Middle Market Advertising Agency
“My lawyer said It can’t be done!”
That’s what I heard from a prospective client about buying out her
majority shareholder . . .”My lawyer said it can’t be done!”.
Christena Garduno - Then COO, Koeppel Direct
I received this call from a frustrated buyer of a business in which she was a minority shareholder that wanted to buy out her majority shareholder. Sure the constraints placed on the purchase/sale of the business by the seller to the buyer were significant, they were constraining and they were standing between her buying out her long term shareholder of the business that she had worked in for a decade to grow. Her plans for growing the business and receiving financial freedom seemed to vanish. She was at her wits end when her lawyer that she was using to consummate the transaction told her it couldn’t be bought, she cried. Then she called The Burns Firm, I took her call.
After reviewing the documents, her resources, the business’ financial position, and her willingness to grow the business I determined that we could get the transaction done . . . and with our tax expertise, obtain significant tax benefits to the purchased business that would benefit her and the corporation for years to come. What a stark difference that an experienced and capable M&A CPA firm concluded than her lawyer!
Notwithstanding the details and our tax planning to her, here is where she ended with the purchase transaction. She bought the outstanding stock using, in large part, the resources of the business, and was able to defer seven figures of taxes. Now she owns the entire corporation, paid off the departing shareholder and has grown the company significantly since the acquisition.
That’s what I heard from a prospective client about buying out her
majority shareholder . . .”My lawyer said it can’t be done!”.
Christena Garduno - Then COO, Koeppel Direct
I received this call from a frustrated buyer of a business in which she was a minority shareholder that wanted to buy out her majority shareholder. Sure the constraints placed on the purchase/sale of the business by the seller to the buyer were significant, they were constraining and they were standing between her buying out her long term shareholder of the business that she had worked in for a decade to grow. Her plans for growing the business and receiving financial freedom seemed to vanish. She was at her wits end when her lawyer that she was using to consummate the transaction told her it couldn’t be bought, she cried. Then she called The Burns Firm, I took her call.
After reviewing the documents, her resources, the business’ financial position, and her willingness to grow the business I determined that we could get the transaction done . . . and with our tax expertise, obtain significant tax benefits to the purchased business that would benefit her and the corporation for years to come. What a stark difference that an experienced and capable M&A CPA firm concluded than her lawyer!
Notwithstanding the details and our tax planning to her, here is where she ended with the purchase transaction. She bought the outstanding stock using, in large part, the resources of the business, and was able to defer seven figures of taxes. Now she owns the entire corporation, paid off the departing shareholder and has grown the company significantly since the acquisition.
Lower Middle Market Industrial Company
“I never expected the sale of my company to be worth this much!"
Steve Lyman exclaimed as he looked at the purchase offer. Lyman
was originally offered by the same buyer almost 50% less!
Steve Lyman - President, Lyman Pipe & Supply
Steve started as an employee with a small pipe supply company and after many years of work was eventually able to buy the company. After a decade of growing and building the company, he received an unsolicited offer from a competitor. The competitor offered to buy his company for a whopping $7 million. Thinking that his company might be worth more and unsure of its actual value, he contacted the Burns Firm M&A Advisors to value and represent his company for sale.
Being experts in accounting and tax planning, The Burns Firm M&A Advisors performed an in-depth examination of Lyman’s accounting and tax records. Their analysis uncovered significant additional value based on their thorough and in-depth investigation. The valuation report concluded a value of $10 million! Steve was beside himself with excitement. The firm's staff didn't stop their, during the negotiations by the firms principles, they were able to source another buyer that held a premium over the initial valuation. The firms principals presented their analysis and arguments to the proposed buyer and were able to close the transaction at 12.4 million dollars!
The Burns Firm prepared and implemented a tax plan that reduced Steve's tax liability by 40% after the transaction concluded! With the increase in closing value from his business and the tax saving implemented by the firm, Steve was able to retire comfortably.
Steve Lyman exclaimed as he looked at the purchase offer. Lyman
was originally offered by the same buyer almost 50% less!
Steve Lyman - President, Lyman Pipe & Supply
Steve started as an employee with a small pipe supply company and after many years of work was eventually able to buy the company. After a decade of growing and building the company, he received an unsolicited offer from a competitor. The competitor offered to buy his company for a whopping $7 million. Thinking that his company might be worth more and unsure of its actual value, he contacted the Burns Firm M&A Advisors to value and represent his company for sale.
Being experts in accounting and tax planning, The Burns Firm M&A Advisors performed an in-depth examination of Lyman’s accounting and tax records. Their analysis uncovered significant additional value based on their thorough and in-depth investigation. The valuation report concluded a value of $10 million! Steve was beside himself with excitement. The firm's staff didn't stop their, during the negotiations by the firms principles, they were able to source another buyer that held a premium over the initial valuation. The firms principals presented their analysis and arguments to the proposed buyer and were able to close the transaction at 12.4 million dollars!
The Burns Firm prepared and implemented a tax plan that reduced Steve's tax liability by 40% after the transaction concluded! With the increase in closing value from his business and the tax saving implemented by the firm, Steve was able to retire comfortably.
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16000 N. Dallas Pkwy Ste 250 Dallas, TX 75248
972-699-9994 | [email protected] |