On September 27, 2017, the Republican led congress in conjunction with the White House released its long-awaited framework (the Framework) outlining the current legislative effort on comprehensive tax reform. Although many significant details have yet to be defined, major provisions such as a lower corporate tax rate for both C corporations and pass-through entities (S corporations, LLC’s and partnerships) will have a significant impact on the cash flow capacity and valuation of these entities.

According to the Framework, the top marginal tax rate for C corps could be reduced significantly from 35% to 20%. The pass-through entity tax rate (S corporations, LLC’s and partnerships) would be reduced to 25%, with some restrictions. Currently, income generated by such entities are taxed at the individual shareholder’s personal tax rate. If voted into law, the Trump Administration’s version of tax reform will likely have a significant impact in the following key areas: [Read more…]

Cybersecurity is a constantly evolving subject matter for businesses. Like the computer viruses that are generally associated with the term, the issue itself has proven infectious for corporations both in its reach and impact as it grows over time.

Many organizations have learned the hard way that it is also a very costly subject matter. A study produced by IBM and the Ponemon Institute suggests that the average cost of fixing or resolving a data breach in 2015 was more than $3.75 million. That number is only expected to grow.

The Effects of Cyber Security Attacks

The increasing level of connectivity has served as perhaps the predominate economic theme of the past quarter century. It has also created substantial new risk to the security of sensitive information. Moore’s Law of Computing states that overall processing power for computers will double every two years. Newton’s third law of motion states that for every action, there is an equal and opposite reaction. Combine the two theories together and you have a pretty good explanation of the future impact of cyber security on businesses. [Read more…]

Economic Alliance of Greater Baltimore is holding their 2017 Annual Meeting on December 12, 2017. The meeting will be held at M&T Bank Stadium from 4:30-8pm.

EAGB’s Annual Meeting is a celebration of the events and people that make the region a world-class place to live, work, learn and invest.
As they celebrate their 20th Anniversary, they will be taking a look back at the success and growth that the region has experienced over the last two decades, while also featuring Greater Baltimore’s future as a global leader. As we celebrate the results of longstanding partnerships that have led to Baltimore’s economic success, we look forward to celebrating the visionaries and leaders who will shape our tomorrow.

Join Evergreen and the EAGB by purchasing your tickets now.

http://www.greaterbaltimore.org/events

[Read more…]

Evergreen Advisors Capital is pleased to announce the publication of our Q3 2017 Healthcare Market Update. The update provides quarterly overviews for each sector within the healthcare services industry and insights on notable transactions, a detailed look at M&A and private placement activity, and data on valuation metrics and stock price performance.

Print or Download Report Here:

Evergreen Healthcare Market Update Oct 2017 

Amazon set off a buzz around the country last week with their announcement of placing a second headquarters somewhere in North America. Cities across the U.S. are strategizing on how to come together to meet the request for proposal regarding Amazon’s required critical location factors.

Location is one of the most important decisions a company makes. While made infrequently, location selection has an impact on fixed and variable costs, including taxes, transportation, utilities and labor. Once in place, it is difficult to change. When choosing the optimal location for a facility, a company must consider key factors, such as supply chain, logistics, compatibility of the local labor force, political landscape, tax structure and real estate. In Amazon’s case, for example, they have requested land near an international airport, major highways, and a public transit system, in a metro area with at least one million people and a stable business environment. It might, therefore, be the case that they have decided to settle for a new location somewhere like Los Angeles. For instance, it is relatively easy to find trucking companies in los angeles that would be more than happy to take on the logistics side of running the business.

While there are many more factors a company needs to consider in addition to the ones listed, these considerations are some of the most commonly overlooked. To complicate the matter further, each type of facility has a different list of requirements and prioritization of key factors. Finally, and most importantly, the decision-makers must consider the business’s unique mix of equipment, infrastructure, processes, procedures, and especially people – the most critical element in making a business successful. Navigating the highly customized and complex landscape of location strategy is crucial to a company’s short- and long-term success.

There are many situations when companies should consider utilizing location strategy services. Other events, besides a move or addition of a new facility (like Amazon), where location strategy can add value to the company are: [Read more…]

Evergreen Advisors, a boutique middle market Investment Bank and Corporate Advisory Firm, with offices in both Columbia, MD and Tysons Corner, VA, servicing organizations throughout their financial lifecycles to drive successful outcomes, is pleased to announce the addition of Vicki Horton and a new service, Location Strategies. Evergreen’s Location Strategies will be a part of the larger practice group, Corporate Advisory.

[Read more…]

Columbia, MD – Evergreen Advisors, a boutique middle market Investment Bank and Corporate Advisory Firm, with offices in both Columbia, MD and Tysons Corner, VA, servicing organizations throughout their financial lifecycles to drive successful outcomes, is pleased to announce the addition of Patrick Lowry and Patuxent Valuation Group (PVG). PVG has decades of experience producing well-documented, comprehensive valuations for a variety of purposes including, but not limited to, business ownership transitions, mergers and/or acquisitions, Employee Stock Ownership Plans (ESOPs), estate and gift tax planning, shareholder disputes, divorce and business litigation.

[Read more…]

TEDCO, Maryland’s lead source for entrepreneurial business assistance and seed funding for the development of startup companies in Maryland’s innovation economy, has appointed a new CEO.  George Davis was announced as CEO yesterday.

Rick Kohr, CEO of Evergreen Advisors has been active with TEDCO over the years. He commented on TEDCO’s new hire: “This is the right time for George to become TEDCO’s CEO.  They’ve selected an incredibly solid leader at a period when TEDCO is in a very strong position. George is a great match, and he will be able to leverage the rich history of TEDCO with his extensive and successful experience as a serial entrepreneur, C-level executive and knowledgeable investor.”

[Read more…]

In this Entrepreneur Spotlight we have put our focus on ELEVI Associates, an Information Technology company supporting customers throughout the US in both Federal as well as Commercial Enterprise markets.  The company is comprised of three business units: IT Professional Services, IT Staffing Solutions, and Technology Systems & Support. ELEVI was founded in 2002 and is based in Columbia, MD.  We took a few moments to interview Phil Puccio, CEO of ELEVI, to ask some questions and learn more about his company.

1. Tell us a little bit about ELEVI and how you first got started? [Read more…]

Evergreen Advisors’, Rick Kohr, will be Startup Grind’s “fireside chat” guest on June 26th. Rick will explore the basics of M&A and will be sharing his experiences, successes, failures, and lessons learned as a founder, CEO and Board Advisor for dozens of early stage growth and middle market companies.  He will focus on the problems, opportunities, and mistakes he sees startups make today and will give recommendations for how to avoid them.

Rick Kohr has over 30 years of experience in advising early stage growth and middle-market companies on finance, recapitalization and exit strategies. These financing alternatives and exit strategies include capital raises, recapitalizations, mergers, sales and ESOPs. Rick was also a co-founder and managing member of the Chesapeake Emerging Opportunities Club, an early stage venture capital fund.

[Read more…]