Transaction Planning for Entity Choice, Stock Ownership Issues and Compensation
Formation or changes in business entities and ownership often have elements of company valuation, marketability, ownership control, and operational issues. Together with issues of taxation, successful business transitions result from considerations of these elements in advance. This is also true of business operations after a divorce. Anacapa Valuations provides consulting services that ferret out these issues in advance of mediation or Board of Directors’ actions.
Sources and Costs of Private Capital
Anacapa Valuations can assist business owners to understand the alternative sources of private capital at any certain time. This involves private parties (e.g. angel investors), banks, private equity groups (PEGs), and investment bankers. The use of leverage and investors’ funds in a closely held company are important.
Integrating Your Company Investment with Your Portfolio
Often business owners sink all of their assets into their business without considering the return on investment or the value of their company. Alternatively, business owners strip all of the cash from their business without considering the benefits of leaving cash in the business to assist in the growth. Stepping back from your company and considering your goals and the financial position of your company in your larger investment portfolio makes sense. Anacapa assists owners by providing the financial information needed to make informed decisions about their company’s return on investment and company’s investment value.
Succession and Exit Planning for Your Business
As business owners approach retirement, gaining an understanding about the options presented by their business are generally important.
Owners need to understanding the possibility of:
- continuing their ownership without working in the business;
- inviting employees to participate in the equity;
- sale of part of their company to a private equity group;
- sale of most or all of their company to investment bankers; or
- taking their company public in the future.
These are alternatives that require analysis debt and equity valuation.
Tax Awareness and Planning
The principal of Anacapa Accountancy Corporation, as a Certified Public Accountant, has assisted businesses and individuals with transaction taxation and planning for over 30 years. Generally, we work closely with the client’s attorneys and accountants requesting tax projections. However, we will identify any tax issues, questions or possible strategies that we become aware of for a company or an investor. The tax knowledge allows Anacapa Valuations to be more effective in preparing its valuations, dealing with the entities income tax returns and expected tax, including the built-in-gains for C corporations.