Overview History

 Investor and Press Backgrounder Overview Founded in 1997, Entaire Global Companies, Inc. (“Entaire”) is an integrated financial services holding company focused on developing innovative, leverage‐based programs and solutions for use in funding a wide range of business and personal financial planning strategies and applications. The company, a privately owned entity, is located in the metropolitan Atlanta, Georgia area. History Entaire was formed in order to provide medical practitioners with access to an innovative lending mechanism for use in the purchase of life insurance and annuity products which form the foundation of wealth creation strategies and other retirement planning programs. The original program offering, known as Enshield®, enabled physicians to use the accounts receivable of the practice as collateral for a commercial loan taken out by the practice, the proceeds of which were used for the purchase of a life insurance policy and/or annuity policy, the beneficiary of which was the physician (or other designated individual). Entaire subsequently developed Value Access™ as a means for the cash‐flow driven business to take advantage of the same benefits offered by the Enshield® program. In 2009, Entaire formed Global Financial Distributors to serve as a marketing and promotions outlet for Leveraged Planning® programs. Concurrent with the formation of GFD, Entaire established Allied Marketing Partners, a captive insurance marketing organization in order to improve vertical penetration into the insurance marketplace. Mission, Strategy & Leadership Today, Entaire has grown into a diversified financial services holding company whose primary mission is the creation, acquisition and refinement of financial technologies that utilize leverage as the catalyst to revolutionize the world of financial planning. Entaire is continually developing and cultivating relationships with partners and potential acquisition targets in order to increase the scope and reach of the organization’s sales and marketing capabilities. Entaire has assembled a strong executive team comprised of a diverse group of professionals with experience in a wide range of industries. The Entaire executive team, led by CEO Jonathan Rosen, is tasked with positioning the company for the next phase in its growth while simultaneously identifying and targeting niche revenue and product development opportunities. To complement its seasoned Executive team, Entaire Global has assembled a veteran group of individuals to serve on its Board of Directors. The Entaire board includes former top executives from both public and private companies (including Coca Cola, Prodigy Networks and others). Providing guidance and leadership through regular, direct interface with the executive team, the Board of Directors is an integral part of Entaire's growth and progress into the future. Subsidiaries Entaire has multiple subsidiaries filling various roles within its vertically‐integrated financial supply chain. See below for a detailed organizational map. Entaire’s primary subsidiaries include: Global One Financial, Inc. Built on the same solid, lasting principles of its parent, Global One Financial, Inc. (G1) specializes in lending procurement for program borrowers. G1 is focused exclusively on the financing needs of the ever‐expanding client base of Entaire’s subsidiary organizations. In 2002, G1 revolutionized the leveraged planning marketplace by committing to serve not only as a lending procurer, but as a lender itself. In January 2003, G1 entered the lending marketplace supported by Comerica Bank, then, later in 2004, by Dresdner Kleinwort. G1’s process‐based credit analysis and monitoring systems, coupled with its associated financial institutions, create significant economies of scale for Leveraged Planning® program borrowers. Global Financial Distributors, Inc. Global Financial Distributors Inc. (GFD) is the marketing and distribution arm for Entaire’s Leveraged Planning® strategies. These strategies are designed to appeal to the small business and entrepreneurial marketplace. Their unique application of leverage‐based funding mechanisms within this marketplace positions GFD to take the lead in defining the shape of the sector and enables them to offer significant benefits in program design to both partners and clients. GFD serves insurance professionals throughout the country as the premier provider of innovative, full recourse Leveraged Planning® strategies in wealth creation and estate planning. Through the utilization of life insurance, annuities and other niche products, GFD is focused on maximizing program value while minimizing the risk to the client’s financial future. Allied Marketing Partners, Inc. Allied Marketing Partners (AMP) is the broker general agency subsidiary of GFD, providing insurance agents throughout the United States with a wide range of features and benefits to make AMP attractive as an affiliate partner. With divisions specializing in Life Insurance, Annuities, Disability, Long Term Care and Leveraged Planning® programs, AMP provides robust back‐office services, comprehensive marketing support, extensive case design consulting expertise and much more Other Subsidiaries, Organizational Map In addition to the subsidiaries mentioned, Entaire has several third party administrator and insurance agency subsidiaries focused on providing back‐end support and warehousing facilities for the marketing and sales of Leveraged Planning® programs. Entaire Global Companies, Inc. Organizational Diagram For more information about Entaire Global Companies, Inc. or its subsidiaries, please visit the corporate website at www.entaire.com or contact through the channels listed below. Press Contact: Eric Stein, VP, Marketing and Communications Ph: 678‐218‐1220 email: [email protected] Investor Information email: [email protected] MEDIACONTACT:EricStein,VicePresident,
MarketingandCommunications
6782181220
[email protected]
www.entaire.com
EntaireGlobalCompaniesFactSheet
CompanyName:EntaireGlobalCompanies,Inc.
Description:EntaireGlobalCompanies,Inc.isadiversifiedfinancialservicesholdingcompanythatcombines
traditionalfinancialproductofferingswithinnovativefinancialstrategiesandproprietarylendingmechanisms.
Entaire’ssubsidiariesmarketabroadrangeoffinancialproductsincludinglifeinsurance,annuities,premium
financingalternativesandEntaire’sproprietary,leveragedplanningstrategiesforfundingnumerousinsurance,
annuity,andretirementplanningproducts.
TargetMarket:U.S.domiciledBusinessowners,medicalpractitioners,andlegalprofessionals
MarketSize:45millionsmallbusinessownersandphysiciansnationwide
#ofAgentAffiliates:EntaireanditssubsidiariesdistributetheLeveragedPlanning™Programsthroughlicensed
insuranceagentsandfinancialadvisors.Entairecurrentlymaintainsbusinessrelationshipswithapproximately
5,000independentinsuranceagentsnationwide.
#ofCarriers:Entairecurrentlyhasover40carriercontracts(throughitsGFDandAMPsubsidiaries).
Funding:Entaire’ssubsidiary,GlobalOneFinancial,Inc.,servesasthelenderforEntaire’sLeveragedPlanning™
Programs.GlobalOnehassignificantinhousefundingcapabilitywithits$250,000,000structuredcreditfacility.
ThefacilitywasstructuredincooperationwithDresdnerKleinwortWasserstein(London),Comerica(Chicago),and
WellsFargo(Minneapolis).
KeyFinancialMetrics
3YearCompoundAnnualGrowthRateonrecurringrevenues:17.9%
LoanRetentionRates:1year:98.6%
3year:95.5% 5year:89.0%
Patents:Entairehasthreedomesticandoneinternationalpatentspendingforitstechnologicallyadvanced
financingsystems.
ENTAIRE SECURES MORE THAN $200MM IN CREDIT FACILITIES
DULUTH, Ga., June 28, 2010 – Entaire Global Companies, a diversified
financial services company, announced today that its lending subsidiary,
Global One Financial, Inc. has closed its latest funding round, a multi-bank
$160 million conduit funded credit facility led by Crédit Agricole Corporate
and Investment Bank. Other participants include Comerica Bank, Wells Fargo
and Commerzbank.
Simultaneously, the Company closed a $26 million term note and $15 million
warehouse credit facility. The agreements support Entaire’s growth strategy
and provide the company with greater financial flexibility to tailor its
Leveraged Planning® Program to meet the needs of its clients in a rapidly
evolving financial market.
As the Company’s lending subsidiary, Global One offers funding to Leveraged
Planning Program borrowers and the ever-expanding client base of Entaire’s
subsidiaries Global Financial Distributors and Allied Marketing Partners.
“Crédit Agricole CIB is a strong addition to an already excellent group of
funding partners,” said Jonathan D. Rosen, CEO, Founder and Chairman of
Entaire’s Board of Directors. “This agreement provides us with a flexible
financing relationship that will help us open new markets and make our
existing products even more attractive.”
“We are excited to have closed on this facility and are even more excited
about the long-term prospects of growing our relationship with Entaire and
its team of proven professionals,” commented Jorge Fries, Managing Director
in the Securitization department of the Debt-Capital Markets Group at Crédit
Agricole CIB.
About Entaire
Entaire Global Companies, Inc. a privately held, diversified financial services
holding company, is headquartered in metropolitan Atlanta, GA. Founded in
1997, Entaire is dedicated to providing unique financial strategies and
solutions through its subsidiary companies to a diverse corporate client
base. Entaire’s affiliations with world-class financial institutions and
insurance companies enable it to offer innovative solutions for businesses,
medical practices and individuals - with an advantage in tax efficiency,
stability and selectivity over traditional financial vehicles.
3805 CRESTWOOD PKWY, STE. 175
DULUTH, GA 30096
770.923.2000
WWW.ENTAIRE.COM
MEDIA CONTACT:
Eric Stein
Vice President, Marketing and Communications
Email: [email protected]
Phone: 678-218-1220
ENTAIRE AWARDED THREE PATENTS FOR LEVERAGED PLANNING
DULUTH, Ga., September 28, 2010 – Entaire Global Companies, a diversified financial services
company, announced today that it has been awarded three patents related to its core financial
offering, Leveraged Planning®.
