Clients come to ECOVIS KGA because we take good care of the fundamentals – accounting, business advisory services and tax compliance, but they stay with us because we bring our own expertise and experience to the table, to help them plan, grow and protect their businesses.
Management Buy Out
This is an area where we are frequently asked for assistance as business owners see a management buy-out as a means of achieving a seamless exit from their business.
In one such instance, Ecovis KGA was engaged by the General Manager of a privately held business to raise equity capital and bank loans for a management buyout of 100% of the business. The company has operations in New Zealand and Australia and significant turnover in both countries.
We procured two offers of equity funding and arranged senior bank lending within three months of being instructed.
This engagement demonstrated our ability to access capital and, equally as importantly, to find the right personality “fit” for management and the investors.
Financial Forecasting and Board Planning Models
Ecovis KGA has recognised expertise in the development of superior financial models for forecasting and reporting purposes.
We developed a comprehensive set of financial forecasting and report financial models for a large group of companies in the wholesale distribution sector. They allow management and the board to report upon and forecast group profits at a product level and provide useful cash flow and future balance sheet reports to monitor compliance with internal performance hurdles and external covenants.
This engagement allowed us to demonstrate our deep knowledge of our client’s businesses and their key financial drivers.
With Australia still being our most significant trading partner, numerous New Zealand companies are seeking to do business there but they do not always get their structures right at the outset resulting in potential tax issues.
We advised a client on the restructuring of ownership of their business in Australia to:
- Obviate any capital gains tax issues on transition; and
- Avoid double taxation on profits earned in Australia when repatriated to the New Zealand shareholders.
This engagement demonstrated our skills in identifying opportunities to minimise taxation where legally possible and to present these proactively to our clients.
Economic Loss Quantification
When money is involved, disputes can escalate into litigation very quickly and expert guidance is needed in the resolution process.
We advised a large franchise chain on the calculation of economic losses in a dispute with a supplier. Our evidence was used to support proceedings at a Joint Settlement Conference.
Our client was able to use our robust financial analysis to support their claim for economic loss, which resulted in a confidential settlement between the parties.
Relationship Property Valuation
We have received numerous instructions to value businesses for the purpose of dividing relationship property. Often these involve multiple companies and valuations at multiple points in time. The issues pertaining to relationship property are highly specialised and in most cases, we are able to demonstrate our specialist knowledge of:
- The difference between “fair value” and “fair market value”;
- The case precedents pertaining to the valuation of businesses for relationship property purposes; and
- How and when it is appropriate to adjust a business valuation for “personal goodwill”.
Inward Investment Advice
New Zealand is increasingly being perceived as a great place to do business. Inward investors can be confident that a properly structured investment in a politically and economically sound environment is likely to increase their wealth. A by-product is that investment in suitably approved investment vehicles can potentially grant residency rights.
Ecovis KGA has assisted a number of foreign investors seeking to do business in New Zealand to find business opportunities that meet their requirements, introducing them to funders and helping them to get their structures right from the outset.