Our Services

Private Businesses Owners

  • Closely-held businesses often reach a mature stage where owners must consider whether the business aligns with their retirement plans, leading to a decision-making process involving keeping, selling, or growing the business. Factors to consider include succession planning, financial preparedness for retirement, market trends, and strategies for growth or sale. The Beringer Group offers expertise in navigating these complexities, providing unbiased analysis and recommendations tailored to each owner's unique situation.

  • The Beringer Group addresses the common dilemma faced by business owners regarding transitioning ownership, offering a "Keep/Sell Analysis" process that considers the interests of shareholders, employees, and family members. In the 21st century, business owners have a wider range of liquidity options available, though careful analysis is required due to complexity and tax considerations. Their approach involves utilizing valuation models and accessing transaction databases to provide low-cost, accurate indications of a company's market value, facilitating informed decision-making for owners considering various strategic options.

  • The Beringer Group, advising business owners since 1979, emphasizes the importance of thorough planning for selling a business to avoid unpleasant surprises during the process. They offer presale actions including understanding various liquidity options such as selling to private equity groups, management teams, employees, or competitors. Additionally, they stress the significance of knowing the value drivers of the business and conducting pre-sale tax planning to ensure a tax-efficient outcome through structures like asset sales or leveraged recapitalization.

  • Business owners often face the challenge of transitioning ownership while considering the interests of shareholders, employees, and family members. In the past, options were limited to selling to competitors, going public, or transferring to the next generation, which could be problematic for retiring owners, job security, and management heirs. However, in the 21st century, owners have more diverse liquidity alternatives, including complex options requiring careful analysis like the "Keep/Sell Analysis" process developed by the Beringer Group. Successful transition transactions depend on factors like industry specifics and investor availability, but unplanned or poorly executed events can be costly and detrimental to all involved parties.

  • Many business owners in the USA are contemplating retirement or a second career earlier than ever before, especially when much of their assets are tied up in their company's net worth. While many wish to continue operating their businesses for some time, they also desire to diversify their asset portfolio. One solution gaining traction is a "Private Equity Group Assisted Recapitalization," facilitated by investment funds known as Private Equity Groups (PEGs), which allows owners to sell a portion of their company while retaining control and potentially realizing future gains through strategic partnerships.

  • The Beringer Group, with extensive experience in aiding middle market companies, helps business owners navigate the challenge of securing working capital without diluting equity. Leveraging their relationships with various financial institutions, they tailor solutions such as blending senior and subordinated debt facilities, ensuring the best terms through a competitive bidding process, thus optimizing capital raise strategies for their clients.

  • In the United States, key managers often seek ownership stakes in their companies through stock purchase plans or buying shares, but this isn't always possible in closely-held or privately-owned businesses. When faced with divisional sales or closures, managers may lack the capital to buy out the division. However, the rise of Private Equity Groups (PEGs) has provided a positive alternative, allowing management teams to partner with PEGs for buyout transactions without pledging significant company assets.

  • For over thirty years, the firm has assisted business owners and family-owned businesses in resolving various family issues, often involving the exit or buyout of partners or family members. Solutions typically entail changes in ownership while maintaining the company's structure, such as enabling active managers to own more of the company or facilitating succession planning through fair market valuations and exit strategies. The firm specializes in implementing Internal Buyout Solutions and facilitating buyout transactions by leveraging unencumbered assets, third-party investments, or other financial solutions when funding for buying parties is lacking.

  • ESOPs, or Employee Stock Ownership Plans, are often misunderstood as an exit option for business owners due to concerns about employees' ability to fund the buyout. However, ESOPs are increasingly popular for providing liquidity to private companies in the USA. These plans, regulated by ERISA and IRS rules, offer significant tax advantages for both selling shareholders and companies, such as deferring capital gains taxes and allowing deductions for contributions used to repay ESOP loans. Despite their benefits, ESOP transactions are complex and require expert guidance to avoid penalties for errors or omissions, with firms like The Beringer Group offering specialized expertise in ESOP design and implementation.

