• Zurn Flo-Thru is the industry’s leading supplier of pre-sloped trench drains. Zurn also has a wide variety of attractive grids to go over the tops of these drains. The grids range from heavy-duty plastic to ornate brass, so they make one for any type of construction job. For more information about their products, please see below.
  
• BoMetals is one of the top providers of concrete accessories and vinyl waterstops in the construction industry. To see information about one of their newest products, please look below.
  
• Raven Industries is a premier manufacturer of polyethylene products and vapor barriers. They have a diverse line of top quality products for all of your vapor barrier needs. To get pricing or information about their products, please give us a call.

 

Zurn Flo-Thru Features Grating for Z886 Trench
Drainage System

 

Zurn Flo-Thru, a division of the Zurn Industries, LLC, features decorative grates, H20/H25 grates, FAA load rated grates, and ADA-compliant grates for its Z886 Perma Trench drainage systems. The standard grate for the Z886 Perma Trench is a heavy-duty, slotted ductile iron grate. Zurn Flo-Thru offers a variety of grating options for the Z886 trench drain system, grating must be specified.

The Z886 Perma Trench is a high-density polyethylene [HDPE] trench drain, constructed in 80” modular sections. The HDPE material allows 0% water absorption. It features a 0.75% built-in, uniform slope which handles greater flows, and a radiused bottom that offers a better flow rate with less solids build-up. The channel sections are durable and lightweight.

The Z886 Perma Trench system also offers catch basins, closed endcaps, and both end and bottom outlets. Tee, 90-degree “corner” and 45-degree fabrications are available upon request. Sidewall extensions, which allow for runs longer than 120 feet, are also offered.

For more information, please visit www.zurn.com or call 1-800-906-5060.

---

VaporBlock® Under Concrete Slab Vapor Retarder

VaporBlock® is a high performance vapor retarder designed to control moisture migration under concrete slabs and foundations. Produced from state-of-the-art polyethylene resins that provide superior performance properties that far exceed ASTM E-1745 (Plastic Water Vapor Retarders Used in Contact with Soil or Granular Fill Under Concrete Slabs) Class A, B and C. High tensile strength, unequaled puncture resistance, low moisture vapor permeability as well as resistance to decay make VaporBlock one of the most effective underslab vapor retarders on the market today!

---

DO YOU KNOW BO?

Since the 1980’s, BoMetals has earned a reputation in the concrete and masonry accessory market for constant innovation and tireless customer service. Although our name includes “Metals”, we offer an extensive line of both metal and plastic products. Bo keeps the concrete industry together with QuicKey (tm) and PRO-KEY (tm) keykold joint systems for concrete slabs and a comprehensive offering of PVC, TPER, Mastic & Hydrophilic Waterstop products, Chamfer & Radius Formers, Nail Stakes, Bar Foundation Chairs, Grade Stakes, Expansion Board Cap, Zip Joint plus much more. Bo serves the masonry market by manufacturing Dovetail Anchor Slots, Control Joints, Weep Tubes and Block Caps.

To learn what these products can do for your next project, call your New South Construction Supply professional or visit www.bometals.com.

---

Eight Ways To Exit Your Company
By Carlos H. Lowenberg Jr., ChFC

According to Paul Simon, there are 50 ways to leave a lover. Not being as creative as Mr. Simon, we've only come up with eight ways for owners to leave their companies.

1. Transfer the company to a family member;
   
2. Sell the business to one or more key employees;
   
3. Sell to employees using an Employee Stock Ownership Plan (ESOP);
   
4. Sell to one or more co-owners;
   
5. Sell to an outside third party;
   
6. Engage in an Initial Public Offering;
   
7. Retain ownership but become a passive owner; and
   
8. Liquidate.

This article examines the advantages and disadvantages of each.

