Scott Picken
You should attend this session if you want answers to any of the below:
• How can I start investing, creating and preserving wealth through property, from as little as R1000, both locally and internationally?
• How do I invest in international property, whether I have $1k or $5m?
• How can I get citizenship overseas?
• How can I use technology to remove all the hassle, expenses and pain traditionally involved in investing in direct property, both locally and internationally?
• How do I handle taxes, bank accounts and global structures?
• How do I know what country to invest in?
• How do I know what property to invest in?
• How do I find quality partners on the ground to partner with?
• Why should I consider using technology rather than the traditional REITS and what impact it will this have on my actual returns?
• Where do I get the best research and what systems can I use to do institutional grade due diligence on my investments?
• And many more…
• Click here to book
I, along with our team, will be sharing, teaching and engaging all morning to take people on the entire journey and ensure that they are following the strategies of some of the most successful investors in the world. PLEASE BRING YOUR LAPTOPS as we have a gift and each and every person will walk away having started on their journey to creating and owning a global real estate portfolio. It is simpler and safer than you think! Click here to book
Money Matters - Tips for a Healthy NonProfit OrganizationStern Cohen LLP
Industry experts from Stern Cohen Accountants address key financial issues for your not-for-profit organization or charity. Learn best practices for the effective financial management of your NPO. This presentation covers: tips for a healthy balance sheet, understanding key metrics in your financial statements, managing cash flow, budgeting and forecasting.
Ratios are relatively unimportant in isolation. For maximum value, we should monitor trends (e.g., ratio this quarter compared to the previous quarter) and compare our ratios to peer averages or another type of benchmark (i.e., ratio compared to other credit unions with similar characteristics).
Dodd-Frank Wall Street Reform and Consumer Protection Act, Executive Compensa...Edward Hauder
This presentation looks at the executive compensation provisions (Sections 951-957) and corporate governance provisions (Sections 971-972) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Brian Wurpts explains the Employee Plans Compliance Resolution System (EPCRS) in his article "Operational Failures & Forgiveness." Mychelle Holloway discusses "What's New in ESOP Administration" for 2009.
Brian Wurpts discusses how an ESOP company's funding decisions can alleviate or exacerbate the "Have/Have Not" problem and ESOP sustainability concerns. Steve Magowan explains how to avail yourself of the protective provisions of IRS Notice 2010-6 for nonqualified deferred compensation plans.
Capital Markets Review for Financial AdvisorsCraig Wesley
Many Financial Advisors are looked to by their clients to explain market conditions. Here is a slideshare that may be useful to distill into a high level explanation for your clients.
www.optimalcapital.com
It is critical for fund portfolio managers and analysts as well as financial executives of the investee companies to understand when valuation of debt or debt-like securities is required and how the subject debt's economics impact the "synthetic" credit rating, estimation of required yield, and valuation methodologies. In addition, proper identification of features of the debt instrument(s) that may require additional accounting consideration is essential.
Clark Schaefer Hackett created this buyer’s guide to help you and other plan fiduciaries make an informed decision when hiring a quality auditor for your employee benefit plan audit. This guide covers your fiduciary responsibilities, the timing of a plan audit, audit quality, finding the right auditor and more.
Real Estate Workshop | Robin Banks | Wealth Mastery | Wealth MigrateWealth Migrate
As the world gets more digitized it brings with it unique opportunities and risks for you and your family. We are passionate about empowering you with the right information so that you can make the right decisions going forward.
From listening to you and your feedback, there is a clear demand for more intensive and thorough workshops (click here to book) so we can really get into the detail. Therefore in Nov we have planned workshops to ensure we can spend real time and you can not only get deep knowledge and understanding, you also have the ability to get involved and make sure that you can take the vital actions which are needed.
We have broken the day into 2 workshops which focus on two different areas: Property & Technology
• 09h00 - 12h00 How to create a Global Real Estate Investment Portfolio Workshop, hosted by Scott Picken
You should attend this session if you want answers to any of the below:
• How can I start investing, creating and preserving wealth through property, from as little as R1000, both locally and internationally?
• How do I invest in international property, whether I have $1k or $5m?
• How can I get citizenship overseas?
• How can I use technology to remove all the hassle, expenses and pain traditionally involved in investing in direct property, both locally and internationally?
• How do I handle taxes, bank accounts and global structures?
• How do I know what country to invest in?
• How do I know what property to invest in?
• How do I find quality partners on the ground to partner with?
• Why should I consider using technology rather than the traditional REITS and what impact it will this have on my actual returns?
• Where do I get the best research and what systems can I use to do institutional grade due diligence on my investments?
