Mergers and Acquisitions - KSDT CPA

KSDT CPA Expands Its Reach with Merger of Douglas N. Rice, CPA, Strengthening Its Commitment to Exceptional Client Service

ksdtadmin — Thu, 13 Feb 2025 03:40:14 +0000

KSDT CPA, one of South Florida’s leading full-service accounting firms, is excited to announce its merger with Douglas N. Rice, CPA, further expanding its presence and reinforcing its commitment to providing premier accounting, tax, and advisory services. With this merger, KSDT CPA will seamlessly integrate Douglas N. Rice, CPA’s client base, ensuring continuity and an enhanced level of service for all clients.

For years, Douglas N. Rice, CPA has been a trusted advisor to businesses and individuals, offering expert financial guidance and personalized accounting solutions. By joining forces with KSDT CPA, clients will now benefit from an even broader range of services, deeper industry expertise, and the backing of a nationally recognized firm known for its proactive, client-first approach.

A Seamless Transition with Superior Service

KSDT CPA remains dedicated to making this transition smooth and beneficial for all clients. With an expanded team of highly experienced professionals, cutting-edge technology, and a commitment to personalized service, KSDT CPA is well-positioned to meet and exceed client expectations.

“At KSDT CPA, we believe in building lasting relationships by delivering unparalleled client service and financial expertise. The addition of Douglas N. Rice, CPA, to our firm aligns perfectly with our mission of providing businesses and individuals with the guidance they need to thrive in today’s evolving financial landscape,” said Jorge De La Torre, Partner and Founding Member of KSDT CPA.

The post KSDT CPA Expands Its Reach with Merger of Douglas N. Rice, CPA, Strengthening Its Commitment to Exceptional Client Service first appeared on KSDT CPA.

KSDT CPA Expands with Colbert & Boue Merger and New Coral Gables Office

ksdtadmin — Mon, 10 Feb 2025 14:45:38 +0000

KSDT CPA, one of South Florida’s fastest-growing CPA firms, is proud to announce its acquisition of Colbert & Boue, a highly respected accounting firm based in Coral Gables. This strategic combination strengthens KSDT’s presence in Miami-Dade County and marks the opening of its fourth South Florida office, expanding access to top-tier tax, audit, and advisory services for businesses and individuals across the region.

Colbert & Boue has built a strong reputation for delivering comprehensive accounting solutions, including tax planning, assurance, business advisory, and international tax services. By joining forces with KSDT CPA, the firm’s clients will benefit from expanded resources, cutting-edge financial technologies, and a team of over 300 professionals dedicated to delivering proactive and strategic solutions. The Coral Gables office will serve as a key hub for KSDT’s continued growth, providing enhanced service offerings to entrepreneurs, real estate investors, multinational businesses, and high-net-worth individuals.

“This merger is a significant step in KSDT CPA’s ongoing mission to be a powerhouse in South Florida’s accounting landscape,” said Jeff Taraboulos, Managing Partner of KSDT CPA. “Colbert & Boue’s expertise and deep-rooted client relationships perfectly align with our commitment to delivering exceptional service and driving financial success for our clients. Together, we are well-positioned to provide even greater value through expanded advisory services and a broader range of industry expertise.”

“Our decision to join KSDT CPA is driven by a shared vision of delivering best-in-class financial solutions while maintaining the personalized service our clients expect,” said a representative from Colbert & Boue. “By integrating with KSDT’s robust infrastructure, we are enhancing our ability to support clients with advanced technology, deeper industry insights, and an expanded network of experienced professionals. We are excited about this new chapter and the opportunities it creates for both our team and our clients.”

This merger underscores KSDT CPA’s dedication to growth and client-centric innovation, reinforcing its position as a leading full-service accounting firm in South Florida. With offices in Dadeland, Boca Raton, Weston, and now Coral Gables, KSDT continues to expand its footprint, solidifying its reputation as a premier firm that businesses and individuals trust for their financial and advisory needs.

The post KSDT CPA Expands with Colbert & Boue Merger and New Coral Gables Office first appeared on KSDT CPA.

