Wealth Management - Second Quarter 2021 Review

Posted by Will Burnett on Aug 18, 2021 10:35:15 AM

Owner Resource Group is pleased to provide the following wealth management insights from Round Table Wealth Management.

Second Quarter 2021 Review

Dear Clients and Friends,

We hope you are enjoying summer! The “dog days of summer” were not discouraging the markets as they continued their upward trajectory with all major equity and fixed income indices generating positive performance for the quarter. As inflation concerns waned, growth equities rebounded and outperformed value-style investments by 6.7% based on Russell 1000 data. The subdued inflation outlook benefited fixed income investors as yields fell and prices increased, allowing the Barclays U.S. Aggregate Bond Index to recoup 1.8% of its negative year-to-date return.

We have not made any material changes to our portfolio positioning since our last correspondence. As we discuss in the Big Picture section below, consumer spending and cash levels (purchasing power), employment opportunities, historically low interest rates and massive government spending all support continued overweight allocations to equities. We recognize risks remain such as mounting U.S. debt, a high probability of tax increases and the COVID-19 Delta variant that is causing concerns outside the U.S.

We welcome a conversation with you to discuss our outlook. If you would like to learn more, please contact us for a personal meeting.

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Topics: Wealth Management

Owner Resource Group Presents Lee Brandon Walker Award to USME Team

Posted by Will Burnett on Apr 29, 2021 1:47:17 PM

Last month, Owner Resource Group (ORG) had the honor of presenting the Lee Brandon Walker Award to the team at US Med-Equip (USME), a partner company of ORG since 2017. USME partners with top hospitals, supplying critical medical equipment in the fight to save patients’ lives.

The Lee Brandon Walker Award is presented by ORG to companies that exhibit a commitment to service to both their employees and their communities. The award is named after one of ORG’s founding members who, with his fervent commitment to service, died tragically in 2014 from an undiagnosed heart condition while helping save the life of an animal while on a fly-fishing trip.

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Wealth Management - First Quarter 2021 Review

Posted by Will Burnett on Apr 22, 2021 8:08:40 AM

Owner Resource Group is pleased to provide the following wealth management insights from Round Table Wealth Management.

First Quarter 2021 Review

Capital markets provided mixed returns during the first quarter as value-style indices advanced, growth-style indices lagged and fixed income markets declined. A confluence of factors is creating both tailwinds and headwinds in the markets: Approved stimulus measures and proposed infrastructure spending combined with expanding COVID-19 vaccine deployments and easing mobility restrictions are expected to drive corporate earnings growth into the double-digits this year. Conversely, the associated risk of higher inflation and interest rates are pressuring growth-style equity valuations and bond prices. For the first time in years, quarterly performance for the Russell 1000 Value Index has outperformed both the S&P 500 and the Russell 1000 Growth Index by approximately 5.1% and 10.3%, respectively. Fixed income, which benefited last year from declining interest rates, generated a return of -3.4% as rising inflation and interest rate expectations pressured bond prices.

We have repositioned portfolios towards a more value-centric approach across equity allocations, including adding tactical positions that we believe may perform well as the U.S. initiates massive infrastructure spending. We are modestly underweight fixed income and continue to gravitate towards shorter duration bond strategies that are less impacted by inflation concerns and rising rates, while maintaining the safe-haven characteristics associated with the asset class. While the risks of 2020 are slowly fading, new and different risks (and opportunities) are presenting.

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Topics: Wealth Management

Wealth Management - Fourth Quarter 2020 Review

Posted by Will Burnett on Feb 1, 2021 10:03:35 AM

Owner Resource Group is pleased to provide the following wealth management insights from Round Table Wealth Management.

Fourth Quarter 2020 Review

We would like to first acknowledge and offer our heartfelt condolences and thoughts to those that lost loved ones or suffered economic hardship during this ongoing pandemic. It was a year like no other. Winston Churchill once said, “If you are going through hell, keep going.”  We agree: stay safe, stay positive and keep moving forward. We hope you had a reflective New Year’s and join us in looking forward to 2021 and beyond.

Despite the economic lockdowns of 2020 and emotional hardship, the capital markets performed admirably with the S&P 500 increasing approximately 18.4% by year-end and nearly all equity styles generating positive performance. Many of the risks that we highlighted throughout 2020 have dissipated: COVID-19 vaccines are being developed and deployed, stimulus measures are being passed to provide necessary funds for families across the country and the Presidential election has been decided and finalized. We are currently more optimistic than we were at this time last year and will remain constructive on markets near term. We are pleased with the performance that client portfolios generated and the tactical maneuvers we initiated to manage risk at the most concerning of times. Today, portfolios are largely unhedged as we are cautiously optimistic entering 2021.

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Topics: Wealth Management

3 Reasons Why Selling During COVID Makes Sense

Posted by Jessica Borowy on Jan 19, 2021 2:16:52 PM

For many reasons, the midst of a pandemic might not seem like prime time for selling all or part of your business. Uncertainty is high, and COVID-related slowdowns may have devalued companies from what they would have been worth to a buyer in 2019. So it’s no surprise that a lot of owners assume they need to get things back to pre-pandemic levels to maximize a potential sale. Plus, many are coming off their best year in 2019 and don't want to sell in a down market. Worse, not only are many owners unsure about selling, they’re also hesitant to make any significant investments in their businesses—with the persistent uncertainty in the current market, they see it as too much of a risk.

