“Procrastination is a huge problem, but the bigger problem is the lack of awareness of the need for owners to start planning now, whether you're selling in three years or 13 years.” – Adam Koós The finer details of this episode:Financial strategies for clients with appreciated propertiesChallenges faced by business owners in managing real estate assets and company structuresTax implications of selling a business and recasting financialsImportance of proactive financial planning and business transition for business owners Episode resources:Summit Virtual CFO by Anders website: https://www.summitcpa.net/If you have questions or would like to be a guest on the show, email us at mcpasuccessshow@anderscpa.comCheck out the Virtual CFO Playbook Course: https://vcfoplaybook.summitcpa.net/Connect with Adam here: https://www.linkedin.com/in/adamkoos/Check out Libertas Wealth here: http://www.LibertasWealth.com Timestamps:The introduction (00:00:00)The hosts introduce the podcast and its mission, providing insights on accounting strategies and innovative tools. Adam's career story (00:00:55)Adam shares his unconventional career journey from pre-med to becoming a financial advisor and the founding of Libertas Wealth Management Group. Services provided by Libertas (00:04:45)Adam discusses Libertas' services, including financial planning, retirement planning, exit planning for business owners, and working with working professionals. Financial strategies for clients with appreciated properties (00:07:26)Adam explains the 1031 exchange and passive real estate investing as a solution for clients with appreciated properties who want to avoid active management and taxes. Liquidity and risk management in passive real estate investing (00:13:51)The discussion explores the liquidity and risk management aspects of passive real estate investing, including spreading risk by investing in multiple properties. Impact of COVID-19 on commercial real estate (00:15:39)Adam discusses the potential impact of COVID-19 on commercial real estate, including lease expirations and mortgage debt held at community banks. Elevate your firm with a virtual CFO playbook (00:16:36)An advertisement for a comprehensive online series to create and deliver scalable CFO services. Real estate and business ownership (00:17:18)Discussion on the strategy of keeping the building and retaining an income stream after retirement. Transition planning and exit planning (00:18:00)Clients' experiences in selling their companies, keeping properties, and the process of selling properties. Engagements with business owners (00:18:55)Exploration of the two types of engagements with business owners, focusing on personal and business guidance. 12-step process for business owners (00:19:47)Explanation of the 12-step process to increase the value of the company, decrease time in the business, and increase efficiencies. Risk assessment and advisory work (00:21:34)Discussion on risk assessment, tax planning, and the need for expert assistance in various aspects of business planning. Recasting and tax strategies (00:23:47)Importance of recasting business expenses and tax strategies for business owners preparing to sell. Cash balance plan and retirement strategies (00:26:27)Explanation of cash balance plans, retirement contributions, and tax reduction strategies for business owners. Exit planning and retirement (00:31:05)Discussion on optimizing cash, Roth conversions, and planning for retirement and exit strategies. Procrastination and Lack of Awareness (00:33:17)Consequences of procrastination in business planning and the lack of awareness about the need for owners to start planning now. Running a Good Business (00:35:22)The importance of running a good business and differentiating between a lifestyle business and building an asset. Transition Planning and Business Value (00:36:32)The importance of business transition planning and its impact on the value of the company, providing an analogy for understanding the benefits. Selling a Business and Pitfalls (00:39:46)The speakers discuss the pitfalls of selling a business without proper planning and the impact of disagreements between owners on the selling process. Taking Action and Accountability (00:42:12)The need for taking action, breaking down steps into smaller tasks, and the importance of accountability in business planning. Spreading Awareness and Seeking Expertise (00:44:23)Adam urges CPAs to spread awareness about business planning and transition, emphasizing the role of experts in facilitating the process.
