Case Studies
 
 

Cash Flow Planning

A wholesale distributor client producing over $25 Million in sales retained our services. While assisting them in a review of their tax and cash flow planning, we saw an opportunity to better utilize their financial resources. We suggested that the client follow our action plan which resulted in a savings of over $65,000 in interest expense. In just five years the client will realize after tax savings (and increased available cash) of more than $200,000.

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Management Advisory Services

Our client was one of five owners of a daycare/preschool. The school had incurred steady losses over a period of several years. The owners were split into 2 groups. One group of two wanted to be bought out.. However, they wanted more money than the three other owners were willing to pay. We reviewed the situation on behalf of our client and identified several trends that strongly indicated that the school would soon become quite profitable. We recommended that he and his group negotiate an offer that would be accepted by the selling owners even though it was substantially in excess the amount they had originally wanted to pay. The offer was accepted. The business turned profitable the year after the buyout and within two years was yielding an after tax return on the buyout investment in excess of 25%.

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Acquisitions

During a recent three year period a manufacturing client of ours was being courted by several much larger companies. During that time we assisted our client in evaluating the tax and financial impact of the various offers and in crafting responses to the offers during negotiations. Ultimately, our client accepted an offer from a fortune 500 company. We were engaged to work with our client and the senior management of the acquiring company to help complete a very comprehensive due diligence process including the preparation of a required SEC filing. We were able to help our client fast track the multi-million dollar transaction and reduce the time from acceptance to closing by several months over the norm.

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Estate Planning

We frequently assist high net-worth individual clients to develop plans to reduce their estates during their lifetimes and thus reduce or eliminate inheritance taxes and insure the maximum benefits for their heirs. Among many planning methods we frequently use are lifetime gifting programs and transfers to family limited partnerships. In all cases, where approapriate, we make use of marketability, minority interest and other available discounts which substantially augment the transfers.

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Retirement Planning

A long-term client was the sole owner of a distribution business and nearing retirement. His business became dramatically more profitable than in prior years. After analyzing his good fortune we recommended that he install a defined benefit pension plan for himself and his employees. Working with pension specialists we were able to help design a plan that allowed very high contributions for his benefit and relatively low cost in other benefits and administrative costs. In a matter of only three years, he had accumulated a substantial sum which when combined with the proceeds from the sale of his business, provided ample funds to meet his financial goals for retirement.

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Strategic Advisor Services

A prospective client in a retail business was referred to us for accounting and tax services. He owned the real property where his retail store is located which is in a prime location. Over a period of time we came to realize that while our client enjoyed selling and the personal contact with his customers, he very much disliked the day to day responsibilities and problems of owning and operating his own business. The impact of this situation was very apparent in the manner in which the business was run and in the results of operations. We helped him redefine his goals and objectives. As a result of this process our client decided to sell his business and leased the real estate to a large national retail furniture company. He now has more income than when he operated the business, and time to pursue other interests and opportunities that he truly enjoys.

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