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Powerful Conversations, Powerful Takeaways

Two weeks ago, we hosted our 2^nd annual Strategic Partner Night of Knowledge, bringing together the expertise of our strategic partners to discuss topics crucial to today’s business landscape. This year, we were thrilled to welcome two new partners, Wintrust and PSM Partners, who contributed fresh perspectives to our collaborative roundtable discussions. Members, prospects, and guests gathered around the tables to hear each partner’s insights, sharing experiences and gathering actionable takeaways. After the roundtable discussions, everyone enjoyed a fantastic dinner, where the conversations kept flowing and connections grew even stronger.

Here’s a snapshot of the night’s invaluable discussions:

1. ALERA Group: Marcus Newman – Vice President

Marcus tackled the challenges businesses face with an aging population within their health plans. He emphasized the need for diverse insurance options that cater to various needs such as PPOs, HMOs, QHDHP, including specialized plans for chronic conditions. He also stressed the importance of educating employees about Medicare and Medicare Advantage through open enrollment meetings, webinars, benefits internet site, etc). For larger businesses (>50 employees), leveraging negotiations with insurers can help manage costs, while maintaining compliance with federal laws like the Age Discrimination in Employment Act (ADEA) ensures fair treatment for all employees.

2. ODEA: Patty Rioux – President and JJ Lattea – Technical Marketing Manager

Patty & JJ explored the topic of AI, the evolving role of Large Language Models (LLMs) in business. The discussion highlighted 3 primary ways to work with LLMs, including techniques like prompt engineering to maximize their effectiveness. Key strategies for prompt engineering included few-shot learning, where a few examples help guide the model; chain-of-thought, which prompts the model to tackle problems step-by-step; and self-consistency, which ensures consistent outputs across different runs. They also discussed real-world applications of AI tools like Microsoft Co-Pilot, which ODEA used to create their podcast Why Brand Matters in M&A.

EFBC will be hosting an AI Workshop Breakfast Club in March 11, 2025 with strategic partners ODEA and PSM, offering a deeper dive into the impact of AI on business. Mark your calendars!

3. Cray Kaiser: Deanna Salo – Managing Principal

Deanna shared key insights on preparing for a successful business sale, emphasizing the importance of planning, organization, and readiness for disruption. First, ensure all owners are aligned on goals and prepare emotionally for the transition, which can take months. Limit sharing sensitive financials until an NDA is in place, and carefully navigate the letter of intent, focusing on key deal terms like sale structure, purchase price allocation, and due diligence timelines. Get your financial house in order: audited statements, clear internal controls, and a solid organizational chart are essential. Finally, time your sale strategically, considering seasonality and post-tax cash flow, while identifying potential buyers within your network.

4. Burke Law: Eric VanderPloeg – Partner

Eric shared ten essential tips to help businesses avoid costly litigation. Start with strong foundations: keep governing agreements up to date, manage credit risks, and use well-crafted sales forms. Limit liability and disclaim warranties wherever possible, and ensure your employee policies and handbooks are rock solid. Protect proprietary information, understand data privacy obligations, and include smart litigation clauses in contracts. Lastly, invest in the right insurance to cover your bases. By addressing these key areas, you can focus on growing your business without the worry of costly legal battles.

5. Private Vista: Greg Bogdan – Senior Advisor, CFP

Greg shared a powerful giving tool: Donor-Advised Funds (DAFs). Think of a DAF as a charitable investment account that grows tax-free, simplifying your philanthropy while offering generous tax benefits. You can contribute cash, appreciated assets, or even limited partnership interests, maximizing deductions and avoiding capital gains taxes. With DAFs, you control when and where to donate, while the fund sponsor handles the admin work, from verifying charities to tracking grants. Plus, you can create a lasting legacy by naming a successor to continue your charitable vision. A smart, flexible way to support causes close to your heart!

6. Psyched: George Karavattuveetil – President & Founder

George emphasized the growing value of flexible, holistic employee benefits. In an evolving job market, companies are focusing on benefits that promote financial security, career mobility, and personal well-being. Benefits such as flexible work arrangements, development opportunities, and financial wellness programs are more valuable than ever for attracting and retaining top talent. Employers who prioritize these benefits are seeing increased engagement and loyalty from their workforce.

7. PSM Partners: Mike Mete – Founder and Jon Pisani – Senior Engagement Manager

Mike and Jon delved into the critical importance of Cybersecurity, Data Governance, and Risk Analysis, offering valuable insights on how businesses can stay ahead of emerging threats. They highlighted the significance of conducting thorough cybersecurity risk assessments, which help organizations identify potential vulnerabilities, allowing to strengthen their defenses and reduce risks. In today’s digital landscape, proactive risk management isn’t just an option – it’s a must. With the growing reliance on data, they stressed the need for strong governance practices to safeguard sensitive information and ensure compliance with evolving regulations. For more insights and resources on cybersecurity, visit PSM Partners’ Cybersecurity resources.

8. Wintrust: Matt Hammer – Division Manager, SVP and Pat Stoltz – President (ESOP Finance)

Matt and Pat shed light on the powerful benefits of ESOP – a powerful tool for business owners looking to sell to employees and preserve the legacy of their companies, explaining how it can be a game-changer for both business owners and their employees. They highlighted the tax advantages, such as the potential for 100% S-Corp ESOPs to be exempt from federal taxes and the opportunity for C-Corp ESOP sellers to defer capital gains through a 1042 election. ESOPs also offer flexibility by allowing partial sales, enabling owners to ease out of the business over time while still staying involved. Wintrust’s expertise in ESOP financing helps guide companies through the process, from structuring the deal to completing the transaction

To wrap up, we couldn’t have said it better than our Strategic Partner Jon Pisani from PSM Partners, who captured the true essence of Empower Night:

“Tonight is a great example of feeling very supported by the Community and being able to share institutional knowledge. Providing that level of insight empowers me as a proud EFBC member. Sharing that information with everyone – it’s just a great feeling for life.”

Here’s to many more nights of knowledge, connection, and empowerment!