Transforming Healthcare Investments: Leveraging Technology Assessments for PE Firms, Deal Makers, and Attorneys

ediaz — Thu, 25 Jul 2024 16:20:41 +0000

In the dynamic and highly competitive world of healthcare investments, private equity firms, deal makers, and attorneys play crucial roles in shaping the future of healthcare. One of the most impactful strategies to ensure success in this sector is through comprehensive healthcare technology assessments. These assessments are essential for identifying opportunities to enhance operational efficiency, drive innovation, and ensure compliance, ultimately leading to successful investments and acquisitions.

Maximizing Investment Efficiency

Private equity firms are constantly seeking ways to optimize their investments and maximize returns. Healthcare technology assessments provide a detailed analysis of existing systems and processes, uncovering inefficiencies and identifying areas for improvement. By implementing targeted technological solutions, firms can significantly reduce operational costs and improve overall efficiency, making their investments more profitable.

Driving Innovation and Growth

For deal makers and attorneys involved in healthcare mergers and acquisitions, staying ahead of technological advancements is crucial. Comprehensive technology assessments allow you to evaluate the potential of new technologies, ensuring that the organizations you invest in or represent are equipped with the latest tools to deliver high-quality patient care. This proactive approach not only enhances the value of your investments but also positions you as a leader in healthcare innovation.

Ensuring Regulatory Compliance

Navigating the complex regulatory landscape in healthcare is a challenge for any organization. Technology assessments help identify potential compliance issues and provide solutions to address them. This ensures that your investments are protected from legal risks and that patient data is handled securely and ethically. For attorneys, this is particularly important as it safeguards your clients’ interests and enhances your reputation as a trusted advisor.

Implementing Effective Technology Solutions

Successful technology implementation is key to achieving the full benefits of healthcare innovations. Technology assessments offer a strategic roadmap for integrating new systems into existing workflows, minimizing disruptions and ensuring a smooth transition. This is especially important for private equity firms looking to scale operations quickly and efficiently.

Enhancing Patient Care and Outcomes

Ultimately, the goal of healthcare technology assessments is to improve patient care. By leveraging advanced technologies such as electronic health records (EHRs), telemedicine, and AI-driven diagnostics, healthcare organizations can provide better, more personalized care. This not only improves patient outcomes but also increases the overall value of your investments.

Get In Touch

Transform your healthcare investments today with our comprehensive technology assessments.

Let’s have a conversation to learn how we can help you drive innovation, efficiency, and growth in your healthcare portfolio.

Written by:

Kevin N. Fine, MHA, MSM

The post Transforming Healthcare Investments: Leveraging Technology Assessments for PE Firms, Deal Makers, and Attorneys first appeared on KSDT CPA.

Best practices for M&A due diligence

ediaz — Wed, 07 Feb 2024 14:49:53 +0000

Engaging in a merger or acquisition (M&A) can help your business grow, but it also can be risky. Buyers must understand the strengths and weaknesses of their intended partners or acquisition targets before entering the transactions.

A robust due diligence process does more than assess the reasonableness of the sales price. It also can help verify the seller’s disclosures, confirm the target’s strategic fit, and ensure compliance with legal and regulatory frameworks — before and after the deal closes. Here’s an overview of the three phases of the due diligence process.

1. Defining the scope

Before the due diligence process begins, it’s important to establish clear objectives. The work during this phase should include a preliminary assessment of the target’s market position and financial statements, as well as the expected benefits of the transaction. You should also identify the inherent risks of the transaction and document how due diligence efforts will verify, measure and mitigate the buyer’s potential exposure to these risks.

2. Conducting due diligence

The primary focus during this step is evaluating the target company’s financial statements, tax returns, legal documents and financing structure. Additionally, contingent liabilities, off-balance-sheet items and the overall quality of the company’s earnings will be scrutinized. Budgets and forecasts may be analyzed, especially if management prepared them specifically for the M&A transaction. Interviews with key personnel and frontline employees can help a prospective buyer fully understand the company’s operations, culture and value.

Artificial intelligence (AI) is transforming how companies conduct due diligence. For example, AI can analyze vast quantities of customer data quickly and efficiently. This can help identify critical trends and risks in large data sets, such as those related to regulatory compliance or fraud.