Transfer To Family Member

Owners who consider transferring their businesses to family members usually do so for non-financial reasons. Leaving the business in the hands of someone they know, trust and whom they believe will continue to run the company as it has been run for years is of paramount importance to these owners. The advantages to this route are:

To transfer the company to a known entity — in particular, one's own flesh and blood;
To provide for the well-being of the owner's family;
To perpetuate the company's mission or culture; and
To allow the owner to remain involved in the company.

The disadvantages to an owner of a family transfer are:

Little or no cash from closing available for retirement;
Increased (and continued) financial risk;
Required owner involvement in company post-closing;
Children's inability or unwillingness to assume the ownership role; and
Family issues that surround treating all children fairly or equally.

Transfer To Key Employee(s)

In terms of advantages and disadvantages, the transfer to key employees is remarkably similar to the transfer to family members. Advantages include:

To transfer the company to a known entity;
To perpetuate the company's mission or culture;
To allow the owner to remain involved in the company; and
To achieve financial security.

The perils of this exit route are the same as those present in the family transfer:

Little or no cash from closing available for retirement;
Increased (and continued) financial risk;
Required owner involvement in company post-closing; and
Employees' inability or unwillingness to assume the ownership role.

Transfer To Key Employees Via ESOP

ESOPs are qualified retirement plans, typically profit sharing plans, which must invest primarily in the stock of the sponsoring employer. The owner using an ESOP to effect this transfer usually does not want to remain with the company after closing. In addition to the advantages of a standard transfer to key employees, the owner who uses an ESOP to transfer a company to key employees enjoys three additional benefits:

Cash. The owner leaves the closing table having converted an illiquid asset into the cash necessary for a financially secure retirement.
Beneficial tax treatment. Using an ESOP, an owner can defer or avoid tax on the gain from a sale.
Possibility of immediate retirement. Because an owner's financial security is not tied to the continued performance of the company, the owner can choose to leave the company.

Of course, not all aspects of this exit route benefit the owner. The disadvantages are:

Cost and complexity of ESOP;
Company growth curtailed due to borrowing;
Less than full value received at closing;
Owner assets (post-sale) used as collateral; and
Key employee ownership is limited.

Sale To Co-Owner(s)

Once again, the owner who examines a sale to a co-owner(s) finds the list of advantages and disadvantages nearly identical to those found on the lists for a transfer to family member or key employees. The advantages to this type of sale are:

Transferring the company to a buyer whose commitment, skills and knowledge are known quantities;
Perpetuating the company's mission or culture;
Allowing the owner to remain involved in the company.

The disadvantages of the sale to a co-owner(s) are:

The need to take back an installment note for a substantial part of the purchase price;
Increased (and continued) financial risk;
Required owner involvement usually continues post-closing; and
Less than full fair market value normally received.

Sale To A Third Party

This exit route offers an owner the best chance at receiving the maximum purchase price for his/her company. In addition, the owner who engages in a sale to a third party is best positioned to receive the maximum amount of cash at closing. Our list of advantages looks like this:

Achieve maximum purchase price;
Receive substantial cash at closing;
Allow owner to control date of departure; and
Facilitate company growth without owner investment or risk.

This is undoubtedly an impressive list of attributes. But before you grab the phone to call your favorite investment banker, let's review the drawbacks of this exit route.

Loss of owner identity;
Loss of corporate culture and mission;
Potentially detrimental to employees; and
Receipt of much of the purchase price subject to future performance of the company after it is sold.
IPO

The exit route marked "IPO" or Initial Public Offering is one that attracts the attention of business owners amenable to a sale to a third party for two reasons. First, the valuation of the ownership interest is usually higher than in any other form of transfer — including the sale to a third party. Second, an IPO brings with it an infusion of cash which moves the company forward to a new level.

Unfortunately, the IPO is not without significant disadvantages. The primary one is that despite the high valuation placed on and paid for an owner's interest, the IPO is not a liquidity event for the owner. The disadvantages of an IPO are:

No liquidity at closing;
No exit at closing;
Loss of control; and
Additional reporting and fiduciary requirements.
Assume Passive Ownership

Another exit route that an owner can chose is to keep the business while assuming the role of a passive investor. This route attracts owners who wish to:

Maintain control;
Become gradually less active in the company;
Preserve company culture and mission; and
Maintain ongoing cash flow.

