Fortitude Business Consulting brings a wealth of knowledge and extensive experience to help business owners in all industries. We specialise in helping owner-operated businesses, and we are trained and experienced in all aspects of business. We let you bring your industry knowledge to the table and allow you to benefit from our wide range of industry experience. We promote cross-industry idea pollinisation and innovation to help you achieve the profitability, security and lifestyle you seek.
Case study: Restructuring to secure your business future
Business structures are an important way to provide for business growth, managing tax, asset protection and succession planning. Unfortunately, many business owners’ structures are not optimised for their needs.
The owners of a rural supplies business fell victim to their previous adviser’s short-sightedness. In particular, their business structure unnecessarily:
Exposed their house, personal and critical business assets to risks associated with operating a business
Limited the flexibility needed to support their future growth plans
Prevented using tax losses associated with a new venture
Limited access to the corporate tax rate and increased overall tax payable
How we helped
We undertook a review of our clients’ business structure by:
Recommending a business structure that suited their current and future needs
Giving specialist tax advice on the tax consequences and available concessions of a proposed restructure
Implementing the restructure, including:
Forming a new holding company
Selling the shares in the existing trading company to the new holding company
Selling business operated by the unit trust to a new trading company
Winding up the existing unit trust
Valuing the business and shares
Overseeing the resignation of directors, share transfer, tax elections and ASIC lodgements
Removing the trading company director from the main residence title.
The benefits of the restructure were significant. These included:
Improved asset protection for $1.5m in current assets and protecting future wealth
Greater flexibility to support ongoing business growth plans
Locking-in a $1.3m cost based on their interest in their businesses
Saving $270,000 in capital gains tax
Tax savings on a deductible interest expense of $25,000 per annum, along with other annual tax savings resulting from better group tax position management
"We have been working with Grant for more than 20 years and have relied on his expertise during the acquisition, growth and sale of a range of business ventures through this time. He has a sound appreciation for our personal goals and provides us with the high-level business advice and support we need to make the most of our opportunities. His breadth and depth of knowledge, negotiation skills and in particular his ability to bring new ideas to our businesses, have been a significant asset that continues to play a pivotal role in growing and protecting our business and realising our long-term dreams."