TZL 1310

SPONSORS

PAT STOLTZ & JIM SWABOWSKI, from page 9

succeed, there needs to be competent tal- ent to fill the shoes of the departing own- er, particularly in the scenario where the ESOP is a leveraged ESOP. As this process frequently takes months (and even years) to complete, planning the long-term man- agement of a company should always be front and center. VALUATION. A common first step in an ESOP process is getting a feasibility study. It provides a business owner with a third- party perspective of potential ESOP struc- tures, including valuation, plan structure, and financing. However, many business owners prefer to have a general valuation completed prior to initiating a transition process. It may sound counter-intuitive but doing so is ill-advised, for the follow- ing reasons: ❚ ❚ Duplicative cost, as a valuation will be a part of the feasibility process. ❚ ❚ Valuation drivers change based on the in- tended use of the valuation. Depending on the succession path desired, this may set inappropriate expectations. ❚ ❚ The general valuation will need to be dis- closed in the diligence process and any variations in value from this valuation will need to be addressed. PROFESSIONALS. When working through a succession plan such as an ESOP, it is important for a business owner to

surround himself with professionals who are experienced in ESOPs. As a relation- ship-focused bank, we certainly appreci- ate loyalty amongst long-term business partners. However, utilizing attorneys, accountants, advisors, or bankers that are not regularly involved in ESOPs will not only put the transaction at risk, but will likely create elevated costs in completing the transaction. Executing on a succession plan is typically a once-in-a-lifetime event. Just as a business takes years, often decades, to develop, a succession plan should be well planned for. Surrounding oneself with the appropriate professionals and planning accordingly will position your company for a successful transition to ESOP ownership. Wintrust ESOP Finance and Wintrust CE&A look forward to participating in the 2019 M&A Next and 2019 Elevate AEC Conference in Las Vegas. Wintrust Financial Corporation is a more than $30 billion financial services company headquartered in the Chicago area. With its national niche lending groups, including Wintrust ESOP Finance and Wintrust Construction, Engineering & Architecture, our experts have the knowledge and expertise to provide a business owner in the AEC space with a relationship-focused partner and key trusted advisor. PAT STOLTZ and JIM SWABOWSKI can be reached at pstoltz@wintrust.com and jswabowski@wintrust.com.

The TOP NEW VENTURE AWARD honors a group of the fastest growing start-ups in the AEC industry based on revenue growth and entrepreneurial spirit (story of founding, firm structure, results achieved). Competing firms had to be founded after January 1, 2019, had to have at least $1 million in revenue for 2018, and 50 percent of their 2018 fiscal year revenue had to be derived from the AEC industry. Public entities such as departments of transportation or municipal public work were not eligibile. Here are the 2019 winners: 1. Catalyst Environmental Solutions Corporation 2. H2R Corp 3. Shear Structural, LLC

THE ZWEIG LETTER August 26, 2019, ISSUE 1310

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