The patents describe, among other areas, the systems surrounding the use of commercial loans
to purchase life insurance and annuity products as well as the computer systems necessary to
manage a portfolio of loans, and the compensation owed to involved parties.
“We are very excited to have secured these important patents. They increase the market strength
of Entaire and its subsidiaries while enhancing the organization’s ability to further expand in the
areas of loan servicing and financing,” said Jonathan D. Rosen, founder and CEO of Entaire.
“The patents also expand the firm’s opportunity set in the areas of intellectual property licensing
and third party plan administration”.
Entaire was represented in the U.S. Patent and Trademark Office by Alston & Bird LLP. “Alston
& Bird did an excellent job prosecuting these patents to a successful conclusion, and we are sure
will continue to do an excellent job going forward in protecting these valuable new assets,” said
Timothy Veith, General Counsel at Entaire. “We are pleased to see this recognition of significant
financial innovations by Jonathan Rosen and the Entaire team, and note the Supreme Court
recently confirmed that business related inventions like these are worthy of patent protection in
Bilski v. Kappos,” said Jeff Young, Partner at Alston & Bird.
Alston & Bird placed first among IP practices in Corporate Counsel’s annual report on Who
Represents America’s Biggest Companies.
The patents, filed in 2005 and 2006, recognize Rosen along with two other Entaire team
members, Paul Bush and David Metzger, as the inventors. The patents, assigned to Entaire
Global Intellectual Property, Inc., are:
x
x
x
7,797,214 – Financing and securitization structure for a portfolio of loans
7,797,217 – System for managing the total risk exposure for a portfolio of loans
7,797,218 – Method of compensating an employee
With Leveraged Planning, small business owners and other entrepreneurs can leverage the
inherent financial value of company assets and cash flows to meet personal financial goals such
as retirement planning, estate planning or business succession. For more information on
Leveraged Planning, visit Entaire’s subsidiary, Global Financial Distributors Inc., at
www.globalfd.com .
About Entaire
Entaire Global Companies, Inc. a privately-held, diversified financial services holding company, is
headquartered in metropolitan Atlanta, GA. Founded in 1997, Entaire is dedicated to providing
unique financial strategies and solutions through its subsidiary companies to a diverse corporate
client base. Entaire’s affiliations with world-class financial institutions and insurance companies
enable it to offer innovative solutions for businesses, medical practices and individuals - with an
advantage in tax efficiency, stability and selectivity over traditional financial vehicles.
FOR IMMEDIATE RELEASE
Press Contacts:
Eric Stein, Entaire Global Companies; (678) 218-1220; [email protected]
David Rubinger, Rubinger Communications; (404-255-8785); [email protected]
FINANCIAL INDUSTRY VETERAN DANIEL COURCHESNE JOINS ENTAIRE GLOBAL AS
SENIOR VP AND DIRECTOR OF STRATEGIC INVESTMENTS AND FINANCING
June 24, 2010 – Duluth, GA: Entaire Global Companies today announced that Daniel Courchesne has
joined the company as Senior Vice President and Director of Strategic Investments and Financing.
In this position, Mr. Courchesne is responsible for establishing major financial objectives and policies for
the company related to design, negotiation, implementation and development of financing structures that
will support the company’s Leveraged Planning™ services and other current and future product offerings.
Mr. Courchesne will report to Jonathan D. Rosen, CEO, Founder and Chairman of Entaire’s Board of
Directors, and will serve on the company’s senior management team.
Mr. Courchesne most recently was Managing Director and Head of Dresdner Kleinwort's North American
Structured Solutions Group, where he focused on innovative Institutional and Corporate bespoke
structured solutions for the insurance, corporate, fund and conduit space. From 2005 to 2009, Mr.
Courchesne was also a Board Member of Northstar Re, an off-shore life reinsurer based in Bermuda.
Prior to that, he worked in the Structured Credit Products Group of Royal Bank of Canada (RBC) where
he ran the North American arm of the Credit Arbitrage group. During his 11-year career at RBC, he held
several other senior positions throughout the Investment bank’s fixed income operation.
He began his career as a government bond trader working for National Bank of Canada in 1987 after
earning a B.B.A in Finance from the University of Sherbrooke.
“We are pleased to welcome Dan to Entaire and know that he will be a significant resource given his
impressive structured finance experience and unique approach.” Rosen said.
Entaire Global Companies, Inc. a privately-held, diversified financial services holding company, is
headquartered in metropolitan Atlanta, GA. Founded in 1997, Entaire is dedicated to providing
innovative and unique financial strategies and solutions through its subsidiary companies to a
diverse corporate client base. Entaire’s affiliations with world-class financial institutions,
insurance companies and annuity carriers enable it to offer innovative solutions for businesses,
medical practices and individuals - with an advantage in tax efficiency, stability and selectivity
over traditional financial vehicles.
###
FOR IMMEDIATE RELEASE
Press Contacts:
Eric Stein, Entaire Global Companies; (678) 218-1220; [email protected]
David Rubinger, Rubinger Communications; (404-255-8785); [email protected]
Entaire Global Announces Record Results in 2009
April 16, 2010 – Duluth, GA: Entaire Global Companies, Inc. today announced record financial
results for the fiscal year ended December 31, 2009 including record revenues, gross margin, and
net income.
Highlights of the 2009 financials include:
x
x
2009 Return on Common Equity:
1 Year Loan Retention Rate:
90.6%
98.6%
Reported 3 year compound annual growth rates on:
x
x
x
Recurring Revenue:
Net Revenue:
Assets Under Management:
17.9%
36.9%
21.3%
These positive results reflect the continuation of a positive trend for Entaire which has seen more
than 7 years of continual expansion into the financial services market. The year also saw
Entaire’s expanded market deployment into a broader financial services holding company with
the launch of the Global Financial Distributors and Allied Marketing Partners business units.
“It was a great year for us in many ways – not the least of which was our record earnings
results,” said Entaire CEO Jonathan D. Rosen. “Entaire launched several new subsidiaries and
we have positioned the company for significant growth in the next several years. Helped by
strong results in the Global One business line, our model has enabled us to continue growth even
during tight economic conditions. We expect that current economic trending will contribute to
our results, and 2010 is shaping up well, so we are highly optimistic.”
Entaire Global Companies, Inc. a privately-held, diversified financial services holding
company, is headquartered in metropolitan Atlanta, GA. Founded in 1997, Entaire is
dedicated to providing innovative and unique financial strategies and solutions through its
subsidiary companies to a diverse corporate client base. Entaire’s affiliations with worldclass financial conduits, insurance and annuity carriers, enable it to offer innovative
solutions for businesses, medical practices and individuals - with an advantage in tax
efficiency, stability and selectivity over traditional financial vehicles.
###
FOR IMMEDIATE RELEASE
Press Contacts:
Eric Stein, Entaire Global Companies; (678) 218-1220; [email protected]
David Rubinger, Rubinger Communications; (404-255-8785); [email protected]
EntaireCongratulatesOfficerTimothyFrates
GwinnettCountySilverMedalofValorWinner
April10,2010–Duluth,GA:OfficerTimothyFrateswithGwinnettCountyDepartmentofCorrections,
whointerruptedashootingandhelpedsavethevictim’slife,waspresentedwiththeSilverMedalof
ValorawardattheGwinnettValorAwardsluncheonbyEntaireCEOJonathanD.Rosen.
TheSilverMedalofValor,thesecondhighestawardforbraveryandheroism,isawardedinsituations
whenapublicsafetyofficialorunitknowinglyexposeshimselforthemselvestogreatpersonalriskin
theperformanceofanofficialact.
AccordingtothecitationfromtheGwinnettValorawards,OfficerFrateswassupervisinghisinmate
workdetailinLawrencevilleinApril,2009.Astheworkcrewwaspaintingovergangrelatedgraffitiat
therearofagasstation,OfficerFratesheardwhathethoughtwasanenginebackfiring.Whenhe
turnedtolook,hesawfourmalesuspectsfiringhandgunsintoacaracrossthestreetbehindabuilding.
OfficerFratesimmediatelyannounceda“shotsfired”callontheradio,requestedassistance,secured
theinmatesonthebus,andthenapproachedthescene.OfficerFratesapproachedthegunmanwho
wasfiringshotsatthecar,asthreeothersuspectsrananddisappearedaroundthebuilding.After
OfficerFratessquaredoffwiththegunman,thegunmanraninfrontoftheofficebuildingandintothe
woods.OfficerFratesthensecuredthesceneandrenderedaidtothegunshotvictiminthecar.Officer
Fratesknowinglyandwillinglyplacedhimselfinharm’swaytostopacrimeandsavealife.Hetook
chargeinalifethreateningsituationandearnedtherespectandadmirationofsupervisorsandco
workersalike.
“IamamazedbythetrueheroismthatTimothyFratesshowedonthatday,”Rosensaid.“Allofuswho
liveandworkinGwinnettCountyareveryfortunatetohavehimandotherMedalofValoraward
winnersprotectingourpublicsafety.”
