From start-ups to established companies, Hersman Serles Almond, LLC provides comprehensive accounting and tax consulting services to private and nonprofit enterprises. Our professional advisors and tax experts support businesses across all industries as they navigate the often challenging and evolving stages of growth. We at HSA work closely with our clients, identifying and facilitating key strategies to improve organizational effectiveness.
HSA provides Business Valuation Services. Having a current Business Valuation will set the stage for any business transitioning, including helping you receive the highest value when selling your company.
Case Study #1
A husband and wife jointly own and operate a professional service firm. After college their son joined the business, as does the couple’s only nephew. After years of learning the ropes, and upon becoming highly qualified the son desires to take over the family business. The couple also wants to include their hardworking nephew in the ownership structure. HSA Holdings, conducted a business valuation, using IRS accepted methods. Once complete, a plan for gifting stock to both the son and nephew was worked out, with fairness to all parties, and reducing the tax liability of the couple’s estate. The valuation process also helped define the specific partnership arrangement and roles between the son and nephew.
Case Study #2
The owner of a mid-sized manufacturing firm was considering retiring. To his regret, none of his children were interested in owning and managing the factory based-business. HSA conducted a Business Valuation and provided advice on how best to sell the company, if a buyer could be found. Limiting the impact of the sale on the client’s personal estate, and gifting the proceeds to his children were all issues under consideration.
Through the process HSA was able to identify that the best buyer for the company was actually the company employees. Through the use of ESOP—Employee Stock Ownership Plan, the owner was able to see the company continue is his tradition through ownership of the long-term dedicated staff the employer had nurtured over several decades. Furthermore, the owner was able provide for the goals of his grown children.
Business Succession Planning
Hersman Serles Almond has seen several long time clients realize that they are now ready for retirement. The key goal here is to make sure that they maximize their return for retirement and are able to find a viable future ownership group to continue the business.
Case Study #3
In this case study we focus on a business which did not expect to sell or transition ownership but the situation changed quickly when the key business officer passed away unexpectedly.
The first order of business was to conduct a business valuation. The client, working with HSA, determined the best avenue for the business transition, while reducing the impact on the estate and tax income liabilities.
It was determined that ownership was to be incrementally transferred to the couple’s children over several years. This method discounted the share value.
Estate Tax liability was also an area of concern, and here the business valuation became very important. Since the valuation was based on accepted IRS practices, this eliminated the fear of audit and increased tax burden down the road.