Engineering Inc - September/October 2017 - 29

corrective strategies to alleviate the resulting dividend
and share value lea age?
" Have and Have N ot" I ssues. or companies with upcoming
leaders who lack the financial resources to buy into the
firm. or companies with ESOPs who allocated stock
quickly and now have smaller annual allocations often
have groups of participants with dramatic differences in
account balances. hat approaches can level the playing
field, thus avoiding a human resource dilemma?
ESOPs. The complexity, risk, and financial burden of
maintaining the ESOP has become counterproductive to
the vision and growth plans of leadership. Could "rightsi ing" the
be a viable alternative?
B aby B oomers! ot that they're bad people, but if you
haven't heard, many of them are retiring or planning
to retire soon and are creating a bubble with regard
to ownership transition. or many firms, the next ten
years will likely mark the most significant level of share
transition in the company's history.
The War for Talent. ounger employees are garnering
multiple job offers and are lured away by more money.
ould pushing down ownership into the lower levels of
the organi ation endear more loyalty? If so, where does
the money come from? Is there a ta e cient way to
accomplish this?
Acquisitions. The &A market continues to be extremely
hot, particularly in the AE sector. H ow do we take
advantage of opportunities that might arise without
hamstringing our core growth ob ectives? hat creative
deal structures are out there that might allow us to fund
an ac uisition?
A Sea of Comple it
Picture in your mind's eye the image of a financial reservoir filled
with the inflows of audits, tax returns, ESOP administration
reports, financial forecasts, and valuations. ombine that with
legal and regulatory mandates from the Department of abor,
the nternal evenue Service, the tax code, legal statutes,
and case law. hoppy waters indeed. Afloat in a raft on that
water is your leadership team, who are now (or most certainly
will be) grappling with business disruptions and competing
demands for uses of capital. The healthy AE firm navigates
these waters by developing a decision methodology that can
be refined, revisited often, and trusted over time.
he is of Ma ing Decisions in a acuum

▪

▪
▪

▪

▪

I n our work with client companies, we have created a robust
set of analytics that take into account each of the moving
parts. inancial forecasts must incorporate and anticipate all
movements in stock value or capital structure in conjunction
with the resulting impact on bonuses, synthetic equity plans,
dividends, and working capital. f you have an ESOP, you also
have to consider impacts to it and the associated repurchase
obligation. While the fact pa erns vary by industry and market
segment, we have found the most effective approach is to
create a framework of understanding, bolstered by vigorous
financial models, while identifying and mitigating key risks or
threats to the organization's health.

The probability of making prudent decisions is dramatically
improved when viewed in the broader context, aided by
objective eyes and illuminated by our applied knowledge.
Finding the ath to Health Sustainable Growth
Think of a time when your organization experienced a period
of growth that was unsustainable. Perhaps a service line,
project, or even a strategic alliance that may have driven
profits, but was outside your mission or comfort zone. t likely
eroded the strength of your culture, compromised your brand,
or even diluted the impact of your core business. How about
an acquisition that was immediately accretive to earnings, but
ended up being a bust over the long run due to a poor cultural
fit?
eading your business successfully is a full time job, and then
some. Henry A. issinger once remarked, There can't be
another crisis next week, my schedule is already full Hi ng
the trifecta of healthy - sustainable - growth doesn't just
happen by chance. Being intentional today in addressing the
-Suite Dilemma will serve you and your shareholders well
into the future. Because in the long run, the long run is all that
ma ers.
he material in this article is provided for informational purposes only and is
not to be regarded as a substitute for financial, legal, or other professional
advice
he reader see ing such advice is encouraged to confer with an
appropriate professional consultant or a orney

ABOUT CHARTWELL
With six o ces across the country, hartwell is a national
leader in financial advisory for privately held middle-market
companies. Since
, the firm has provided creative,
responsible, and unbiased advice and solutions to help
companies, stakeholders, and fiduciaries achieve their goals
and objectives. hartwell's services include providing counsel
related to strategic alternatives, executive compensation,
sustainability, buy- and sell-side &A, capital markets,
financial restructuring, transaction opinions, and valuations
for a variety of purposes including corporate planning,
ESOPs, estate and gift, and financial reporting.

