With the advent of accounting (FASB 123R) and income tax (IRC 409A) guidelines regarding the valuation of equity-based compensation, it has become increasingly important for entrepreneurs to become familiar with complex equity securities and the valuation of equity-based compensation such as stock or option grants.

This typically arises in the context of venture capital funding. Providers of early stage institutional funding provide growth capital for emerging companies and therefore, are interested in the return of the their capital (often called liquidation preference)  but also participating in the “upside” or increase in equity value of the business, hence achieving a return commensurate with the risk involved.

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Newt Fowler sat down for a conversation with Mike Gill, Chairman of Evergreen Advisors, published in www.Citybizlist.com. Here is an excerpt of the article…

How does one seek out mentors? Is that enough? What does it take inside of us to be reflective enough to grow? I explored these questions with Mike Gill and came to better understand from a consummate mentor to many exactly what he means by “positive energy,” how we comport ourselves, and how we choose to learn from others.

The Skinny. Mike Gill is CEO of Hoyt Capital, a small investment firm providing capital and business advice to start-up and existing enterprises and also serves on the Board of Advisors for Evergreen Advisors, a regional M&A and advisory firm.

Wanting to Succeed. Mike has mentored many business leaders in the region, so when we sat down for breakfast, I wanted to understand what makes a great mentor. But Mike really wanted to explore what it takes to succeed in business, what attributes enable a young entrepreneur to succeed. So Mike had us start our conversation at the other end of my question: what is it that makes a young entrepreneur “want to be successful?” He started by telling the story of another Calvert Hall alumnus, a fellow who, with 28 promotions, worked his way through IBM to become its CEO – Sam Palmisano. “How does that internalized desire become demonstrated by actions?” Mike answered his own question, “he is always working to get better, a constant effort at self-improvement.”

To read more: http://baltimore.citybizlist.com

Together with regional industry leaders, government leaders and early-stage investors, Rick Kohr, CEO Evergreen Advisors, helped select the 2011 eleventh annual Maryland Incubator Company of the Year (ICOY) Awards. The winning companies were selected based on the organization’s goals and its success in achieving their objectives. Judges considered factors such as technology or product development; intellectual property; increase in employee numbers; growth in revenue or earnings; engagement of significant customers and strategic partners; attraction of outside investors; innovation; self-sufficiency; impact on the region; and usage of the incubator’s services.

Click here to see the list of winners: http://www.marylandtedco.com/_media/pdf/2011ICOYWinners.pdf

 

Over the past 10 years, Evergreen Advisors has served middle market investment banking clients through the Mid-Atlantic with the objective to assist clients in Realizing Their Destiny by understanding their needs and coming up with creative solutions to help them achieve their goals.  Increasingly, clients have accessed the full landscape of advisory services.  “From assisting clients with CFO services, business valuations, capital raises to growth and exit strategies, we are providing the full range of financial advisory services needed by companies throughout their life cycle, explains Drew Clark, Managing Partner and Chief Operating Officer.  The length of Evergreen’s relationship with clients throughout different times provides compelling evidence of the commitment to forming a relationship with clients rather than just completing a transaction.

The company has grown considerably over the years with an office outside of Baltimore, in Columbia Maryland, and is planning the opening of a new office in Northern Virginia this year.  “We have invested very heavily in the last two or three years in our Board of Advisors, in people, and in marketing.  We are coming off our best year ever and there is no reason it should not continue”, Rick Kohr, Founder and CEO.  Beyond 2011, Evergreen Advisors will continue to expand its employee base and build upon well-established customer relationships and our core capabilities to maintain growth and expertise.

Rick Kohr is honored to serve on the selection committee of the eleventh annual Maryland Incubator Company of the Year (ICOY) Awards on June 11, 2011.  The companies hail from many parts of Maryland and they each represent unique technologies and services. The ceremony will recognize 22 current and graduate companies within Maryland’s incubator network.  For more information go to: http://www.mdincubatoraward.com/

Evergreen Advisors is proud to be sponsoring and attending The Columbia Foundation ‘s Spring Party on 05.05.11. The Columbia Foundation, Howard County’s community foundation, awards grants to Howard County nonprofit organizations delivering human service, cultural, educational and civic programs. Rick Kohr, Evergreen Advisors CEO serves on the board of trustees.
The Columbia Foundation’s 29th Annual Spring Party will be held on Tuesday, May 5, from 5:45 p.m. to 8:30 p.m. at The Spear Center located in The Howard Hughes Corporation building at 10275 Little Patuxent Parkway in Columbia, Maryland. Each year the Foundation awards grants to over 50 Howard County nonprofit organizations. Learn more at http://www.columbiafoundation.org/

 

Evergreen Advisors

Evergreen Advisors is a leading middle market investment bank and advisory firm focused on assisting companies in the areas of corporate finance, growth and exit strategies, business valuations and CFO advisory services.

Friends of Evergreen Newt Folwer and Frank Bonsal recently sat down for a conversation published in www.Citybizlist.com . Here is an excerpt of the article….