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Topics: COVID-19, Exit Strategy

2020: Year in Review

Posted by Jon Gormin on Jan 13, 2021 9:34:07 AM

Like most people, it is nice to have 2020 in the rearview mirror. It was a unique year and unlike anything we have ever seen. In January, the outlook looked incredibly strong. Across the board, our Partner Companies forecasted continued growth and we had no reason to doubt them. Then in March, it all started to change rapidly. Within weeks, we had gone from some concern over COVID to closing business activity in several states and borders globally. We quickly entered a new world of facemasks and social distancing and the balance of the year never looked the same.

When talking about 2020, I typically view it in three phases: confusion, liquidity and visibility. In mid-March, there was broad confusion. How dangerous is this disease? Is my business essential? Should I go to the grocery store? Overall, there were more questions than answers. Very few, if any, business leaders had been through this type of environment. In turn, we were all guessing. Fortunately, for our firm, all of our companies were deemed essential. Although they were materially impacted by COVID, they weren’t affected as badly as most.

As we entered April, the focus shifted to liquidity. Were the banks cooperating? Were we eligible for PPP? How long can we survive if business stays at this level for a longer period of time? From April until later May, we worked with our companies closely with a singular focus on liquidity and making sure we could live to fight another day. Our focus wasn’t on growing the top line, it was simply to ensure the survival of our Partner Companies. Then as we rolled into June, we started to see our first signs of a recovery taking hold.

By August, we finally felt we had visibility and a return to a newer form of normalcy. Across our companies, we could see 2-3 months of consistent or improving performance and had greater visibility into the balance of the year. It wasn’t necessarily the performance we had planned on for 2020, but there was comfort that we could now plan and see stability in our companies.

This new stability gave our firm the ability to confidently complete new investments and acquisitions for our Partner Companies. When looking at an investment, we could see the direct impact that occurred over the second quarter of 2020, and by adjusting earnings for this unusual time, we were able to be more aggressive on valuations. As a result, in the latter half of 2020, ORG Opportunity Fund III was able to successfully complete investments in SURESTAFF and Bill Gosling Outsourcing. We also successfully sold the majority of US Med-Equip and completed an add-on acquisition for one of our Partner Companies. Overall, 2020 turned out to be a good year where we added two new Partner Companies to our portfolio roster, successfully sold the majority of one Partner Company and completed two add-on acquisitions (one of which was completed pre-COVID).

As we look to 2021, we are generally positive, but have cautious outlook across our companies. Preliminary orders are in line or ahead of where they were at this time last year. Customer outlook, particularly in our industrial companies, is expecting business to pick up in Q2 ’21. There is still a lot of concern and supply chain disruption due to COVID and international trade delays. For instance, one of our companies has had so much absenteeism due to COVID that our current on-time delivery rate is at 72% (when it consistently averaged above 95% pre-pandemic). We’re also seeing an increase in commodity prices and a shortage of shipping containers. Although this presents additional business challenges, it is a positive sign that the global economy is in recovery mode.

From our perspective, we are excited about 2021 and look forward to finding new Partner Companies to support. We think that it’s a prime opportunity in several industries to complete add-on acquisitions and expand market share while there’s still turmoil in many markets. With our expertise and capital, we think that strong businesses can become industry leaders in the post-pandemic landscape.


Jon Gormin
Managing Director, Owner Resource Group

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Topics: COVID-19, 2020

2020 Year-End Tax Planning

Posted by Will Burnett on Nov 17, 2020 11:58:38 AM

Owner Resource Group is pleased to offer this valuable Year-End Tax Planning Advice from our friends at accounting firm Maxwell, Locke and Ritter. Hopefully, these tips will help prepare you and your business for success as we all continue to navigate the tax implications resulting from the COVID-19 pandemic, the CARES Act and the recent election.

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Topics: Tax Planning

Wealth Management - Third Quarter 2020 Review

Posted by Will Burnett on Nov 2, 2020 1:24:51 PM

Owner Resource Group is pleased to provide the following wealth management insights from our partners at Round Table Wealth Management.

Third Quarter 2020 Review

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” 
– Charles Dickens, A Tale of Two Cities.

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Topics: Wealth Management

North American Lubricants Businesses Are Navigating Deep Disruptions in Y2020 But Industry Remains on Solid Footing

Posted by Mandy Patterson on Oct 23, 2020 6:31:19 PM

As the Independent Lubricant Manufacturers Association (ILMA) prepares for its 2020 Annual Meeting – this year limited to a virtual event due to the coronavirus pandemic – its members gear up to discuss many of the pressing issues relating to one of the most essential industries. As the unofficial slogan goes... “Without lubricants and metalworking fluids, North American businesses and manufacturing would grind to a halt.”

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Topics: COVID-19, Business Continuity

ORG’s Jon Gormin Shares Key Insights in Aftermarket News

Posted by Will Burnett on Oct 20, 2020 7:32:53 AM

A big thanks goes out to Aftermarket News – the leading trade publication for the automotive aftermarket industry – for allowing ORG’s Managing Director, Jon Gormin, to share a few thoughts in the August issue.

His article, titled “Leverage Market Turbulence in 2020 to Accelerate Growth,” explores several key issues facing company owners and management teams working in the automotive aftermarket vertical during the current pandemic environment. These include considerations for investing in R&D and retooling, along with advice about positioning a company for discussions with potential business partners, including acquirers.

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Topics: Aftermarket News, Media