Case Study: Hammer and Carter Retire and need to Transition into New Leaders

Hammer and Carter Retire and need to Transition into New Leaders

Overview

Our clients built a $20-million revenue firm based on loyalty and a two-person leadership team. Their impending retirement created an opportunity for 12 company members to gain a leadership stake. But in doing so, large vulnerabilities were created in the management liability, the buy-sell agreements, and the overall insurance program.

Approach

Enter Puharic and Associates, Inc. We sat with the incoming leadership team.

We educated on the need for Directors and Officers Insurance, Fiduciary Liability, and

buy-sell agreements. We were able to lead policy discussions on the use of personal motor vehicles for business use, and the resultant personal liability risks to the new owners.

Results

• The firm purchased a comprehensive management liability suite with Directors and Officers, Employer Practices Liability, Fiduciary Liability, Kidnap and
• The firm contractually protected the incoming leaders with well-written and compliant buy-sell arrangements funded by the appropriate life
• The firm developed vehicle use policies to insulate leadership and create consistent use of company

Conclusion

Transitioning a two-person leadership team to a full board of shareholders is a tricky process involving multiple interest, different insurance options, risk-management policies, and constant discussion. Puharic and Associates, Inc. was able to lead Hammer and Carter into the next generation, and maintain a two-decade client agent relationship.