Vol. 3 Issue 3 - March 2011 www.cannonfinancial.com
Planning Ideas - Avoiding Common Mistakes in Buy-Sell Agreements
Closely held business owners often enter into buy-sell agreements to assure that the business remains in the hands of the current owners and/or that a ready market exists for a departing owner’s interest in the event of certain triggering events. Despite the widespread use of buy-sell agreements, Advisors can often add value by identifying and addressing one of several common mistakes associated with the agreements themselves or planning associated with such planning. Read more
Practice Management - Niche Marketing: The Why and How in a Nutshell - Part 1
The idea of niche marketing has been around for some time, yet relatively few Advisors, often those considered elite by their peers, apply the concept to their practices. Some Advisors working in large firms cite service requirements for a large number of assigned clients with diverse demographics as an obstacle to niche marketing. Independent Advisors sometimes fail to implement niche marketing either because they don’t appreciate the potential benefits or lack the skill to create and implement a niche marketing plan. On the other hand, the fact remains that top Advisors, whatever their workplace environment, make difficult choices about how to allocate their time and energy to their existing book and in the pursuit new clients. Read More
Taxes - Selling a Business: Deal Structure Matters - Part 1
If your practice includes planning for privately held business owners, sooner or later you will encounter the client for whom a “sell” strategy makes more sense than a “keep” strategy. Whether you work inside a mega-financial services firm and have in-house access to merger and acquisition (M&A) specialists or are an independent Advisor who depends on access to a team of outsiders to help you serve clients, you will eventually need to bring in the experts. However, your ability to discuss the options in general terms with the client, up front, enhances the quality of your referral to the specialist and better positions you for the inter-generational wealth management opportunities that often arise following a "transition event."
Common Deal Structures - Deal structure relates to the way the transaction is arranged; how and when the sales price is paid and whether stock or assets are acquired by the buyer. As important as value and price is in any transaction, deal structure can be just as important. The reason is that deal structure has income tax, financial accounting, and regulatory implications for both buyer and seller. Read more
Regulation and Compliance -
The SEC continues to express concerns about protection of clients’ private financial data. The current rules apply broadly to RIAs and broker-dealers, and there are proposed rules which would strengthen already existing protections. It’s important to know what the rules are, what’s proposed, and how the SEC is applying the rules in enforcement actions.
Background: The Gramm-Leach-Bliley Act (“GLBA”), which was enacted in 1999, directed federal regulators including the SEC to issue regulations aimed at protecting the privacy interests of consumers of financial products and services. Among other things, regulators were required to establish standards to protect the security, confidentiality, and integrity of customer records and information. Read more