We’re proud of the positive difference we’ve made in a wide variety of practices, with a wide variety of needs. Please browse through a few real examples of how we’ve helped manage and protect independent financial advisory practices like yours. Contact us to see how we can help you.

The Client Before EmployShare

  • $450 AUM, 15 employees, and five “partners”
  • Limited Liability Partnership
  • Two partners were practice owners with the book of business
  • Three partners did not own the book but had a stake in the equity via the partnership agreement
  • “The Partnership” hired all employees
  • Benefits, including retirement, had issues
  • Partners shared GDC within partnership structure
  • Partnership agreement described all five as “owners” of the book
  • Each acted as “mini-owners” running their own employees, “fiefdoms”

Initial Analysis (Issues)

  • Broker/Dealer violations
  • SEC violations
  • ERISA violations
  • External regulatory exposure
  • Internal organizational dysfunction
  • Equity issues
  • Revenue-sharing issues
  • Taxation/IRS issues

The Results with EmployShare


  • Assembled interdisciplinary “team”
  • Developed organizational model
    • Entity selection
    • Hierarchy
    • Compensation structures (owners and employers)
    • Designed benefits mix – conducted appropriate retirement plan “testing”
    • Accounting
    • Drafted the ownership agreements among the five partners
    • Set a start date to implement new business model


  • Performed on site orientation and training to launch “new” organization
  • Transferred existing partnership assets to new entity
  • Resolved residual practice acquisition amortization/expensing issues
  • Drafted governing documents – pro rata basis – reverse waterfall analysis
  • Developed exit strategies and drafted succession plan (legal entity/individual advisor issue)
  • Facilitated voluntary compliance for ERISA violations


  • Provided continuous human resource guidance and consulting, including payroll alignment between legal entity and owners
  • Successfully resolved numerous HR issues such as employee discrimination and potential disability discrimination matter
  • Worked in concert with counsel and CPA to facilitate voluntary compliance with past ERISA violations
  • Developed and fine-tuned accounting systems to maintain transparency and compliance with regulators and broker/dealer

The client before EmployShare:

  • $780M AUM, 98% fee-based, commonly referred to as a hybrid RIA
  • Current legal entity is S-corporation with two owners
  • 28 employees, including 5 producers; no independent contractors
  • Two physical locations
  • Very high-touch service model
    • All employees engaged in some form of relationship management with clients
    • Held numerous regularly scheduled all-client events
  • Long-term relationships with local employment law attorney and accounting firm
    • Accounting firm doing payroll
    • Attorney providing employment law guidance

The reason they brought in EmployShare:

  • Employees spent much of their time on non-productive functions and did not have enough time to focus on their clients’ business
  • Administrative functions were separated among HR, accounting, outside benefits brokers, outside insurance broker…creating repetition of duties, confusion for employees and a lack of internal cohesion and connectedness within the organization
  • Internal systems were fragmented, creating silos of information with no cross communication among functional leaders, creating increased financial risk to the owners
  • Owners were not satisfied with the current HR manager; the position was not client-centric
    • Wanted to remove the HR manager role and not hire a replacement

The results with EmployShare:

  • Cost-effectively removed HR manager without the need to replace the position
  • Achieved streamlined and ‘connected’ system for all things employment-related
  • EmployShare took over all administrative functions and responsibilities for:
    • Employment agreements, offer letters, job descriptions, and the master employee handbook
    • New hire screening and on-boarding
    • On-line time and attendance management
    • Payroll and payroll taxes and filings
    • Employment relations guidance and consulting in concert with their employment law attorney
    • Benefits management for:
      • Group medical
      • Dental
      • Vision
      • DI
      • Cafeteria plan
      • Pension plan
    • All commercial insurance included in the ‘connected system’ and managed by The Caputo Insurance Agency, Inc., broker of record
  • All group benefit policies managed by The Caputo Insurance Agency, Inc., broker of record
  • EmployShare assisted external legal counsel in drafting and facilitating an executive severance agreement which ultimately prevented future litigation
  • Protected practice from the negative effects and legal costs associated with a petition of injunctive relief due to an employee’s previously undisclosed restrictive covenants to a prior Broker/Dealer

From the advisor’s perspective:

“I run a very profitable financial practice, high-touch service model, excellent velocity and 90%+ advisory-fee-based. I have been a client of EmployShare for 15 years, and I have learned a lot of valuable lessons. Here is one.

