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Pasted below you will find an article written by Leo Vidal, JD, MA, CPA regarding the EquityAccess program:

By: Leo J. Vidal, JD, MA, CPA

What are the biggest obstacles to closing the sale of your medical practice? In my experience it comes down to not just price but finding a buyer willing and able to pay what you want to receive in the sale. Related to this is the buyer’s ability to come up with the capital and financing needed to make the purchase at the price you want. (This is especially difficult for young professionals burdened with debt from student loans, buying a home, etc.)

The EquityAccess program solves these problems and others that arise when trying to sell a medical practice. EquityAccess provides medical professionals a potentially tax-free sale of their practices. Once the EquityAccess program is put in place, finding a buyer and closing the sale are almost foregone conclusions.

Top Three Problems the EquityAccess program solves for medical practices:

1. Security: replaces an installment sale of the medical practice with a secure asset for retirement and estate planning.
2. Ownership transition: provides economic efficiencies in transitioning practice ownership which insures the highest possible after-tax proceeds from the sale.
3. Easy Financing: provides financing for practice ownership transitions without limiting the buyer’s ability to finance ongoing working capital needs, nor requiring large amounts of capital upfront.

Monetizing the value of the medical practice

EquityAccess is a way for medical practitioner to monetize the value of the practice, i.e., to turn a non-liquid asset into money. This money can then be used to provide a secure financial future for the business owner and his or her family. It can provide securitized tax-free retirement income as well as achieve all of the professional’s estate planning objectives.

The unique features of EquityAccess include:
1. Superior turn-key lending terms, put in place before the sale
2. Customized tax planning, leading to potentially a tax-free sale
3. Customized retirement planning, including tax-free income for life
4. Customized estate planning, with maximum after-tax wealth transfer
5. Efficient access to business equity to achieve succession planning

Keep checking back on this blog for follow up information on this exciting program such as:
Financing the sale
Summary of benefits of EquityAccess
Finding a buyer is easy
Setting the purchase price
Interest-Only loan need never be repaid
No business personal assets are used as collateral
Sale proceeds are insured against loss
Sale proceeds are not subject to income tax
Example-Selling a dental practice

King & King Business Advisors is proud to announce that we have been chosen by Leo Vidal Financial Consulting as their exclusive partners for the purposes of bring this exciting new concept to the market.

Bethesda, MD — Working with a local expert, Leo Vidal Financial Consulting, King & King Business Advisors and EquityAccess have teamed to bring business owners an entirely new concept that works like a “Reverse Mortgage” for business owners to unlock the equity value trapped in their businesses.

Additionally, this new “turn-key” program gives business owners and professionals, (physicians, attorneys, dentists, CPA’s, etc.), unprecedented capital gains and income tax benefits. The program is called Equity Access, the selling owner is allowed to exclude the value of the business from his or her income taxes.

“The key is how the sale is funded and structured,” said Mr. Vidal, a former Regional Tax Director with the CPA firm Deloitte & Touche. “My firm will structure and finance the transaction to give the business owner maximum tax benefits, and several other key financial benefits as well.”

For example, Mr. Vidal explained, his firm provides financing which does not require the buyer to borrow any money. In some cases the buyer does not need to have any cash at the closing. “This allows for the sale to young professionals, management team members or relatives who want to buy the business but don’t have either the capital or the borrowing capacity,” said Mr. Vidal. “It opens up an entire new category of potential buyers for business purchases,” he said, “which is really important today when we are having a global credit crunch and banks are getting very strict on loan standards.” He noted that the program is ideal for professionals such as physicians, dentists, CPAs, and lawyers who are looking for someone to purchase their professional practices.

“It’s the best program I’ve ever seen for a business owner to convert business equity into safe and secure tax-free retirement income. It’s also a fantastic way to pass on maximum wealth tax-free to heirs,” Mr. Vidal said.

