Rexford Cattanach discusses working with CPAs on business succession
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-rexford-cattanach-president-of-keats-group-discussing-working-with-cpas-on-business-succession/
Rexford Cattanach, president of Keats Group, to discuss the essential role CPAs play in business succession planning. Rexford shares insights on how he collaborates with CPAs to enhance their services for business owner clients. He emphasizes the importance of their trust advisory relationship as beneficial to initiating succession planning discussions and business approaches from shared direct involvement to done-for-you specialized expertise. Rexford reflects on his early career experiences at Deloitte, highlighting the challenges of forming effective CPA relationships and the benefits of these partnerships in generating value for clients and growth for both advisory firms.
Enhancing Value to Clients: The tax season treadmill is not the way CPAs want to think about practice growth. Shifting their focus from primarily historical tax reporting to tax-efficient lifetime planning helps CPAs meet clients where they are now while avoiding future estate and income tax problems. These risks are found in expected places, such as a business interest or real estate, and unexpected places, such as large retirement accounts and annuity investments that are not needed for income. Approaching planning with an asset protection and wealth transfer mindset elevates the CPA’s already established status as a trusted advisor.
The Shift from Historical Reporting to Proactive Planning: Traditionally, most CPAs have not initiated investment tax planning advice. However, significant tax legislation in the Secure Act and Secure Act 2.0 have made tax planning advice a high priority, with the scheduled sunset of lower income and estate tax rates in 2026. CPAs can and should help clients take advantage of planning opportunities that will provide their clients with more income to spend and more money to leave to people and causes that matter. A tax planning check-up is a quick, informative place to start.
Enhancing Client Relationships: When CPAs take the initiative to discuss tax planning in the context of business succession, they open the door to planning that increases valuation and identifies obstacles to a third-party sale or internal succession. Rexford shares that most business exits, in his experience, are triggered events, not planned exits. Advance succession planning will, in most situations, broaden the market for buyers, improve transition outcomes, and connect succession planning to the client’s personal retirement planning needs. A business exit plan is only as effective as the selling owner’s income plan.
Establishing Clear Valuations: Succession planning should start with a first big question ─ what is important to the client? This discovery process is essential. The most common considerations to address first are income considerations and the tax and income risks of single filing status for married business families. A current business valuation will be required and should be determined in advance of conflict or major life events. Rexford describes this as having a healthy environment for business valuation.
About Rexford Cattanach
Rexford is president of Keats Group LLC, a comprehensive financial advisory firm. He works with successful business families to implement effective tax and income planning and practical yet effective asset protection strategies. He also manages our service relationships with specialists for complex tax and estate planning, business transitions, and company compensation and benefit plan approaches.
He writes and speaks on various succession and compensation planning topics for professionals and business owners. He is the lead author of InBusiness
, which features topics of planning interest to Private Clients.
Mr. Cattanach has served on community boards and other leadership roles in the Twin Cities, including the Board of Directors of Lakeview Health, a sole corporate member of HealthPartners health system, where he was chair of the physician and executive compensation committee, a member of the finance committee and the ad hoc committee overseeing the Lakeview Health integration with HealthPartners.
Rexford is a fiduciary, independent financial advisor who has completed over one hundred business valuations and transitions. For 19 years, he has volunteered as an academic tutor and mentor to at-risk K-12 children at Good Neighbor Center in Saint Paul, Minnesota. To recharge, he enjoys the quiet scenery of trail hiking, road biking, and Nordic skiing.
Learn More: https://www.keatsgroup.com/
Recent Interviews and News
- Rexford Cattanach Discussing Business Succession Planning Rexford Cattanach, President of Keats Group, Interviewed On the Influential Entrepreneur Podcast Discussing Business Succession Planning – Authority Press Wire
- Rexford Cattanach Discussing Tax Planning for High-Net-Worth Clients: https://authoritypresswire.com/rexford-cattanach-president-of-keats-group-interviewed-on-the-influential-entrepreneur-podcast-discussing-tax-planning-for-high-net-worth-clients/
Keats Group LLC is a comprehensive financial services company that provides investment, tax, and estate planning, asset protection, and pre-and post-sale guidance to private clients and business families. Keats Group and its agents and employees do not provide legal or tax advice. Investment services are offered as a fiduciary Independent Advisor Representative of Advisor Share Wealth Management, a Registered Investment Advisor (RIA).