Founding Partner Ed Kasper

Two recent Fort Worth Star-Telegram articles shed light on K&A Founder Ed Kasper's personal life:

"Long-Term Growth: More than three decades of careful tending and rolling with changes has created a success story for plant life in a Fort Worth back yard"

http://www.star-telegram.com/168/story/1618832.html

"Ed & Janet Kasper 45th Anniversary Announcement"

http://www.legacy.com/DFW/Celebrations.asp?Page=Announcement&PersonID=132597450

1984-2009: Celebrating 25 Years of Making Connections...Creating Results

Message from Founding Partner Ed Kasper:

“I’m proud of my country and I believe in the free enterprise system which made her great.” These words were especially apropos 25 years ago when I founded this firm, and my passion for assisting owners considering the sale of their business has not changed one bit. I regard private business owners to be the “captains of industry” who drive our economy. And my mission is to create results for them when they’ve made a decision to sell what most likely is their most important financial asset.

Along with many of you, I’ve lived through several serious economic challenges since 1984. To name several – the oil industry downturn of the mid-80’s; the real estate and banking meltdown of the 90’s; the stranglehold on the economy after 9/11; and now the mortgage and financial system fiascos resulting in recession. Still, in good times and bad, entrepreneurs have a need to sell their businesses. Be it planned retirement, health concerns, family issues or just wanting to do something else, we at Kasper & Associates want to be the ones you call to make connections with a buyer who will provide the best financial return to you for all your hard work.

Texas is currently the best place to be in the U.S. should you want to sell your company. Why? Buyers want a presence where the economy is stable and even growing. Facts: The State of Texas, compared to entire countries, has the 15th largest economy in the world. 50% of the new jobs created in the U.S. in 2008 were created in Texas. The D/FW Metroplex had the highest increase of new residents (164,000+) during the latest 12-month reporting period of all major metro areas in the U.S. (San Antonio/Austin was third; Houston was fourth). These facts are key reasons why investors want to buy Texas businesses. Obviously the greater the buyer demand, the better financial return for sellers.

For your convenience, www.kasperassociates.com shows the primary focus of our brokerage services and provides a cross-section listing of businesses for whom we have achieved results. Also, bio data on our professional leadership team is included so you can see who will be advising you throughout the selling process and be confident you’ll have someone with exceptional business operations experience representing your best interests.

Kasper & Associates can make connections and create results for you. We welcome and appreciate your inquiry.

Balancing Acts

Inc. magazine is on our required reading list. No other publication caters to entrepreneurs and small businesses as effectively.

This month's edition includes an excellent column by Meg Cadoux Hirshberg, describing the challenges business ownership can place on a marriage and family. Good to consider for those thinking about pursuing an entrepreneurial path.

http://www.inc.com/magazine/20090901/balancing-acts-if-not-now-when.html

Banking for Entrepreneurs

Ever wonder what goes on in your banker's mind? Bruce Bradford's blog gives some interesting insights.

http://www.bankerbradford.com/2009/06/what-your-banker-looks-for-in-your.html

Comparing Two Approaches to State Government

In many ways, while California is sinking, Texas is flying high.

http://www.economist.com/printedition/displayStory.cfm?Story_ID=13990207

Buyer-Side Search

K&A has been retained by a Metal Fabrication Company seeking a strategic acquisition. Target company would be involved in metals business, located in Dallas/Fort Worth area, with Sales Revenue from $1-3 million. Point of Contact: Layne Kasper (817/738-4220, ext. 102; kasper@kasperassociates.com).

Buyer's Market?

The author says it's a "buyer's market", but with lower deal flow it is also an excellent time to sell a company. Good companies for sale today have the attention of a higher number of serious buyers.

http://www.inc.com/magazine/20090601/a-buyers-market-what-is-your-business-worth-now.html

Negotiating Tip

Negotiating Tip: Sometimes you're better off saying nothing at all.

http://www.inc.com/magazine/20090601/norm-brodsky-when-negotiating-listen-before-you-speak.html

Texas State Franchise Tax

Texas legislature moving in the right direction, raising exemption on state franchise tax -- easing the burden on small businesses can only help stimulate economic growth. Here's hoping other states and Congress follow suit.

http://www.nfib.com/tabid/598/Default.aspx?cmsid=48999&v=1

Asset Protection for Business Owners

In an effort to remain on top of tax matters for our clients, we spent time with Tax Attorney/CPA Marvin Blum of The Blum Firm (www.theblumfirm.com) discussing tax and asset protection issues that impact private business owners. The following excerpt from Marvin’s recent presentation to the Fort Worth Chapter of the Texas Society of Certified Public Accountants explains why it is now advisable to switch from a ‘C’ or ‘S’ Corporation to an LLC or LP for asset protection reasons.

“Often, businesses are owned in the form of a ‘C’ or ‘S’ corporation, especially businesses that have been around for awhile. One disadvantage of a corporation as compared to an LLC or LP is that under Texas law, corporate stock can be seized by the owner’s personal creditors to satisfy a judgment against the owner. If the stock is seized, the creditor steps into the debtor’s shoes and has the power to vote the stock and, if the debtor owns a majority of the stock, control the business. Therefore, a client with a profitable business that is organized as a state-law corporation may be a target for personal creditors of the business owner.

However, under Texas law, creditors who want to satisfy a judgment through a debtor’s LP or LLC interest are limited to obtaining a “charging order” against the interest. A charging order merely gives the creditor the right to receive distributions made to the partner or member, if any are made. The charging order does not give the creditor the right to vote the stock or otherwise compel the LP or LLC to make distributions. Due to provisions the Texas legislature passed in HB 1737, effective September 1, 2007, a creditor’s only remedy with respect to a debtor’s ownership interest in an LP or LLC is a charging order. As a result, if distributions are never made, the creditor will receive nothing from the LP or LLC.

Because LP’s and LLC’s are far superior to corporations from an asset protection point-of-view, business owners should always consider converting a ‘C’ or ‘S’ corporation into an LP or LLC. If structured correctly, such conversions can be accomplished free of income tax. The converted entity would be an LP or LLC for state-law purposes, but would elect to be taxed as a corporation for income tax purposes. If this is done, the tax filing requirements should not change. If a new business is being started, the client should consider forming an LP or LLC to conduct the new business.”