• And many more…
• Click here to book
I, along with our team, will be sharing, teaching and engaging all morning to take people on the entire journey and ensure that they are following the strategies of some of the most successful investors in the world. PLEASE BRING YOUR LAPTOPS as we have a gift and each and every person will walk away having started on their journey to creating and owning a global real estate portfolio. It is simpler and safer than you think! Click here to book
Money Matters - Tips for a Healthy NonProfit OrganizationStern Cohen LLP
Industry experts from Stern Cohen Accountants address key financial issues for your not-for-profit organization or charity. Learn best practices for the effective financial management of your NPO. This presentation covers: tips for a healthy balance sheet, understanding key metrics in your financial statements, managing cash flow, budgeting and forecasting.
Ratios are relatively unimportant in isolation. For maximum value, we should monitor trends (e.g., ratio this quarter compared to the previous quarter) and compare our ratios to peer averages or another type of benchmark (i.e., ratio compared to other credit unions with similar characteristics).
Dodd-Frank Wall Street Reform and Consumer Protection Act, Executive Compensa...Edward Hauder
This presentation looks at the executive compensation provisions (Sections 951-957) and corporate governance provisions (Sections 971-972) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Brian Wurpts explains the Employee Plans Compliance Resolution System (EPCRS) in his article "Operational Failures & Forgiveness." Mychelle Holloway discusses "What's New in ESOP Administration" for 2009.
Brian Wurpts discusses how an ESOP company's funding decisions can alleviate or exacerbate the "Have/Have Not" problem and ESOP sustainability concerns. Steve Magowan explains how to avail yourself of the protective provisions of IRS Notice 2010-6 for nonqualified deferred compensation plans.
Client Alert: August 2012
Alice Simons discusses the primary objectives of the ESOP advocacy efforts in Congress and explains how you can schedule and prepare for a visit with your member of Congress. Brian Wurpts discusses strategies for mature ESOP companies to utilize their excess capital, with a focus on the option of distributing plan assets to participants.
Diane Fanelli discusses rebalancing as an option for ESOPs. Barbara Krumbhaar details all you need to know about plan record retention including what documents should be kept, for how long and by whom. Steven Greenapple answers a frequently asked client question about whether a pass-through vote is needed for an ESOP company stock sale.
Mary Beth Gray provides a "how to" of the issues you need to consider when creating a distribution policy, and what is or is not permitted by the IRS. Tabitha Croscut discusses diversification language in plans and what the IRS decided was the definition of a "qualified participant."
Brian Wurpts addresses share redemption and share re-leveraging as other strategies to manage plan funding decisions, and their implications on repurchase obligation, in Part II of an article that appeared in the August 2011 Client Alert. Mychelle Holloway discusses when and how to use the new Form 8955-SSA, and all about the changes to the Form 5558, released by the Internal Revenue Service earlier this year.
Check out the latest issue of Agnesian HealthCare’s “Living In Good Health” community newsletter! This informative newsletter shares the latest news and exciting developments at Agnesian HealthCare, as well as wonderful stories from patients and families we have helped to regain their quality of life through our expansive services.
Presentation given to the CEO of Lungarotti wine company as a final project for a Comparative Global Business Cultures course. The presentation outlines our proposed international business strategy for the company and focuses on marketing.
Sendible:The importance of creating engaging social media contentSendible
Discover the importance of creating and managing engaging content to drive visitors from social media to your website and keeping them there. Jointly hosted by Sendible and Media Shower.
October and November Devil's Corner 2012 Newsletter ver 3 Noel Waterman
The Devil's Corner Monthly Newsletter for October and December can also be found at http://www.riley.army.mil/UnitPage.aspx?unit=1bct due to the size, please click on the link to read
In this issue you will find:
Devil 6 and Devil 7 Comments
Chaplain’s Corner
What Makes you Strong?
Pale Riders Complete Fire Missions
Soldiers of 1stABCT receive warm thanks from appreciative Volunteers
Hamilton’s Own Soldiers train, qualify on grenade launcher
9 Pale Riders earn Purple hearts
Soldiers complete breach training exercise in October
“Devil” brigade Commander speaks at MAC
Company hosts hiring event on post, aims to hire veteran’s
Soldiers represent BRO at sniper competition
Fort Riley to host Combatives tourney
1ABCT conducts mass re-enlistment
Training focuses on crew familiarization qualification
Upcoming ACS classes
Armor Battalion conducts team trench-clearing training exercise
BRO Soldiers place 3rd in Army 10 miler
29th Annual Historic Tour of Homes flyer
Post honors fallen Soldier
K-State ROTC, Fort Riley foster partnership
Daytona 500 military discounted tickets flyer
Hertz free car rental flyer
Bring a Happy Holiday to our Stray Facility Flyer
The Holiday parade of Lights
Additional Flyers for Bowling and Herington’s Festival
Court-martials in 1st ABCT
Red Cross Holiday Support message
Christkindl Market Flyer
Battle of the Bulge Flyer
Scuba Santa Flyer
MWR Outdoor Rec Flyer
Native American Flyer
Profiles Creative is a boutique agency specialising in all aspects of Retail recruitment, from international groups to online boutiques. Our range of expertise means we are ideally placed to help with any vacancies ranging from Ecommerce and Digital to traditional Marketing. Contact us today to learn more!