EntaireGlobalCompanies,Inc.isadiversifiedfinancialservicesholdingcompanythat,throughits
subsidiaries,marketsabroadrangeoffinancialproductsincludinglifeinsurance,annuities,premium
financingalternativesandEntaire’sproprietary,leveragedplanningstrategiesforhelpingsmallbusiness
ownersachievetheirretirementorotherfinancialplanninggoals.
“Wewerethrilledtobeapartofthisterrificopportunitytohonorthepublicsafetyprofessionalsacross
GwinnettCounty,”Rosensaid.“It’sfartooeasytooverlookthecontributionsthesemenandwomen
makeaswegoaboutourdailylives.Butthesecondweneedthem,theyarealwaysthereforus.”
EntaireGlobalCompanies,Inc.aprivatelyheld,diversifiedfinancialservicesholdingcompany,is
headquarteredinmetropolitanAtlanta,GA.Foundedin1997,Entaireisdedicatedtoproviding
innovativeanduniquefinancialstrategiesandsolutionsthroughitssubsidiarycompaniestoadiverse
corporateclientbase.Entaire’saffiliationswithworldclassfinancialconduits,insuranceandannuity
carriers,enableittoofferinnovativesolutionsforbusinesses,medicalpracticesandindividualswith
anadvantageintaxefficiency,stabilityandselectivityovertraditionalfinancialvehicles.
###
For Immediate Release
Press Contact:
Eric Stein (678)218-1220 [email protected]
Atlanta Entrepreneur Establishes Financial Literacy Nonprofit with $5.3 Million Donation
Atlanta, GA, April 02, 2010 –Jonathan D. Rosen, CEO and co-founder of Entaire Global Companies, Inc.,
announced the funding and official launch of a foundation to promote financial literacy, wealth education
and financial independence among school-age children and adults. The Jonathan D. Rosen Family
Foundation will be funded with an initial grant of a portion of Rosen’s Entaire Global holdings – with a
value of over $5.3 million. Additional cash funding is being provided by Mr. Rosen and other members of
the Foundation’s Board of Trustees. The Foundation will provide financial education and related services
through direct teaching, mentoring, partnerships with Atlanta-area schools, and online programs and
resources.
The Foundation’s mission is “To empower children and adults across both the social and economic
spectrums with the knowledge and skills essential for successful financial decision making. The
Foundation’s focus is to facilitate the delivery of education and resources that will provide an opportunity
for personal financial flexibility to those who would otherwise be unable to achieve it.”
According to Mr. Rosen, “we are supporting the establishment of a mindset of financial responsibility and
economic security for all members of the community. Too often, people aren’t taught how to accumulate
assets. They are instead taught how to make it from paycheck to paycheck – which means that they are
at best being taught how to get by. Teaching people to be truly financially secure is a different goal – one
to which we are strongly dedicated.”
Jonathan D. Rosen is the CEO and Founder of Entaire Global Companies, a financial services holding
company specializing in leveraged strategies for retirement planning and wealth creation. Mr. Rosen is
also a member of the Gwinnett County Chamber of Commerce Board of Directors, one of Catalyst
Magazine’s 25 Atlanta Entrepreneurs to Watch and the founder of The Wealth Builders Foundation for
Economic Planning, Inc. a wealth management consultancy serving ultra high net worth individuals.
The remaining members of the Foundation’s Board of Trustees include: Michelle S. Spiro, Vice President,
The Warnaco Group, Inc. in New York City and Dr. Andy M. Trotti, Director Radiation Oncology Clinical
Research at H. Lee Moffitt Cancer Center in Tampa, Florida.
For more information about the Jonathan D. Rosen Family Foundation, including instructions for donating
funds or time, inquiries regarding sponsorship opportunities or requests for partnership, please visit the
Foundation on the web at www.rosenfoundation.org.
͓͓͓͓͓
Using Leverage To Solve
The Retirement Challenge
featured in Broker World magazine’s April, 2011 edition
Consider this case: A husband and wife
team has spent the last 15 years building a
multi-million dollar real estate business.
Through hard work, smart thinking and
overcoming a few setbacks along the way,
they built and manage a couple dozen
medical office buildings around a Southeastern U.S. metropolis.
While the rents provided a solid revenue
stream, at every decision point the couple elected to reinvest in their
business rather than set something aside for retirement. Capturing
immediate opportunities today always outweighed the long-term planning
required to meet future financial needs.
When the couple finally sat down with a financial advisor, they determined
that they would like at least $150,000 per year of income during their
retirement years—or for at least 25 years.
The husband and wife decided their best course was to allow their
business to borrow $1 million to fund an equity indexed annuity that they
would use to jump start their retirement savings. Over a two-year period,
from early 2008 to early 2010, the couple’s company paid $78,640 in
interest on the commercial loan. During the same period, the policy
credited $241,989. In the two years following the program’s inception, the
positive balance from interest crediting to the policy versus the loan interest
paid by their firm provided the couple with a 200 percent return. At a time
when the markets were barely paying 5 percent, this was clearly an
extraordinary result.
This story is on its way to a happy ending, but that doesn’t always happen
for entrepreneurs. Almost by definition, business owners are “doers” who
focus all their time and energy on building their businesses and meeting
the needs of their employees. It can be an awesome responsibility—one
that successful small business owners take seriously.
But the sad truth is that in all of the “doing,” too many small business
owners fail to plan for their own future needs. It’s not uncommon to find
entrepreneurs who, despite their business success, have no plan with
which to meet their future financial needs. By investing in their business,
they have left all of their economic eggs in just one basket.
There are several retirement programs available to business owners. Each
has its own unique benefits and drawbacks that need to be carefully
assessed. Selecting the right plan is often far simpler than funding it.
The most obvious—and most common—financing choice is, in many
cases, the least attractive (and in some cases impossible). Harvesting
cash from the business can deliver the monies necessary to fund
retirement plans, but it may leave the business weak and reduce its sales
value—assuming the cash even exists.
GFDAL_0411 As of 04/11/11
Another alternative, however, has emerged that lets financial advisors and
their business-owner clients get on track by unlocking value that is stored
in the business. Most companies don’t realize that cash flow—income from
the sale of products and services as well as lease or rental income—is an
asset that can be leveraged for any legitimate business purpose, including
funding the owner’s retirement.
By allowing the business to borrow money to fund an annuity or universal
life policy, the business owner can “front-load” his savings plan and,
through compounding interest, have a much better chance of reaching his
goals without undermining the health of his business. It also may be a
cost-effective and tax-efficient way to move money out of the business and
into the owner’s control.
While the cash value of an annuity or life policy enjoys compounding
growth, the business makes level simple-interest payments for the length
of the loan. The loan is secured by an assignment of the fully collateralized
policy and perhaps a general Uniform Commercial Code Form 1 filing
notice. Some lenders may also require the business’ accounts receivables
or the owner’s personal guarantees as collateral. In some—but not
all—cases interest payments made by the business may even be considered a tax-deductible business expense.
And when the loan comes due—in as many as 20 years—the client will still
be able to sell all or part of a healthy business, retire the note from a side
fund or from the growth within the product, or arrange other means to pay
it off. Meanwhile, the cash value from inside the policy will provide supplemental retirement income to meet the owner’s needs.
Leveraging assets to meet personal financial goals isn’t for every client;
however, given the right set of circumstances, it can be a very effective tool.
There are four keys to making this program work successfully.
First, it takes the right client.
The client needs to have a solid business with a steady stream of income
in excess of what the company needs to pay its bills or grow. Other firm
assets that are not already pledged as collateral elsewhere are frequently
considered as well.
In addition to lease or rental income, other types of assets could include
inventories, holdbacks at auto dealerships, medical receivables including
Medicare and Medicaid, and pre-need contracts at funeral homes.
Second, the client must be comfortable with leverage.
Most business owners are accustomed to using debt to cover start-up
costs or acquire the equipment and workspace that helps their business
grow. Unlike equipment, which depreciates over time, financial products
are appreciating assets that will become more valuable as the years go by,
making this an even more attractive option.
1 of 2
Using Leverage To Solve
The Retirement Challenge (con’t)
featured in Broker World magazine’s April, 2011 edition
Third, it takes the right vehicles.
The economics must make sense. To get the widest spread between loan
interest and interest crediting within the insurance product, it’s important to
start with a long term, simple, interest-only loan of 10, 15 or 20 yearswhatever the retirement horizon may be. Over time, products that enjoy
compound interest will outpace simple interest products, even when the
interest rates are at the same or similar levels.
Purchasing universal life insurance policies or annuities offers a combination of low cost, tax efficiency, stability and principal protection. That last
item—principal protection—is important to consider when principal loss is
a concern, especially with retirement planning. As a result, clients benefit
from the highest possible degree of security and potential for higher
returns.
Fourth, it takes the right partner.
