Do you run out of money before you run out of month? Many do, but it doesn’t have to be that way! Wealth is the result of widening the gap between what you earn and what you spend. Most of us make the mistake of ramping up our spending as our disposable incomes rise. This is self-defeating. If you do not develop a respect for money, it will always elude you.
Transportation Logistics Projects
Projects in the past year both current and closed:
a, Recapitalization of a $90 million general freight carrier. / Delivered Term Sheet for $20 million in new debt and mezz debt financing.
b. Sale of a 3PL warehousing / LTL / Brokerage company. / LOI delivered and in process
c. Sale of a LA based liquid food grade bulk hauler. / On Hold for new numbers, company took a loss in 2013
d. sale of a MO based liquid food grade hauler. / In process.
e. sale of a Mi based auto parts hauler. / In process.
f. sale of a Mt based refrigerated hauler. / LOI delivered.
g. sale of a Mo based plastics manufacturer. / In the market.
h. sale of a Mo based flat bed hauler. / In the market.
i. sale of a WA based drayage / port service company. / pulled the deal due to poor financials
j. Sale of a $60 Million DOD / DOE General Freight Hauler / In due diligence
k. Non-Bank Debt placement for a TX based Oil Field Services Company.
Current Projects
Staying Busy!
a.. RECAP of a Midwest based, $100 million revenue General Freight Company, Currently under LOI
b. Sale of a SF based Integrated Logistics Company
c. Sale of a NW based Drayage and Port Services Company
d. Sale of a SE based Flatbed and GF carrier, independent contractor model
e. Sale of SoCal based Bulk Carrier
f. Sale of a ND based Oil Field Services Company
g. Debt Placement on a TX based Oil Field Services Company.
By staying busy talking to Investors, Buyers and Sellers; we become more effective for the next client.
How to minimize Capital Gains in the sale of your privately held company
This is the fifth article in a five part series that reviews the Section 1042 Capital Gains Tax Deferral. In this last installment we will briefly discuss how to potentially eliminate capital gains taxes on proceeds from the sale of a business and we will discuss the summary points on a C-Corp vs. S-Corp sale. One of the more powerful uses of the Section 1042 capital gains tax deferral is the elimination of capital gains taxes in their entirety. This requires planning, but in certain circumstances, the seller may be able to entirely eliminate capital gains taxes on the sale of their business.
Elimination of Capital Gains Taxes under Section 1042
We mentioned earlier that the deferral of capital gains taxes using Section 1042 could be turned into the elimination of capital gains taxes in their entirety. This occurs when the seller holds the investment in QRP until death. At that time, the QRP passes on to the seller’s heirs with a step up in basis. As the basis in the assets is now equal to the value of the investments, there is no capital gain to tax and, therefore, no capital gains taxes due. Please note that the overall estate, including the QRP, may be subject to Federal or state estate taxes, unless some other exemption exists. Still, avoiding a 30% or more in capital gains tax remains attractive and offers significant savings.
New Year means New Deals
I am not sure for the reason why, maybe its a good marketing strategy, maybe we know the transport market better, perhaps the economy helps. For whatever the case, we have become very busy with a number of small and large projects most in transport but some outside of it.
This includes: A $40 million Debt Recap of a $115 million dollar revenue Midwest Based Carrier, Sale of a Texas based General Frieght carrier, A Buy-Side assignment with a Family Office / Private Equity group, A debt/equity placement for a Boston based Medical Services company, A equity /debt placement for a small automotive parts manufacturer and a LOI being finalized for the sale of a Midwest based Bulk Carrier,
We are handling 7 client assigments at this time with another 8 to 10 in the pipeline. Extremely high acitvity on the LOI negotiations and the debt recap.
Keep it going in 2013!
Norm Clarke