Tag: Financial consulting

Markon Strengthens Commitment to Government Missions With Acquisition of ASEC

[ad_1]

FALLS CHURCH, Va., July 5, 2024 (Newswire.com)
–
Sterling Investment Partners-backed Markon, a leading management consultancy that supports US federal government agencies, recently acquired ASEC. This strategic move underscores Markon’s unwavering dedication to building a solid business platform focused on advancing customer missions. The acquisition reaffirms Markon’s position as a trusted partner to federal agencies, particularly within the Intelligence Community and Department of Defense, in the critical areas of finance, program management, and systems engineering. ASEC will operate as an independent subsidiary until integration occurs in 2025.

Ray Carney, CEO of Markon, expressed enthusiasm about the union, stating, “We’re thrilled to welcome ASEC. This partnership brings together two organizations with shared values, culture, and exceptional talent, deeply dedicated to the important government missions we serve and the enrichment and well-being of our employees. This collaboration will deliver even greater value to our clients by leveraging broader and deeper expertise. We embark on this journey with a steadfast commitment to serving our clients with unmatched dedication.”

Jeff Wallace, ASEC President and CEO, emphasized the partnership’s significance: “ASEC’s alliance with Markon fulfills our long-standing quest to partner with a company that mirrors our commitment to our client missions and the professional development of our people. Together, we will optimize operations and technical support for the good of our clients. This partnership brings clear synergy, with shared contracts and resources in the Intelligence sector bolstering our collective capabilities and competitive advantages.”

The ASEC team brings a cadre of influential thought leaders and cleared personnel, boasting a 30-year track record of providing professional services support to the Intelligence Community. ASEC’s focus areas – management, finance, systems engineering, cybersecurity, and software development – complement and align with Markon’s core competencies, enhancing the company’s capabilities to advance federal missions.

Markon’s Chief Corporate Development Officer, Drew Thompson, noted, “This partnership signifies the expansion of our team and a fusion of like-minded cultures dedicated to client success. With this acquisition, Markon elevates our industry-leading service offerings to provide even greater support to our clients’ critical missions. We look forward to forging ahead with renewed vigor and unwavering commitment.”

Stout Risius Ross, LLC provided financial advisory services, and Morrison & Foerster LLP and Foley & Lardner, LLP provided buy-side and sell-side legal advisory services for the transaction, respectively.

About Markon

Markon is a national consulting firm with a federal government focus, specializing in enterprise technology, financial, and program and construction management for the Intelligence Community and civilian and defense agencies. Team Markon helps solve the nation’s most critical challenges with expertise, resilience, and an award-winning culture. Markon brings a fresh approach and deep dedication to what matters most – supporting its people and advancing client missions. Markon is consistently recognized on USA Today’s and the Washington Post’s Top Workplaces lists, as well as ENR’s Top 50 Program Management Firms list. Markon is also a 2021, 2022, and 2023 HIRE Vets Platinum Medallion awardee and was the first GEN (Gender Equity Now) certified organization on the East Coast and in the government services industry. Markon is a portfolio company of Sterling Investment Partners. Learn more at markonsolutions.com.

About ASEC

ASEC was founded as a private woman-owned small business in 1992 to provide US Government customers with systems engineering, technical, and programming support services. Focusing on a few core principles and competencies – with highly talented and experienced people – the company has consistently grown organically in a steady manner that continues to attract high-quality talent and experience by word of mouth and referrals. As the employer of choice engaged in long-term, high-caliber strategic consulting work, ASEC focuses on critical enterprise architecture and strategic planning to support mission success for the Intelligence Community.

About Sterling Investment Partners

Sterling Investment Partners is a private equity firm that has been investing in and building leading middle-market companies for over 30 years with a highly experienced, cohesive team of senior investment professionals. Sterling focuses on value-added distribution and business services, acquiring businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Over its history, Sterling has completed over 230 transactions, representing approximately $30 billion in aggregate value. For more information, visit www.sterlinglp.com.

Source: Markon, LLC

[ad_2]

Source link

July 5, 2024
Millionaires support raising Federal Deposit Insurance Corp. limits. They may be overlooking ways to access more coverage on deposits now

[ad_1]

Customers outside a Silicon Valley Bank branch in Beverly Hills, California, on March 13, 2023.

Lauren Justice | Bloomberg | Getty Images

Most millionaires — 63% — support Congress raising FDIC coverage limits following the recent failures of Silicon Valley Bank and Signature Bank earlier this year, a new CNBC survey finds.

The survey found the wealthiest millionaires are most supportive of raising those limits, with 67% of those with $5 million or more in assets, according to CNBC’s Millionaire Survey, which was conducted online in April.

The survey included 764 respondents with $1 million or more in investable assets.

Currently, the Federal Deposit Insurance Corp. insures $250,000 per depositor for each ownership category for deposits held at an insured bank.

More from FA Playbook:

Here’s a look at other stories impacting the financial advisor business.

FDIC basic coverage limits were last changed in response to the financial crisis of 2008.

That year, the standard maximum deposit insurance amount was temporarily raised to $250,000, from $100,000. Congress made that change permanent in 2010.

