1 Succession planning for practitioners, Part 1 By JEFF BUCKSTEIN, CGA This is the first of two articles by Mr. Buckstein on Succession planning for practitioners to be carried on PDNet. The initial stages of succession planning The succession process After the sale Although succession planning is one of the most important activities CGA practitioners will ever undertake, many have never put adequate thought into this process. A so-called exit strategy can, after all, be an extremely unpleasant subject to contemplate at any stage during one s accounting career. Many practitioners have worked 50 to 60 hour weeks for years to build up their practice and bring clients on board; thus, the emotional process involved in letting go of such a personal investment and transferring trust to somebody else can be a most daunting challenge. Most practitioners eventually retire, however, and end up selecting one of four major succession strategies. They will either: refer clients and walk away from their practice without receiving any value, merge the practice and develop a partnership, sell their practice, or promote an employee from within as their successor. The initial stages of succession planning Ideally, succession planning needs to be tackled when the practice is first set up and reviewed periodically on a regular basis thereafter. Once the practice is established and the practitioner gets busy with the daily pressures and demands that ensue, it becomes much more difficult to initiate the succession planning process. Being proactive when it comes to succession planning affords practitioners several potential advantages, allowing them to focus on building a portfolio of perhaps slightly higher quality accounts, as well as, to hire professionals with the personal characteristics and business savvy necessary to take over their practice in the future. With respect to the latter, practitioners will therefore need to assess more than technical ability when they evaluate how certain employees perform on the job. In addition to strong moral and personal ethics, the individual who eventually succeeds at the helm of their practice will require the right managerial personality. This includes strong communications skills to motivate other partners, employees, and clients. He or she will also require business vision and the confidence and ability to market ensuing plans. These skills could take years to mature, particularly in a younger employee. The chosen successor must also become knowledgeable about all aspects and details of the practice, including the Code of Ethical Principles and Rules of Conduct (CEPROC) specific to public practice, as well as other applicable legislation.
2 Although most partners who establish practices are approximately the same age, for succession planning purposes, it is usually best if the succeeding partner is younger, ideally by about 10 to 20 years, so that the succession is properly spaced out. Of the four succession strategies, promoting an employee from within to take over the practice offers the potential for smoothest transition, including the highest rate of client retention, and best ultimate sales value. It also demands a significant amount of effort from both parties to establish a trusting, nurturing atmosphere. Once a decision is made as to who the ultimate successor is going to be, the practitioner must take the time to properly train that person and provide him or her with full access to information about the practice. The successor must be encouraged to participate, and then take the lead, in all of the activities the founder usually handles, including meeting with bankers and existing clients, recruiting new clients, and hiring and managing staff. Good communications networks are crucial elements of a successful transition. It is especially important to let clients know that somebody has been handpicked who will provide them with the same level of care as the founder. Winning over the clients and employees trust will ultimately be a key component in determining whether the practice will continue to thrive or will even survive. Conversely, not undertaking succession planning early enough means it may be much more difficult, particularly in a remote geographic area, to attract the quality of employees needed to take over and continue the practice. Furthermore, the seller is less likely to get his or her asking price for the practice because prospective purchasers, aware there has been a lack of planning, would probably expect to lose a higher percentage of the existing client base than they otherwise would have. They discount this factor into what they are willing to pay. Practitioners should hedge their bets While an accounting practice is one of the most important assets a practitioner will ever invest in, it is important to remember that despite his or her best efforts to preserve its value, there are so many external factors beyond the practitioner s control that could quickly dissipate that value. Although it is an old cliché, an accounting practitioner should ensure they haven t put all their financial eggs in one basket by counting on the sale of that practice to provide their exclusive financial means for retirement. Like all other investors, practitioners need to make sure they are well diversified and must protect themselves through smart, common sense measures, such as, consistently contributing a certain percentage of their income into a personal RRSP. Insurance can also play a key role in protecting their accounting practice in the event of disability or death. The proceeds from a partnership or shareholder insurance policy, for instance, can be used to provide the surviving/remaining partners with a tax-efficient mechanism to purchase the previous partner s shares. In the event of a disability, insurance can provide income replacement when a family breadwinner is unable to make a living and its members lose the benefit of his or her income. According to the National Underwriter Company, an insurance publisher based in Erlanger, Kentucky, suffering a long-term disability at age 30 is statistically about four times more likely to occur than death during the prime earning years; that reduces to about three times more likely at age 40; and just over twice as likely at age 50. Life insurance proceeds provide several benefits from a taxation standpoint, including: a taxfree build up, tax-free withdrawals under certain circumstances, and death benefits that are also generally tax-free. It is best to consult an insurance professional, who is qualified to Succession planning for practitioners, Part 1 2