Look for a partner that is an established leader in this space or has
established relationships with banks to provide the financing; relationships
with legal and tax services to ensure each transaction provides maximum
value to the client; and relationships with highly rated carriers to provide the
carefully selected insurance and annuity products. It’s also important to
work with a partner that has the experience to pull the deal together quickly
and can make this program successful.
Using leverage to fund a retirement plan is a frequently overlooked solution
to the very common problem of starting too late on retirement planning. In
fact, it really can be a smart solution for shifting dormant, non-productive
assets into a more useful position for the benefit of the business owner.
This approach keeps risk in check while still offering the potential for the
same kind of returns any conservative client would expect to receive.
Author's Bio
Alan M. Harrington, JD
Harrington is a senior vice president of Entaire Global Companies, Inc. and
president of Global Financial Distributors, an Entaire subsidiary. Harrington
was formerly senior vice president of variable distribution for Old Mutual
Financial Network. Additionally, he served at the senior executive level for
Banc One, responsible for fixed annuity and traditional life insurance
marketing; Fortis Life Insurance Company, where he was responsible for
the legal affairs and managed care strategy for the health insurance operation; and AEGON. He started his career as a trial lawyer in Texas, where
he remains an active member of the Texas State Bar and is licensed to
practice in the Northern District of Texas. In addition to a law degree from
Loyola University in New Orleans, Harrington earned a BS from the State
University College of NY in Buffalo, NY. He is a licensed insurance agent
and holds his NASD Series 6 and Series 26 licenses. Harrington can be
reached at Entaire, 3805 Crestwood Parkway, Suite 175, Duluth, GA
30096. Email: [email protected].
GFDAL_0411 As of 04/11/11
2 of 2
FUNDING BUY-SELL
AGREEMENTS
A good way to pay the premiums is to use a loan against the firm’s assets.
By Alan M. Harrington, J.D.
ccording to the Commissioners
1980 Mortality Table, there’s a
one-in-five chance that a
40-year-old business owner will die
before reaching 65. If he has a partner,
there’s an almost 40 percent chance that
one of them will die before he reaches
65. Add partners and the risks climb even
higher.
Given these statistics, small-business
owners need a business-succession plan,
generally referred to as a buysell
agreement. A properly structured and
funded buy-sell agreement is critical to
keeping the business in the hands of its
owners while maintaining the firm’s
value, in the event of one owner’s death.
Buy-sell agreements can be designed
for many eventualities—a desire by the
owner to sell the business, disability,
divorce or death. Any of these events can
arise at any time, so it is important to be
as prepared for them as possible. A
business-succession plan in the form of a
buy-sell agreement is therefore critical.
Or consider the case of the business
owner who is joined by one of his
children who helped build the business
and has earned the right to run it one day.
But the owner has other children.
Finding a way to let each child share in
the owner’s legacy is a common
estateplanning dilemma. A buy-sell
agreement can help the owner pass the
business to the active child while creating
the resources for a financial inheritance
for the other children.
However, business owners don’t
frequently take this step. Some surveys
suggest that less than one-fifth of active
business owners have a formal businesssuccession plan. Reasons for this include
the distraction they face in running a
Advisor Today October 2010
business and cost.
But cost shouldn’t be a barrier. While
there are many alternatives for funding
buy-sell agreements, permanent life
insurance is popular and meets the needs
of many small-business owners.
The premiums can be attractive,
and the death benefit is usually free from
federal income tax. Nevertheless, some
owners may worry that paying the
premiums out of pocket will divert cash
that might be better used to grow the
company, depending on the size of the
policy and the age of the insured.
There is another way to pay the
premiums—leverage. This is a commercial loan that is taken out against the
business assets used to fully fund the
insurance policy, giving the owners the
agreement they need while preserving
resources in ways that keep the business
healthy and growing. The life insurance
policy’s cash value may grow, offering at
least an opportunity to keep up with the
growth in the company’s value.
Using leverage
Leveraging assets to fund a buy-sell
agreement is not for every client,
however. The ideal client needs to have a
solid business with a steady stream of
income in excess of what the company
Reprinted with permission from Advisor Today. All rights reserved.
needs to pay its bills or grow. Other firm
assets, such as inventories, holdbacks at
auto dealerships or medical receivables
that arenot already pledged as collateral
elsewhere, are frequently considered as
well. At the same time, the client must
be comfortable with leverage. Most
business owners are accustomed to
using debt to cover start-up costs or
acquire the equipment and workspace
that help their businesses grow. Unlike
equipment, which depreciatesover time,
financial products are considered
appreciating assets that become more
valuable as the years go by, making
them an even more attractive option.
Using leverage also takes the right
partner. To achieve success, look for an
established leader with:
The banking relationships to provide
the financing
Relationships with legal and tax
services to ensure that each
transaction offers maximum value
to the client
Relationships with highly rated
carriers to provide carefully selected
insurance products
It’s also important to work with a partner
that has the experience to pull the deal
together quickly and can make this
investment successful.
Alan M. Harrington, J.D., is president of
Global Financial Distributors, a leader
in leveraged-based financial strategies
for small businesses and entrepreneurs.
Email him at [email protected].
1 of 1
WEB EXCLUSIVES
Accelerating Retirement Savings With Leverage
By ALAN M. HARRINGTON
Published 4/7/2010
It’s a common tale. A small business owner has devoted his
life to building his company. He’s put every dollar he has into it
and, in return, he’s done an excellent job of providing a nice
living for his family and his employees. But then retirement
appears on his horizon, and he realizes that he’s saved too
little to retire comfortably or leave something for his heirs.
Usually, the only real course of action is to make the most of
the existing assets. It can mean taking on more risk than is
prudent to eke out slightly higher rates of return. Or worse, it
can require harvesting cash out of the business in ways that
leave it weak and reduce its sale value.
Cash flow as an asset
Another set of tools has emerged that let financial advisors
and their business-owner clients get back onto plan by unlocking value that is stored in the business. Most companies don’t
realize that cash flow–income from the sale of products and
services as well as lease or rental income–is an asset that can
be leveraged for a legitimate business purpose, including
funding the owner’s retirement.
By allowing the business to borrow money to fund an annuity
or universal life policy, the business owner can “front load” his
retirement savings and, through the might of compounding
interest, have a much better chance of reaching his goals
without undermining the health of his business. It’s also a cost
effective and tax-efficient way to move money out of the
business and into the owner’s control.
Consider the case of the restaurant owner. For the last 15
years, this businesswoman has successfully built a restaurant
franchise group with multiple locations across the city. But
while she paid close attention to the demands of the business,
she ignored her retirement planning. Her current retirement
savings were significantly behind her ultimate needs.
To supplement her retirement savings, the franchise owner
and her financial advisor allow the business to take out a
simple, interest-only loan for the benefit of the business owner.
The owner, in turn, fully funds an annuity with a face value of
$1 million.
While the annuity enjoys compounding growth, the business
makes level interest payments for the length of the loan. The
loan is secured by an assignment of the fully collateralized
policy and perhaps a general UCC1 filing. Some groups may
also use the business’s accounts receivables or the owner’s
personal guarantees as collateral.
In some (but not all) cases these payments may be considered a tax-deductible business expense. This deal takes only
27 days to complete. When the loan comes due, the client will
still be able to sell her healthy restaurants, retire the note from
a side fund or arrange other means to pay it off. Meanwhile,
the annuity will provide the supplemental retirement income
the owner needs.
Three keys to a successful program
Leveraging assets to meet personal financial goals isn’t for
every client. But given the right circumstances, this strategy
can be very effective. There are three keys to making this
program work successfully.
First, it takes the right client. The client needs to have a solid
business with a steady stream of income in excess of what the
company needs to pay its bills or grow. Other firm assets that
are not already pledged as collateral elsewhere are frequently
considered as well. In addition to lease or rental income, other
types of assets could include inventories, holdbacks at auto
dealerships, medical receivables (including Medicare and
Medicaid) and pre-need contracts at funeral homes.
At the same time, the client must be comfortable with leverage.
Most business owners are accustomed to using debt to cover
start-up costs or acquire equipment and workspace that helps
their businesses grow. Unlike equipment, which depreciates
over time, financial products are appreciating assets that
become more valuable as the years go by, making this an
even more attractive option.
Second, it takes the right vehicles. The economics must make
sense. To get the widest spread between loan interest and
investment growth, it’s important to start with a long-term,
simple, interest-only loan of 10, 15 or 20 years—whatever the
retirement horizon. Over time, products that enjoy compound
interest will outpace simple interest products, even when the
interest rates are the same or similar.
WEB EXCLUSIVES
Accelerating Retirement Savings With Leverage (con’t)
While the proceeds of this loan can be used to fund almost
any retirement vehicle allowed by the U.S. tax code, only a
few products actually meet the criteria. For the owner to gain
the most, however, the program needs to be selective–it
should only benefit the owner, for instance–as well as offer low
costs and tax efficiency. Purchasing universal life policies and
annuities offers a combination of low costs, tax efficiency,
stability and principal protection. The last item—principal
protection—is important to eliminate the risk of principal loss in
a down economy. Clients benefit from the highest possible
degree of security and potential for higher returns.