Tricon Infotech Pvt Ltd offers IT Services & Outsourcing, offshore software
development, software outsourcing, outsource solutions, web development.
Tricon infotech can help you with your software development, Project
Management, or System Architecture projects. The engineers at Tricon Infotech
each have decades of experience satisfying customers. We are availible for
Software development, Maintenance and support services, Product Re-
Engineering and Product Co-development We have some of the best experts
around in many different technologies, most likely in the area you need. We are
expertise in various vertical markets such as:
® Social Networking
® Travel
® Education.
®Healthcare
®Manufacturing
®Retail Management
®Insurance&Finance
®Media/Entertainment
Tricon Infotech guarantees
Hightest quality software
Low failure rates
High customer satisfaction
Reasonable rates
This guarantee is delivered via agile development techniques, including Test
Driven Development, short cycle times, and high customer involvement
Kingdom of Saudi ArabiaMinistry of EducationUniversity of Ha.docxDIPESH30
Kingdom of Saudi Arabia
Ministry of Education
University of Hail
College of Nursing
المملكة العربية السعودية
وزارة التعليم
جامـعـة حـائل
كلية التمريض
Master of Science in Nursing (MSN) - Emergency Nursing
Exam Begins: Saturday 09/05/2020 -10:00 pm
Exam Ends: Monday 11/05/2020 - 10:00 pm
Exam Duration: 48 hours
Section: Male &Female side
Final Exam of Theoretical Foundation for Nursing (NURS 501)
Semester :2nd semester 2019-2020
Answer Sheet
Answer Sheet
Student Name: ------------------- ID: ---------------------------
Page 1 of 1
Introduction
Financial statement analysis is the way toward breaking down an organization's fiscal reports for dynamic purposes. Outside partners use it to comprehend the general soundness of an association just as to assess budgetary execution and business esteem. Interior constituents use it as an observing apparatus for dealing with the accounts (KENTON, 2019).
Investigating Financial Statements
The fiscal reports of an organization record significant monetary information on each part of a business' exercises. Accordingly they can be assessed based on past, current and anticipated execution.
Task 1
1) The board of the company: The administration of the organization is the above all else client of the fiscal reports. In spite of the fact that, they are the ones who set up the fiscal reports the board and the administration all in all need to allude to them while thinking about the advancement and development of the organization. The administration of the organization takes a gander at the budget report from the point of view of liquidity, benefit, incomes, resources and liabilities, money adjusts, support necessities, obligation to be paid, venture financing and different days to day operational action. Basically, the executives of the organization needs budget summaries to settle on choices about the business.
2) Speculators: are the proprietors of the organization, they might want to comprehend keep update with the money related execution of the organization. They might want to settle on the choice dependent on the fiscal report whether they have to keep contributed or move out of the organization dependent on its presentation.
3) Clients: Clients need to see the budget summaries of the organization from which they are acquiring merchandise or administrations. Enormous customers might want to have a long haul organization or agreement with the organization along these lines they might want to work with an organization that is monetarily steady. Further, a monetarily solid organization can give its clients credit deals and can convey items and administrations at a rebate than the market.
4) Contenders: might want to know the monetary status of the contending organization. They might want to keep up a serious edge on their rivals and henceforth, might want to know the monetary wellbeing of the other organizatio ...
As the COVID 19 pandemic is rolling along with us, it has interrupted the flow of commerce to an extent and has had a significant impact on the economy. As a result of the business interruption, auditors have been obliged to develop new audit methodologies and techniques in order to overcome the problem.
The allocation of executive compensation resources is being scrutinized by internal and external forces. Regulations, board governance issues, and the lower margins require new thought processes on the various pieces of the compensation puzzle and how they fit together.
