GMB Ep #76: Business Succession Planning With M&A Expert Michael Vann

The succession of a business or exiting from a business is an important and intimate event most business owners will have to plan at some point in their journey. We dedicated today’s episode to exploring what business owners should think about when planning their succession or exit, even if they don’t anticipate it anytime soon. Today, our guest is Michael Vann, an author, certified scale architect, and the president of The Vann Group LLC. Throughout the episode, we explore the process of succession, how relationships and emotions come into play, how taxation applies to succession, and what Michael has learned through his extensive experience in the mergers and acquisitions market.

 

 

Show Notes

[01:35] Michael’s Background – We start the conversation with a brief review of Michael’s background, from being in the corporate environment to working on his father’s business. 

[04:51] Acquisitions – While working in the corporate world, Michael gained lots of experience in acquisitions. He shares some of the important strategic planning points of acquisitions for buyers. 

[10:21] Family Business – Once Michael left his corporate job, he started working on his father’s business. Michael talks about the work he did there and how the business evolved under his influence. 

[15:44] Business Transitions – Michael’s family business has been going through a phase of transition from his father to Michael and his siblings. Michael dives deep into the process of transitioning and the emotional aspect of it. 

[18:02] Process of Successions – The typical flow of business succession, deciding between different options for succession, and managing financial matters. 

[23:38] Relationship Dynamics – Business transitions may get a bit more complex when they’re between family members or people with close personal relationships. Michael talks about some of the obstacles that may come up in these sorts of transitions and how to overcome them. 

[27:12] COVID and the Industry – How the pandemic impacted Michael’s line of business and the new trends that emerged from it.  

[33:19] Taxation – Michael shares his take on how the newly proposed tax reforms may affect buyers and sellers in the mergers and acquisitions arena. 

[39:11] Michael’s Vision for Future – Michael dives into some of the possible avenues for his business to expand and grow, and some of the interesting concepts covered in the book Michael coauthored with his father. 

 

Resources

Michael’s Book: amazon.com/Buying-Out-Boss-Successors-Succession

Website: vann-group.com
LinkedIn: linkedin.com/in/michaelvann 

 

GMB Ep #74: Animal Spirits & Consumer Confidence

“Animal spirits” is a term coined by the celebrated economist John Maynard Keynes, which describes the financial decision-making behaviors of people in times of uncertainty. The behavior of animal spirits has a clear relationship with consumer confidence. In today’s episode, Grant dives into how we can measure animal spirits and consumer confidence and what these concepts mean for the financial markets, our lifestyles, and portfolios.

 

 

Show Notes

[01:03] Background – Grant reviews how the term “animal spirits” was coined, the historical background of it, and what constitutes the concept of animal spirits.

[05:19] Consumer Confidence Index – How consumer confidence can be quantified with an index, how it reflects the economic impact of global events, and what it can tell us about the status of the economy.

[10:00] Mergers & Acquisitions – In the last few months, there’s been a big surge in mergers and acquisitions. Grant shares his thoughts on the reason for this surge and how this trend relates to animal spirits.

[15:52] Other Examples – Grant reviews some of the other trends in the economy that relates to animal spirits, such as non-fungible tokens and cryptocurrencies.

[18:15] Consumer Confidence and Predictions – High consumer confidence is a clear indicator of good economic growth. Grant shares his thoughts on what the current status of consumer confidence tells us about the next few months.

[22:22] Negative Possibilities – Grant shares his take on what challenges we may have to face if the economic rebound does not go as expected.

 

Resources

Understanding the Consumer Confidence Index:
investopedia.com/insights/understanding-consumer-confidence-index

Animal Spirits:
investopedia.com/terms/a/animal-spirits.asp

GMB Ep #73: The Few Circumstances Where Variable Annuities Make a Lot of Sense

Variable annuities are a set of commonly offered insurance products that promise consumers a consistent income stream. In general, these products tend to become more beneficial to insurance companies and representatives who sell these products rather than consumers buying them. However, in recent years insurance companies have started to offer products that may be more consumer friendly. Throughout today’s episode, we dive deep into what variable annuities are, how they’re structured, and some of the scenarios where you might want to consider them.

 

 

Show Notes

[01:07] Background – How professionals in the financial planning and insurance industries view variable annuities and why there are different perspectives on the integrity of the insurance-based investment solutions.

[05:23] Annuities – Different configurations of annuities and how the returns vary according to the type of investment.

[11:23] Understanding Variable Annuities – Grant reviews what variable annuities are, how they work, and why Grant isn’t a big fan of variable annuities.

[16:45] Features and Fees – Over the years, Grant has reviewed lots of annuity policies. He dives into the most common types of fees insurance companies charge their customers in exchange for various features in the policies and some of the issues associated with the fees and commissions.

[22:13] New Developments – In recent years insurance companies have started making adjustments and improvements to their products. Grant talks about some of these updates and how they address the issues from older policies.

[25:36] Reasonable Options – Grant dives into some of the scenarios where obtaining a variable annuities policy may make sense to a consumer.

