The founder of Rea & Associates, Richard Rea, was once photographed wearing an accountant’s eyeshade. If I can get this photo file, I’ll share it with you someday. If you have a similar photo of one of your firm’s founders, please e-mail it to me (rob.nance@ishade.com). I have a feeling that Richard Rea would like iShade. You’re not in Ohio? Then you might not know of Rea & Associates, or how to pronounced “Rea.” Fortunately, the firm’s site can assist with the pronunciation. Click here.
Why am I mentioning this firm? Well, I attended a seminar that they held in conjunction with Key Bank about a week ago. It was well done, educational AND they served amazing cantaloupe. These, my friends, are the key ingredients for any successful business seminar.
Business owners Carlos and Polly Clavijo, and many other professionals like them, soaked up the latest insights, regulations and opinions regarding succession planning and exit planning–and were given food for thought in how to prepare for the tax tidal wave that’s currently set to wash ashore on January 1. Smart business owners are now waxing their surf boards, if you know what I mean…and I think you do. If ever there was a time for a business owner to utilize the bright minds of people like Tim McDaniel and David Cain at Rea, as well as Jeffrey Getty and Matthew Stewart at Key Private Bank, by golly, now’s the time. Sunsetting tax cuts and more…there’s a lot to sort out, especially for business owners faced with upcoming succession plan needs or exit strategies blooming on the horizon.
As Jeff Getty discussed deferred compensation and phantom stock options, he also questioned, “What does M&A activity look like now?” Nine of ten opinions from CPAs, attorneys and bankers I’ve spoken with and also read, seem to be on the same page with what Jeff stated: “It’s been a slow start this year, but last year was strong…it’s picking up now…and because of tax rates in 2012, sellers are pushing. We expect the second half of the year to be very active.”
“The biggest exit planning mistake you can make is procrastination,” proclaimed Tim McDaniel of Rea & Associates. We all know what it’s like to be busy—and spending too much time working “in” the business rather than “on” the business. Fighting procrastination was one of the themes of the day, rightfully so. Other notable tips from the event:
*Recommend scheduling the last day of each quarter as the time to properly spend working on your business succession plan—and then communicate it to those who need that information (key employees, family members, etc.)
*Business owners: treat your business like an investment–just as you would with investments in the stock market.
*The annual ROI of the business makes a huge impact over the long-haul.
*Value of Business:
Know
Increase
Protect
*Know the best timing and the worst timing to exit the business.
And remember, do not procrastinate!
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