Tapping an established leader
Finally, it takes the right partner. Look for a partner that is an
established leader in this space or has established relationships with banks to provide the financing; relationships with
legal and tax services to ensure each transaction provides
maximum value to the client; and relationships with highly
rated carriers to provide the carefully selected insurance and
annuity products. It’s also important to work with a partner that
has the experience to pull the deal together quickly and can
make this investment successful.
Using leverage to fund a retirement plan is a frequently
overlooked solution to the common problem of starting too
late on retirement planning. In fact, it really can be a smart
solution to shifting dormant, non-productive assets into a more
useful position for the benefit of the business owner. This
approach keeps risk in check while still offering the same kind
of returns a conservative client would expect to receive.
Alan M. Harrington, JD, is the president of Global Financial
Distributors, Duluth, Ga. You can e-mail him at
[email protected].
JONATHAN ROSEN
CEO // ENTAIRE GLOBAL COMPANIES, INC.
PHONE: 770-923-2000 // FAX: 770-923-2553 // [email protected]
THE STORY: Jonathan Rosen founded Entaire Global Companies,
Inc. in 1997. He has since built the firm from a small operation
in Duluth to one generating more than 50 percent compounded
annualized revenue growth for over 11 years, with more than
5,000 sales affiliates nationwide.
MY IDEA OF FUN: Weekends with my wife and daughter at Lake
Oconee or at home are essential. Family time is very important.
I also enjoy deep sea fishing, scuba diving and flying.
HOW I GOT HERE: I have focused on perseverance, innovation
and determination. I have also sought to surround myself with
strong, committed team members and place them in an environment where they can perform at their maximum potential.
THINGS I TELL MYSELF: Success rises from dedication, a
strong work ethic, powerful innovation and teamwork. Together,
these elements will absolutely carry Entaire to the levels that
I have always been confident we can achieve.
WHAT I'D MOST LIKE TO SEE: Even greater success for Entaire.
I firmly believe that our company will positively impact the lives of
everyone associated with Entaire or our subsidiaries.
WHAT'S NEXT FOR ME: After Entaire, I hope to move into charitable foundation work and wealth/business education. I would like
to be able to help both business owners and the less fortunate
realize financial success.
3805 Crestwood Parkway, Suite 175 • Duluth, GA 30096 • www.entaireglobal.com
JONATHAN ROSEN, ENTAIRE GLOBAL COMPANIES, INC.
TURNING BUSINESS
ASSETS INTO
RETIREMENT
INCOME
IF YOU’RE A BUSINESS OWNER,
you can well imagine this scenario. You
start a successful business or perhaps a
medical or legal practice. In the early
years, you pour all your gains back into
the business to fund more growth.
There are operating needs, equipment
to buy, facilities and technology to
invest in, and a payroll to meet. Now,
the business or practice is flourishing
and you’re well positioned for the
future, in every area but one – your personal retirement planning. Seems your
business is doing better than you are.
Jonathan Rosen, founder and CEO of
Entaire Global Companies, Inc., doesn’t just understand that real-world scenario. He’s built the patent-pending
investment model to solve the problem.
Rosen created Entaire in 1997, providing business owners a way to leverage their assets into return-yielding
retirement accounts. The firm now
does business in 49 states and the
Virgin Islands.
“We’re able to help business
owners, or those who own a
medical practice or law firm,
turn their business assets
into retirement income – in a
secure and selective way.”
Jonathan Rosen, Founder and CEO,
Entaire Global Companies, Inc.
Entaire originates business loans for
clients where the proceeds are invested
in specifically chosen cash value and
insurance annuity products, offering
advantages in tax efficiency, stability
and selectivity. The company partners
with financial leaders including
Comerica (Chicago), Dresdner
Kleinwort Wasserstein (London) and
Wells Fargo (Minneapolis).
As the innovators of Financed
Planning™, Entaire enables individuals
to leverage the power of programs that
were historically available only to very
high net worth investors – with a proven
track record.
For clients, there are three distinct
benefits:
Reduced volatility: “We’re able to
lock in the gains on an annual basis.
You can’t lose the value you’ve gained.”
Playing catch up: “We like to say that
if you’re behind on your retirement,
we’ll spot you the first $1 million.”
Selective participation: “Business
owners can use the investment to
select exactly whose retirement will be
funded, whether that means only the
proprietor or key employees.”
“We’re dedicated to empowering
successful business owners with the
financial products and investments
that will enable them to fund the future
they truly deserve,” says Rosen. ■
For more information, call (770) 9232000 or visit www.Entaire.com.
Chairman’sClub
Entaire Global Companies:
Helping Business
Owners Fund
the Financial
Future They
Deserve
Since , Entaire Global Companies has been
providing business owners and physicians with
the ability to use their businesses to purchase financial products for their personal benefit. Put
simply: Entaire funds financial solutions. Their
unique approach to wealth creation for entrepreneurs and medical practitioners has placed
Entaire at the forefront of an industry which is
simultaneously innovative and time tested.
Entaire’s programs enable business owners
to cost effectively and tax efficiently move funds
from their “business pocket” to their “personal
pocket” by way of leverage, which is used to purchase compound interest financial products for
the specific benefit of the business owner.
As a Chairman’s Club member, Entaire Board
of Directors Chairman Jonathan D. Rosen noted
that Entaire’s sponsorship of numerous chamber
initiatives and events and their work to help in-
Entaire Board of Directors
Chairman Jonathan D. Rosen
crease the visibility of Gwinnett County as a hub
of economic growth and innovation. “Entaire
employees are active in various local community
outreach initiatives and events,” Rosen remarked.
“Our organization has embraced a ‘green’ initiative that includes numerous measures to reduce
our environmental impact.”
Rosen explained that Gwinnett County and
the Gwinnett Chamber, in turn, provide Entaire
with the ability to reach out to their many community stakeholders and fellow business owners
and increase their awareness of Entaire, the value
proposition they provide to area businesses and
the ways in which Entaire can help them create a
prosperous financial future.
“Chairman’s Club receptions are the ideal
venue for Entaire representatives to meet with
key players who are central to the county’s business and governmental functions,” said Rosen.
“These events have proven valuable to Entaire
as a means to network with business owners,
expand awareness of our organization and create increased goodwill in our own local business
community.”
Sharing a piece of advice to aspiring business leaders, Rosen advises Gwinnett’s business
owners to not neglect their own needs. “It is very
easy for a business owner or corporate leader to
forget their own financial needs as they move the
company forward,” he said. “All too often, these
individuals find that they have forgotten to put in
place mechanisms to adequately meet or prepare
for their personal future income needs. This is
really why Entaire exists: to help business owners
fund the financial future they deserve.”
For more information on Entaire Global
Companies, visit www.entaire.com.
Do More With Less.
Maximum Productivity. Minimum Downtime.
The key? A well-designed, well-maintained computer network
r Proactive network administration and support
r Economical fixed-fee managed services plans
r Knowledgeable and courteous engineers
r Selection of the right technology for your business
4
August 2009
GwinnettFocus
Lifestyles For The Aviation Enthusiast
SUN ’n FUN 2009!
ENTAIRE GLOBAL
COMPANIES, INC
FINANCIAL INNOVATORS TEAM
UP WITH BUZZ ALDRIN
INSIDE
—————————
PILOT PROFILE
Eric Boe
—————————
NOTABLE ORGANIZATION
Atlanta Aero Club
—————————
DESTINATION
SOUTHEAST • MARCH/APRIL 2009
FLORIDA • OCTOBER/NOVEMBER 2008
Augusta, Georgia
3<B/7@3
47</<17/:7<<=D/B7=<03<
By Candace Morrow
B
usinesses are
established for
reasons as diverse
as the founders themselves
—Desiring independence,
needing to fill a void in the
marketplace, or just wanting
to follow a passion are only a
few of the catalysts for new
ventures. No matter what
the incentive, entrepreneurs
will need to put money away
for themselves somewhere
down the line. Instead of
transferring earnings into
higher risk investments,
many business owners are
looking at programs not
only earning returns but
also offering downside
protection, tax advantages
and business planning tool
opportunities. This is where
Entaire Global steps into
the picture.
22 The AutoPILOT | Southeast
March/April 2009
5:=0/:
347B7<50CA7<3AA=E<3@A
Front row: Timothy Veith (general counsel and senior vice president), Jonathan Rosen (CEO and chairman) and Frederick Apple (president).
Back row: James McBrayer (senior vice president ) and Eric Stein (vice president).
The AutoPILOT | www.autopilotmagazine.com 23
Jonathan Rosen and Frederick Apple.
CEO and Chairman Jonathan Rosen, along with co-founder William R. Muirhead,
formed Entaire in 1997 to explore a new strategy that could accelerate the growth of
dormant assets within medical practices. Thus, the Enshield program was born, followed
by Value Access a few years later. “Because of Entaire’s rapid national growth, it has
extended its services to a broader range of business owners and legal professionals.
