Frazee Ivy Davis: CPAs Who Add Value

CPAs who add value

White Papers

To help business owners explore exit planning ideas and make the best use of planning time and energy, we offer the following White Papers. We are pleased to send you any of these thought pieces from our library. Call or email us.

Valuation in the Exit Planning Process: Valuation affects such a wide variety of business and personal circumstances that it is wise to retain the services of an experienced business appraiser when considering exit strategies. How much is your business worth, to whom, and why? Seek experience to eliminate guesswork and misconceptions.
Business Continuity Planning: This White Paper discusses four primary problems sole-owned and co-owned companies face when an owner dies or becomes disabled. It proposes solutions to each one of the four problems and includes the "Business Continuity Instruction Form" for sole-owners.
C vs. S Corporation: What Difference Does It Make? Here we explain why the form of corporate entity (C or S) matters for tax purposes. The S-corporation format can be advantageous when it comes time to sell a business. One should weigh the pros and cons during start up and operational years.
Employee Incentive Planning: This White Paper discusses the paths which allow a business owner to leave a company in qualified hands. Incentives can be equity-based or cash-based, but all plans handcuff employees to the business and help it to accrue value. We explore several plan options so an owner can determine which path is best.
ESOP Opportunities: An ESOP can help achieve three ownership objectives: 1) to cash out at fair market value; 2) to pay no taxes on the sale; and 3) to transfer the company to employees. Here we briefly examine the advantages and disadvantages of an ESOP. This exit strategy is not for all owners or for every company, but is an opportunity worth considering in the right circumstances.
Exit Routes for Business Owners: When owners think about exiting their companies, the number of exit routes might seem unending. In fact, there are only eight. This White Paper discusses the advantages and disadvantages of each one. Most importantly, it describes a process that enables owners to choose the best exit path for them.
Inevitabilities: At some point, every owner leaves his or her business - voluntarily or otherwise. This issue discusses the proven Seven-Step Exit Planning Process™ designed to achieve an owner's financial and other goals.
Transferring Your Company to Key Employees: A sale to management (key employees) often must overcome one unpleasant fact: employees have no money. Nor can they borrow any – at least not in amounts sufficient to cash out the owner. The transfer methods described in this White Paper employ a long-term installment buyout of the owner or use someone else's money to accomplish the buyout.
Using Short Term Key Employee Incentives to Increase the Price: One of a business owner's greatest challenges is to attract, motivate and keep key employees. Their loyalty can be absolutely critical to valuation from a purchaser’s perspective. This White Paper describes the design elements of a Stay Bonus Plan as well as how to convert a long-term key employee incentive plan into a short term plan.
Value Drivers: It is the job of every business owner to create value in his or her business prior to any transfer or sale. Exactly how do owners do that? Read this White Paper to learn about those characteristics (or Value Drivers) that buyers look for when deciding how much to pay for a business.
Transferring Wealth To Children - A Primer for Business Owners: Successful business owners often wrestle with the issue of how to pass wealth to children in a way that minimizes taxes. This White Paper explains to owners how a plan designed around a GRAT can meet determined financial objectives and transfer appreciating wealth.