Navigating franchise and business opportunities
is what we do
Meet Michael reeder
A CPA WITH DEEP buSINESS & FRANCHISE CONSULTING EXPERIENCE
What makes Swartz & Reeder Advisors unique is our combination of CPA experience and business & franchise consuting experience.
As a licensed CPA in public practice Michael Reeder works with business brokers and franchise business consultants to uncover the best tax, structuring, and financing options available for your clients.
In addition to being a successful CPA, Michael has > 5 years of direct experience as a business buyer coach and franchise consultant. Michael is the CPA affiliate of several franchise consultant networks, independent franchise consultants and independent business brokers.
He now works with franchise consultants and business brokers, advising their business-buying candidates on all things related to:
Items 5,6,7,19,21 of the franchise disclosure document
CPA AFFILIATE FOR
hOW TO UNLOCK 401(k) pLANS FOR FINANCING USING THE robs solution
If your client has investments in a 401(K) plan, Swartz & Reeder Advisors can show you how to unlock those funds for business purposes.
The ROBS retirement arrangement typically involves rolling over a prior IRA or 401(k) plan account into a new 401(k) plan. A start-up C Corporation business sponsors the plan. Then you invest the rollover 401(k) Plan funds in the stock of the new C Corporation. The funds are deposited in the C Corporation bank account and are available for use for business purposes.
Sound complicated? Don't worry, we can walk you step-by-step through this process, explain the advantages and disadvantages, and recommend the best solution.
Business & Franchise
1. Book your complimentary 60-
Book your free 60 minute call with one of our seasoned business & franchise consultants. We'll answer all of your questions and help you determine what options are available for your client.
2. wE HELP YOU TO IDENTIFY THE BEST
solution FOR YOUr client - and
guide you sTEP-BY-STEP THROUGH
We'll help you identify which financing or tax strategy is the best fit for your situation, and we will navigate you through the process, including due diligence, franchise disclosure documents, and the investment process.
3. we help you succeed
We'll make sure that you hit the ground running. In fact, many of our business broker and franchise consulting clients return to our CPA firm to help with other clients.
We Answer The Following During Your
During our free 60 minute consultation calls we answer questions you may have regarding your client situation in the context of
Resale financial statement due diligence
Franchise disclosure document (FDD) items 19 and 21 as it pertains to their franchise investigation and investment process (also FDD items 5, 6, 7 when requested).
The Franchise Disclosure Document
The Franchise Disclosure Document (FDD) is a document that all potential franchisees need to familiarize themselves with. We will explain the FDD to you, with attention to Item 19 and Item 21.
We walk you through the financial statistics found in this section of the FDD and what they mean
A great source for data that can be inputted into the candidate’s financial projections (e.g., revenue assumptions, variable cost assumptions)
We walk you through the franchisor’s audited financial statements found in this section of the FDD and what they mean (balance sheet, income statement, statement of cash flows, statement of changes in owners’ equity)
Walk you through the footnotes that follow the audited financial statements and what they mean
Client Case Study
Hair Salon Franchisee
An individual potentially interested in franchise ownership booked a complimentary consultation call with us.
Coming into the call, he was planning on using the ROBS C-Corp structure to invest in two hair salon franchise territories. This buyer’s plan was to keep his corporate job and invest in this business as a semi-absentee model.
During the call, we devised a strategy going S-Corp for the first territory and C-Corp ROBS for the second territory.
By doing this, the buyer was able to take his loss from the build-out and start-up phase of the first territory and flow it through to his individual income tax return where it netted against his corporate W2 income, thus saving him thousands of dollars in taxes on his individual income tax return.