According to Mr. Vidal, the Equity Access program has the following benefits:

1. Provides financing for a buyer who does not have adequate capital and/or borrowing capacity to purchase the owner’s business. (The seller sets the financing terms).
2. Gives the business owner the ability to set the sales price of the business at the level he or she desires, so long as acceptable to the buyer.
3. Allows for up to 100% tax-free sale of the business equity and value.
4. Provides for tax-free investment interest on the proceeds of the sale which are re-invested in the program.
5. Provides for tax-free retirement income payments (or other withdrawals) to the seller.
6. Protects the value of the business equity from the claims of creditors.
7. Provides for the value of the business to be passed on to heirs income tax-free (sometimes estate tax-free also).
8. Insures the seller against any losses on his or her re-invested equity.

King & King is making available a free consulting analysis and feasibility report for any interested business owner. To learn more about unlocking the trapped equity in your business or how to sell your business tax free, call Jim King at (410) 303-6378, or (888) 565-6468, or email Jim at jking@kingandkingllc.com.

If you own or operate a business in the state of Maryland you need to pay very close attention to what is going on in Annapolis now that the Executive, Legislative, and Judicial branches of our state government are controlled exclusively by one party.

If it isn’t Governor Martin O’Money himself pushing higher taxes and anti-business bills through in special sessions or behind closed doors its the legislators slamming these things through the house with little to no scrutiny, analysis or debate on how they will hurt small business people.

If you are a businessperson you need to visit the Maryland Chamber of Commerce website or blog at the very least once a week to learn what these shiftless and shameful, witless and wanton, fools that have never created one real job or made a payroll are doing that will hurt your business. Below I have inserted an excerpt from the Chamber Blog that cover three very important issues everyone of us business people need to keep an eye on:

February 21, 2008
Prevailing Wage Bill is a Bad Idea
Maryland Chamber Vice President of Government Affairs Ron Wineholt testified last week in opposition to HB 970 – Procurement – Prevailing Wage. This legislation would require contractors working on state or local public works projects that cost more than $500,000 and use any state funds to pay a state-determined wage level to their employees.

Current law applies this prevailing wage to projects funded with at least 50 percent state funds. This bill would make the prevailing wage applicable on projects that use any state funds.

Studies by the Department of Legislative Services in 1989 and 1995 determined that the prevailing wage law inflated the cost of public works projects by 5 to 15 percent. “The prevailing wage law undermines the competitive bidding process by requiring projects using state funds to pay a higher labor price than would be required through market based competitive bidding,” Wineholt said. “At a time when Maryland needs to build more schools, this bill will cause us to build less.”

For more information, contact Ron Wineholt at rwineholt@mdchamber.org.

February 20, 2008
Attention Business Property Owners
Legislation (SB 561/HB 676) has been introduced that would authorize counties to specify the classes of property that are subject to real and personal property taxation and to vary the rates of taxation among the classes. Defeating this legislation is a priority for the Maryland Chamber.

State law has long established the classes of property subject to county property taxation and required that counties impose one rate of tax that is applicable to all real property.

“If counties are authorized to set their own classes of property taxation and to vary tax rates among those classes, they will use that authority to push additional tax burden toward business property and engage in further tax discrimination against businesses,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said.

Significant real property tax burden is already shifted to businesses as a result of the real property homestead tax credit for residences and the business personal property tax rate that is 2.5 times the real property tax rate.

HB 676 will be heard by the House Ways & Means Committee on February 28. No Senate hearing has been scheduled yet. For more information, contact Ron Wineholt at rwineholt@mdchamber.org.

February 19, 2008
MD Chamber Opposes Unrealistic Global Warming Bill
The Maryland Chamber of Commerce testified today before the Senate Education Health and Environmental Affairs Committee in opposition to SB 309 – Global Warming Solutions – Reductions in Greenhouse Gases.