GRAND CANYON UNIVERSITY SCENARIO GENERATORModule 4 Scenari.docxwhittemorelucilla
GRAND CANYON UNIVERSITY SCENARIO GENERATOR
Module 4 Scenario: Hiring Plan and Compensation Package Proposal
Type: Family Business
Size: Small Business
Sector: Computer Repair
Funding: Investors/Lenders
Stakeholders:
Employees
Decision makers:
Owners
Formal organization:
LLC
Human Resources Department:
Pay-for service arrangement: employment law attorney
Stage in Organizational Lifecycle:
Birth
THESE ARE THE GIVEN CONSTRAINTS:
ORGANIZATIONAL BACKGROUND:
Founded in: 1970
Dedicated to: The company thrives to provide the best possible
experience to all of its business partners and clients.
Culture Our culture is akin to that of a small family. All our
employees are partners in the business, share our success, and help us
sustain the core values that make us successful.
Structure: Our organization is very flat and consists of three tiers:
owners, managers, and non-manager employees.
Mission statement: To ensure that each customer receives prompt,
professional, friendly, and courteous service. To maintain a
professional and friendly environment for our cusotmers and staff. To
provide at a fair price using only quality components. To ensure that
all customers and staff are treated with the respect and dignity they
deserve. To thank each customer for the opportunity to serve them. By
maintaining these objectives we shall be assured of a fair profit that
will allow us to contribute to the community we serve.
Vision statement: Within the next five years, we will become a leading
provider of products and services to small businesses by providing
page 1 / 4
customizable, user-friendly solutions scaled to small business needs.
INTEGRITY: By dealing honestly with our clients, staff, vendors and
community.
RESPONSIBILITY: By considering the environment in which we do
business, community views and the common good.
PROFITABILITY: By being aware that an appropriate level of profit is
necessary to maintain our business and allow our values to continue to
be observed.
Values statement: In conducting our business, we will realize our
vision by performing our affairs so that our actions provide
confirmation of the high value we place on:
Present goals: To reduce delivery and distribution time of products
and services. To reduce the number and frequency of customer
complaints, and to improve the response time of customers inquiries.
Past goals: To reduce employee turnover by 20 percent by introducing a
new employee assistance program. To improve productivity by
implementing a company-wide training program. To actively recruit
skilled workers into the organization.
Brief SWOT analysis:
Strengths:
Positive cash flow
Experienced management
Good business reputation
Known for product quality
Weaknesses:
Experienced management approaching retirement
Insufficiently diversified revenue streams
Products and/or services have not been updated for a long time
Too much internal bureaucracy
Opportunities:
Internat ...
First, the retained earnings increased by 85.35 compared fromShainaBoling829
First, the retained earnings increased by 85.35% compared from prior year. This will affect to increase in cash and accounts receivable which have 47.15% and 43.59% respectively. Additionally, since we have increase in Accounts Receivable, there might be an increase in uncollectible accounts which the reason doubtful allowance increases by 72.41%. A proper policy and terms for the customer should be strictly monitored by the Treasurer to avoid an increase in uncollected accounts.
Second, since we have more Sales during the year, an overtime for employees or a possible additional benefit is the reason there is an increase with Salaries Payable and other Taxes Payables. Long-term Payable may also be a result of additional investment, especially for PPE.
Third, Investment for PPE increased by 35.28% which is needed to increase the production and Sales. Other Investment such as Trading securities and Available-for-sale securities also increased.
On the other hand, Inventories decrease due to high demand of Sales. A proper control monitoring should properly address to have enough stocks and avoid delay due to it. Also, the Treasurer should also handle properly the proper timing of payment of current assets such as Notes Payable which have no movement since prior year.
To:
Board of DirectorsFrom:
Rachel Suarez GuerraDate:
Feb 27, 2022Subject:
Investment Strategies
Following your request to explore the company's financial state, I have researched the requested areas and would like to share my findings with you. I hope that the information I will share with you will provide the clarity needed for the company's growth. Below, I have covered the various parts revolving around the company's financial state.
Debt versus equity securities
These are the two security types that are significant factors to consider when accounting for an investment. Debt securities entail the borrower repaying the principal the initial principal, while equity entails ownership of the company's net assets. However, a very recent finding shows that managers do not reduce the risk of equity investment portfolios (Kim et al., 2022). An example of debt security is a bond, while stock is equity security. When buying a bond in a company, they are repaid both the principal and the interest accrued. However, when it comes to stocks, if an individual buys stocks in a particular company, they buy a piece of the specific company. Therefore, the investors profit in the case of profits, and the same applies to losses.
Various types of investments
Classes of debt securities are held to maturity, trading, and available for scale, while those of equity include insignificant influence, major influence, and controlling influence. Additional examples of debt securities include corporate bonds, municipal bonds, government bonds, and collateralized bonds. In contrast, more examples of equity securities would include common preference shares, warrants, convertible bonds, and ...
