2016 Expert Estate & Tax Planning to Maximize $ from the Sale of a Business
Friday, March 18
730a to 850a
Westwood Country Club
Rocky River, OH
Are you planning to exit the ownership of a business or an investment? Do you want to maximize the proceeds of the sale while minimizing tax and other liabilities?
You should attend this panel discussion to learn some cutting edge estate and tax planning strategies that may help you meet your goals. You will also have the opportunity to meet other investors, business owners and senior managers and professionals who have similar interests to your own.
This event is organized by David Brown (also of Red Hawk Associates) and Ben Calkins (The Calkins Law Firm) of the Center for Free Enterprise.
Join these experts below and get insights to these questions and more along with Q & A on Friday, March 18 from 730a to 850a at Westwood Country Club. Check in and breakfast starts at 730a, Panel starts at 750a.
The Panel includes:
- Tim Malloy, SVP Estate and Charitable Planning Specialist – Key Private Bank
- Craig Welch, CFP, CLU, VP – Key Private Bank
- Ken Sable, JD, MBA – Bober, Markey, Fedorovich
Brett Hillard is a Senior Investment Analyst at Key Private Bank. Brett provides analysis and performs due diligence on alternative investments including hedge funds and private equity. As a member of the Portfolio Construction Strategies Team, he is responsible for quantitative risk analysis and integral to the long-term capital market forecast process. Previously, he performed valuations of closely held businesses. He holds the Chartered Financial Analyst and Chartered Alternative Investment Analyst designations. Brett received a BBA in Finance and Business Economics from Ohio University.
Bill Batcheller is a Senior Portfolio Manager in Key’s Family Wealth investment management function. In this role, he works closely with individuals and families to design customized investment solutions to meet their goals. Bill joined Key in 2012 with more than 30 years of investment research and management experience. He has appeared frequently on CNBC, Bloomberg Television and Radio, and in various publications, including the Wall Street Journal. Bill began his career in the Treasury Department of Republic Steel Corporation. He is a Trustee and member of the Executive Committee of the Lake View Foundation. Bill holds a B.A. in Economics from Union College and an M.B.A. from the Darden School of Business at the University of Virginia.
On a gloriously overcast morning in mid January, 46 souls gathered at the Cleveland Racquet Club to hear Bill and Brett’s analysis of the current and future investing environment with a special emphasis on Alternative investments. Alternatives are any investment that is not a traditional, long only fixed income or equity investment. Recent studies show that Alternatives investments total approximately $10 trillion. Alternatives are mostly comprised, for our discussion, of Private Equity, hedge funds, and Master Limited Partnerships (real estate, commodities and natural resources). Traditional investments are approximately $85 trillion.
Bill and Brett began with a summary of the current world and US economy. Both felt that volatility is increasing (born out by today’s drop in the Dow of over 500 points at one time) but their analysis of the economy does not indicate recessionary risk. A trigger of market volatility is the price of oil, which fell to near $29 per barrel today. While analysts expect less expensive energy to help the economy in the long run (when we are all dead), in the short run, consumers seem to be using it to reduce consumer debt (not to increase spending) while energy companies and their lenders suffer. Marathon Oil’s valuation has dropped 25% this year, for instance.
One astute member of the audience wondered whether the US had or could slip into the same type of liquidity trap that has ensnared the Japanese economy and seems to be threatening that of China’s. The panelist’s felt that was very unlikely for several reasons, a prime one being the American economy’s much more vibrant and youthful demographic composition due to its immigration policies.
The panelists estimated that over time, the inflation rate should return to the mean, about 2 to 3%. Interest rates should rise to 2%. Investors will find Alternatives an increasingly appealing investment type because of, in the short term, their non correlation characteristics and, in the long term, their higher mean returns relative to those anticipated in the Public Equity markets (5-6%).
Brett discussed at some length his experience with the Private Equity investment class. He mentioned that Key has 20 or so PE funds in its portfolio. When he analyzes these funds, he pays special attention to a history of success, continuation of investment philosophy and the ability to fund raise. He focuses on funds that prove they can add value through business management rather than financial engineering. The PE class, aside from its absolute return attractiveness, also has tax advantages that other classes, such as hedge funds, do not.
Finally, Bill and Brett both discussed the importance of tailoring a portfolio management strategy to one’s own goals and wealth. A good reminder as we prepare for the future.
If you attended this Panel, thank you and I hope you enjoyed it. If you could not make it, our next Panel presented by the Center for Free Enterprise and sponsored by Key Private Bank will be at 730a on March 18, 2016 at Westwood Country Club.