Nearly half of our clientele are physicians, but we found that our programs appealed to
business owners from many industries,” explains Rosen, who was also named as one of
Atlanta’s “Top 25 Entrepreneurs” by Catalyst Magazine in 2008.
As the metro Atlanta-based creators
of “Financed Planning™,” Entaire
Global offers these innovative programs
to help business owners and physicians
plan for future financial needs. “Our
programs—Enshield and Value
Access—are an excellent alternative to
the status quo offerings used by many
business owners such as 401Ks, mutual
funds and SEP plans,” says Rosen.
“Entaire’s programs are innovative, but
they’re built on such proven principles
that many people have difficulty
understanding why they haven’t seen
this option before.”
Enshield, the first product developed
by Entaire, is intended for businesses
24 The AutoPILOT | Southeast
relying upon accounts receivable—
including physicians. The second
program, Value Access, is tailored to
a cash flow-based approach, a class
encompassing a far wider range of
industries. The structure of the program
relies on the business first taking out
a loan with Global One Financial, a
subsidiary of Entaire. Those funds are
then used to purchase a universal life
insurance or equity-indexed annuity
product for the business owner. The
business makes the payment on the
loan, while the business owner reaps the
benefits from the financial product.
“Given the current economic climate,
our programs are a great way to make
March/April 2009
up for lost time or lost value. We offer
a means to replenish those lost—or
never saved—assets and position
business owners for a long-term
economic recovery. Our programs allow
business owners to create the financial
future they deserve in a controlled
and risk-protected way,” says Rosen.
“Entrepreneurs are visionaries and
often pioneering in nature. I’ve been
a pilot for some years, I’ve owned
several planes and I know it takes a
certain kind of individual to be a pilot
and a certain kind of person to start a
successful business—often those people
are one and the same—both rely on and
require discipline and planning.”
Presenters James McBrayer and Eric Stein.
James McBrayer, Tim Veith and Eric Stein.
26 The AutoPILOT | Southeast
March/April 2009
Atlanta cardiologist Dr. Bobby
Khan, a longtime Enshield program
participant, adds: “The Enshield
program is a wonderful retirement
funding vehicle. One of the great
things I’ve found over the years is
the gains haven’t been lost as a result
of poor market performance. In fact,
they’re locked in from year to year,
adding a significant measure of
stability to my portfolio.”
With the wild fluctuations of the
market, it’s becoming increasingly
concerning for many business owners
to keep money in traditional retirement
products. “Lack of downside protection
makes individual equities increasingly
difficult to justify, and 401Ks, SEP
plans, etc. funded by the business
owner’s company must generally
be offered to all employees,” says
Entaire’s Vice President of Marketing
Eric Stein. “Entaire programs don’t
have this restriction because of their
inherent selectivity. Because the gains
in the program are tax-deferred, the
business owner or physician participant
can realize program growth without
having to pay taxes until withdrawals
“Innovation is something I’m passionate about,
and Entaire’s programs are an excellent example of
innovation being applied to retirement planning
and wealth building.” — Dr. Buzz Aldrin
are made. And, since the funds from the
loan are placed into a cash-value life
insurance or equity-indexed annuity
policy, the funds are protected against
downside loss due to the structure of
the products.”
All life insurance and equity-indexed
annuity products used by Entaire
offer guarantees against losses below
their initial value (or their reset points
upon earning gains). As a result, the
programs generally can’t go below
what was originally placed into them,
regardless of market conditions. A
$100,000 annuity will go up when the
market goes up and stays flat when the
market goes down. “Where else can you
buy that kind of protection for your
personal portfolio using your business
as the leveraging tool?” asks Rosen.
To date, Entaire has a distribution
channel of nearly 6,000 independent
affiliates across the United States
providing the company’s services. The
company is also an active sponsor of
the Gwinnett Chamber of Commerce
Dr. Buzz Aldrin
Entaire’s programs weren’t
seen as innovative solely by
business owners, they were also
recognized by one of America’s
greatest heroes—Dr. Buzz Aldrin.
As an aviator, entrepreneur
and innovator himself, when
approached by company President
Frederick Apple, Dr. Aldrin
recognized the inherent benefits and pioneering nature
embodied in Entaire’s programs. Aldrin subsequently
became the company’s special advisor in 2006. In late
2008, Aldrin elected to extend his contract as Entaire’s
national spokesperson until 2010. Whether it’s scientific
or financial innovation, Aldrin is dedicated to empowering
others in creating their own wealth and personal financial
flexibility. “I’m very pleased to extend this relationship
with Entaire,” Aldrin says. “Innovation is something I’m
passionate about, and Entaire’s programs are an excellent
example of innovation being applied to retirement planning
and wealth building.”
and the Gwinnett Braves minor
league baseball team, and has been
featured in numerous local and national
publications. “Because of the unique
nature of our funding structure, our
programs have implications beyond
mere retirement planning,” explains
Stein. “They can be used for business
planning, as key employee retention
programs, or as a business transition
tool—if, for instance, you want to sell
your company or buy someone else’s
and make the deal more rewarding.
That’s why our programs are unique—
the possibilities are extremely broad.”
Entaire is funded through lending
agreements with Dresdner Kleinwort
and Comerica. The insurance and
annuity product carriers they currently
use include American General, Allianz,
American National and Lincoln Benefit
Life. When coupled with Entaire’s
patent-pending financial technology,
these relationships have positioned the
company as a leading innovator in the
financial services industry.
Forging ahead, Entaire plans to
concentrate on expanding its brand.
“We’re planning for significant growth
in both portfolio and overall earnings,”
Rosen says. “The marketplace seems to
be identifying with us and our product
offering. Buzz Aldrin (See sidebar to
left) is a great addition as our national
spokesperson; and the fact that none
of our clients’ accounts have suffered
a loss in 2008, despite the economy,
gives us a real sense of optimism. Our
message is coming across, and it’s
being transmitted via the most valuable
advertising mechanism of all—the
recommendation of hundreds of
satisfied customers.” Q
For more information,
visit www.entaire.com.
The AutoPILOT | www.autopilotmagazine.com 27
In Business
For You
April-May 2009
In Focus:
3
EconomicDevelopment
PHOTO: JENNIFERSTALCUP.COM
Gwinnett Chamber Economic
Development Hosts Chinese
Delegation for Inaugural Global
Business Luncheon
Celebrating The Future
of America’s Economy
4
Chairman’sClub
PRSRT STD
U.S. POSTAGE
PAID
ATLANTA, GA
PERMIT NO. 349
Sandler Training:
Simon Says, “Sell!”
(L-R) Entaire Global Companies Director of Marketing & Communications Eric Stein, Entaire Global Companies S.V.P and Operations James
McBrayer, Precision Planning, Inc. Senior Vice President and Gwinnett Chamber Small Business Chair Carla Carraway, Salon 124 Owner
and 2008 Small Business Person of Year Brian Perdue, Entaire Global Companies President Frederick Apple, and Entaire Global Companies
CEO and Chairman Jonathan Rosen recognize the importance of celebrating Gwinnett’s small businesses.
If history is a guide, entrepreneurs
are likely to be the heroes of this economic downturn by helping to lead
America out of the current recession
through their innovative products and
services. According to an article in the
Small Business Administration’s March
2009 The Small Business Advocate, the
shock of the recession of 1974–1976
was absorbed mostly by small businesses,
but they did maintain their employment
share in the economy as a whole. The article also reported that in the recession of
1981–1982, small business employment
was either up more, or down less, than
that of large businesses.
By looking back and analyzing the
economic statistics from prior recessions, one can determine that recovery
often started with America’s small businesses and entrepreneurs.
“Some self-employment will come every four jobs, and generate a majorout of economic necessity; the talent and ity of American innovations. In support
experience of workers being laid off will of National Small Business Week, the
prod some of them to sell
Gwinnett Chamber
Pinnacle Small
those talents as their own
of Commerce and
Business Awards
boss. Some may have prePresenting Sponsor
viously contemplated strik- FRIDAY, APRIL 24, 11:30 am Entaire Global ComAtlanta Marriott—
ing it out on their own, but
panies will honor
Gwinnett Place
were not ready to forego the
Gwinnett’s top small
stability of an existing job. Others will businesses of the year at the Pinnacle
see new opportunities for innovations Small Business Awards on April 24 at
in the midst of the economic adversity,” the Atlanta Marriott – Gwinnett Place
commented Shawne McGibbon, Acting from 11:30 a.m. to 1:30 p.m.
Chief Council, in the article.