Since then, the $250,000 coverage level has remained unchanged.

The March failures of Silicon Valley Bank and Signature Bank — and early May takeover of First Republic — have prompted renewed focus on whether the FDIC’s current coverage should be updated.

How future deposit insurance may change

The FDIC in May released a report that outlined three options for the future of the deposit insurance system.

That includes a first option of limited coverage, which would maintain the current structure with a “finite” deposit insurance limit across all depositors and types of accounts. This may include an increased, yet also “finite,” deposit insurance limit, the FDIC’s report states.

Alternatively, a second reform option could usher in unlimited coverage with no limits.

A third choice, targeted coverage, would provide different levels of deposit insurance coverage for different types of accounts, with higher coverage for business payment accounts.

In May, FDIC Chairman Martin Gruenberg spoke positively of the third option when testifying before the Senate Banking Committee.

“Targeted coverage for business payment accounts captures many of the financial stability benefits of expanded coverage while mitigating many of the undesirable consequences,” Gruenberg wrote in his written testimony.

Providing higher coverage on business accounts would increase financial stability because it would help limit the risk for spillovers from uninsured deposits associated with business accounts, he noted.

Notably, congressional action would be required for any expansion of FDIC insurance.

How investors can boost FDIC coverage now

Because it has been so long since the current $250,000 coverage limit has been raised, some argue it is time to lift it once again.

“At a minimum, I would think it would be $500,000 just to deal with inflation, and I think the FDIC may need to consider that over time,” said Ted Jenkin, a certified financial planner and e CEO and founder of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta.

Jenkin, a member of the CNBC Financial Advisor Council, said that when Silicon Valley Bank collapsed, people were contacting his firm to find out the best way to maximize their FDIC insurance.

“Most people generally speaking don’t have millions of dollars of cash in the bank,” Jenkin said.

At a minimum, I would think it would be $500,000 just to deal with inflation.

Ted Jenkin

CEO of oXYGen Financial

As of December, more than 99% of deposit accounts were under the $250,000 deposit insurance limit, according to the FDIC.

“But in the millionaire class, there are a lot of people now that may be sitting on $1 [million], $2 [million], $3 million in the bank,” he said.

One of the biggest mistakes people make is to open up more bank accounts with the intention of amplifying their FDIC coverage on those deposits, Jenkin said.

Instead, they may access higher levels of coverage if they add more beneficiaries — for example, their children — to those accounts, he said.

Every beneficiary added brings another $250,000 in coverage, based on today’s limits.

But one caution is that the way bank accounts are titled will supersede your will, Jenkin said.

Investors may also amplify the amount of insured balances by having different kinds of accounts, such as savings accounts, individual retirement accounts or trust accounts.

[ad_2]

Source link

June 12, 2023
Here’s when taking out a 401(k) loan actually ‘makes sense,’ says advisor

[ad_1]

Catherine Delahaye | Getty

Taking a loan against your 401(k) savings is generally a bad idea — but using the money as a short-term “bridge loan” may be an exception, according to Blair duQuesnay, a certified financial planner based in New Orleans.

“I’ve always been very anti-401(k) loan,” duQuesnay said. “However, I have found there are some instances in which it makes sense.”

In fact, she recently employed that strategy herself when buying a new home. DuQuesnay, an investment advisor at Ritholtz Wealth Management and member of CNBC’s Advisor Council, used a 401(k) loan as a short-term pot of cash for a down payment.

Borrowing against retirement savings served as a bridge loan that duQuesnay plans to pay back after selling her old house. She doesn’t intend to sell until after moving out and making some repairs.

This may be a good strategy for those whose budget can absorb the monthly mortgage and 401(k) loan payments, she said.

Pros and cons of a 401(k) loan

Federal law lets workers borrow up to half of their 401(k) balance, capped at $50,000.

People should generally try to avoid borrowing from retirement savings if they can, though, duQuesnay cautioned.

When taking any kind of loan, it’s generally wise to do so to buy “good” assets — those, like a home, that are expected to appreciate in value over time, duQuesnay said. Conversely, an auto loan is an example of debt for a “bad” asset since cars depreciate over time. Home equity is also generally people’s largest store of wealth in retirement, she added.

More from Ask an Advisor

Here are more FA Council perspectives on how to navigate this economy while building wealth.

Retirement savers shouldn’t borrow against their 401(k) to meet their everyday cash-flow needs, which would speak to a broader budgeting problem, she said.

Of course, there are drawbacks to 401(k) loans, duQuesnay said.

For example, you’re taking that money out of the stock market — meaning you’ll miss out on investment earnings during the repayment period, which can generally be up to five years.

Even though you’re paying yourself back with interest, the loan still represents a crunch on monthly cash flow.

Further, if you’re laid off or find a new job, most employers will require your outstanding balance be repaid shortly after termination. Failing to do so may trigger income taxes and, depending on your age and circumstances, a tax penalty.

Some but not all 401(k) plans allow savers to continue making 401(k) contributions in addition to loan and interest payments, duQuesnay said.

[ad_2]

Source link

March 16, 2023