3 provide detailed advice concerning issues, such as, whether to purchase term or whole life insurance, or whether other products, such as critical illness insurance, may also be a wise investment. Joining forces to create informal/formal alliances Today s CGA practitioners face unprecedented demands on many fronts, including having to conform to a larger volume of regulatory standards and professional requirements, as well as, dealing with client demands for more specialized services. In an increasingly complex and competitive business environment, it is impossible for a sole practitioner to keep abreast of every development affecting the accounting profession. Faced with these new realities, many have elected to join forces with fellow CGA practitioners, and sometimes, with other professionals as well. This practice is not new. Many smaller practitioners have, over the past 10 to 15 years, formed temporary, informal strategic alliances with professionals from other disciplines including law, insurance, financial planning, real estate, and the investment brokerage industry. They have done this to better serve complex client issues they did not have the resources to handle on their own. Such developments often have a significant impact on succession planning because, in addition to providing the firm with the critical mass necessary to compete on a more level playing field, they also provide employees, that are being groomed to take over the practice, a new slate of professional colleagues with which to work. Various synergies are created through these alliances. Members of the larger firm that results are, for example, better able to keep up with rapidly moving national and international events, including advances in information technology, new accounting regulations, and tax updates. CGA practitioners increase their competitiveness by specializing in areas, such as estate planning and tax work, auditing, and other areas essential to their practice. Aligning with other practitioners also helps CGA professionals to meet client demands for more specialized services, including succession planning, by offering in-house professional expertise in crucial areas like financial and estate planning. Creating a formal alliance with members of another CGA firm requires a lot of preparatory work. Both sides need to closely examine a number of factors, many of them intangible, to ensure they have the right fit. Potential financial gains, from increased business and/or reduced sundry administrative expenses, warrant prime consideration. Other important factors include the personal compatibility, business vision, and client-service philosophy of the would-be partners. If the goals and philosophies of the senior partners do not mesh, this could lead to legal difficulties in later trying to dissolve an unworkable partnership. The succession process A potential successor will need to conduct due diligence by personally reviewing the original practitioner s files, financial statements, information systems and technology, and other aspects of the firm s operations, before deciding whether to buy into a practice. Under those conditions, it is prudent to have anyone inspecting the files sign a confidentiality agreement to preserve the privacy of what they have seen. In addition to any private agreement signed between the prospective buyer and seller, both CGA parties must, of course, always adhere to the Association s confidentiality rules, as well as, to any applicable federal and/or provincial legislation concerning individual privacy and/or protection of information. Succession planning for practitioners, Part 1 3
4 Both sides must come up with an objective value for the practice in question, taking into account both quantitative and qualitative factors. There are several important quantitative values, including: net income, operating expenses, and annual billings or revenue that will, of course, bear close scrutiny. With respect to annual revenue, for instance, prospective purchasers will need to examine those revenues to determine whether they have been received on a one-time rather than on a consistent basis, and the relationship between hours billed and hours worked. The incoming practitioner is also going to want to know how the standard billing rates factor into annual revenue. For example, $50,000 worth of review engagements at an hourly rate of $100 is probably not going to be worth as much, on balance, as $50,000 worth of engagements with the hourly rate of $150. The breakdown between earned revenue from audit, review, compilation, tax, consulting, and other specialized work is also important. Practices with a healthy balance between personal and corporate tax, consulting, and other services tend to attract a better sale price than practices focused exclusively on personal work. The information systems and technology used to operate the practice, as well as the niche in which the practice is focused, are also important factors that will influence the final sale price. A qualitative assessment can be much harder to undertake but one component, goodwill, constitutes an integral part of a practice s true