Sax Macy Fromm Hosts 9th Annual Bankers Breakfast to Address Latest and Emerging Issues Impacting Mid-Sized Businesses
While the economy continues to struggle and the federal debt ceiling crisis looms, the key to growth for mid-sized businesses is strategic planning, according to an expert panel at the Ninth Annual Banker's Breakfast, recently held in Whippany, N.J. More than 100 banking and financing professionals attended the event, hosted by Sax Macy Fromm & Co., PC (SMF), which included an announcement that SMF will be merging with Albany, N.Y.-based Bollam, Sheedy, Torani & Co. (BST), as of January 1, 2014.
The interactive panel, moderated by Joseph Damiano, a Principal and Director of the firm's Construction Industry Service Group, addressed current and emerging issues impacting today's closely held business owners. On the economy, "the current recovery is long and fragile," said Ermal Luzaj, a Principal and Director of the Financial Industry Service Group. He projected U.S. economic growth of just two percent this year, compared to China's eight percent, and noted that "Europe is flat."
One drag on the economy has been Washington, D.C. Issues such as the debt ceiling, "regardless of politics, helps no one," added Damiano.
In the current economy, "strategic planning is needed for a company to grow, and it has to include outside information and industry data," said Robert Devine, Principal of SMF Strategic Leadership, the firm's consulting services arm. "Entrepreneurial companies make decisions based on subjective opinions, used to determine what is working and what isn't."
Incentives play a key role as well, noted Todd Polyniak, Principal and Director of the firm's Audit and Accounting Practice. "In 2014, 14 percent of compensation will be based on incentive compensation tied to companies' goals." He called incentives, including profit sharing, "good tools," and urged that management be incentivized as well, "based on how a company performs. Many entrepreneurial companies are struggling and changes are imperative in the way they operate."
The announcement that SMF and BST would be merging was made by Robert Paz, SMF's Managing Director, who was joined via live video feed by Steven Ferraro, BST's Managing Partner. The new company, to be named SaxBST, will rank among the "Top 100" firms nationally, with more than $45 million in combined annual billings.
Once the merger is complete, SaxBST's multi-disciplinary accounting, tax and financial consulting services will continue to meet the needs of privately held companies, family-owned businesses, not-for-profit entities and high-net-worth individuals throughout the New York tri-state area. The firm's industry segments and niches include commercial real estate, construction, manufacturing and distribution, employee benefits, retail, financial services, medical and professional services, not-for-profit, government and labor unions.