George is 72 years old and has come into the office at 6:30 AM, six days a week since he was 25. After the ups and downs of the first 15 years, the business began steady, profitable growth. A major factor in the success is John, the 46 year old President of the company. Doing $15 million a year in sales when John arrived 20 years ago, the company has grown to over $150 million. John bought 15% of the company with bonus money he earned in the past ten years. John has grown the company through acquiring and starting businesses throughout the state. A group of New York City investors has approached the company and offered to invest a considerable amount of money in the business to fuel future growth and to begin buying out George. How should George and John evaluate the offer? Is the offer a fair price? Could they get more? Are there other potential investors out there with whom they may have a better cultural fit? How much stock should George and John each hold onto? How can George and John minimize possible taxes? Call us for more information. We can help.
Business Analysis to Enhance Profitability
Joe has a good business but thinks he should be making more money. His business has grown significantly in the last 5 years - faster than at any other time in the 20+ years he's had the business. Sales have increased substantially - but so have expenses. As sales increased the profits didn't keep pace. The sales volume grew and everyone in the organization was wrapped up in taking care of the business. Things slipped through the cracks. Lack of attention to detail has cost Joe untold profits. (Don't ask him about his increasing inventory of special order "non-returnable" items.) The current systems just aren't working. His business has outgrown them. Joe knows he needs to implement some new systems and processes. How does he determine what systems and processes his business needs now? How does he implement them? How does he improve his profitability? What steps should he take to position his company for future - profitable - growth? Call us for more information. We can help.
Responding to a More Competitive Industry Environment
Jim has been in the building supply business for over 20 years. He's never seen a market like this. Recent industry growth has produced large regional and national chains that have cannibalized the market. He's been in direct competition with companies up and down the supply chain as more businesses work out deals to go direct with key builders. Now sales have dropped precipitously and it's more competitive than ever to secure sales. Jim's been struggling with re-sizing his business for the current business volume. He doesn't want to scale back too much - but needs to get his expenses aligned with the sales level supported by the current market. How does Jim restructure his company appropriately for the market? How does he identify and execute on new market opportunities? How does he continue to drive profitable growth in today's turbulent market. Call us for more information. We can help.
Strategic Planning & Strategic Growth
Dan and his brother Jack have a very successful business. They've steadily grown revenue and profits and are a leading competitor in their markets. Like all businesses, they've been challenged to maintain profitability in today's market. Dan and Jack are struggling with the next steps. Which way to go? What kind of growth makes sense? What growth opportunities have the highest likely return? Which growth avenues can they execute successfully? At the same time, a number of opportunities are coming up. Competitors in their market and adjacent markets are selling and/or closing. How can Dan and Jack objectively vet and assess the opportunities so they can make the best use of their resources? Call us for more information. We can help.
Planning for the Next Generation
Brothers Bob & Larry have owned B&L Lumber for over 30 years. Bob is ready to retire and Larry, his junior by 10 years, wants to continue to be actively involved in the business. Bob's son, Rick, is currently the President and running the day-to-day business. Rick is also the only member of the next generation to work in the business. Bob would like to gift stock to his son, while also selling some stock to meet his retirement objectives. Larry is not ready to sell stock now and is uncertain how to handle his brother's desires. He is not comfortable with Rick's ability to run the business on his own. In addition, both brothers wonder how to deal fairly with their respective spouses and family members who are not active in the business - but who may inherit stock in the future. How could Bob and Larry plan to be fair to each other, Rick and family members what may inherit business stock? How might Rick buy the stock on his own? How can the brothers minimize estate and capital gains taxes on any sales and transfers? Is now the right time for the brothers to look at the transactions described? Call us for more information.
Planning for a Sale in 3 to 5 Years
Brian and Bill are in their mid-40's. They bought a building supply business from Brian's dad when he developed cancer 7 years ago. They want to begin preparing the business to be sold by the time they reach 50. Their objective is to each net $5 million after taxes at the sale of the business. What is the business worth today? What can Brian and Bill do to minimize future taxes? Is there anything Brian and Bill can do today to help the business achieve a better value when they sell it? Is there any way that their key employees could afford to buy them out or remain secure after a sale? Call us for more information.