High-Net-Worth Individuals & Families

  • High net worth families often consider establishing a Family Office to manage various services such as investment management, tax planning, bookkeeping, and concierge services. The Beringer Group, with significant experience in this area, assists families in understanding their needs and options, conducting feasibility studies to compare the costs and benefits of creating their own Family Office versus outsourcing services. They provide unbiased recommendations to reconcile expectations with reality, helping families make informed decisions about their wealth management strategies.

  • The evolution of the family enterprise model stems from the historical development of family offices, initially adopted from European wealth management practices by prominent American families like the Rockefellers and Carnegies. Family offices, designed to manage the finances of high net worth families, have evolved into multi-family offices (MFOs) to cater to the needs of multiple families, but they still face limitations in adapting to the dynamic 21st-century global economy. In response, the Beringer Group proposes the family enterprise model, which treats family wealth management as a holistic family business, offering advantages such as formal financial management, independence from professional biases, borderless services, and a tailored approach to service delivery, aiming to meet the evolving needs of high net worth families.

  • Investors aim to achieve specific goals within a defined timeframe while managing risk. Our mission is to assist clients in clarifying their objectives and expectations through the creation of an Investment Policy Statement (IPS), which serves as a planning tool to enhance goal attainment. Regular annual reviews of the IPS ensure alignment with the investor's evolving needs and objectives, allowing for necessary modifications.

  • The investment advisory team conducts a comprehensive analysis of various factors affecting an investor's ability to meet current and future goals, including cash flow, income, net worth, and balance sheet statements. They utilize tools to simulate different scenarios and assess the likelihood of goal attainment, with a focus on the uncertainty surrounding rates of return. The team then constructs model portfolios tailored to the client's situation, incorporating a range of assets and regularly reviewing the asset allocation model to ensure alignment with the investor's objectives and market conditions.

  • The Beringer Group offers customized reporting solutions for investors, ranging from concise three-page statements to comprehensive 50-page quarterly reports with analytics. They streamline the process for investors with multiple custodians by providing asset overlays, simplifying the management of assets across different accounts. Additionally, they collaborate with clients' accountants and attorneys to proactively manage taxes throughout the year, avoiding last-minute adjustments that may be less effective at year-end.

  • The hedge fund industry exceeds $800 billion with over 7,000 active funds. The Beringer Group emphasizes the importance of selecting the right fund or strategy tailored to individual asset allocations, as returns rely on managerial skill or fund strategy. These alternative investments aim to generate positive returns regardless of market conditions, enhance diversification, and mitigate portfolio risk. Through the Beringer Group, investors gain access to renowned and emerging managers and funds not typically available to the public.

  • The Beringer Group considers Private Equity (P.E.) as a valuable asset class for portfolio diversification, typically accessing it through funds or fund of funds based on client asset size. They emphasize that P.E. fund returns are primarily influenced by manager ability and vintage year, with top quartile managers showing consistent performance and vintage year affecting fund performance significantly. To mitigate risks, they recommend investing in top quartile P.E. funds diversified over multiple years and also offer expertise in reviewing direct P.E. investments, leveraging their Merger and Acquisition services to provide unique opportunities for their high net worth clients.

  • The Beringer Group boasts an extensive network of fund managers, ranging from large, established firms to smaller boutique shops, ensuring a diverse selection for client portfolios. They prioritize aligning client interests by seeking top-performing managers at competitive fees, often negotiating more favorable terms and conducting ongoing due diligence to ensure adherence to objectives. Their focus lies in recommending managers tailored to specific investor needs, emphasizing both returns and risk management.

  • The Beringer Group team actively monitors the performance and activities of selected managers in the portfolio through regular communication, performance analysis, and on-site visits. Managers are assessed against index returns and peer group performance, and those who raise concerns are placed on a Watch List for intense scrutiny. If deemed necessary, underperforming managers are replaced with new selections to ensure the portfolio's effectiveness.