Buying Another Company
Client looking to buy another company.
The target company’s accounting records were weak and inaccurate.
Smith Schafer Approach
We discussed the problems with the attorney who was drafting the purchase documents on behalf of our client. It was decided to ask for expanded seller warranties regarding the financial records, including the balance sheet’s accuracy as of the date of purchase.
Within six months, it was determined inventory was overstated by $210,000, and bank floor plan debt and other liabilities were understated by $170,000. The result was our client never paid the additional $150,000 due to the errors on the balance sheet, which the seller had warranted as accurate. No court action resulted from our client’s offset of his claim against the seller’s receivable.
SECURE Act 2.0 – Provisions Impacting Employers
The SECURE Act 2.0 was signed into law by President Biden on December 29, 2022. Included as part of the Consolidated Appropriations Act of 2023, it provides additional retirement savings reforms designed to expand access to and increase participation in workplace retirement plans
How Will the SECURE Act 2.0 Impact Individuals?
The SECURE Act 2.0, was signed into law on December 29, 2022. The legislation calls for several changes, including an increase in the RMD age, distributions for federally declared disasters, early distributions for terminal illnesses, and changes to catch-up contribution rules.
Retirement Plan Options for Professional Service Firms
The pandemic had a significant impact on Minnesota businesses. The combination of forced business closures, new employee safety standards along with supply chain disruptions and sharp increase in materials costs made it very difficult.