value. Because accounting is a highly personal business, a practice essentially consists of a book of clients that the founder has built up and cultivated; hence, there is inherent goodwill. Ensuring the existing client base stays intact will likely result in protecting the future cash flow of an accounting practice. Thus, the prospective purchaser will need to closely examine several factors, including the quality of the existing files, and the age of the clientele. Ideally, it is best if most clients are about the same age as the incoming practitioner, because that usually increases both parties chances of building a personal relationship. If, in contrast, a large chunk of the client base is much older and perhaps close to retirement, that might raise concerns, unless they run a family-owned business that is engaged in its own succession-planning exercise. Other factors the prospective successor must consider are: the skill level, technical proficiency, age, and personal loyalties of the existing staff, as well as, their ability to attract and retain clients. It may be important to retain the firm s employees, as well as the original practitioner, for a period of time, in order to reassure clients that there will be continuity in the practice. Existing agreements between partners might also have a bearing on the sale price. Thus, it is incumbent upon the new practitioner to fully understand ahead of time what, if any, extra contractual arrangements may be involved when entering into an existing partnership. Demographics will also impact the final sales price. The supply and demand for accounting practices in a particular geographic area, as well as the size of the community in which the sale is taking place, are important factors. For example, a practice facing little competition in a smaller town may be able to get much more long-term business from a certain number of files than a practice located in a larger center with the equivalent, or an even slightly larger, number of files. Financing a sale Although the terms of each sale are unique to the parties involved and can vary widely, often the sale of an accounting practice will involve a down payment of approximately one quarter to one third of the total purchase price, with the rest of the payout extending another two or three years. Succession planning for practitioners, Part 1 4
5 A good rule of thumb is to arrange for the remaining payout, if there is any, to occur on a sliding scale, based on the retention of clients. The decreasing probability that, as time passes, the original client base will remain intact must be taken into account. During the first year following a succession, a client will likely remain loyal, based on the original practitioner s ties and influence. After that, however, the client is much more likely to judge the new practitioner on his or her own merits. It is, therefore, reasonable to assume that for a variety of potential reasons (i.e., lack of rapport with the new practitioner, retirement, being forced out of business), a certain number of clients will be lost during the payout period. This, of course, does not preclude the probability that, even as they lose existing clients, the new practitioner will also be bringing in his or her own new clients, and possibly building up an even stronger practice. In British Columbia, for example, what normally happens upon the sale of an accounting practice is that the new practitioner puts down one-third of the total purchase price. Discounted instalment payments are then made over the next two years. The middle third of the purchase price is payable after one year, discounted for the number of clients that leave. The final third, also discounted for lost clientele, is due at the end of the second year. Take, for example, a practice with 100 clients, sold for a total of $90,000, with a down payment of $30,000. Another $30,000 would be due at the end of the first year, discounted for the number of clients lost. If five clients left that year, the $30,000 payment would have to be discounted by five per cent, to $28,500. At the end of the second year, when 80 clients remain, the remaining $30,000 due would then be discounted by 20 per cent, to $24,000. Thus, the total purchase price of $90,000 would be discounted to $82,500. Another possibility is for vendors to establish a payout period, whereby the remaining instalment payments are heavily weighted at the front end. Assume again that a business is sold for $90,000, with a $30,000 down payment, except this time instalment payments cover a three-year period, instead of a two-year period. The incoming practitioner would, therefore, owe $60,000. The way this works is: they would pay, for example, 50 per cent of the amount owing ($30,000) at the end of the first year, proportionately discounted for the loss of any customers; 33 per cent following the second year ($20,000, proportionately discounted); and, 17 per cent ($10,000, proportionately discounted), following the third year. By paying more up front, the new practitioner is acknowledging that the existing client base is less likely to remain intact as time passes. He or she is acknowledging also that the goodwill of the exiting practitioner is vanishing while their own is forming. Taxation issues The goodwill emanating from an existing client base is the main taxation issue practitioners need to take into account when selling a practice. There are several related issues that need to be considered in conjunction with that goodwill, including: whether or not the practitioner has a balance in his or her cumulative eligible capital (CEC) account, in which case, the goodwill proceeds may be required to first offset that; and, whether an earn-out agreement might alter the timing of the income recognition and, therefore, the taxes due. Should the CGA practitioner reside in a jurisdiction that allows them to incorporate, he or she might want to take advantage of establishing a professional corporation and selling shares in order to qualify for, and take advantage of, the small business capital gains deduction. In British Columbia and Alberta, where provincial legislation has allowed incorporation to take place for several years, it is common for some practitioners to offer shares in their own practice. However, the degree to which that is allowed and practiced varies by province. To Succession planning for practitioners, Part 1 5
