Overview History
Transcription
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 ÜiÌÌÊ >LiÀÊvÊ iÀViÊUÊÈxääÊ-Õ}>À>vÊ*ÜÞ°ÊUÊÕÕÌ ]ÊÊÎääÇÊUÊÇÇä°ÓÎÓ°ÎäääÊUÊÜÜÜ°}ÜiÌÌV >LiÀ°À} 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
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