The disadvantages to this exit route are fairly obvious. The owner:

Never permanently leaves the business;
Is not able to establish or fix business continuity;
Receives little or no cash when he leaves active employment; and
Continues to experience risk associated with ownership.
Liquidation

There is only one situation in which this exit route is the appropriate choice: the owner wants to leave the company immediately and has no alternative exit strategies in place. Liquidation offers two benefits most important to the owner in that position: speed and cash.

Not surprisingly, the disadvantages to this exit route are enormous:

Minimal proceeds;
Significant tax consequences; and
Effect on employees/customers.
Few owners pursue liquidation unless they have no alternative.

Choosing Your Path

Which exit route is best for you? Which one meets your exit objectives? Comparing the advantages and disadvantages of each is a good way to start making that decision. Carefully compare the benefits and detriments of each path, viewed in light of your specific exit objectives as well as the value of your business. Armed with your road map you can take the most appropriate exit path for you, whether it is the autobahn to financial security or a winding and leisurely excursion off the beaten path.

 

Main Office
Shipping:
951 Harbor Road
West Columbia, SC 29169

Mail:
PO Box 512
Columbia, SC 29202

Phone: (803) 791-8700
WATS:(800) 849-6768
Fax: (803) 796-0713

Concrete/Masonry Products Sales
Phone: (803) 791-8700
Accounting Dept. (803) 791-8724
WATS: (800) 849-6768
Main Fax: (803) 791-8191
President- Jim Sobeck (864) 325-6518
EVP/CFO- Kurt Herwald (864) 268-3970

VP Purchasing- David Hodgin
(704)-358-9797
Director of Finance and Operations- Dave Lewis
Operations Manager- Donald Whately
Sales Manager- Jon Black



Other Locations

9 N. Kings Rd
Greenville, SC 29605
Phone: (864) 269-7007
WATS: (800) 849-4454
Fax: (864) 269-6004
Operations Manager- Rob Hovanec
Sales Managers- Russ Lott & Lance Perry

1427 Mechanical Blvd.
Garner, NC (Raleigh) 27529
Phone: (919) 662-9012
WATS: (800) 849-4677
Fax: (919) 662-9412
Operations Manager- Vic Murray
Sales Manager- Bud Driggers

 

Other Locations

4987 Banco Road
N. Charleston SC 29418
Phone: (843)760-0780
WATS: (888)224-3140
Fax: (843) 760-6127
Operations Manager- David Starr
Sales Manager- Trip Moore

9050 D W. Market St.
Colfax (Greensboro) NC 27235
Phone: (336) 992-0237
WATS: (800) 609-0889
Fax: (336) 992-0839
Operations Manager- David Perkins
Sales Manager- Kearns Cheek and Anthony Bunting

180 Rodeo Drive
Myrtle Beach SC 29579
Phone: (843) 236-6447
WATS: (800) 821-2676
Fax: (843) 236-6521
Operations Manger- George Acerbi
Sales Manager- Clint Paul

649-51 Anderson St.
Charlotte NC 28205
Phone: (704) 358-9797
WATS: (866) 375-9660
Fax: (704) 358-9646
Operations Manager: David Hodgin
Sales Managers: Jim Harris and Walt Bell

358 Industrial Park Rd
Hardeeville (Hilton Head) SC 29927
Phone: (843) 784-1580
WATS: (866) 326-8802
Fax: (843) 784-1581
Acting Operations Manager- Dave Davis
Sales Manager- Steve Melton

17251 Highway 53
Gulfport MS 39503
Phone: (228) 539-2519
WATS: (866) 506-7257
Fax: (228) 539-2771
Operations Manager- John Jalanivich
Sales Manager- Greg Cairns