Real ideas with real impact

Learn about some of the actual challenges faced by clients of Zeifmans, and how our team has been able to respond with practical ideas that created a positive impact.

  • An investor strategically exits a losing business with his full investment intact

    Problem: We visited the radio station, and based on our assessment of the challenging political and economic environment, along with the high working capital requirements of the business, determined there was no value in the investment.

    Idea: We recommended the investor put up a further $1.6M required to participate in the Chilean buy/sell negotiation process. We were confident his partner would overvalue the business and end up owning it and paying our client an inflated value for his share, which we had valued at nil.

    Impact: We advised our client to bid $1 Chilean peso for the partner’s share, on the basis that if our client’s bid was less than his partner’s bid, our client would “lose”, and our client would receive the partner’s bid amount for his share. Any amount he would receive would be better than the nothing he would get if he walked away. The partner bid $8.1M Canadian for our client’s share, resulting in our client “losing” the bid and selling to his partner for $8.1M.

  • A global tax strategy for a high growth online retailer

    Problem: Consumer products company was concerned about their US and Canadian tax compliance and the potential exposure to global tax rates of over 40%. The owners desired the ability to be in a tax efficient position should they wish to sell their company.

    Idea: We advised our client to structure their operations and business in a tax efficient manner. We provided a valuation to support the current value of the business, which was critical to the owners. We leveraged our global connections through Nexia International to assist with overseas VAT and related tax issues. We also worked with transfer pricing experts to ensure that the client was compliant with international tax requirements. We assisted in the organization of international subsidiaries, and implemented a reorganization of the various entities – as a means of optimizing tax outcomes at the various taxation levels – resulting in the creation of a structure that minimized overall world-wide taxation.

    Impact: We were able to significantly reduce our client’s global tax rate. The owners retained Canadian residency for tax purposes and reduced their overall tax burden by avoiding significant US and global tax exposure. The owners were provided with a tax road map designed to avoid Canadian, US and global tax traps and maintain compliance on a go-forward basis.

  • A US manufacturer receives a turn-key solution for expansion to Canada

    Problem: We facilitated the set up of a holding company, along with an operating subsidiary registered to do business in various Canadian provinces, all designed to maximize tax deferral opportunities.

    Idea: We registered the entities with all required federal and provincial sales tax, payroll, health and safety and other government authorities.

    Impact: We recommended tax efficient compensation strategies for executives relocated from the US as well as those hired in Canada.

  • A struggling multi location franchised auto dealership gets back in the black

    Problem: A multi-franchise car dealership with four locations was struggling with floor planning payments in arrears, inadequte sales reporting to lenders, .......

    Idea: We worked with the dealership to develop a turnaround strategy, assist in negotiations with creditors, and provide advice on operational improvements.

    Impact: Over approximately 18 months, cash flow improved dramatically and the trust deficiency was reduced by more than half.

  • A former consultant transforms an antiquated car financier into Canada’s sophisticated market leader

    Problem: We advised on the negotiation of the two stage purchase from the original partners, as well as the optimal structure to fully utilize preferential private company tax rates.

    Idea: We provided accounting advice, and eventual audit services, that transparently disclosed the company’s financial position, enabling it to raise more than $102.5 M in operating capital.

    Impact: We introduced the company to a wide network of North American lenders, and assisted in the negotiation of favourable credit terms that shored up the balance sheet to support continued, lightning speed growth.