The Federal Reserve projected that the number of businesses sold will rise from 350,000 in 2005 to 750,000 in 2009. A large percentage of these business sales have been delayed by the current economic crisis. When the economy recovers, however, the number of businesses being sold by baby boomer retiring owners will swell to unprecedented levels. This represents a great opportunity for CPAs to generate fee income around this explosion in the buying and selling of businesses.
On the exit planning side, there are a number of high value services that CPAs can provide your business owners:
Business valuations for estate and gift tax purposes
Estate and Gift Tax Planning
Family LLC formation as a tax reduction strategy for business transition
Minority valuations for each of the Family LLCs
Business Sale Planning
Business Valuation for Sale Purposes
Industry Benchmarking and Ratio Analysis
Performance Improvement Planning and Execution
Maximizing the Value of the Business Check-up
Books and Records Analysis (pre due diligence check up)
Exploring the Private Equity Option
The Business Sale Process
Addressing Financial Report Requests from Multiple Buyers
Tax Analysis of Various Offers and Transaction Structures
Create the Pre-Closing Statements
Post Closing Adjustments Analysis
Tax Reporting
On the business acquisition side, there are a number of high value services that CPAs can provide your business owners:
Strategic Target Definition
Analyze Client’s Financial Threshold
Preliminary Financial Analysis for Multiple Targets
Create and Perform Due Diligence for Financial and Accounting Issues
Post Closing Adjustments
Consolidated Accounting Statements
All your activities around the buying or selling of businesses are high value, high leverage services for your clients because of the large dollar amounts at stake. This new practice area represents the most efficient business development you can do. Rather than spending hours and hours in the process of developing brand new clients, why not sell additional services to the clients that already know and support you? It is 10 times easier to sell additional services to loyal clients than to sell your services to a new client. These high value services will help solidify further your client retention.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 2.0
Important Note: Your State Bar or Accounting Board will make the final determination with respect to continuing education credit. If you are applying for CLE credit in Texas you must register 20 days before the event date or you will not be able to obtain CLE credit.
Advance Preparation: Print and review course materials
Course Code: 104037
Dave Kauppi
Managing Director
Adam Manson
Financial Analyst
Larry Levine
Managing Director
Stuart Duhl
Partner
Dave Kauppi, Managing Director, MidMarket Capital Advisors, LLC
- Strategy point: Rather than fearing a client will sell a property; get in front of it to provide the highest value services you can offer.
- An excellent estate planning tool, forming family limited liability corporation
- Look at the business through the eyes of the buyer...through a sales prep audit
- An enrichment opportunity for those seeking to buy: accountants checking the books, billable hours.
Larry Levine , Managing Director, RSM McGladrey, Inc.
- Measuring fair market value along with the different levels of value (i.e., minority versus control) along with valuation premiums and discounts.
- Value as a function of growth and risk.
- Business succession issues and strategies – the choices on how to sell (i.e., control versus minority; to employees or a third party; ESOP)
- When to sell – life cycle of firm considerations
- Volatility considerations
Adam Manson, Financial Analyst, Business Valuation Resources
- Discussing materials and tools for appraisers, databases, publications, et al
Adam Manson, Financial Analyst, Business Valuation Resources
- Handling confidentiality in the sale process.
- Seller’s checklist
- Pitfalls of a letter of intent.
- Dealing with family successors.
CPAs
Accountants
Accounting Firms Business Development and Marketing Professionals that want to learn about all of the high value consulting services that they can provide to their business owner clients around the exits
Sales and acquisitions of businesses.
This is a must attend event for highly affected professionals to have an extensive knowledge about the key topics on client enrichment and business development opportunities.
- Detailed guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A