Services for privately-owned businesses, we are Oldenburg Accountants and Advisors
Services for privately-owned businesses, we are Oldenburg Accountants and Advisors

Case Studies

$4MM Business Didn't Have Accounting System

The next generation business owner took over the reins of the company. The business didn’t have an accounting system. They used a job costing application that only recorded accounts receivable and accounts payable.


The business didn't have accurate corporate income tax returns and never had financial statements. It is a puzzle on what information the previous accountant used to prepare the tax returns. They were grossly inaccurate.


We set up the accounting component of the job costing application and trained the bookkeeper to ensure that all transactions were recorded.


We reconcile the accounting each month and prepare quarterly financial statements. We discuss the financials with the business owner and prepare comparisons with peers in the industry using the company's NAICS code.


The business owner has reliable financial statements to know the financial position and performance of the business. And he uses the industry comparison to focus on areas to improve the business.

Employees Purchased Business From Owner

Two employees of a small, independent book store wanted to purchase the business when the owner was retiring.


The owner had a sales price in mind but the new owners weren't sure that the price was reasonable considering that they were taking on debt to buy the business.


We did a cash flow projection which showed that the business would run out of cash in year three and would not be profitable at the price the owner wanted. We were able to come up with a price for the business that would be profitable and cash flow positive for the new owners.


The two employees shared the results of the cash flow projection with the owner and were able to buy the book store at a lesser price.

LLC Members Would Have Large Tax Liability on Selling the Business

The business was operating as an LLC. The business filed partnership tax returns. The new owners wanted to purchase the business intact because of existing contracts, leases and other agreements.


The members of the LLC would have a significant tax liability if they sold their interests in the LLC because of the unrealized receivables. They would pay income tax on $725K of receivables even though they would not have collected on the receivables.


We suggested that the LLC-partnership use the IRS "check-the-box" election and transfer its assets to a corporation. The LLC members would then sell the stock in the new corporation to the buyers. The LLC would remain in existence. Only the federal tax election would change.


The buyers were able to buy the business as a whole and the sellers were not going to pay income tax on money not yet collected from customers.

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1790 Nations Drive
Suite 215
Gurnee, Illinois, 60031