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
Randall Webb - TJSDD - Common Pitfalls and Deficiencies Found in Plan AuditsDowney Brand LLP
At the 2015 Savannah Fiduciary Seminar, Randall Webb of TJS Deemer Dana presented the most common deficiencies identified during plan audits and how plan sponsors should correct those deficiencies going forward.
Low-interest rates mean that P&C leadership teams are facing increasing pressure to generate heftier margins from their underwriting operations. More at http://gt-us.co/1japuAu
Law Firm Receivables Management Best PracticesSusan Uylett
This newsletter highlight's the letter of engagement and terms that must be included to protect the firm's operations. Also, it examines challenges within a law firm and solutions that can be implemented to improve the firm's bottom line.
Defined Benefit (DB) pension schemes have entered middle-age. The features of youth – contribution holidays, equity-laden investment strategies, double-digit interest rates and discussions on allocation of surplus – are gone. The majority of schemes have still not yet arrived at old age, though. This is when risks should be expected to be manageably small (or transferred to the care of a third party), such that the sponsor could avoid a failure to recover from a major shock to the scheme’s funding.
IRS Issues Post Windsor Cafeteria Plan GuidanceSES Advisors
As a result of the Windsor decision same gender marriages are recognized for Federal tax purposes if the couple is married in states that recognize same gender marriages regardless of where the couple may be domiciled (see ErisaALERT 2013-04). The IRS has issued Notice 2014-1 providing additional guidance relating to the impact of the Windsor decision on same gender marriages.
In this issue, ESOP Plan Administrator Kelly Irizarry outlines the small, but highly regulated element of tax reporting as part of the overall ESOP recordkeeping process. We also highlight a few of the ongoing community service projects performed by staff from the Philadelphia office.
When Nannu Nobis started Nobis Engineering in 1988, he wanted a company with an open and effective culture. Although many of the programs, policies, and procedures the company created then still exist today, the ownership culture at Nobis, like the company itself, has grown and developed.
Steve Magowan addresses the proposed change in taxation of options of S Corps with ESOPs and the possible far reaching ramifications of the legislation. Rob Edwards reviews 409a and the extension of transition relief for deferred compensation plans.
Jane Rogers addresses how to locate missing participants and Steven Greenapple explains the various fiduciary issues raised when selling an ESOP company.
Diane Fanelli follows up her last article on rebalancing with a summary of reshuffling. Brian Wurpts discusses the basics of distributions, then presents some options for funding benefit distributions and the implications of benefit funding decisions on repurchase obligation.
Client Alert: December 2012 - 25th Anniversary IssueSES Advisors
Celebrating 25 years of creating employee ownership, in this issue we interview our Chairman and Founder, Jim Steiker. We also share photos from recent client events in Philadelphia and Las Vegas.
In this issue, new SFE&G partner Theresa Borzelli and guest co-author Mary B. Anderson of ERISAdiagnostics Inc. discuss the timely issue of shared responsibility regarding health coverage (Pay or Play). Mychelle Holloway explains why your record keeper requests certain information from the plan sponsor. Also read about SES' recent promotions and new hires
In this issue, Brian Wurpts explains how SES Advisors applies its expertise in plan design, finance, feasibility and record keeping to help ESOP companies develop sustainable ESOP practices. Also read about our new office in Vermont and upcoming ESOP events.
Published 2004 in the Journal of Employee Ownership Law and Finance
Co-authored by Jim Steiker, this article reviews the legal standards that govern ESOP committees.
Published March 2011 in The ESOP Association’s ESOP Report
Rob Edwards addresses Stock Drop Case updates and the IRS Notice clarifying the meaning of “Readily Tradable” employer securities.
Published September 2012 in The ESOP Association's ESOP Report
Steve Greenapple addresses breach of fiduciary duty and federal common law fraud by participants who transferred their 401(k) account balances to an ESOP, against the sponsor of the Plans, fiduciaries of the Plans and the ESOP's financial advisor.
Published Spring 2004 in the Philadelphia Estate Planning Council Newsletter
This article, co-authored by Jim Steiker, highlights the potential for abuse and scams—and explains how to avoid them.
Published Spring 2008 in the Journal of Employee Ownership Law and Finance
Jim Steiker describes how warrants are used as part of the financing structure of leveraged ESOP transactions and discusses key corporate finance and federal tax considerations in structuring ESOP financing arrangements involving warrants.