With small business comprising
Every year Small Business Week the majority of their clientele, Pinnacle
honors the estimated 30 million small Awards Presenting Sponsor Entaire
businesses in America, including Gwin- Global Companies recognizes how
nett’s own vibrant small business sec- important those businesses are to the
tor. Combined, these small businesses economy.
employ more than half the country’s
“As a result of this, we do whatever
private work force, create three out of
continued on page 6
Inside this issue…
INDUSTRY
SPOTLIGHT
ICS, Inc.:
Company Ensures
Gwinnett’s Data
Facility Plans
Page 3
ENTREPRENEURS
Getting Your
Web Site Found
on Google
Page 5
CERTIFIED WORK
READY PROGRAM
MEMBER
NEWS
WHAT’S
HAPPENING
Helping Gwinnett’s
Business to
Hire Smart
News and
Accolades About
Our Members
Mark your
calendar for
upcoming programs
and events
Page 6
Page 7
Page 8
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Strengthening Our Communities
6
Georgia’s Certified Work Ready Program:
Helping Gwinnett’s Business to Hire Smart
In today’s increasingly competitive global
economy, there is a gap that exists between the
skills required in today’s workplace and those
exhibited by potential and current employees.
And as such, employers have trouble finding and
hiring people with fundamental, trainable skills.
Businesses need new employees who can achieve
job proficiency quickly in order to meet the demands of today’s marketplace.
Job applicants with a Georgia Work Ready
Certificate arrive with those skills critical to job success, enabling employers to cut training costs and
reduce turnover. The Georgia Work Ready Certificate is a portable credential easily and universally
understood and valued by employers, educators,
and recipients. The certificate shows that an individual has certain fundamental skills needed in the
workplace. The WorkKeys assessment system is
used to determine those skill levels.
To assist Georgia communities and regions in
attracting new business and preserving the health of
their existing economic base, Governor Sonny Perdue and the Gwinnett and the Georgia Chambers
of Commerce have partnered on the Georgia Certified Work Ready Community initiative, a means of
demonstrating that the community’s existing labor
force can fill existing job vacancies and meet changing labor needs. Adding to the Certified Work
Ready Communities, an initiative to create Work
Ready Regions was also developed to transform our
state. Building upon Certified Work Ready Communities, regions will be formed based on common
resources aligned to regional strategic industries.
Realizing the benefit of quality labor, Gwinnett
County and area partners are well on their way to
making the Innovation Crescent, which is both a
geographic area and a coalition of more than a dozen counties and entities focused on life sciences and
economic development that stretches from Atlanta
to Athens, a Certified Work Ready Region.
Each regional effort is being led by a local businessperson associated with the strategic industry,
according to Debra Lyons, director of the Governor’s Office of Workforce Development (GOWD).
This leader will work closely with GOWD to ensure continuity of efforts among the various regions,
and will assemble an industry network to ensure the
region’s work plan meets the needs of the industry,
both current and future.
Leading Gwinnett County and the Innovation
Crescent, Gwinnett Chamber Director of Leadership & Education Gail Macrenaris is encouraging
employers and job applicants to take advantage of
the Work Ready program.
“Employers can simplify making reliable decisions about hiring, training, and program development by using the Georgia Work Ready Certificate
Program to assess their incoming and current
workforce,” commented Macrenaris. “Likewise, for
job applicants, earning the Georgia Work Ready
Certificate enhances employability by indicating
skill and knowledge levels to potential employers.”
You do not have to be in the life science industry to take advantage of the Georgia Work Ready
Certificate Program. “All businesses are encouraged to take advantage of the Work Ready program,” said Macrenaris. “Nothing is lost and all is
gained by those that take part in this program.”
Businesses can take advantage of The Georgia Work Ready Assessment Program, which is a
complete solution for making quick comparisons
between a person’s skill levels and the job requirements. Companies that use the program to assess
their incoming and current workforce can achieve
substantial benefits such as improved employee
selection and advancement procedures, reduced
overtime, reduced turnover, increased productivity, fewer legal challenges to hiring processes, and
higher employee morale.
Companies can also participate in job profiling offered through Work Ready representatives
at technical colleges to develop detailed profiles of
jobs within their organization. This allows them to
quickly match optimal candidates with open positions.
“Employers who have a high turnover really
benefit from profiling,” says Mary Margaret Garret,
who serves as Workforce
Development Chief at the
Atlanta Regional Commission, and director of the Atlanta Workforce Investment Board. But curtailing
turnover isn’t the only benefit. Garrett cites these
return-on-investment figures seen by one Georgia
company that embraced profiling:
67% reduction in cost and time to hire
qualified candidates
200% improvement in training entrylevel employees
35% improvement in production
efficiency
58% reduction in waste
To learn more about the Georgia Certified
Work Ready program, visit www.gaworkready.
com.
Pinnacle Small Business Awards cont’d. from p. 1
we can to support small business through the
Chamber and our other community activities,”
commented Frederick E. Apple, president, Entaire Global Companies.
“One of the fundamental components of any
economic contraction is weakness in employment
and the purchasing power of businesses and consumers. Given that so much economic activity
is reliant upon small business and the people it
employs, the recovery, when it arrives, will almost
certainly come from that sector of the economy,”
said Apple.
One of the Gwinnett Chamber’s most prestigious awards, this celebration recognizes both
emerging companies as well as companies that
have exhibited a substantial history as an established business. With the challenges facing small
businesses today, this year’s process will focus
more on the company’s response to adversity and
service to the community.
As well as presenting Gwinnett’s Top 25
Small Business with an award, the Gwinnett
Chamber and Presenting Sponsor Entaire Global Companies will announce the Small Business
Persons of the Year for three categories (1 – 9
employees; 10 – 99 employees; and 100+) as
well as the overall Gwinnett Small Business of
the Year winner.
For more information or to reserve a seat,
visit
www.pinnaclesmallbusinessawards.com.
Members and guests may purchase individual
tickets for $75 or a table of 10 for $750.
Additional sponsors include Platinum Sponsors Delta Community Credit Union and Moore
Stephens Tiller LLC and Gold Sponsors Gwinnett Business Journal and Notre Dame Academy.
2009 Pinnacle Finalists
SMALL BUSINESS FINALISTS
Ackerman Security Systems
Allgood Pest Solutions
alternative apparel, inc.
American Painting & Renovations, Inc.
Arthur A Jones & Associates, Inc.
ASK Staffing, Inc.
Atlanta Special Events
AVS Computer Services
Bardi Mechanical
Bartimaeus, Inc. & WindowCo
Bruce E. Carter, DMD, P.C.
Destiny Ballroom / DediCaters Catering
Direct Technologies, Inc.
EC Electric, Inc.
EMB Contruction, Inc.
Fordham Financial Services, Inc.
Foresite Group, Inc.
Forrestall, Galeano & Li, CPA, LLC
Gibbs Financial Planning Services, PC
Glen Huff Homes & Remodeling
Global Mall / American Management Services, Inc.
Green Financial Resources, LLC
Gwinnett Foot, Ankle & Leg Center
HealthCare Partners, Inc.
Herrin Plumbing Company, Inc.
Hire Dynamics, LLC
JJAA Inc./Nobody’s Auto Service & Repair
John T. Grizzle, CPA, P.C.
Kart Enterprises, Inc.
Logical Choice Technologies, Inc.
LW Scientific, Inc.
Mathias Corporation
McKenzie Law Associates, P.C.
North American Bioproducts Corporation
Peachtree Awnings
Premier Immediate Care
Pro Care Emergency Medical Services, LLC
redpepper
Renova Technology, Inc.
Richardson Technology Systems, Inc.
Rockbridge Family Medicine
Rocket IT
SBX Technologies, LLC
SDG Advisros, LLC
Southtrac, Inc.
Sugarloaf Tech, Inc.
Suwanee Family Dentistry, PC
Tanya Andrews Tate & Associates, Attorneys at Law, PC
Toby Blackwell and Associates, Inc.
VeriStor Systems, Inc.
NON-PROFIT FINALISTS
Annandale at Suwanee, Inc.
Aurora Theatre, Inc.
Children’s Healthare of Atlanta
Community Foundation for Northeast Georgia
Cross Pointe Church
Dream House for Medically Fragile Children, Inc.
Epic Faith, Inc.
Family Promise of Gwinnett County, Inc.
Foster Children’s Foundation
Georgia Baptist Convention
Georgia SPCA
Gwinnett Coalition for Health and Human Services
Gwinnett Habitat for Humanity
Hi-Hope Service Center
Just People, Inc.
Manna Scholarship Fund
The Committee for Missing Children, Inc.
American Cancer Society
April-May 2009
GwinnettFocus
ENTAIRE
GLOBAL COMPANIES
Wealthbuilding Strategies & Services
In The News...
Gwinnett Business Journal, July 2008
P 12
WWW.E NTAIR E .C OM >>> WWW.E NTAIR E .C OM >>> WWW.E NTAIR E .C OM >>> WWW.E NTAIR E .C OM >>> WWW.E NTAIR E .C OM
InSight
Risk, reward and
retirement
Wealthbuilding Strategies & Services
Entaire thrives with innovative
retirement lending business
VALUE ACCESS™ Progr
by Joel Furfari
Entaire Global CEO Jonathan Rosen
A few years ago while touring Mexico,
Jonathan Rosen, CEO of Duluth-based
Entaire Global Companies, Inc., noticed
that many houses were only partially built
or were built with different colored stones
and mismatched materials.
