A multi-generation manufacturing company with a rich 50-year legacy is owned equally by three family groups. The company has been a leader in its industry and is recognized for its commitment to quality and innovation.
Challenges
The company faced several challenges that threatened its continued success and legacy:
- No defined ownership transition, succession plan, or legacy planning for the next generation of owners and leaders.
- Active and inactive family members with differing visions for the company’s future.
- A complex business structure involving multiple entities.
- High growth and capital requirements accompanied by significant debt.
- Large estate tax exposure with limited liquidity to cover the liability.
Integrated Solutions
Applying Perkins & Co’s team philosophy, several business units came together to create a comprehensive and integrated set of solutions that addressed the client’s challenges and captured new opportunities. Business Transition Services (BTS), Tax, Client Accounting Services (bookkeeping), Business Valuation, and Assurance teams worked hand in hand to accomplish the following:
- Business Transition and Estate Strategy: The BTS and Tax teams worked together to design a strategy that minimized tax liabilities and ensured an equitable transition of ownership to the next generation.
- Business Valuation: Our Business Valuation team valued the business and real estate entities for gift and estate purposes, providing the basis for planning.
- Bookkeeping Integration: Bookkeeping for the various entities, combined with the ownership transfer, was seamlessly integrated to ensure compliance and ongoing financial management.
- Reviewed Financial Statements: The Assurance team completed reviewed financial statements to satisfy the bank reporting and covenant requirements related to ownership transition and estate planning.
- Family and Corporate Governance: A family and corporate governance strategy was developed to clarify the roles of family members and establish a framework for future leadership and decision-making.
Outcome
The integrated solutions generated by Perkins’ team of consultants provided our client with a clear path forward for navigating business operations, tax mitigation, family relationships, and business strategy. The family’s legacy was preserved, and the company was well-positioned for current and future generations.
For more information about Perkins & Co’s business valuation and planning services or to receive guidance on navigating your own family business transition, reach out to your Perkins representative today.