Business Transformation

Thea Lowery

Case Study

Business Transformation

Greatness Why does your story matter?

Original Financial Impact

  • Owner founded construction business that was 24 years old.
  • Couple in mid 40’s and 3 children.
  • Operating agreement did not align with owner’s plans for succession, or with his personal legal documents.
  • One son was involved in the business and wanted to inherit or purchase the company in the future.
  • Desire to equalize the inheritances to all children.
  • If the business were sold or transitioned the owner would face a large capital gains tax bill.

Original Family Impact

  • The company did not have defined core values.
  • Owner was leading and operating the company but had no succession plan in place if something happened to him.
  • Key employees were not adequately compensated or protected.
  • Little to no communication surrounding business issues and objectives.
  • Several employees did not seem to be in the right roles.
  • The company had no formal structure for community involvement.
transition arrow

Growth What is the ROI (Return on Intention) of your story?

Opportunities

  • Create a business protection plan
  • Align legal documents with goals and intentions
  • Develop a business transfer plan
  • Reduce tax liability
  • Protect key-employees
  • Define and communicate core values and core focus
  • Ensure the right employees are doing the right work
  • Enhance the business community engagement and generosity
transition arrow

Governance Who tells your story?

Values

  • Created core values and purpose statement for the business.
  • Equipped employees to speak into these in a way that resonated with their personal and professional purpose.

Vision

  • Guided the owner and leadership team to develop a formalized vision for the organization.
  • Established training and review programs based on employee strengths and growth initiatives.

Voice

  • Established a leadership team to guide and speak into the future growth of the company.
  • Created weekly, monthly and quarterly meeting strategies to keep all divisions communicating on key KPI’s.
  • Implemented 1 on 1 time between supervisors and employees to empower employees to be heard.

Venture

  • Established a corporate giving fund and invited employees to participate in giving decisions.
  • Engaged employees in community volunteering and mission trips.
transition arrow

Generosity How can your story create transformation?

Strategies

  • Developed a Self-Funded ESOP strategy that significantly reduced annual income tax, provided assets to diversify investments, and transferred a portion of ownership to employees.
  • Utilized a supporting organization to mitigate capital gains taxes and to increase charitable giving.
  • Developed a plan to train son to take over the leadership of the business within the next 5 years.
  • Developed a succession plan for the management of the company.
  • Developed a buy-sell strategy for the owner’s son to buy-out his siblings upon the owner’s passing.
  • Guided the owner and leadership team to develop core values and core focus, and to align the organization.
  • Developed a plan to create a volunteer committee to plan and track volunteering initiatives.

Lifetime Income

Lifetime Income Taxes

Capital Gains Taxes

Estate Taxes

Charitable Giving

Case studies are for informational and illustrative purposes only and not to be considered a guarantee of results.
Actual results will vary with each situation.