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PKF NA Success Stories
By engaging a
PKF North America member
firm, your company receives personal attention from an experienced team of advisors specifically
focused on serving middle-market clients, including closely held businesses as well as publicly
listed companies.
Here are a few real-life success
stories to illustrate how members of the
PKF North America accounting firm association contribute to their clients’ success.
Small Company Finds
Deep Knowledge at Regional Firm
The Problem: The CEO of a Midwestern company
realized his account wasn’t big enough to stay on the radar screen of the Big Four firm that
had provided accounting, audit and tax preparation services for the past five years.
For one thing, he found himself
answering the same questions about his company not just every year, but often several times a
year. And the young staff who handled his account just didn’t understand his business. At the
same time that service was declining, the large firm’s fees were escalating.
The Solution: After talking it over with
advisors at his bank, the CEO decided to consider a regional accounting firm instead. He
selected a PKF North America firm and he gained assurance knowing he had engaged a
team focused specifically on his industry – one much more experienced than the team assigned
from his previous national firm. Gone were the days of seeing new, inexperienced faces every
year; instead, the CEO can rely on a firm that’s familiar with his business.
Yes, the company saved money –
the same accounting, audit and tax preparation services cost less. But this CEO found that
non-national firms offer excellent personal service, dedicated staff and a team that
understands his industry. Because of that level of knowledge, the company’s audits now run
more smoothly and take less time than in the past – a considerable benefit.
Why Succession Planning Matters
The Problem: One family-owned Southeastern
company discovered the value of a solid succession plan when two of its owners passed away
within the span of a few years.
After two of four sons joined
their father in the company, they turned to their audit and tax firm, their most trusted
advisors, for help in crafting a succession plan. Working together, the company and their
long-time advisors, a PKF North America member firm, set up a succession plan that
included estate planning as well as a buy-sell agreement to make sure any transition in
ownership would be seamless.
The Solution: When the father passed away a
few years later, the estate plan enabled a fair value to be set for his estate. The accounting
firm again provided valuable counsel on investing for the father’s estate and also served as a
trustee on the estate.
Shortly after the father’s death,
one of the sons who now co-owned the business passed away unexpectedly. Although no one had
anticipated his early death, the buy-sell agreement functioned as planned, allowing the
remaining partner to control the business and keep operating successfully.
By tackling a difficult subject
– succession and estate planning – and providing trusted advice, the company’s accounting
firm was able to help the family plan for any contingency. And by having that plan in place,
the family was able to weather these tragedies without the additional burden of worrying
about whether the business would suffer. Indeed, it continues to grow and thrive today.
Looking for Maximum Tax Savings
The Problem: Another member of
PKF North America helped a client structure an acquisition
to ensure maximum tax savings.
Several years after merging
with a large national conglomerate, the president of the client company decided he wanted to
buy his company back. His management team agreed, and together with their legal advisors, they
put together a proposal to purchase the company.
The Solution: The
controller recommended bringing in an outside accounting firm to review the company’s purchase
proposal and evaluate the structure of the deal, so the company turned to the
PKF North America
firm that had performed its audit and tax work prior to the merger. (The company had always been
pleased with the regional accounting firm’s work, but after the merger the conglomerate had transferred
all audit and tax work to two separate Big Four firms.)
Drawing on its knowledge of the
company and experience with similar clients, the accounting firm recommended that the
acquisition be restructured. The advisors also suggested changes to the allocation of the
purchase price.
Had the company not selected an
accounting firm that knew the ins and outs of the business, it might have missed out on the
significant tax savings these changes generated. As it was, the proposal was finalized and
the deal completed in just three months.
After the acquisition, the
company once again retained the PKF North America member
firm to provide tax, audit and accounting services. And now the president relies on the firm
for its industry knowledge as well as its experience in financial services.
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is a Member of PKF NAN: Why Is That Important to Me?
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