This incident concerned an employee that went from having a great attitude and performance record to the exact opposite. To this day, I do not know why she changed so drastically, but I have learned since that we do not know what our employees do when away from work.

Like most financial advisor practice owners, I tend to react rather quickly to these types of negative issues, so I terminated the employee and notified EmployShare the following day. This turned out to be a costly mistake on my part, terminating the employee without first seeking guidance from EmployShare.

The disgruntled employee went on mission to get back at me:

  • Filed an unemployment claim against me. EmployShare beat it.
  • Filed a workers’ comp claim against me. EmployShare beat it.
  • Filed a lawsuit for wrongful termination against my broker/dealer and me.
    • The broker dealer liability was dismissed.
    • The case was in my attorney’s hands.
    • We settled for mid-six figures and never got to court, thank God.

My lessons learned from this incident:

  • My staff knows everything in my practice: my GDC, my clients, and each other. I am a real employer target.
  • Keep the EmployShare team informed and involved in all employee interactions that have the potential for risk.
  • Had I consulted with EmployShare before terminating this employee, they would have staged the termination effectively and saved me hundreds of thousands of dollars.”

The client before EmployShare

  • $246M AUM, 80% fee-based
  • Direct employees of their broker dealer for the past 12 years
    • 4 employees and two owners (husband/wife)
    • No independent contractors
  • One physical location
  • Owner-driven book of business:
    • Owner is main contact, one producer has partial client base with equity and also helps support owner’s clients
  • Has existing relationship with local human resource specialist and attorney
  • Owner has never been an employer
  • The current broker/dealer provides all benefits, retirement plan, and payroll/commission payments to owners, producers and employees
  • Advisor owns the building housing the practice

The reason they brought in EmployShare

  • The acquiring broker/dealer brought in EmployShare team for the following reasons:
    • Establish legal entity for employment and tax purposes
      • How the business will operate, who will make decisions, income and expense allocations, etc.
    • Establish sole proprietor legal identity for commission payments to producers to comply with FINRA/SEC rules and new broker/dealer policies related to the distribution of commission payments
    • Establish equity/interest agreement between owner and producer, including succession and buy-sell terms
    • Examine accounting system between owner and legal entity to accommodate for proper tracking of advisory and transactional GDC
    • Replicate/replace all employee benefits without lapse in any coverage
    • Provide unlimited guidance and consulting to owner and spouse to help them feel comfortable and secure, as they become a new employer

The results with EmployShare

  • Developed and delivered industry-specific operating agreement for new legal entity
  • Established Control Group for payroll:
    • Legal entity for employing staff and owners
    • Sole proprietor identity for employing licensed selling producer
  • Implemented new benefits for medical, life, DI, dental, vision, cafeteria benefits and retirement plan; no lapse in coverage
  • New employment documents:
    • Employment agreement with industry-specific job descriptions and compensation agreements
      • Included restrictive covenants to help protect the owner’s book of business
    • New employee handbook with complete policies, federal guidelines and state-sensitive regulations
    • Guidance and consulting on employment policies and procedures
  • Established equity-interest agreement between owner and producer
  • Provided accounting guidance for proper handling of GDC between legal entity and sole proprietor accounts
  • Provided day-to-day support throughout the transition period

Contact Us

For a discussion about an Employer Model Plan tailored to your practice, please contact:

Jeffery A. Bovalino, JD and CEO

Contact us today to learn more.

Call (724) 843-3094 or fill out the form.