Tuesday, February 27, 2018
8:00 - 9:45 a.m.
Crowne Plaza, Cherry Hill

Get the pulse on the South Jersey economy at this forum featuring leading industry experts. Our panel will report on current conditions and provide a six-month outlook in their respective business sectors relative to the Southern New Jersey marketplace.

Renee C. Vidal, Esq.
Shareholder, Flaster Greenberg PC

Dave Robbins, Jr.
President, South Jersey Gas and
Senior Vice President, South Jersey Industries

Ryotaro Tashiro
Senior Economic Analyst, Research Department
Federal Reserve Bank of Philadelphia

John J. O'Donnell
President, The Michaels Organization

Gwen Bennett
Senior Vice President, eCommerce and Marketing
Destination Maternity

State Affairs Committee
Wednesday, February 21, 2018
8:00 - 10:30 a.m.
The Mansion on Main Street, Voorhees

Make New Jersey Competitive:
The Future of Health Care & the ACA
Friday, February 23, 2018
8:00 - 10:30 a.m.
Hotel ML, Mt. Laurel

HR Boot Camp
Wednesday, February 28, 2018
8:00 a.m. - 12:00 p.m.
The Mansion on Main Street, Voorhees

ESOPs are an Excellent
Succession Tool

Partner,  Archer Law
An employee stock ownership plan ("ESOP") is a qualified retirement plan that can serve as a tremendous business succession tool for business owners of privately held corporations.

Imagine the scenario in which a business owner spends 30+ years of his working life creating and growing a successful privately held business. After a successful run, this owner whose children have little interest in taking over the business decides to cash out and sell his stock in the business to a private equity firm. Before inking the deal, the business owner who wants to stay active in the business negotiates a two year employment agreement for himself and tries to protect the employees by including a provision in the purchase agreement that states the company must remain in the same facility for the next three years. As you might imagine, two years after the business owner sold the business, the private equity firm (the now owners of the company) decided not to renew the business owner's employment agreement - forcing him to retire at the age of 62. A year after forcing the business owner out of the company, the private equity firm decided to consolidate business operations and move the company some 300 miles away - causing most of the employees to lose their jobs with the company.

Had this business owner sold his company stock to an ESOP, the above result would never have occurred.

A business owner can monetize his or her capital investment in their business by selling some or all of their company stock to an ESOP and still maintain an active role in the business that he or she created.  Moreover, the business owner can maintain and protect the job security of the employees and provide them with a supplemental retirement benefit. In fact, empirical data proves that ESOP owned companies are more profitable and have lower turnover rates than non-ESOP companies.

The best way to demonstrate how a leveraged ESOP transaction occurs is by example. Let us assume a business owner ("John") is looking to sell 40% of his company (a subchapter C corporation) to an ESOP for $5 million. Once the Company, John and the ESOP negotiate the terms of the deal, the Company will lend $5 million (the Company obtains this money from either a commercial bank, company cash, seller notes or a combination thereof) to an ESOP for a note. The ESOP, in turn, uses the $5 million loan proceeds to purchase the 40% interest in company stock from John. John (under certain circumstances) may be able to avoid having to pay capital gains tax on the $5 million in sale proceeds (the mechanics of this 1042 Code Section tax deferral election is beyond the scope of this article). In addition to monetizing a portion of his capital investment in the Company, John still remains the majority owner of the business - something a private equity firm would never permit.

Bruce S. Katcher, Esq.
Chaired by Bruce S. Katcher, Esq. , Partner, Manko, Gold, Katcher & Fox, LLP, the Environment Committee meets four times per year to discuss environment-related legislation and regulations and to hear from the state's top policymakers on these issues.

Next Meeting:   Tuesday, February 27, 2018
                           8:30 - 10:30 a.m.
                           Woodcrest Country Club

                        Click here to join the committee

Congressional Action Committee
On February 12, nearly 120 CCSNJ members attended the first Congressional Action Committee Meeting of 2018 to hear from Congressman Donald Norcross. 

Gloucester County Network Connection Breakfast
On February 15, 40 members and prospective members gathered at  Auletto  Caterers in Deptford for our Gloucester County Networking Breakfast.

Atlantic City Mayoral Breakfast
On February 16, Atlantic City's new Mayor , The Honorable Frank Gilliam, addressed more than 130 CCSNJ members  at the R esorts Casino Hotel.




March 8
8:30 - 10:00 a.m.
March 22
11:45 a.m. - 1:30 p.m.
March 29
8:30 - 10:00 a.m.

February 21

February 23

Jim Catrambone 
Executive Director 
The Joseph Fund
Game Plan: Any successful coach, whether sports-related or business, encourages preparation for an engagement. One extraordinary advantage to your membership in CCSNJ is having a list of attendee names for an event to which you'll attend. A few minutes taken to peruse the list ahead of attending could clinch meeting the right person for your (and perhaps their) current business need. At a recent event I knew only the name of the person I wished to meet, nothing else. A Chamber staff member and a courteous ambassador helped connect us on the spot and today I enjoy a growing relationship. Never hesitate to ask.
"Attention is the rarest and purest form of generosity." - Simone Weil 

Safety Outfitting Services, Ramps, Stair Lifts, Lift Chairs, Grab Bars, Bathroom Safety Equipment, Medical Equipment and more.
Use promo code ' SOS5 ' to receive a  5% discount on any product SOS Group carries. Contact Katherine at  (856) 740-4000 ext. 2.

Hutchinson Honored for Work on Edison Solutions
Hutchinson was recently presented with the highly coveted Associated Builders and Contractors' (ABC) "Excellence in Construction" 2017- NJ Project of the Year award for work on the Edison Retail Solutions Project. The award was presented by Chuck Goodrich, ABC's National Chairman and Mike Bellaman, President of ABC.  Hutchinson handled all of Edison's overall energy needs for its newly relocated 115,000 sq. foot facility in Pennsauken including lighting and HVAC.  

Shareholder Steven S. Poulathas Appointed Chair of Flaster Greenberg's Business & Corporate Practice Group
Flaster Greenberg shareholder Steven S. Poulathas has been appointed as the Chair of the firm's Business and Corporate Law practice group, which encompasses the tax, mergers and acquisition, trust and estates and healthcare practice areas. In addition to serving as a member of the firm's Board of Directors, he works closely with his family-owned and closely held business clients guiding them with strategic tax plans, merger and acquisition transactions, and estate and asset protection planning
"Steve has been an integral part of the firm's Corporate Department for several years and is well-suited to lead this group," said Alan H. Zuckerman, Managing Shareholder at Flaster Greenberg PC. "His stellar reputation, leadership, enthusiasm and positive attitude will bring new opportunities to this already strong group of talented attorneys."
Since joining the firm in 2008, Steve has been named to SJ Magazine's Top Attorneys List, named a New Leader of the Bar by New Jersey Law Journal, a New Jersey and Pennsylvania "Super Lawyer" and "Rising Star" by Thomson Reuters, and has been named to Burlington County's Forty Under 40 list.  

DocuVault is a local, full service archive specializing in offsite document storage, secure shredding, vault storage and hard drive destruction.



Like us on Facebook    Follow us on Twitter    View our profile on LinkedIn    View on Instagram
Follow CCSNJ on social media so you can be the first to know about upcoming events and news, receive live updates and photos from events and programs, get the latest information on public policy issues impacting your business and access CCSNJ resources and member benefits.
4015 Main Street, Voorhees, NJ 08043 |  P: 856.424.7776 |  F: 856.424.8180 |   www.chambersnj.com