www chartwellfa com

and the Anchor Sponsor of the CF Council s Finance rac


http://www.chartwellfa.com

Table of Contents for the Digital Edition of Engineering Inc - September/October 2017

Engineering Inc - September/october 2017
Contents
From Acec to You
Market Watch
Legislative Action
Eye on The Storm
Boost Profits, Reduce Loss
Innovations in Airport Design
Future Looks Bright for Vr
The Legend of Gridlock Sam
Focus on Philanthropy
Guest Column
Mergers and Acquisitions
Members in the News
Business Insights
Engineering Inc - September/October 2017 - Intro
Engineering Inc - September/October 2017 - Engineering Inc - September/october 2017
Engineering Inc - September/October 2017 - Cover2
Engineering Inc - September/October 2017 - Contents
Engineering Inc - September/October 2017 - 2
Engineering Inc - September/October 2017 - 3
Engineering Inc - September/October 2017 - From Acec to You
Engineering Inc - September/October 2017 - 5
Engineering Inc - September/October 2017 - Market Watch
Engineering Inc - September/October 2017 - 7
Engineering Inc - September/October 2017 - Legislative Action
Engineering Inc - September/October 2017 - 9
Engineering Inc - September/October 2017 - Eye on The Storm
Engineering Inc - September/October 2017 - 11
Engineering Inc - September/October 2017 - 12
Engineering Inc - September/October 2017 - 13
Engineering Inc - September/October 2017 - 14
Engineering Inc - September/October 2017 - 15
Engineering Inc - September/October 2017 - 16
Engineering Inc - September/October 2017 - 17
Engineering Inc - September/October 2017 - Boost Profits, Reduce Loss
Engineering Inc - September/October 2017 - 19
Engineering Inc - September/October 2017 - 20
Engineering Inc - September/October 2017 - 21
Engineering Inc - September/October 2017 - 22
Engineering Inc - September/October 2017 - Innovations in Airport Design
Engineering Inc - September/October 2017 - 24
Engineering Inc - September/October 2017 - 25
Engineering Inc - September/October 2017 - 26
Engineering Inc - September/October 2017 - 27
Engineering Inc - September/October 2017 - 28
Engineering Inc - September/October 2017 - 29
Engineering Inc - September/October 2017 - Future Looks Bright for Vr
Engineering Inc - September/October 2017 - 31
Engineering Inc - September/October 2017 - 32
Engineering Inc - September/October 2017 - 33
Engineering Inc - September/October 2017 - 34
Engineering Inc - September/October 2017 - 35
Engineering Inc - September/October 2017 - 36
Engineering Inc - September/October 2017 - 37
Engineering Inc - September/October 2017 - The Legend of Gridlock Sam
Engineering Inc - September/October 2017 - 39
Engineering Inc - September/October 2017 - 40
Engineering Inc - September/October 2017 - 41
Engineering Inc - September/October 2017 - Focus on Philanthropy
Engineering Inc - September/October 2017 - 43
Engineering Inc - September/October 2017 - 44
Engineering Inc - September/October 2017 - 45
Engineering Inc - September/October 2017 - 46
Engineering Inc - September/October 2017 - 47
Engineering Inc - September/October 2017 - Guest Column
Engineering Inc - September/October 2017 - 49
Engineering Inc - September/October 2017 - Mergers and Acquisitions
Engineering Inc - September/October 2017 - 51
Engineering Inc - September/October 2017 - 52
Engineering Inc - September/October 2017 - Members in the News
Engineering Inc - September/October 2017 - 54
Engineering Inc - September/October 2017 - 55
Engineering Inc - September/October 2017 - Business Insights
Engineering Inc - September/October 2017 - Cover3
Engineering Inc - September/October 2017 - Cover4
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