 

Resources:

How to Analyze a Variable Annuity

GMB Ep #70: Real Estate Syndication With Anthony Scandariato

A real estate syndication is essentially a partnership between a set of limited partners who pool their money together to purchase a piece of real estate they cannot afford on their own. This week on Grow Money Business we have a distinguished guest who has been working on real estate syndications for quite a while. Anthony Scandariato, co-founder and managing principal of Red Knight Properties, joins us today to talk about what you need to know before investing in a real estate syndication.

 

 

Show Notes

[02:42] Introduction – What real estate syndication is, how it differs from property management, and available opportunities for investors.

[07:02] Legal Background – Rules, regulations, limitations, and liabilities associated with real estate syndicates.

[10:33] Lifecycle of Investment – The process of setting up a real estate syndication and getting into deals with investors.

[14:54] Sourcing Properties – Anthony talks about his process of finding properties, acquiring them, and preparing for business.

[20:35] Managing Properties – Anthony shares his thoughts on the ideal way to manage the properties and working with tenants to make smooth rent adjustments.

[24:02] Communication with Investors – How general partners maintain the relationship with investors in terms of cash flow, reporting, and profit-sharing.

[27:31] 1031 Exchange – Anthony shares his take on the purpose of the 1031 exchange and why it should not be repealed.

 

Resources

Discovering Multifamily Podcast – Real Estate For Medical Professionals With Grant Bledsoe

 

Connect with Anthony

Episode 69: Interest Rates Are Rising....Does That Mean You Should Adjust Your Bond Allocation?

Episode #66: Yes You Do Need an Estate Plan With Tammi Caress

 
This week on Grow Money Business we have another distinguished guest: Tammi Caress. Tammi is an estate planning attorney, and the founder of Caress Law, P.C.. Throughout the episode, we dive deep into the process of estate planning, why it’s important for any adult to have an estate plan in place, things to consider when selecting what to include in your estate, and what provisions to include in your plan for both while you’re alive and after you pass. Stay tuned until the end of the episode, where Tammy shares some tips & tricks you can use to minimize estate taxes.Continue reading

Episode 69: Interest Rates Are Rising....Does That Mean You Should Adjust Your Bond Allocation?

Episode #64: Where to Invest an Extra $50,000 Right Now

 
With the stock markets going straight up, equities being more expensive, and bonds offering extremely low interest rates, many people seem to be wondering what’s the best way to invest extra cash they have. In today’s episode, Grant dives into some of the best investments you can make at this point, the current status of the market, and whether it’s a good idea to invest in certain asset classes. Stay tuned until the end of the episode, where Grant talks about whether buying Bitcoin is a good idea right now.Continue reading

Episode 69: Interest Rates Are Rising....Does That Mean You Should Adjust Your Bond Allocation?

Episode #59: Everything You Need to Know About Buying & Selling Small Businesses With Greg K Williams

 

In today’s episode, we have another distinguished guest: Greg K Williams. Greg is a certified mergers & acquisitions professional who has years of experience helping business owners and buyers through the process of selling or buying a business. Throughout the episode, Greg shares his wisdom on the process of selling a business from both a seller’s and a buyer’s perspective, common ways you can boost what you get from a business, and several other things you should know if you’re interested in buying or selling a business.Continue reading

Episode 69: Interest Rates Are Rising....Does That Mean You Should Adjust Your Bond Allocation?

Episode #58: Top Strategies for Tax-Efficient Charitable Giving

 

The year 2020 has been an extremely challenging year for lots of people, businesses, and organizations. Therefore, this is also a time when charitable organizations may need help from donors more than ever. We dedicated today’s episode to exploring some of the tax-efficient strategies you can use to give to charity in a way that minimizes your tax impact. Stay tuned until the end of the episode, where Grant shares his favorite methods of charitable giving and some tips to optimize your tax benefits related to charitable donations.Continue reading

Episode 69: Interest Rates Are Rising....Does That Mean You Should Adjust Your Bond Allocation?

Episode #56: Last Minute Retirement Plan: Tips & Tricks for 2020 Procrastinators

 
At the end of every year, some business owners face situations where they need to set up retirement plans at the last minute due to numerous reasons. We dedicated this episode to reviewing how business owners may overcome this challenge. Over the years, Grant has come up with some strategies and maneuvers that may help you set up retirement plans and make deductible contributions late in the year. Throughout the episode, Grant shares how to implement these strategies in your business.
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How to Calculate Solo 401(k) Contribution Limits

How To Calculate Solo 401(k) Contribution Limits

Solo 401k plans have many aliases: solo-k, uni-k, and one-participant-k, among others.  Whatever you want to call it, the retirement plan is one of my very favorite for small business owners without eligible participants.  They’re easy to set up, inexpensive to operate, and simple to maintain.

One of the few downsides of solo 401k’s is that they do have one murky intricacy: determining the maximum amount you can contribute in a given year.

This post will cover how to calculate solo 401k contribution limits.  We’ll cover the contribution calculations, the deadlines, and everything else you need to know about the accounts.

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