Success Story | 05 Jan 2022

Uncovering significant tax savings.

A seasoned entrepreneur initially approached SBLR to file trust returns. At our introductory meeting we walked him through the process of filing trust returns. As our conversations unfolded, he shared his long-awaited business dream of setting up an acquisition platform. What began as a meeting to discuss trust returns suddenly turned into a bigger conversation requiring our advisory services.

Our client operated in the M&A field for most of his professional career. During this time, he realized the challenge of finding buyers in lower mid-markets and identified the struggle business owners faced when implementing a succession plan. An opportunity was born to create a company dedicated to equity investments of small and mid-sized family-owned businesses.

Focused on his new business goals, SBLR’s Tax Team was consulted on the best options for structuring this endeavour. With a potential acquisition target in hand, we carefully reviewed prior corporate tax returns and financial statements to ensure accuracy from an income tax point of view. SBLR’s Tax Team expertise and support was also deemed essential to handle the tax due diligence portion. We analyzed numerous transactions and legal documents associated with the tax reorganization, for potential risks. In addition, tax savings opportunities were discovered to optimize future growth.

The wins:

  • After completing the first acquisition, SBLR streamlined processes and our methodology resulted in our client attaining more businesses, reaching over 10 acquisitions in less than 4 years.
  • By leveraging SBLR’s Tax Team expertise in the due diligence procedures, we uncovered significant tax savings of over $100,000 that were not readily available. This specialty knowledge is applicable to clients acquiring or selling companies.

Share this story