This bill would require Maryland to reduce greenhouse gas (GHG) emissions by 25 percent by 2020, and 90 percent by 2050 – the strongest mandate in the country. Passage would require Marylanders and Maryland businesses to make major changes in their daily lives and operations by driving 1/3 less and consuming 1/3 less electricity.

Maryland’s man-made GHG emissions comprise approximately 1.5% of the United States’ emissions and a very small percentage of the world’s total emissions. Since GHG emissions disperse globally and Maryland’s emissions are a very small percentage of the total global problem, this issue needs to be addressed on a national level in concert with international efforts.

“It is impossible for a small state, such as Maryland, to achieve a reduction goal as large as the 25 percent by 2020, and 90 percent by 2050,” said Maryland Chamber Vice President of Government Affairs Allyson Black. “This legislation is counterproductive, and would make it extremely difficult for businesses to survive.”

A number of Maryland Chamber members testified in opposition to SB 309 today, including Maryland Industrial Technology Alliance, Maryland Petroleum Council, Redland Brick, Inc., NewPage, Allegheny Energy, Mirant Mid-Atlantic, Constellation Energy and ArcelorMittall.

For more information, contact Allyson Black at ablack@mdchamber.org.

Related

NAM: Maryland: Adding Regulations on top of Taxes
O’Malley supports limits on pollution
Posted by Will Burns at 4:52 PM to Environment & Energy | Permalink | Comments (0)
February 18, 2008
February 27 – Save Maryland IT Day

Join us in Annapolis on February 27 for Save Maryland IT Day, a media event and lobbying day to advocate the repeal of the computer services sales tax.

This tax will stifle economic development and job creation in Maryland. Whether your company is a user or provider of IT services, this tax will have a negative impact on your competitiveness. Unless repealed, the 6 percent computer services sales tax will take effect on July 1. We need you in Annapolis on February 27 to tell your story to the media and to lawmakers.

The event will begin at 10:30 a.m. at the Maryland Inn on Church Circle in Annapolis. We will hold a media briefing featuring a number of CEOs at 11 a.m. We’ll also hear from some legislators who support the repeal of the tech tax at 11:30 a.m. Following the briefing, we will walk over to the House and Senate office buildings to urge lawmakers to repeal the tax.

The event is being held in partnership with the Tech Council of Maryland, the Fight the Tech Tax Coalition Partners and the Maryland Computer Services Association.

For more information, or to RSVP, contact me at wburns@mdchamber.org.

Posted by Will Burns at 9:59 AM to Budget & Taxation | Permalink | Comments (0)
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2008 Maryland Business Hall of Fame Inductees
Prevailing Wage Bill is a Bad Idea
Attention Business Property Owners
MD Chamber Opposes Unrealistic Global Warming Bill
February 27 – Save Maryland IT Day
MDOT Freight Plan Outreach Meetings
Remember to Vote on Feb. 12
Legislation Would Moderate Onerous Corporate Reporting Requirements
House Tech Tax Hearing Scheduled for March 12

Creative Small Business Financing: SBA 504 Program Panel Discussion
Start Date: Mar 05, 2008
End Date: Mar 05, 2008
Time(s): 8:00 a.m. – 11:00 a.m.
Address: Howard Community College; Gateway Campus Building, Room 6; 6751 Columbia Gateway Drive, Columbia, MD 21046

Cost: Free
Registration Info: For more information or to register, contact Brenda Miller at the Business Finance Group at 703-352-0504.

Event Sponsor(s): j-ref, Business Finance Group and CommerceFirst Bank

Categories: Finance,Other
Web Site: www.jref.org
Contact Info: Brenda Miller – J-Ref
lbcoster@costercommunications.com
703-352-0504

Description: J-Ref, a small business financier in Howard County, is working with the Business Finance Group and CommerceFirst Bank to host this event: The SBA 504 program is a long-term financing tool for major fixed assets which has a significant impact on small business financing. This panel will explain who the program assists and how j-ref’s fund can be used in conjunction with the program.

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