“We build until we run out of money,”
the guide told Rosen, noting that U.S.-style
home mortgages are rare there.
“Wait a minute, that’s how we finance
retirement in the U.S.,” Rosen recalls thinking. “We put in a brick at a time and then
pay for it until we run out of money. But is
that how really wealthy people pay for it?
The answer is no.”
Back in Gwinnett,Rosen created Entaire
in 1997, in hopes he could build a company that would allow business owners to
leverage their assets into return-yielding
retirement investments.
The company markets primarily to
small business owners, medical practice
owners and law firms as a way to help
them turn business assets into retirement
income.
“Our idea is what if we lent someone
the first $1 million, they made an interest
payment and then put it in a plan for their
retirement, we can invest with a much
lower rate of risk because of compounding,” Rosen says.
Entaire grew slowly at first, but then in
2003 the company reached a deal with
Comerica to allow Entaire to issue its own
loans directly to customers instead of
going through investment banks.
“That was the breakthrough,” Rosen
says.
Since then, Entaire has also reached
structured credit deals with Dresdner
Kleinwort Wasserstein and Wells Fargo that
have allowed it to write its own loans.
“I think lots of people have tried to do
this before but the issue has been who has
done the lending,” Rosen says. “When we
started out, we were doing it with local
banks but every year or two you had to
renew the loans. Then we started doing it
in-house and we became the lender. It
became a turn-key solution.”
Entaire went from being a tiny company with $300,000 in annual revenues and
employees who took partial salaries to one
that brought in $12 million last year and
expects $16 million in revenues this year.
The firm is expanding its Crestwood
Parkway headquarters and has plans to do
more marketing to small business owners
in the Atlanta region.
“We now do business in 49 states and
the Virgin Islands and other places,” Rosen
says.
“We employ 35 people here and no
one here in Gwinnett or Atlanta even
knows about us. I told my company’s staff
to start reaching out more locally.”
Along those lines, Entaire recently
announced that it has signed on famed
astronaut Buzz Aldrin as a spokesman.
Rosen, who has an economics degree
from the University of Pennsylvania and
attended law school at Emory University,
says his company’s products are attractive
to small business people because they’re
designed to carefully manage risk.
Unlike index funds, whose values can
go down, Entaire’s investment products are
guaranteed not to lose value.
“In any given year, you’re not going to
lose your principal, and you’re not going to
necessarily get the highest return either,”
Rosen explains. “But you don’t need as
much of a return because you’re starting
off with more money.”
Business owners can use the investment to select exactly whose retirement
will be funded, whether that means only
the proprietor or a group of employees.
“One of our slogans,” Rosen says,“is that
if you’re behind on your retirement, we’ll
spot you the first $1 million.”
Gwinnett Business Journal, July 2008
3805 Crestwood Parkway, Suite 175
Duluth, GA 30096
© Copyright 2008, All Rights Reserved
770-923-2000
Value Access is a registered trademark of the Entaire Global Companies, Inc.
WWW.ENTAIRE.COM
ENTAIRE
GLOBAL COMPANIES
Wealthbuilding Strategies & Services
In The News...
Business to Business Magazine, July 2008
J onathan Rosen was having some issues
with his elevator pitch. It seemed no
matter how hard he tried he just
couldn't explain what his financial
planning company did in a sentence.
And after repeated efforts to hone that
"perfect pitch," the founder, CEO and
chairman of Entaire Global Companies
settled on this: "We are to retirement
plans what mortgages are to houses."
At a time when the concept of mortgages is enough to make you jump back
- way back - Rosen muses he arrived on
the pitch during a trip to Mexico.
While taking a tour, he noticed an
unusual number of half-built houses
constructed in varying stages of multicolored bricks and stones. Befuddled, he
asked the guide about the unusual
building technique.
The guide's response: "We build until we
run out of money. And when we get
more money, we build again. Many
times, we don't get to live in the house
until we're much older because it takes
so long time to get the money."
Rosen reflected on the response - only
older people or really successful ones
were able to live in these houses. That
revealed another thought: This is the
problem Americans have with retirement.
"They put it [retirement investment] in
one brick at a time; they let it grow; and
they hope by the time they're ready to
retire there will be enough to live in the
house," Rosen says. "If they don't put
enough in, and it doesn't grow, and
doesn't perform, they never get to live in
the house because it doesn't have a
roof."
Enter the Duluth-based Entaire. The
company focuses on providing business
owners, medical practitioners and legal
professionals with innovative solutions
to financial and retirement planning
problems.
Entaire enables individuals to leverage
the power of programs that were historically only available to high net worth
investors. The company provides a
means to fund financial goals at a level
commensurate with an individual's
highest expectations.
To generate this funding, Entaire
provides businesses with loans to
finance the purchase of principalprotected, compounding interest
products that benefit the business
owner - or their designated beneficiaries
- selectively. This unique lending
platform enables Entaire to take advantage of global credit markets for the
benefit of its clients. The center of
Entaire's universe can be found in two
concepts: the ENSHIELD® and VALUE
ACCESS™ programs.
3805 Crestwood Parkway, Suite 175
Duluth, GA 30096
© Copyright 2008, All Rights Reserved
Businesses that rely largely on accounts
receivable - such as health care practices, legal practices and professional
service providers - benefit from the
ENSHIELD® program. A loan is made to
the business to fund future wealth
accumulation in the form of a compounding interest product that is owned
by - and benefits - the individual participant. In most cases, this transfer of
wealth is accomplished in a highly tax
efficient and selective manner.
The VALUE ACCESS™ program is
designed for cash-based businesses, into
which most businesses fall. The program
enables an individual to take advantage
of financial approaches that have been
available to only the very wealthy. In its
simplest form, it is designed to create
wealth by enabling a cash-flow driven
business to place a large sum of money by way of leverage - into a compounding financial vehicle, creating a tax
efficient and cost effective wealth
strategy to fund personal financial
future.
"Here's the plan: you have to put more
money toward retirement - soon," Rosen
says. "There are only so many strings you
can pull in the equation. There's how
much you put in, how soon do you put it
in and how long do you leave it in. If you
can put more in sooner, you can take a
whole lot less return and get to the exact
same place. Which means you can take a
fraction of the risk."
770-923-2000
Value Access is a registered trademark of the Entaire Global Companies, Inc.
WWW.ENTAIRE.COM
Duke Developments - Atlanta, Fall/Winter 2006
Fall/Winter 2006
Page 1 of 6
ATLANTA
IN THIS ISSUE
Tenant Profile
Tenant Events
Tenant Profile
Entaire Global’s Innovation Allows Company Owners to Enjoy
Success More Quickly
Property Management Message
Thank You Tenants
Space Available
Tenant Talk
It’s a situation entrepreneurs know all
too well: they build successful
businesses, but the bulk of their
personal assets remain tied up in
everything from receivables to
upgraded equipment. They usually
can’t realize the financial benefits of
their success without selling out.
Community Events
Duke Holiday Hours
Five Steps to Better Problem
Solving
Premium Provider Profile
Premium Providers
MARKET CONTACTS
Kerry Armstrong
Senior Vice President, Atlanta
Office
Sam O'Briant
Regional Senior Vice President,
Southeast Region
Chris Brown
Vice President, Leasing
Chandler Spratlin
Vice President, Office Leasing
Todd Parker
Senior Leasing Representative,
Office
Now a locally based company offers
business owners and executives another alternative, using a methodology that’s so
innovative that portions are awaiting patent approval. “We’ve created a program
called Enshield that allows business owners to fund economic opportunities they
would not otherwise be able to fund.” Fred Apple, Entaire Global’s chief marketing
officer, says that it involves leveraging the value of a company’s dormant assets to
build cash for the owner.
He gives an example of a 45-year-old manufacturer who wants to jump-start his
retirement plan, but whose assets are tied up in his business. “We could leverage his
receivables, and then run a loan through the company to purchase a large annuity o
life insurance contract, which moves the value of the assets to the owner and builds
cash in a tax-favored manner,” Apple explains, noting that the loan would be repaid
through any number of exit strategies. “We don’t ask for a personal guarantee, so
we’ve mitigated the owner’s personal risk and given him a million-dollar asset that
will compound over the next 20 years.”
Not surprisingly, the unique approach—which is marketed with financial services
providers and life insurance companies—is catching the eye of an increasing number
of entrepreneurs. In fact, Apple says that the company has been growing at a
quarterly average of 38 percent since 2002.
Entaire Global has been in Duke Realty’s 3805 Crestwood building in Duluth since Fa
2000. The company started in Norcross, but sought a more prestigious location. “A
lot of clients who are executives of large financial services companies visit us, so we
really needed to have a space that lived up to what this company is becoming,”
Apple says. “We loved the setting, the campus, and the space. Duke has been good
to us, and I think we’ve been good tenants for them, too.”
[ RETURN TO TOP ]
Brian Sutton
Senior Leasing Representative,
Industrial
Wes Hardy
http://www.dukerealty.com/tenants/newsletters/atl_Fall-Winter_2006.aspx
1/3/2007