An Employee Stock Ownership Plan (“ESOP”) is a tax qualified retirement plan which is designed to invest primarily in stock of the sponsor corporation. Under §4975 of the Internal Revenue Code of 1986, as amended (the “Code”) and §§406 and 408 of the Employee Retirement Income Security Act of 1974 (“ERISA”), ESOPs are the only type of retirement plan that can borrow money from (or obtain loans guaranteed by) a party in interest (an “exempt loan”).
Published in the NCEO March-April 2013 Edition of the Employee Ownership Report
SES Chairman & CEO Jim Steiker explains how warrants can be used to bridge the gap in a larger ESOP transaction between bank financing and the full price of the sale.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
1. November 2008
STEIKER, FISCHER, EDWARDS & GREENAPPLE, P.C.
SES ADVISORS, INC.
C LIENT A LERT
PARTIAL PLAN TERMINATIONS:
A POTENTIAL PITFALL IN TOUGH ECONOMIC TIMES
Written by: Brian Wurpts, Principal and Vice President of SES Advisors
W
hen we think about retirement plan terminations, we’re usually referring to a unilateral decision
made by a company’s Board of Directors. When the Board decides to terminate a plan, its participants become fully vested, the assets of the trust are liquidated and benefits are distributed. Partial
terminations are similar in some respects (affected participants fully vest, benefits are distributed, etc.), but partial terminations are the result of other business decisions or events such as the sale of a division, layoff or early retirement
offer. These events are more common during periods of economic recession. Partial terminations cause the accounts
of affected participants to immediately vest. This increases the ESOP sponsor’s repurchase obligation (usually at a
very unfavorable time). So it’s important for employers to be aware of the criteria used to evaluate whether a partial
termination occurred.
TYPES AND CAUSES OF PARTIAL
TERMINATIONS
DETERMINATION CRITERIA
The determination of whether a
Partial termination may be caused
partial termination has occurred is based
by a plan amendment that causes a sig-
on a facts and circumstances analysis.
nificant reduction in benefits, a discon-
However, the Internal Revenue Service
tinuance of contributions, reversion of
(IRS) has given us some guidance. Inter-
plan assets to the employer, or a signifi-
nal Revenue Procedure 2007-43 states:
cant reduction in the number or percentage of plan participants. This last
category of termination is often the result of a layoff, sale, or closing of a division or business location, but may also
occur when the employer experiences an
unusual employee turnover rate.
“[W]hether a partial termination
of a plan under § 411(d)(3) has occurred depends on the facts and circumstances, including the extent to
which participating employees have
had a severance from employment. If
the turnover rate is at least 20 percent, there is a presumption that a
partial termination of the plan has
occurred.
Whether or not a partial termination occurs on account of participant turnover (and the time of such
event) depends on all the facts and
circumstances in a particular case.
Facts and circumstances indicating
that the turnover rate for an applicable period is routine for the employer favor a finding that there is
no partial termination for that applicable period. For this purpose, information as to the turnover rate in
other periods and the extent to
which terminated employees were
actually replaced, whether the new
employees performed the same functions, had the same job classification
or title, and received comparable
compensation are relevant to determining whether the turnover is routine for the employer.”
(continued on page 2)
2. Partial Plan Terminations
•
Company H argued unsuccessfully
The tax courts have also provided
a high turnover rate in the employer’s
that turnover of 34 percent and 51 per-
some guidance, ruling in the past that a
industry, historical turnover rates, an
cent in successive years was not a partial
turnover rate of less than 10 percent is
absence of patterns in employer-initiated
termination.
presumed not to be a partial termina-
severance and evidence of participants’
tion, while partial termination is conclu-
decisions to voluntarily terminate.
sively presumed when the turnover rate
•
Company M laid off 22 percent of
its participants over a period of three
is more than 40 percent.
Typically the plan’s fiduciaries uni-
years.
The courts determined that a
laterally decide that a partial plan termi-
partial termination did not occur be-
Turnover rate is evaluated based on
nation has occurred. The employer has
cause the layoffs resulted from two unre-
the number of participants who had an
the option of requesting a formal IRS
lated events and “were not improperly
employer-initiated termination of em-
determination. The IRS may also evalu-
motivated.”
ployment.
In determining whether a
ate whether partial terminations have
partial plan termination occurred, em-
occurred when the plan is terminated,
•
ployers may disregard the termination of
through its plan audit program or dur-
resenting 15 percent of the participants.
participants who left voluntarily. Em-
ing the routine determination letter
Employees of the newly created entity
ployers should have good documenta-
process.
were not eligible to participate in the
tion supporting the circumstances of an
“...once a partial termination
employee’s termination (e.g., a copy of a
occurs, all participants who
resignation letter). While these employ-
ees may be excluded from the determi- terminated during the period are
nation, once a partial termination oc-
reasons for leaving).”
plan. The courts determined that the
level of turnover did not represent a
“significant percentage” and no termination occurred.
fully vested (regardless of their
curs, all participants who terminated
Company R spun off a division rep-
during the period are fully vested
(regardless of their reasons for leaving).
