Private Companies
Public Companies
Hospitals
Credit Unions
Banks
Insurance Compaies
For Private Companies:
Family Succession Planning
We refer to a business that has family ownership as a Family Owned Business. The typical family owned business would include any combination of a Father/Mother, Children/siblings, brother/sister, aunt/uncles or cousins.
The typical goal of the Family Succession Plan is to assure that the business survives into successive generations. The Succession plan must account for wealth transfer taxes and a well thought out ownership succession plan.
Non-Family Succession Planning
Businesses that have a close group of owners that are not related are referred to as non-family owned businesses. This would typically include a group of men or women that came together to start or buy a business but are not related by blood or marriage.
The typical goal for a Non-Family Succession plan is provide for orderly disposition on each shareholders intertest by reason of the death, retirement, disability, divorce, bankruptcy or sale of the business of the shareholder’s ownership interest.
Buy-Sell Agreements
A well-designed buy-sell agreement will put to paper the current desires of all of the owners and will address the key issues such as valuation and potential events such as death, retirement, sale of the business and other voluntary or involuntary life events.
Key Employee Retention
There is an African proverb that says, “It take a village to raise a child.” In other words, its takes an entire community of people to interact with the children to grow in a safe and healthy environment. In many cases businesses are like a small village. To grow successfully, all of the employees apart from ownership, must be cared for. TKO hasmultiple programs that provides for the retention and reward of key employees, often the life blood of the success for a small business.
Medical Coverage & Ancillary Employee Benefit Plans
Equally important to providing planning for the ownership and its key employees, is providing the employment base with broad based and competitively priced employee benefit plans. The most often provided benefit plans include: health care, disability, dental, vision, prescription and life insurance.
Retirement Plans
Apart from Social Security benefits, most small and large businesses provide their employees with a retirement plan. The most popular plans include 401(k), defined benefit pension plans and SERP’s (Supplemental Executive Retirement Plan).
Premium Financing
There are a number of banks and lending institutions that will loan non-recourse funds to an insured to pay for large insurance premiums. The cash value is the primary source of collateral along with limited guarantees for any shortfalls, based upon the final design of the program. The ultimate goal of a properly structured premium financing plan is to leverage up large face amounts of coverage using bank funds, to then pay off that loan in a 10-15-year period all resulting in maintaining a large death benefit for life.
For Public Corporations:
Introduction:
In the United States there are approximately 3700 publicly traded companies, 4700 banks, and 5966 insurance companies, 5757 credit unions, and 6210 hospitals. The main difference between these institutional markets and that of privately help companies, is that the management of these entities are managing assets for its shareholders or for other people versus for their own families. Thus, the planning and issues important to these markets are quite very different than that for privately help business owners. As fiduciaries of shareholder value or endowments, the managers must make decisions to assure the entity survives beyond their employment period. Our plan are thus designed to fairly compensate these managers for their efforts over their careers and on through retirement.
- Banks
Over 64% of all Banks, in the United States have Bank Owned Life on their financial statements. These 3300 banks presently are showing approximately $179 billion in BOLI cash Value. Banks use BOLI to cost recover their long-term employee benefit plans costs while enjoying tax favored benefits and yield enhancements on their financial statements.
- Insurance Companies
Like Bank Owned Life Insurance, Insurance Companies are also deploying a similar from of insurance called Insurance Company owned Life Insurance. ICOLI is life insurance purchased by an insurance company as a tax‐efficient investment with potentially favorable risk-based capital treatment. ICOLI is an investment vehicle that helps insurance companies optimize risk adjusted returns. ICOLI helps offset the aggregate costs of employee benefit plans