6 After the sale date, most CGA practitioners have not incorporated; although, the phenomenon of incorporating is expected to grow because of recent amendments to professional corporations legislation in several provinces outside of British Columbia and Alberta. The issuance of corporate shares could potentially form a key cornerstone of the original practitioner s succession policy. Gradually issuing shares in the firm could, for instance, be used as a strategy to bring a younger practitioner in as partner. Even after a practice has been sold, there may still be significant challenges ahead. Unlike a company that is selling a product, where personalities often do not matter a great deal, the accounting practitioner/client relationship is usually very personal. Therefore, it is often a smart strategy to have the original practitioner stay on for a reasonable period of time after the sale has taken place. The terms of this arrangement will, of course, vary depending on the type of agreement, if any, that the incoming and outgoing principals find practical to negotiate. In practice, when having an original practitioner stay on can be successfully negotiated, the time period involved often works out to about one or two years; although, two full years is preferable to ease the successor into a comfortable relationship with the firm s clients. If the successor is a former employee, this could lead to a complete role reversal, but many practitioners have found that there are advantages to being a temporary employee, subcontractor or consultant in their old practice. This way, they have the best of both worlds; they can slowly ease out of their firm while still enjoying an important, active role in its operations. This is important particularly when the practice has been purchased by somebody who is from outside the firm, rather than by an employee groomed from within. In this case, the selling practitioner should anticipate that clients might initially feel uncomfortable with a successor with whom they had not had the opportunity to work and the original practitioner should do his or her best to ameliorate these concerns. Thus, even when the practitioner chooses to simply sell their practice, it might still be beneficial for the predecessor to stay for a reasonable transition period of perhaps 18 to 24 months to help the newcomer deal with clients and to establish that all important trust. Much more than the loyalty of a firm s clients and the harmony of its employees could be jeopardized if this part of the succession is not adequately planned. Since a significant portion of a firm s sale price is often based upon the percentage of clients retained, it is also in the seller s financial interest to do all he or she can to help maximize a practice s income stream during the transition period. As a rule of thumb, however, it is usually best for the original owner to stay on with the firm only if they are emotionally willing to let their successor take over. That means they should not be doing anything to undermine that person, such as meeting with, or taking phone calls from, clients about key issues without the successor present, unless he or she has previously agreed to that arrangement. Ideally, during this transition, the original practitioner will be able to strike a reasonable balance between being available to assist the successor and allowing him or her freedom to run the practice as they see fit. It is important that the exiting practitioner is not overly critical of business decisions undertaken by their successor. Succession planning for practitioners, Part 1 6
7 Non-competition restrictions Non-competition agreements between the original owner and his or her successor are often drawn up to protect the personal relationship the incoming CGA has with their new client. Understandably, the agreement is to ensure as much as it is possible to do so, that the original owner will not leave and take the practice s best clients with them. Such contracts must be drawn up carefully to ensure that they would be judged reasonable by a court of law if the legal system was required to rule upon such factors as the length of time, or geographic distance, to which the agreement pertains. A word of caution, however, given that it is human nature for clients to form close personal contact with practitioners, it may be difficult to enforce such a contract if the client insists on maintaining a professional relationship with the predecessor. Regardless, the transition techniques described above may significantly reduce the risk of losing clients to the departing practitioner. Disclaimer While great care was taken to ensure the accuracy and contemporary nature of the information contained in this report, it is presented to CGA-practitioners as a succession planning guideline only. CGA Canada and the author do not assume liability for financial decisions and other succession planning strategies based in whole or in part on this report. Readers are advised to analyze all relevant facts and scenarios in arriving at all financial decisions and in making succession planning strategies for themselves and for their clients. Jeff Buckstein, CGA, is a freelance business writer in Ottawa, Ontario. Coming next month: the last article in this two-part series on Succession planning for practitioners. Appendices Appendix 1 Published succession planning materials Appendix 2 CGA practitioners with succession planning expertise (partial list) Succession planning for practitioners, Part 1 7