If a target company maintains an extensive database of customer contracts, AI can analyze every document for the scope of the relationship, contractual obligations, key clauses and the consistency of the terminology used in each document. Sophisticated solutions can analyze the target’s financial records and even produce post-acquisition financial statement forecasts.

3. Structuring the deal

Information gathered during due diligence can help the parties develop the terms of the proposed transaction. For example, issues unearthed during the due diligence process — such as excessive customer turnover, significant related-party transactions or mounting bad debts — could warrant a lower offer price or an earnout provision (where a portion of the purchase price is contingent on whether the company meets future financial benchmarks). Likewise, cultural problems — such as employee resistance to the deal or incongruence with the existing management team’s long-term vision — could cause a buyer to revise the terms or walk away from the deal altogether.

We can help

Comprehensive financial due diligence is the cornerstone of a successful M&A transaction. If you’re thinking about merging with a competitor or buying another company, contact us to help you gather the information needed to minimize the risks and maximize the benefits of a proposed transaction.

The post Best practices for M&A due diligence first appeared on KSDT CPA.

Understanding the Impact of Taxes on Mergers and Acquisitions

ediaz — Wed, 15 Nov 2023 14:41:22 +0000

In recent years, merger and acquisition activity has been strong in many industries. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law.

Stocks vs. assets

From a tax standpoint, a transaction can basically be structured in two ways:

1. Stock (or ownership interest) sale. A buyer can directly purchase a seller’s ownership interest if the target business is operated as a C or S corporation, a partnership, or a limited liability company (LLC) that’s treated as a partnership for tax purposes.

The now-permanent 21% corporate federal income tax rate under the Tax Cuts and Jobs Act (TCJA) makes buying the stock of a C corporation somewhat more attractive. Reasons: The corporation will pay less tax and generate more after-tax income. Plus, any built-in gains from appreciated corporate assets will be taxed at a lower rate when they’re eventually sold.

The TCJA’s reduced individual federal tax rates may also make ownership interests in S corporations, partnerships and LLCs more attractive. Reason: The passed-through income from these entities also will be taxed at lower rates on a buyer’s personal tax return. However, the TCJA’s individual rate cuts are scheduled to expire at the end of 2025, and, depending on future changes in Washington, they could be eliminated earlier or extended.

2. Asset sale. A buyer can also purchase the assets of a business. This may happen if a buyer only wants specific assets or product lines. And it’s the only option if the target business is a sole proprietorship or a single-member LLC that’s treated as a sole proprietorship for tax purposes.

Note: In some circumstances, a corporate stock purchase can be treated as an asset purchase by making a “Section 338 election.” Ask us if this would be beneficial in your situation.

Buyer vs. seller preferences

For several reasons, buyers usually prefer to purchase assets rather than ownership interests. Generally, a buyer’s main objective is to generate enough cash flow from an acquired business to pay any acquisition debt and provide an acceptable return on the investment. Therefore, buyers are concerned about limiting exposure to undisclosed and unknown liabilities and minimizing taxes after the deal closes.

A buyer can step up (increase) the tax basis of purchased assets to reflect the purchase price. Stepped-up basis lowers taxable gains when certain assets, such as receivables and inventory, are sold or converted into cash. It also increases depreciation and amortization deductions for qualifying assets.

Meanwhile, sellers generally prefer stock sales for tax and nontax reasons. One of their main objectives is to minimize the tax bill from a sale. That can usually be achieved by selling their ownership interests in a business (corporate stock, or partnership or LLC interests) as opposed to selling business assets.

With a sale of stock or other ownership interest, liabilities generally transfer to the buyer and any gain on sale is generally treated as lower-taxed long-term capital gain (assuming the ownership interest has been held for more than one year).

Keep in mind that other areas, such as employee benefits, can also cause unexpected tax issues when merging with, or acquiring, a business.

Professional advice is critical

Buying or selling a business may be the most important transaction you make during your lifetime, so it’s important to seek professional tax advice as you negotiate. After a deal is done, it may be too late to get the best tax results. Contact us for the best way to proceed.

The post Understanding the Impact of Taxes on Mergers and Acquisitions first appeared on KSDT CPA.