A candid interpretation of the value of doing business with us: My Company and our services.
What we do
We work with PRIVATE BUSINESS OWNERS who want
- To keep the value of their business assets intact and
- Generate tax-advantaged incomes for life.
For example, We arrange for business owners to get A capital gains tax liabilities@ paid by large financial intermediaries. These large financial intermediaries pay for the privilege of an association with the private business with a contract. When the business owner wants tax-advantaged income for life, we can arrange it. (You should read this again)
How we do it
We achieve this by performing an in-depth analysis of the business financials using proprietary case study models. This helps us understand the current and future tax liabilities in a disposition or when cash leaves the balance sheet. We map out income needs the owners will have when they get to a full or semi-retirement stage. At this point, we can put together a plan that creates A tax-advantaged income and makes certain that capital gains taxes payable never have to come off the balance sheet. Who we can help: Our process is best suited to business owners who have reached a sustained EBIT of $500,000 or more and in addition have corporate assets of at least $2 million increasing at 7% or more per year.
How clients benefit
Clients tell us they like the increasing financial strength our process adds to their balance sheets. They like staying ahead of CRA’s tax rules legitimately. They have peace of mind knowing that what they have put together will stay together. They say they expect to make maximum use of tax-advantaged income during their retirement years.
How we are different
We have been told by financial experts that no one else in Canada offers such a thorough and complete financial analysis of private firms. Our many years of experience help us to shortcut the learning curve for business owners by demonstrating solutions to future tax problems that will accrue without adequate planning. Our specialization in private company financial structures and outcomes gives us the power to stop tax problems from income and dispositions from ever taking place. And, what we do, works. Simple.
“Enough, enough, how do I get out of this?” This is what one client said to me in a boardroom with four accountants from one of the world’s largest accounting firms after I took him through our proprietary Capital Analysis Case Study models with his own firm=s financials as the data set. The one thing that makes us different from everyone else is our case study process based on the client’s own financials. This allows us to go forward in time for a preview of tax liabilities, which most business owners have never experienced.
However, our Capital Analysis Case Study points out in advance why selling the business destroys the most value. It also confirms that not even publicly traded firms offer the same degree of profitability with such low levels of comparative capital. The private business model can be an inter-generational winner for the long term provided capital and tax planning is instituted and maintained. No business owner has ever said that having a look at our process is a waste of time.
Why I do what I do
I get a tremendous sense of accomplishment from performing the analysis, placing the planning tools and instruments in place, and simply knowing that as a result of my work, business owners and their accounting and legal advisors will know for a fact that what he/she has put together will stay together.
Initially, I started in the personal financial planning arena, but it was business planning that called me like a moth to the flame. The tools for analysis did not exist when I started. Personal computers, laptops, and software were my tools for unlocking the required understanding.
Knowledge and skill acquired through study and case experience unearthed the understanding and became the key. The ultimate answers A revelation, actually. These tools took decades to develop, and that is why I specialize in this area. Have done so for over 17 years. The complexity of the case studies I do is fascinating and it is so rewarding to create clear meaningful perspectives for business owners. Most are not aware of the extent to which the tax authorities will tear their business apart…but I’ve witnessed it. I’m driven to make sure unrealized tax problems never happen. Sometimes business owners do not know how to improve their business, but the Capital Analysis Case Study demonstrates and leads the way.
A little story: Many years ago a client who is still operating in industrial wholesaling saw an idea I illustrated using my case study software. He said, “What a sweet play!” He took action and had his accounting firm initiate due diligence immediately. The planning gave him access to much more working capital than he previously had access to. As he was involved in industrial inventory, bank lenders could only help him so far. With the concept put in place, supported by the tax act and legal agreements, the client had access to a lot more working capital. With more access came more business. When I first met him he was doing $35 million in sales. Five years later he was up to $100 million.
Why I believe in my work
There is a tremendous GAP between what business owners know about their operations today and the realities of what it will look like when retirement or a legal disposition following a death takes place.
For instance: Many years ago a client gave me his financials for his multi-national multi-million-dollar operation. After crunching them for a week I realized that he had little access to the cash he required for personal use. There were many factors that caused this to happen, and tax was one of the major problems. I realized that an entrepreneur as sharp as this one who had started out as a teenager 50 years earlier had never been shown the end result. He did not know what the future would look like and no one had been able to point this out to him. His advisors included two of the largest law firms in the province and one of the world’s largest accounting firms. They were never asked to do this, therefore he never found out.
That, was when I realized that the Capital Analysis Case Study process with my proprietary software, which I’ve constantly improved over the years, is the bridge over the GAP that a business owner needs to take in and appreciate to make sure that what gets built, stays built and is protected from tax.
Here’s why I believe we are the right team to help you get to where you want to be: Many years of experience and specialization plus enthusiasm for the process are valuable tools. We have witnessed many tragedies resulting from a lack of awareness and planning. Let’s make sure that does not happen to you.
John Lindsay, MBA, FLMI
Principal
MacDonald MGMT.