Mervin Winston, Ltd. - Case Studies

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Mervin Winston, Ltd.
CPA's and Business Consultants
3033 Campus Drive Suite W115
Plymouth, MN 55441
Phone: 763-557-6030
Fax: 763-557-9030
E-mail: info@mwinstonltd.com

Case Study - Financial Analysis, Reporting, and Tax Planning

	Client Industry:	Professional Services - Legal

	Client Issue:	Late financial reports and lack of expense control

	Background:	Business with annual revenues of $2.5 million was operating on financial reports that were six to eight months late. The operations also needed improved expense control. The business owner was interested in bringing in two of his associates as partners and needed to determine an equity purchase plan.

	The Mervin Winston Ltd., Solution:	Executed an intense plan to bring financial reporting current within 30 days. Implemented monthly compilation process. Participated in a team of three to evaluate the business, develop an equity purchase plan for two partners, and develop the partnership agreement. Provided all financial analysis for the project. Implemented quarterly tax planning for the managing partner and majority owner. Proposed four to six meetings per year with the managing partner to discuss expense trends and areas of concern. Developed a formula for partner compensation considering partner equity, the existing business base and new business growth of the current year.

	The Results:	Business valuation completed. Partnership agreement completed. Financial reports are now current and are generated within 20 days after month end. Financial review with the managing partner assessing results and trends on a consistent basis. A partner compensation plan was developed and implemented.