Partial terminations should be evaluated
SUMMARY
Partial terminations have a signifi-
EXAMPLES OF PARTIAL TERMINATION DETERMINATIONS
at least annually and over longer periods
cant impact on the size of an ESOP
sponsor’s repurchase obligation. A determination of whether a partial termi-
of time when the cumulative turnover
•
Company A’s retirement plan was
nation has occurred depends on several
rate is greater than 20 percent. Other
determined not to be partially termi-
variables. The employer may unilaterally
facts and circumstances that may affect
nated after a 19 percent turnover rate
decide that the plan has incurred a par-
the evaluation include: documentation
because the facts did not show employer
tial termination or may appeal to the
describing a reduction in force or layoff;
abuse, bad faith or misconduct.
IRS to make the determination.
offers of severance pay or early retire-
We
strongly encourage employers to consult
ment; grouped employment termination
•
A partial termination was deemed
with their counsel and/or their third
dates; sale, relocation, or closure of a
to have occurred when Company C ter-
party administrator whenever they’re
business location; and whether termi-
minated 12 of 15 of its plan participants
considering or experiencing a significant
nated participants were replaced by em-
when they refused to relocate to the em-
reduction in workforce.
ployees with the same function. Exam-
ployer’s new business location.
ples of mitigating circumstances include
-Brian Wurpts
bwurpts@sesadvisors.com
2
3. FINANCING IN THE CURRENT ECONOMIC CLIMATE
Written by: Meg Shrum, Senior Vice President of SES Advisors
S
ecuring financing for a leveraged
updated during your annual stock valua-
ESOP transaction can be a chal-
tion process. Remember to be enthusi-
lenge in any environment, but in the
astic about your company – yet realistic
current economic climate, it can be
about the future outlook.
quite daunting to say the least. Many
financial institutions have taken huge
WHAT TO EXPECT
hits to their balance sheets, and there-
So you’ve met with the bank and
fore, their capital ratios may be well be-
given them all the information re-
low benchmarks set by the regulators.
quested - what now?
So - what can you do to improve your
FINANCIAL COVENANTS
“Thou shalts” include:
• maintain insurance
• pay all taxes due
• submit regular financial reports
• maintain specific financial covenants
“Thou shalt nots” include:
• take on additional debt
• sell off collateral
• change the company’s ownership
structure
• merge with or acquire other companies
At this point, the lender and/or
If a “shalt not” makes sense for the
credit analyst will evaluate financial and
company, it can usually be accomplished
background information, have a series
with the bank’s consent. While at this
of discussions with those who will ulti-
point the bank may appear to be the bad
While the bank’s decision will ulti-
mately approve the loan, and prepare a
guy, remember that they need to make
mately come down to its perception of
formal credit package for presentation to
loans but they also need to get repaid.
the company’s ability to repay, there are
the Loan Committee. This may take a
Treat the bank as your partner - the
several things you can do that will help
couple of weeks and you can expect to
more successful the company is, the
chances of obtaining financing?
PREPARING FOR FINANCING
in the underwriting process to show the
bank that you are financially savvy and
prepared for a long-term borrowing relationship.
• Provide good quality financial state-
ments (upgrade if necessary)
more business there will be for the bank
“Remember to be enthusiastic
about your company – yet
realistic about the future
outlook.”
• Have a budget for the current year
and projections for the next 3 years
(loans, deposits, cash management services). They want you to be successful,
but have numerous parties to answer to
along the way (boards, auditors, regulators, shareholders).
Prompt financial
reporting is always a good idea, but if
receive additional questions from the
you hit a bump along the way, be proac-
• Prepare a strategic plan outlining
bank during this process. If approved,
tive – take cost cutting or corrective ac-
anticipated growth, market opportu-
the loan terms will be presented to you
tion early and talk to your lender before
nities, large capital expenditures,
in the form of a commitment letter
the affected financial statement hits
and how you plan to attract new
which spells out all of the significant
their desk.
clients
details: loan amount, interest rate, fees,
• Have bios for your senior manage-
ment team available
• Provide current A/R, A/P, backlog
and other meaningful reports
If you are an existing ESOP company, much of the above information is
repayment terms, collateral, guaranties,
REFINANCING SELLER NOTES
and a set of financial covenants to be
In our last Client Alert, we touched
measured at various times (usually quar-
on the topic of refinancing existing
terly or annually).
