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CASE STU DY MK&A was involved in key milestones for this training company, helping it focus its financial strategy and avoid costly missteps in its business decisions. FTT has been a leader in offering practical, theory and skill-based training on all vehicular handling equipment since 1978. THE CHALLENGE In 2000, the founder and owner of FTT sold the company to a group of private investors and stayed on as a board member with expectations of nationwide expansion and company growth. However, shortly thereafter the new executive’s mismanagement and misunderstanding of the fundamentals of the industry resulted in FTT’s financial decline. The founder could no longer stand on the sidelines. He proposed to buy the company back, but required expert assistance for this highly sensitive transaction. Arthur Brook, founder of FTT, began working with MK&A in 2001 with two goals in mind: Purchase FTT back from a group of investors under new terms that were financially beneficial to him. Partner with a financial business advisor who would be there every step of the way to assist in turning FTT around and help with a transition strategy down the road. “Running the company is one thing, but when it comes to accounting and financial considerations, it’s totally different.” ~ Arthur B rook, Founder, FTT CA S E S T U D Y “MK&A are not just accountants, they’re business advisors in all aspects: wealth management, investment, accounting, forward vision; helping you and your business in every way.” ~ Arth u r Bro o k, Fo u n d e r of F T T THE SOLUTION Purchase FTT back under better financial terms 2001 Negotiate a financing and payment plan for the purchase When MK&A started working with Arthur, the aim was to support the company through the buy-back, leaving both Arthur and FTT in a stronger position. On the brink of bankruptcy with a deficit of $600K+ GET IN TOUCH WITH US Turn FTT around to become a profitable organization once again By 2016, FTT is a multi-million dollar company. Work on a personal estate plan to eventually transition the company “MK&A helped put the will together in terms of all the different scenarios that I wouldn’t think about. Michael was a huge help.” ~ Arthur Brook "There was money owed to the group of investors and that’s where MK&A really came in and helped save over $100,000 through the process of financing and negotiation," says Matthew, general manager at FTT. “MK&A also helped us with selling office units, and they helped us structure the transactions such that there were no capital gains taxes. If we had done it on our own, we would have erroneously treated it as a typical real estate transaction. MK&A handled everything. All we had to do was pick up the cheque and drop off the keys.” Today, MK&A continues to support the company’s growth. “MK&A continuously provides unique suggestions as to how we might grow the company,” says Arthur. “They understand our market; for example, our business has been affected by the decline of manufacturing and so we’ve needed to head in a different direction. We always get MK&A’s input on what we’re doing as a business and their suggestions are invaluable. They look after us.” If you’re looking to maximize the value of your work at both a personal and business level. Tatyana Khazova Accountant (905) 731-8977 [email protected] www.mkateam.com today UNIQUE SERVICES RENDERED • Company buy-back negotiation • Personal investment planning • Estate planning • Exit strategy and succession planning • Tax-effective sale of real estate - proposal, negotiation and finalizing ACCOUNTING SERVICES RENDERED • Tax minimization strategies • Annual financial statements • Personal and business tax filing