Securing Legacies in the Middle Market
Case Studies
RMA & Associates helps all businesses not only reach, but exceed their goals. Our experience helps us lay out a strategy that perfectly fits our clients. This collaboration is essential for the successful transition from strategy, to plan, to action. Learn about some of our past projects below, and get in touch to see what we can do for you.
Example A
Technology company, Founder legacy
Over several years we worked with a successful entrepreneur as he built three different companies with revenues in excess of $100 million in each of them. After providing bank financing for his third startup, he was diagnosed with a serious life threatening disease. As he was the sole stockholder at the time, we put together a plan for company continuance that included providing significant options to the management team and a Trust that would own his remaining shares should something happen to him.
Unfortunately the disease progressed and the founder passed. The Trust was designed to provided income for the spouse through dividends on the shares but to have a Trustee vote the shares in all areas as the stockholder. Over time the Trust sold shares back to both the company and the management team members culminating in a controlled transition to an employee owned company. The company is prospering today and all of the key members of the management team are now owners.
Example B
Engineering company with multiple partners
A specialty engineering company had three different partners. One of those partners wanted to retire and was actually the managing partner. The other two partners did not want to assume the operating responsibility of the company and one in particular did not want any change to occur. Effectively a stand off. Our approach was to reach a buyout settlement with the partner that did not want to see any change. Then we recruited and grew from within several new managers that wanted to become shareholders. We instituted two different purchases for the retiring partner; a redemption of a portion of the shares by the company paid at closing and a seller note repaid by a bonus plan put into place for the new, younger managers.