seller notes. Banks should be willing to
Covenants take two major forms:
“thou shalt” and “thou shalt not.”
do so, especially if the company has a
good track record of paying on the note,
3
4. Financing
the successor management team is in
place, and the company’s financial outlook and cash flows are sound. If the
seller note is directly to the company,
there are no real restrictions on how the
new debt is structured. However, if the
seller note is directly to the ESOP trust,
the fiduciary must examine the costs and
benefits of the transaction and the consequences of a failure to refinance and
determine whether the refinancing is in
the best interest of the participants.1 It
is the ESOP fiduciary’s responsibility to
ensure that participants – both current
409A DEFFERRED COMPENSATION
DEADLINE RAPIDLY APPROACHING
December 2008
Sun
Mon
1
Tu
2
We
3
Th
4
Fr
5
Sa
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
By December 31, 2008, all nonqualified deferred compensa21
22
23
24
25
26
tion arrangements must be in compliance with final regula28
29
30
31
tions under Section 409A of the Internal Revenue Code.
Failure to comply with Section 409A subjects individuals to immediate taxation on their
vested deferred compensation, plus a 20% excise tax and interest penalties.
Section 409A affects a wide range of plans, contracts and agreements. Broadly, any compensation earned in one year and payable in another may be subject to Section 409A. Arrangements that should be reviewed for 409A compliance include the following:
• Traditional nonqualified deferred compensation plans, supplemental retirement
plans and excess benefit plans
• Equity based compensation plans, including stock appreciation rights, stock options, phantom stock and deferred equity awards
• Employment, consulting and change of control agreements
• Severance plans and agreements
• Bonus plans and long-term incentive plans
• Split dollar insurance agreements
If you have questions about how 409A may affect any of your plans or arrangements, the
following SFE&G attorneys will be able to help:
Robert W. Edwards
401-632-0480
redwards@sfeglaw.com
Stephen Magowan
802-860-4077
smagowan@sfeglaw.com
Mark Kossow
215-508-1500
mkossow@sfeglaw.com
and future – are not adversely impacted
regularly cycled between free-flowing
as a result of the refinancing. While the
(where loans are plentiful at competitive
exact terms of a refinance may not ap-
rates and generous terms) and tight
pear as favorable as existing terms, cer-
(where banks are very cautious and
tain inducements may be offered by the
terms are less favorable). And while we
employer for the benefit of the partici-
obviously find ourselves in the latter
pants and to level the playing field.
category today, many banks are still mak-
leads to advice of “be patient.” In the
These may include: 1) an increase in
ing loans under certain conditions.
end, banks need to lend money in order
employer contribution to the ESOP or
Those I’ve spoken to recently say they
to make money, and want to get repaid
matching portion of a 401(k) plan; 2)
continue to lend to their existing clients,
under the agreed terms while avoiding
increased diversification rights to ESOP
that relationships (i.e., multiple banking
extra scrutiny from regulators.
participants; 3) dividend “make-whole”
services) make a difference, but that un-
will change and lenders will once again
payments to participants that would true
derwriting is more thorough, pricing has
be knocking on your doors. Selling to
up any adverse effects of a refinance.
increased and covenant terms may be
an ESOP remains a great option for suc-
Any contemplated refinance should be
stricter (especially debt/EBITDA).
cession planning, and a little creative
carefully screened by your ESOP profes-
Good deals are still getting done, but
structuring using seller notes with war-
sionals to ensure that no fiduciary viola-
with perhaps a larger piece of seller fi-
rants or convertible preferred stock can
tion is triggered.
nancing or with a smaller percentage of
be an attractive alternative (or compan-
the company being sold.
ion) to bank financing right now.
TODAY’S LENDING ENVIRONMENT
Historically, credit availability has
1
Times
My own experience as a lender over
-Meg Shrum
both good and bad economic times
mshrum@sesadvisors.com
DOL Field Assistance Bulletin (FAB) 2002-1 addresses the fiduciary’s obligations under Sections 404(a) and 408(b)(3) of ERISA.
10 Shurs Lane
Suite 102
Philadelphia, PA 19127
SES (215) 508-1600
SFE&G (215) 508-1500
6 South Street
Suite 201/202
Morristown, NJ 07960
SES (973) 540-9200
SFE&G (973) 540-9292
401 Warren Street
Suite 201
Redwood City, CA 94063
SES (650) 216-7707
P.O. Box 205
Lake Anna, VA 23024
SES (540) 872-4601
235 Promenade Street
Suite 497
Providence, RI 02908
SFE&G (401) 632-0480
156 College Street
3rd Floor
Burlington, VT 05401
4
SFE&G (802) 860-4077
27