What is Giraffe Finance?
If you don’t have an innovative financial strategy today, how can you expect to compete tomorrow?
While you are focusing on today’s challenges INSIDE your company, the OUTSIDE world is rapidly changing. Margins are shrinking and competition is growing. Giraffe Finance creates capital to fuel the innovation and growth you need to thrive.
- Turning 20% of employee expenses into productive assets
- Reducing all insurance and banking expenses by 5%-50%
- Increasing the value of your company by $2M-$200M in one year
- Getting all employees to act like owners without giving up stock
Examples of Giraffe Finance at Work
Retain Employees, Reduce Payroll & Loan Interest
Employees are the single most valuable, and expensive item for most companies. In a low interest environment, one company replaced taxable bonuses to its management team with low interest, long term loans. The executives then reinvested the funds into a joint venture with the company (replacing debt). Earnings went up, payroll related expenses and interest payments were reduced.
Save Millions: Own the Insurance Company
A construction company was spending lots of time and money managing bank covenants and subcontractors. They created their own captive insurance company for its warranty work, medical stop loss and subcontractor risk. The revenues from the subcontractor risk program and savings from the medical stop loss program were in excess of $1M per year. The tax savings from warranty programs were similar.
Reasonable Compensation + $50M Value
A pre-IPO firm contractually owed its executive team $3M of bonuses. The owners didn’t want to give up their income, but they were concerned how the markets would view the expense. They replaced the salary expense with a co-investment venture. The IPO successfully took place with a price-earnings ratio of nearly 17. By forgoing the salary expense, the investment bankers estimated that the owners took home an additional $50M.
Transfer Risk & Owner Mentality to Employees
Senior management complained about the 55% tax treatment of the company’s phantom stock and non-qualified deferred compensation plans. Ownership implemented a custom risk management program and transferred control to management. This allowed the company immediate deductibility for its expense, deferred taxation to management, and reduced management’s tax liability by almost 50%.
By looking at a problem as an opportunity, each of these clients was able to create millions of dollars of value without increasing gross revenues or laying off any employees. Giraffe Finance compliments operations!