Frank Bonsal By: Newt Fowler

I enjoy talking with Frank Bonsal. He has invested in more companies and seen the launch of more technologies and new market sectors than I can fathom. And each time I see him, as much as I try to coax from him promising leads, he more subtly works me for what I know is going on. I always leave wondering who got the better end of the conversation. Spending time with Frank is like playing poker with that guy who always fumbles with his cards, keeps asking which hand trumps another, and yet ineffably either folds fast or wins a large pot… So we sat down recently over lunch to figure out how Frank succeeds in investing at the earliest and most volatile stage of business growth and what insight there might be for entrepreneurs seeking funding from such an archetypal angel investor.

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Mike Gill, Chairman of Evergreen Advisors sat down with Rick Kohr, Founder and CEO of Evergreen Advisors to hear Rick reflect on the 10th Anniversary.

Mike: It’s Evergreen’s 10th Anniversary, what does that mean to you?

Rick: It’s a sign of a business model that has some merit to it. We were able to stick to something that in hindsight weathered two of the worst economic cycles in our history, going back to the dot-com blow up in 2001-2002 and more recently in the last 3 years of the “great recession” , as its been coined. In 2010, we had our best year, with our best people on board. Therefore, for me it is a badge of honor, its perseverance.

Mike: When you started Evergreen, was there something that was in your mind about what it could be, where you wanted to take it?

Rick: I don’t know that it’s wildly different from where we are today. I probably would have guessed it would have been easier than it was. However, I always viewed the model to have merit to it because I have watched other boutique investment banking firms struggle during the lean times and in some cases struggle even during the better times, due to being totally transaction focused. I felt like there was a big gap in the marketplace for folks who understood the right side of the balance sheet; which is in essence what investment banking is all about. Capital raise and bank debt, evaluation, and sophisticated CFO services, all of that is also understanding the right side of the balance sheet as well as understanding the other aspects of the business.

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The rivers were rising, the skies were dark, and the roads a little perilous, but almost 100 people found their way to Bulle Rock in Harford County, Maryland for a dynamic, energized, breakfast forum, titled, “Leadership Super-Sized….from George Washington to Steve Jobs.”

The event held on March 10th was co-hosted by Evergreen Advisors, the law firm Duane Morris, and the Harford County Office of Economic Development. The focus of the forum was on leadership, the potential of Harford County and the importance of BRAC to the county and business community.

Frank Bramble, former Vice Chairman of MBNA and currently a member of the Board of Directors of Bank of America was the keynote speaker. His talk was focused on the key characteristics of the great leaders that he has been associated with and observed. Some of the characteristics that Frank mentioned were Mental Toughness, Vision, Honesty, and being Fearless. In commenting on the banking industry, Frank said, “We can’t forget who we really are, we’re bankers and the business we’re in is a noble business, We need to do the right things all the time.”

Brigadier General Harold Greene, Deputy Commanding General, U.S. Army Research, Development and Engineering Command, Commanding General, Natick Soldier Systems Center made a guest appearance to describe the BRAC initiative from a leadership and high level perspective.

The last part of the morning featured a panel of three of the most distinguished citizens of Harford County, Lyle Sheldon, CEO of Upper Chesapeake Health System, David Craig, County Executive of Harford County and John Ferriter, Senior Vice President of SAIC. Mike Gill, Chairman of Evergreen was the moderator and engaged the panel on a wide range of topics including, how they dealt with the Economic turbulence that began in 08, Harford County’s greatest challenges and the county’s potential, and a fun discussion on-if they could have one Mulligan- what would they like to do over.

It was a great morning with fabulous speakers and we thank all of our attendees for braving the monsoons to be with us.

 

Evegreen Advisors

Evergreen Advisors is a leading middle market investment bank and corporate advisory firm focused on assisting companies in the areas of corporate finance, growth and exit strategies, business valuation services and CFO advisory.

Whether preparing to raise funds or the eventual sale of your company – always be ready for the due diligence process.

Why wait for a funding event or a possible sale of your company to prepare for due diligence. The due diligence process can be time consuming. By being prepared in advance your business can be well positioned for the process. Today there are cost effective sites you can use to create a data room to house your due diligence materials.

The key documents you can gather in advance are the following:

• Key contracts
• Employment agreements
• Minutes and consents of the board of directors and
• Confidentiality and invention assignment agreements with
• Corporate charter and bylaws
• Patents, copyrights, and other intellectual property related Tax
• Financial and marketing plans

How can Evergreen CFO Services help?
We provide experienced talent to address the challenges faced by emerging businesses on an outsourced, part-time basis. Our staff typically works one or more days per week on site, which positions us to immediately address pressing financial concerns, mentor staff, and help you make critical decisions.

Mark Gretz is a Vice President with Evergreen’s CFO Advisory practice and he can be reached by calling 410-997-6000 x234 or e-mailing him at mgretz@evergreenadvisorsllc.com