In addition to ESOPs and rollups, Cendrowski Corporate Advisors’ tax specialists can also assist with generational management buyouts from past ownership to new company owners or middle management using tax-efficient strategies, including compensatory transfers like non-qualified stock options and carried interests.
Cendrowski Corporate Advisors has assisted businesses with tax-efficient “nonqualified” deferred compensation strategies, i.e., plans other than IRAs or 401(k)s. We have collaborated with counsel in developing plans which meet the qualifications of IRC 409A compliance in order to avoid the excise tax levied on plans that fail to comply with the rigors of section 409A compliance.
Client Success Story: Creating a Tax-Efficient Stock Acquisition Program
Cendrowski Corporate Advisors was engaged by a professional services firm to establish a succession plan for the middle management of the company, who were to acquire the interests of the senior management shareholders. Along with corporate counsel, our team developed a tax-efficient stock acquisition program. The management buyout plan, which included assistance locating alternatives to seller financing, served as the basis for transitioning ownership of the professional services firm from one generation to the next.
Smart family offices keep leverage low for a reason
There’s a reason most family offices keep leverage low. After living through 2008–2010, many learned how quickly over-leverage can turn a paper fortune into a liquidity crisis. When capital calls come due and exits stall, debt becomes a liability you can’t unwind fast enough. Experienced investors know when to dial leverage up—or down—but for most, […]
Can’t hedge private stock? Here’s what family offices actually do
Roughly three-quarters of family offices are investing directly in private companies—and that creates a challenge: you can’t easily hedge private stock. The smart play? Hedge the debt, not the equity. Some offices also use structured lending against concentrated positions to manage downside risk while keeping some upside. Private markets don’t come with easy liquidity, […]
Co investing can 2–3x returns – but secondaries demand a reality check
Co-investing can be a powerful tool—if you know when to use it. We have seen investors double or even triple returns by leaning into specific industries they understand well. But we’ve also seen the other side: secondaries that look attractive on paper but underdeliver because of timing or asset risk.