Lentz Milling Company
With an eye toward innovation and growth, Ted Lentz is driving his multi-generation logistics company toward greater success.
Commercial bakers throughout the Mid-Atlantic rely on the Lentz Milling Company for their efficient, on-time delivery of raw ingredients. Owned and operated by the Lentz family for over 60 years, the company strives to offer the very best in baking product selection, backed by personal service and accurate, efficient order fulfillment.
Driving a Plan for Succession
Taking the helm of his family’s business was an unexpected turn for fourth-generation President Ted Lentz. In 2004, Ted’s father and uncle were planning on selling the business to a private equity firm. While Ted wasn’t a part of the original succession plan, he found himself leaving his career in Washington, D.C. to return home to Reading, Pennsylvania to lead his family business.
Retired RKL Partner Tom Beaver, a long-time advisor to the Lentz family, helped develop an alternative succession plan that enabled Ted and the executive team to purchase the company in a leveraged management buyout transaction. Tom played a critical role, from educating Ted’s father and uncle on the estate planning opportunities that this transaction provided to structuring the terms of the deal and running a competitive process to select a lender to provide transaction financing.
“The last ten years would have looked very different for this company if it were not for the strong relationship we have with RKL,” says Ted.
Developing Innovative Incentives
Ted also worked closely with RKL Business Consulting Partner Paula Barrett to develop the company’s long-term incentive phantom stock program. An expert in business valuation, Paula established the valuation process and advised on the design of the program along with the company’s legal counsel.
“This program has been an important tool in recruiting top-caliber executives to the company and aligning their interests over the long-term with those of the shareholders,” Ted says.
Uncovering New Opportunities
One game-changing endeavor for the company was the formation of the Lentz Logistics subsidiary in 2013. RKL Tax Partner Mike DePaul worked closely with Lentz’s finance team and external legal counsel to develop the logistics company to manage and operate the company’s private fleet. While the initial goal was to take advantage of related tax savings opportunities and to better protect the company from liability issues stemming from fleet operations, the move opened the Lentz management team’s eyes to the opportunities that exist in the logistics industry.
“What started as a small sideline venture in 2013 has grown into an important profit center for the company,” Ted says.
As Lentz Milling Company continues to move forward in its growth and success, Ted and his management team are confident in the insight, ideas and service they receive from their long-time professional advisors at RKL. Whether it’s assisting with ongoing financial reporting needs or providing new ideas on driving profitability, the RKL team looks forward to the journey ahead with this valued client.
Ready to learn more about how RKL can help you drive greater success in your business? Visit our tax services, audit and accounting or business consulting pages, or contact us today to arrange a meeting with one of our professional advisors.