Succession planning for practitioners, Part 2 By JEFF BUCKSTEIN, CGA This is the second of two articles by Mr. Buckstein on Succession planning for practitioners to be carried on PDNet. The initial stages
Maximizing Your Philanthropic Gift: Effective Charitable Giving Strategies Using Your Holding Company Canadians are generous people. Every year, thousands of Canadians support the causes they believe in
Choosing tax-efficient investments Managing your portfolio to help control your tax bill Investors need to consider many factors in the process of choosing investments. One at the top of many investors
PASSING THE TORCH How to plan for a successful succession KEY TAKEAWAYS Having a succession plan in place is vital to the ongoing success and potentially to the near-term growth of your practice. You can
BUSINESS SUCCESSION: PLAN NOW FOR SUCCESS 6 STEPS TO ACHIEVE YOUR VISION As a business owner, you ve invested time and effort to build a business that supports your family and many others, including employees,
Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY
Real Estate Council of British Columbia Selling a Home IN BRITISH COLUMBIA WWW. RECBC. CA The Real Estate Council of British Columbia protects the public interest by assuring the competency of real estate
CPA MOCK Evaluation Finance Elective Page 1 ELECTIVE (FINANCE)- Elective examinations will be 3 hours in length. Candidates will be given 4 hours to complete the examination, providing an extra hour to
Demystifying succession in a consulting engineering firm Make transitioning your equity a smooth and painless process CONTENTS Succession is a complex process... 4 Traditional succession plans they may
Life s brighter under the sun Business Succession Planning Checklist Table Of Contents Table of Contents......................................................................... 3 The Family Business........................................................................
SUCCESSION PLANNING/BUSINESS VALUATION When a firm changes hands, a satisfying deal for both buyer and seller is in the trade-off details. Price Equals Value Plus Terms REPRINTED WITH PERMISSION FROM THE
Merge up, merge down, merge laterally, or just merge out? Selling an Accounting Practice By Joel Sinkin What do you have to contemplate when the time comes to sell your accounting practice? Among other
Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published
Business Succession Planning with Key Person Coverage and Buy-Sell Agreements Program Highlights & Fact Finder You put maximum effort into establishing and running your business. But are you taking the
Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to business insurance.
largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What
THE PROFESSIONAL AT LIBERTY LIFE Lifestyle Protection Lifestyle protection for the professional The rewards of succeeding in your chosen profession are many. Job satisfaction, a good income and a lifestyle
Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information
Succession Planning: Buying or Selling a Practice Jessica M. Jensen Jerrie L. Paine Carmen R. Rowe 2604 12 th Court SW, Suite B Olympia, Washington 98502 360-705-1335 www.jessicajensenlaw.com Succession
WHITE PAPER How to Maximize the Value When Selling Your Management Company INSIDE THIS REPORT Rational for Selling Management Company Valuation Acquisition Deal Structure Tips to Optimize Your Exit Value
The IRA opportunity: To Roth or not to Roth? Vanguard research July 2011 Executive summary. The year 2010, which may well go down in IRA history as the year of the Roth, saw three notable legislative changes
Chapter 5: Buying a Practice Where To Go To begin the process of buying a practice, be sure to consider the following potential sources of information: dental schools; dental societies; professional journals;
November 20, 2015 Tax Bulletin Significant Tax Changes on the Horizon On November 4, 2015, the leader of the Liberal Party of Canada, Justin Trudeau, was officially sworn in as Canada s 23 rd Prime Minister.
29 Alex Koodrin, National Technical Manager CommInsure Alex joined CommInsure s technical team in January 2006. Prior to that, he was a risk and investment BDM with CommInsure for 4 years. Alex started
Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some
your guide to EQUATION GENERATION IV equation gen IV CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is the largest federally regulated mutual life insurance company in Canada. For generations
CHAPTER 4 What Are the Exit Options for your Business? Choosing the optimum exit option for your business is a vital part of exit strategy planning. In this chapter we: examine briefly the various exit
TAX PLANNING FOR THE SALE OF YOUR BUSINESS REFERENCE GUIDE If you own a corporation that carries on an active business, you may be in a position at some point to consider the sale of your business. This
Key Steps Before Talking to Venture Capitalists Some entrepreneurs may not be familiar with raising institutional capital to grow their businesses. Expansion plans beyond common organic growth are typically
The Proposed Tax-Free Savings Account The Conservatives 2006 election promises included a proposal to eliminate capital gains taxes where the proceeds were reinvested within six months. Taxpayers and financial
GUIDE TO INVESTING: THE PRIVATE PLACEMENT MARKET FOR RETAIL INVESTORS WELCOME TO THE INVESTRIGHT GUIDE TO INVESTING IN THE PRIVATE PLACEMENT MARKET FOR RETAIL INVESTORS Both public and private businesses
Selecting a Trustee for Your Trust Establishing a trust can be an important step toward fulfilling your financial goals. It can also be a critical step toward establishing a sense of order in your life.
GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and
Investor Guide RRIF Investing Managing your money in retirement 1 What s inside It s almost time to roll over your RRSP...3 RRIFs...4 Frequently asked questions...5 Manage your RRIF...8 Your advisor...10
R e t i r e m e n t I n c o m e F u n d s I n f o r m a t i o n B o o k l e t. This booklet is intended to address questions commonly asked about Retirement Income Funds (RIFs). The booklet is not intended
Starting your Business Guide Small Business Resources The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the purposes
15 Reasons Why Your Business May Not Sell For what you think it is Worth. Unlocking a life time of wealth creation. 1. Overview Most business owners have over 80% of their personal net worth invested in
CHOOSING A FINANCIAL ADVISOR Prepared By Winer Wealth Management, Inc. 21243 Ventura Blvd. Suite 207 Woodland Hills, CA 91364 (818) 673-1695 www.winerwealth.com Common Concerns Do any of these sound familiar?
8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.
INCORPORATING YOUR BUSINESS REFERENCE GUIDE If you are carrying on a business through a sole proprietorship or a partnership, it may at some point be appropriate to use a corporation to carry on the business.
Why is Life Insurance a Popular Funding Vehicle for Nonqualified Retirement Plans? By Peter N. Katz, JD, CLU ChFC This article is a sophisticated analysis about the funding of nonqualified retirement plans.
TAKING CONTROL OF YOUR PENSION PLAN If you add together all the money you have in pension arrangements, the total may well dwarf every other investment you ever make. Despite this, many people are happy
Professional Corporations An Attractive Option Recent and planned corporate income tax rate reductions mean that now is a good time for eligible professionals to consider incorporating their practices.
Small and Medium Practices Committee Request for Proposal August 31, 2007 Request for Proposal: Development of a Practice Management Guide for Use by Small and Medium Practices REQUEST FOR PROPOSAL: DEVELOPMENT
SUCCESSION PLANNING GUIDE FOR FOOD PROCESSING & AGRICULTURE BUSINESSES Preserve your business, and your legacy, for generations to come What Is Succession Planning? 1 It s Not Just Business It s Personal
THE OFFERING MEMORANDUM UNDER ONTARIO SECURITIES LAW By: Daniel A. Coderre Soloway Wright LLP Many companies raise capital by offering shares in their capital stock for sale at one time or another. When
LABUAN CAPTIVES Below is a general overview of Captives with particular information regarding Labuan International and Business Financial Centre (Labuan IBFC). Kensington Trust Labuan Limited is a licensed
April 2014 CONTENTS Annual tax planning issues Income tax deferral Incorporating your farming business Long-term planning issues Taxation of capital gains Maximizing your capital gains exemption claims
Transferring Your Company to Key Employees White Paper Owners wishing to sell their businesses to management (key employees) face one unpleasant fact: their employees have no money. Nor can they borrow
CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE *Advisor USE ONLY TABLE OF CONTENTS Introduction to the corporate retirement strategy...2 Identify the opportunity - target markets... 3 Policy ownership: corporate
Business Su c c e s s i o n Pl a n n i n g w i t h Key Pe r s o n Co v e r a g e and Buy-Sell Agreements Program Highlights & Fact Finder You put maximum effort into establishing and running your business.
Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about
FIRST NATIONS FISCAL & WEALTH MANAGEMENT PAPER 3.1 First Nations Wealth Management through Good Governance These materials were prepared by Georgina Villeneuve, MBA, MTI, Vice President, Trust Service,
Self Managed Super Funds Take charge Gain control of your financial future with a Self-Managed Super Fund (SMSF) About Markiewicz & Co. Markiewicz & Co. is one of Australia s leading full service investment
Page 1 of 6 LIFE INSURANCE DISCLOSURE FORM If you are replacing a current insurance policy, you should be given this form before you fill out an application for the new insurance. The form outlines some
Do You Have the Right Life Insurance? Having adequate life insurance should be an important part of your financial planning. The type(s) you choose will depend on your needs and goals. Life insurance was
BUYING OR SELLING YOUR BUSINESS On a regular basis I and work with buyers and sellers of businesses. In this article, I thought I would walk you through some considerations from an Advisor s point-of-view
Understanding your options this RRSP season 16 Solut!ons for financial planning Consider mutual funds and segregated fund contracts You ve likely heard it before: you should regularly contribute to a Registered
Case study Canadian Health Insurance TAX GUIDE using critical illness insurance January 2014 Life s brighter under the sun Sun Life Assurance Company of Canada is a member of the Sun Life Financial group
2014 What is a Structured Settlement: WOODBRIDGE STRUCTURED FUNDING, LLC STRAIGHT TALK ABOUT STRUCTURED SETTLEMENTS WOODBRIDGE STRUCTURED FUNDING, LLC Learn more about structured settlements: Why settled
BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES June 2015 Cat. No.: FC5-22/3-2015E-PDF ISBN: 978-0-660-02848-4 Her Majesty the Queen in Right of Canada (Financial Consumer
Tabletop Exercises: Allowance for Loan and Lease Losses and Troubled Debt Restructurings Index Measuring Impairment Example 1: Present Value of Expected Future Cash Flows Method (Unsecured Loan)... - 1
[LOGO] ROGERS COMMUNICATIONS INC. DIVIDEND REINVESTMENT PLAN November 1, 2010 Rogers Communications Inc. Dividend Reinvestment Plan Table of Contents SUMMARY... 3 DEFINITIONS... 4 ELIGIBILITY... 6 ENROLLMENT...
4794-00A-MAR15 Product Brochure ParPlus & ParPlus Junior Assumption Life, one of the few remaining mutual life insurance companies in Canada, is proud to offer its latest participating life insurance products
Understanding Extended Reporting Periods or Tail Coverage Every firm has a life-cycle; professionals leave firms to practice individually or to join another firm. A firm might dissolve as a business entity.
Understanding gearing Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to gearing. This document has
August, 2015 Considering Alternatives to Liquidation KNAV is a firm of International Accountants, Tax and Business Advisors. Presence in INDIA USA UK FRANCE NETHERLANDS SWITZERLAND CANADA E: email@example.com
& Guidance RSA A Guide to Personal Retirement Savings Accounts (PRSAs) Contents Why should I plan for my retirement? 02 What is a PRSA? 03 What is a Financial Broker? 06 Why would I need to use a Financial
CONSIDERING A PENSION PAYOUT Seven decision factors to help you determine whether to continue pension benefits or take a lump sum payout. 180k 160 140 120 100 80 60 40 20 0 1990 1995 2000 1985 2005 KEY
13. Identifying stakeholders and their 1relevance All successful public relations work is built on the foundation of good working relationships. These relationships foster trust and open communication,
Tax & Estate Common-law (including same-sex) partners taxation information Under the Income Tax Act (Canada), all common-law relationships, either opposite- or same-sex, are treated equally. For tax purposes,
APES GN 30 Outsourced Services Prepared and issued by Accounting Professional & Ethical Standards Board Limited ISSUED: March 2013 Copyright 2013 Accounting Professional & Ethical Standards Board Limited
IFAC Board Exposure Draft 50 October 2013 Comments due: February 28, 2014 Proposed International Public Sector Accounting Standard Investments in Associates and Joint Ventures This Exposure Draft 50, Investments
Short notes on: SHAREHOLDER EXIT STRATEGIES Introduction Often when the personal circumstances of the owners or shareholders of a company change drastically, the arrangement(s) in relation to the ownership
YOUR GUIDE TO EQUILIFE LIMITED PAY UNIVERSAL LIFE equilife CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is one of Canada s largest mutual life insurance companies. For generations we ve provided
Introduction This section covers the main tax issues that arise when buying or selling a business owned by a sole trader, a partnership or a company. The tax consequences differ, depending on whether the